Social Security Wage Base Increase Predicted for 2013

After a three year long hiatus without an increase to the Social Security wage base, 2012 saw an increase of 3.1% increasing the 2012 wage base to $110,000 from $106,800. In 2009 the Social Security wage base jumped up 4.7% from the 2008 Social Security wage base of $102,000 to $106,800. Although the wage base of $106,800 held steady for three years, the next few years predict a steady increase in the Social Security wage base. Informal projections will likely bring ... Read more

What kind of employment taxes can you expect for your new employee?

As an employer, you are required to pay certain employer only payroll taxes. Social Security/FICA, although lowered to 4.2% for the employee portion, remains at 6.2% for the employers match up to the first $110,100 in wages for 2012. Also required is a 1.45% Medicare match with no salary cap. FUTA must be calculated at a rate of 0.6% for the first $7,000 in wages. However, keep in mind, if your state falls in a credit reduction state for the year, ... Read more

Students are Not Automatically Exempt from Federal Withholding

It is commonly thought that if you are a student, then you are exempt from federal income tax withholding. This is not necessarily the case. High School and College students must meet the same criteria as all other U.S. Citizens to be considered exempt from federal income tax withholding.  Regardless if you are a student or not, you are not exempt from federal income tax withholding if: Your annual income is greater than $950 including over $300 of unearned income such as ... Read more

DirectPay Payroll Services is looking for Motivated Sales Representatives!

We are looking for Sales people in the Charlotte area. Please send resume via email to beth@directpaypayroll.com Our objective is to provide full service payroll and tax filing services for small to medium size businesses in and around the Southeast. What makes our company an industry leader in the Charlotte area is our focus on excellence and our passion for impeccable customer service. Our sales team is the face of our company and needs to demonstrate these traits. Ideally, our candidate will ... Read more

“Voluntary” Employee training: Paid or Unpaid?

Well, just calling it voluntary ain't gonna cut it if you want to get out of paying for employee training.  If you are offering additional off-duty training to your hourly employees, you'll need to adhere to some FLSA guidelines. If the training is being touted as voluntary, but your employees get the impression that they will be adversely affected by not attending, this will not suffice. Listed below are some indications that will clear up some contrived "voluntary" training is truly mandatory ... Read more

W-4 Requirements for Employers

All employers should have their employees complete Form W-4, Employee's Withholding Allowance Certificate in order to know the correct amount of income tax to withhold from employees' wages. New employees should be asked to submit a signed Form W-4 when they begin work, and the form should be effective starting with the first wage payment. Any employee exemptions need to be indicated on their form W-4 and kept on file.  If a new employee does not submit a completed Form W-4, ... Read more