States use one of four methods to determine an employer’s experience rate: reserve ratio (most common), benefit ratio, benefit wage ratio, and payroll stabilization.
Reserve Ratio = Unemployment taxes paid – Benefits Charged
_____________________Average Taxable Payroll
Benefits Ratio = Benefits Charged
______________Total Taxable Payroll
Benefit Wage Ratio = Benefit Wages Paid
___________________Total Taxable Payroll
Payroll Stabilization. Currently Alaska is the only state utilizing this method. Under payroll stabilization, the employer’s tax rate is determined by quarter to quarter, and year to year payroll fluctuations. Essentially, as more employees ...
Child employed by parents. Payments for the services of a child under age 18 who works for his or her parent in a trade or business are not subject to Social Security and Medicare taxes if the trade or business is a sole proprietorship or a partnership in which each partner is a parent of the child. If these payments are for work other than in a trade or business, such as domestic work in the parent’s private home, they are ...
Every day, we see or hear about someone who has been a victim of identity theft. It often happens when confidential information is electronically transmitted through an unsecure email connection. Because this is a growing problem, we felt that we had to take steps to protect you and our own business from this kind of unnecessary risk and worry.
After much research, we are pleased to announce that we have integrated a sophisticated and powerful security software solution here in our office. ...
The U.S. Postal Service recently announced that it is moving ahead with plans to close at least 223 processing centers and thousands of post offices, adding to the 153 centers and 965 post offices that have closed since 2008. The moves are part of a wide-ranging cost-cutting strategy for an agency that estimates it will lose up to $18 billion a year by 2015.
We have already encountered clients experiencing postal delays due to these changes. We wanted to be proactive and ...
If you are a small employer. . .
With fewer than 25 full-time equivalent employees?
That pays an average wage of less than $50,000 a year?
And pays at least half of employee health insurance premiums?
. . .then there is a tax credit that may put money in your pocket.
What You Need to Know about the Small Business Health Care Tax Credit
How will the credit make a difference for you?
For tax years 2010 through 2013, the maximum credit is 35 ...
IR-2012-23, Feb. 16, 2012
WASHINGTON –– The Internal Revenue Service today issued its annual “Dirty Dozen” ranking of tax scams, reminding taxpayers to use caution during tax season to protect themselves against a wide range of schemes ranging from identity theft to return preparer fraud.
The Dirty Dozen listing, compiled by the IRS each year, lists a variety of common scams taxpayers can encounter at any point during the year. But many of these schemes peak during filing season as people prepare their ...
Congress Passes Full Year Extension of 2% Payroll Tax Cut
On February 17, the U.S. Senate and House of Representatives passed H.R. 3630, the Middle Class Tax Relief and Job Creation Act of 2012 (Tax Relief Act of 2012). The bill now goes to President Obama for his signature, and he has indicated he is in favor of the legislation.
The Tax Relief Act of 2012 extends until the end of 2012 the reduction in the social security tax rate paid by employees ...
Expanded Work Opportunity Tax Credit Available for Hiring Qualified Veterans
The VOW to Hire Heroes Act of 2011 made changes to the Work Opportunity Tax Credit (WOTC). The Act added two new categories to the existing qualified veteran targeted group and made the WOTC available to certain tax-exempt employers as a credit against the employer’s share of social security tax. The Act allows employers to claim the WOTC for veterans certified as qualified veterans and who begin work before January 1, 2013.
Winter 2012 Edition - February 13, 2012
Print Version of Newsletter (PDF)
401(k) Questionnaire Interim Report – comments and highlights
Use an employee’s entire calendar-year compensation for determining employer contributions to SIMPLE IRA plans
April 30 deadline for employers to adopt and submit determination letter applications for pre-approved defined benefit plans
What’s a reasonable interest rate for participant loans?
Before you take a loan from your retirement plan, there are a few rules you need to know
Tips for Form 5558 requests for extension to file ...
Times are tough. As a business owner, would eliminating a large down payment for your workers' compensation insurance interest you? You know how important it is to manage cash flow on a day-to-day basis and that's not always easy when you have to come up with a down payment that may be as much as 25% of the premium for your workers compensation policy.
Good News, DirectPay Payroll Services AND The Hartford have a solution!
XactPAY® allows you to pay your Hartford Workers' ...