As a business owner or manager, there are two things that create particular stress points in connection with room for error, financial loss, and legal liability: payroll and taxes.
Did you know payments to part-time, full-time, or contract workers are deductible, but that if you use taxes withheld from employees to fund your operations, you are personally liable for paying back the IRS with possible added penalties?
Common Payroll Mistakes:
Setting up your payroll incorrectly
Falling behind on tax payments and filings
The Department of Labor and the Internal Revenue Service have joined together in an initiative to end the practice of misclassifying employees as independent workers or contractors.
Millions of workers are misclassified as independent contractors instead of employees, which represents millions in lost payroll tax payments that are used to pay for programs such as Social Security and Medicare.
If violations are reported, an employer could be subjected to penalties that include 20 percent of all the wages paid, plus 100 percent of ...
New online resource is available from the IRS to help you understand the Affordable Care Act (ACA) and ACA tax implications. IRS Publication 5187
The IRS has released a list of states that have defaulted on their 2012 Federal Unemployment Insurance Loans causing employers in these states to owe additional FUTA tax for the tax year 2012.
The following are the FUTA tax rate increases for the affected states and credit reductions:
New Jersey 0.6%
New York 0.6%
North Carolina 0.6%
Rhode Island 0.6%
Virgin Islands 1.5%
This rate will be applied to the 1st $7,000.00 that each ...
At Christmas time in 2003 Frankie's Restaurant on Morehead Street had to close because of a fire in the kitchen. Everybody loved Frankie's and the loyal clientele of the mainstay hangout waited patiently, passing news by word of mouth until news came that Frankie's was seating again. Frankie's was a great place. The crowd was loyal.
But then in October of 2009 the Charlotte Observer ran a shocking headline that read very simply, "Frankie's Restaurant Closes Its Doors." Reporter Jen Aronoff said ...
Beginning with the current tax year, employers are required to report the cost of coverage under an employer-sponsored health plan.
That means that on W-2 forms that go out in January 2013, the cost of this coverage must be listed. But this cost is not taxable income and continues to be excluded from an employee’s income.
The information can provide employees with helpful consumer information. If they are shopping for health care coverage, it gives them an idea of the cost of their ...