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 ...
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 ...
Even the most savvy entrepreneurs sometimes have a difficult time keeping up with payroll taxes. According to howstuffworks.com, payroll taxes can create trouble, because “Complicated tax forms must be filled out and filed on an annual, quarterly, sometimes even weekly basis. Missed deadlines and improper tax filings can result in steep fines and even jail time.” A business owner managing payroll can be a huge time waster. That’s bad for the owner and bad for the company. Sitting in the office ...
How important is it that a small business owner stays informed?
Information is absolutely critical to small business owners and managers. The problem is, it changes daily, even hourly at times.
Keeping up with the latest rules, regulations and appropriate procedures for operating a small business can make the difference between successful entrepreneurs or just great ideas that never get to grow.
Some of the most important, ever-changing and critical aspects of business operations are payroll, taxes and HR policy compliance. Staying on top ...