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What Small Business Owners Don’t Know Can Hurt Them Unless….
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 of the latest rules is a full-time job that most small business owners don’t have the [...]
Get the 411 on W-2 Forms! What the IRS Needs You to Know.
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 current coverage. The new ruling includes most employers. Federally recognized Indian tribal governments are exempt from the [...]
941 Penalties can be staggering! Don’t let these important taxes slip through the cracks!
As a business owner, you know there’s more to payroll processing than just signing a paycheck every week. That’s why so many companies turn to us to help with this important aspect of their business. If you think not filing your 941s or filing them late is an option, think again. Penalties can be staggering. In fact, there have been continued initiatives in the U.S. Senate to investigate tax penalties for small business. You don’t want to have problems with the IRS. Fiscal year. Year-end. End of the quarter. Monthly. Do you sometimes feel that there’s a report that must [...]
DirectPay Proudly Announces DirectHR for Small Business
DirectHR! A Better Way to Manage Your HR Functions DirectHR Basic Program Available 24 hours a day, 7 days a week, you can access the online HR Support Center for all of your HR needs. Resources include: Employee Handbook: Downloadable and customizable. Policy Library: Library of standard business policies. State and Federal Laws: Written in easy to understand terms. HR Forms: Library of business, state and federal forms. 3-Minute HR Audit: Assess the effectiveness of your HR functions. eAlerts: Instant notification for important law updates. HR Checklists: Checklists to help organize business tasks. HR Guides: Various guidelines providing helpful [...]
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 consistent increases to the Social Security wage base over the course of the next few years. Projected increases are [...]
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, you will owe an additional 0.3% in FUTA taxes. When the list of credit reduction states is released at [...]
