Payroll Articles

Payroll Tips, Training, and News

The Trust Fund Recovery Penalty: Personal Liability for Late Payroll Taxes

Key Takeaways − The Trust Fund Recovery Penalty (TFRP) lets the IRS hold individuals personally liable when a business fails to pay certain payroll taxes. “Trust fund taxes” are the federal income, Social Security, and Medicare taxes you withhold from employees’ paychecks. If you don’t deposit or pay these taxes, the IRS can come after […]

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How to Request an Abatement of Payroll Tax Penalties from the IRS

Key Takeaways − If you file or pay payroll taxes late, the IRS can charge costly penalties and interest. You may be able to get penalties reduced or removed (abated) if you qualify for First-Time Abatement (FTA), or can show reasonable cause (e.g., serious illness, natural disaster, records destroyed). To request abatement, you usually: confirm […]

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Restaurant Payroll, Simplified: The Best Payroll Process for Restaurants

Quick Answer: To run restaurant payroll, collect timesheets and tip reports, calculate gross pay (including overtime, multiple rates, and tips), apply withholdings and employer taxes, and pay employees on a compliant schedule. For tips, require monthly reporting (at least $20 in tips) and withhold FICA and income tax; consider the FICA tip credit (Section 45B). […]

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Essential Payroll Audit Procedures You Can’t Afford to Ignore

Running payroll accurately is arguably one of your most critical employer responsibilities. But even if you use a reliable payroll processing system, there’s room for user error. You might input numbers incorrectly, forget to add an employee’s pay raise, or fail to remove a terminated employee from your payroll. To combat these potential problems, conduct […]

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