Pay compression happens when the pay gap between newer and longer-tenured employees shrinks, often because starting salaries rise faster than existing raises.
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Payroll Tips, Training, and News
Employer Student Loan Repayment: Up to $5,250 Tax-free Permanently
July 30, 2026If you’re looking for a new benefit to offer employees, you might consider employer student loan repayment. The benefit itself isn’t new, but it got a tax-exemption makeover in 2020 thanks to the CARES Act and Consolidated Appropriations Act. And in 2025, the One Big Beautiful Bill Act made the tax exemption permanent.
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Form W-9 vs. W-4: What Are the Right Forms for Employees and Contractors?
July 28, 2026You must withhold the right amount of taxes on employee wages when paying employees. But what if you need to pay an independent contractor? To keep tax information straight between independent contractors and employees, you need to know the difference between Form W-9 vs. W-4. Read on for the scoop.
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IRS Electronic Filing Requirements: Who Needs to E-file?
July 28, 2026You may have to file information returns like Form W-2 and Form 1099-NEC when you have employees, work with independent contractors, or meet other requirements. Some businesses must electronically file these returns with the IRS. There is an IRS electronic filing threshold that determines which companies must e-file.
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How to Set up Payroll for a Small Business
July 28, 2026Hired your first employee? Check. Set a start date? Check. Ready to process payroll? Not quite yet. Before you can start paying your employees, there are a few steps you need to know and some terms to learn. This handy payroll 101 guide explains how to set up payroll the right way so you can […]
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What Are Payroll Taxes?
July 28, 2026Employers juggle many responsibilities, including calculating and withholding payroll taxes and other deductions. But, what exactly does payroll taxes include? And, how do you know how much to withhold from employees’ wages? If you’re wondering about understanding payroll taxes, never fear. Your payroll taxes breakdown is here.
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How to Maintain Payroll Accuracy During Periods of Rapid Hiring
July 24, 2026Key Takeaways − Rapid hiring multiplies payroll complexity and the risk of mistakes. Standardize processes, use checklists, and centralize data to maintain accuracy. The right payroll software can automate calculations, taxes, and onboarding tasks. Regular audits, clear roles, and training keep errors from snowballing as you grow. Why payroll gets risky when you are hiring […]
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When Is Rounding Employee Time Illegal?
July 22, 2026Key Takeaways − You can round employee time in some cases, but it must be neutral, not one-sided. Federal law (FLSA) allows rounding in small increments (e.g., 5, 6, or 15 minutes) if it does not consistently favor the employer. Rounding is illegal when it regularly shortchanges employees, especially minimum wage or overtime pay. Some […]
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Navigating Local, State, and Federal Minimum Wage Discrepancies
July 20, 2026Key Takeaways − When minimum wages conflict, you generally must pay the highest applicable rate. You may need to compare federal, state, and local (city/county) rules for each employee. Multi-state payroll means tracking different rates, different rules, and different effective dates. Document your process, update rates on time, and use tools like payroll software to […]
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How to Future-proof Your Small Business Payroll Before Tax Laws Change (Again)
July 17, 2026Key Takeaways − Tax laws change constantly, and payroll is usually the first place you feel it. You do not need to track every new rule yourself; your payroll system should do the heavy lifting. Future-proofing payroll means automating tax calculations, staying updated through your software, tightening your data, and standardizing processes. Patriot’s payroll software […]
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