Most of us would agree with the following statement: Employee wages are taxed federally and at the state level. But this isn’t always the case. Some employees can state income tax exemption.
Read More State Income Tax Exemption: Exempt or Not Exempt? That Is the QuestionPayroll Taxes Articles
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The Working Condition Fringe Benefit Is Tax-free. Who Knew?
For many employers, nothing’s more confusing than employee benefits and payroll taxes. Are there any fringe benefits that are exempt from all payroll taxes? Yes, there are, and the working condition fringe benefit (spoiler!) is one of them.
Read More The Working Condition Fringe Benefit Is Tax-free. Who Knew?
What Is Imputed Income?
As an employer, you are likely familiar with reporting regular wages and taxes withheld on Form W-2. But, are you aware that you must report other amounts or payment types, such as imputed income? Learn what is imputed income, types, and how to report imputed income.
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Family Taxation: Are You Legally Taxing Your Loved Ones?
Approximately 90% of small businesses are either family-owned or run by family members. If your business falls into the majority, you’ve likely hired a few (or more than a few) family members to work at your company. If you employ relatives, you need to make sure you’re staying legally compliant and taxing them correctly. Otherwise, […]
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Your Guide to Take-home Pay
As an employer, you are responsible for withholding various taxes from employees’ wages. After you subtract all of the taxes and other deductions, money left over is considered take-home pay. Read on to learn more about what is take-home pay and how to calculate it.
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Form 943: What to Know About Agricultural Withholding
Various types of employers must withhold taxes from employees’ wages, including employers hiring farm workers. If you are an agricultural employer, you likely withhold taxes from your employees’ pay. And, you are responsible for reporting wages on IRS Form 943. So, what is Form 943?
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What Is a Tax Gross up for Payroll?
There might be a time you want to pay an employee a specific amount. But once you factor in taxes, that amount gets smaller. So how can you give an employee a certain net pay? Tax gross up.
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For Payroll Adjustments, There’s Retro Pay
Sometimes, payroll mistakes happen. If you pay an employee less money than you should have during a pay period, you owe them retro pay. What is retro pay?
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The Dangers of Doing Payroll by Hand and How to Avoid Them
Doing payroll by hand can save your business money if you do it correctly. There are all sorts of laws, calculations, and taxes that you have to implement with precision. But, small business owners are busy, and many who do payroll by hand often make costly mistakes.
Read More The Dangers of Doing Payroll by Hand and How to Avoid Them
The 0.9% Additional Medicare Tax You May Need to Withhold
Calculate wages. Withhold taxes. Repeat. That’s the cycle of running payroll for you. But every so often, you’ll get a curveball that changes tax rates. And if an employee earns beyond a certain amount, that curveball is the additional Medicare tax.
Read More The 0.9% Additional Medicare Tax You May Need to Withhold