New W-4 Form: Withholding Allowances Still Out, Plus New Computational Bridge
In 2020, the IRS released the long-awaited new W-4 form, shaking up how employers handle income tax withholding. Because the IRS only made the new form mandatory for new hires and employees making Form W-4 changes, some employers might be unfamiliar with it. Other employers are too familiar with the…Read More
Updates to the Income Tax Withholding Tables and What You Need to Know
Like past years, the IRS released changes to the income tax withholding tables for 2021. Use these updated tables to calculate federal income tax on employee wages in 2021. In addition to the annual tax rate and bracket changes, there is also a new, optional computational bridge. Confused? Staying on…Read More
Paycheck Protection Program: How to Apply for a Forgivable Loan During COVID-19
Does your small business need financial assistance as a result of the coronavirus pandemic? If so, one of the biggest federal initiatives for small businesses is the Paycheck Protection Program. Want to know more about eligibility, important dates, and the application process? We’ve got you covered. What is the Paycheck…Read More
Consolidated Appropriations Act: Hello, New COVID-19 Relief
Between a worldwide pandemic and numerous COVID-19 relief laws to keep up with, 2020 was a whirlwind of a year. And, it looks like the start of 2021 is following in 2020’s footsteps. After a lot of back and forth, the president signed the Consolidated Appropriations Act 2021 (also called…Read More
Desperate for a Startup Payroll System? Here’s What to Look For
Financing. Choosing a business structure. Hiring employees. Getting licenses and permits. As you cross these tasks off your business startup checklist, you might begin to lose a little momentum. And then you see—towards the bottom of your list—Set up a payroll system… …Sigh. At this point, you’re tired. You just…Read More
Everything You Need to Know About the Eugene Community Safety Payroll Tax
Attention Oregon employers! Specifically, attention employers in Eugene, Oregon. A new type of payroll tax is coming your way in 2021. Learn all about the Eugene Community Safety Payroll tax and whether or not you need to withhold and remit it to the city. What is the Eugene Community Safety…Read More
Understand the Difference Between Exempt vs. Nonexempt Employees
Employees want the wages they deserve. Employers want to avoid penalties and fines. Want the best of both worlds? Understand the difference between exempt vs. nonexempt employees. Then, correctly classify your employees. That way, your team gets the wages they deserve, and you can skip the penalties for misclassifying your…Read More
What Is Form 944, and How to Know If You Need to File One
As an employer, you must withhold certain taxes from employees’ wages. Then, file and deposit them with the proper agencies. One form your business may need to file to report payroll taxes withheld from employee wages is Form 944. Read on to get the scoop on what is Form 944…Read More
How to Fill Out Form W-2: Box-by-box Breakdown
Once you send Forms W-2 to your employees, you don’t have to worry about the annual form until next year. Or, do you? If you don’t know how to fill out Form W-2, you may run into problems. Your employees might come to you with questions about Form W-2. And,…Read More
A Year-end Payroll Checklist to Finish the Year Strong
As the year comes to a close, you might be gung-ho about all the goals you want to achieve in next year. But before you can get the ball rolling in the new year, you have to wrap up some things in the current year—including your payroll. There are a…Read More
Are Gift Cards Taxable?
Want to show your employees you appreciate their hard work throughout the year? You might decide to distribute gift cards to your employees. But before you start doling them out, you need to know …. Are gift cards taxable? First, the technical stuff This IRS has rules on employee gifts…Read More
A Quick Guide on How to Do Payroll Yourself
If you’re thinking about hiring employees, you need a plan for payroll. But with the added expense of wages and benefits, you might not be too keen on the high price tag that comes with outsourcing payroll. Fear not—you can learn how to do payroll yourself. How to do payroll…Read More
The Social Security Wage Base Is Your Cue to Stop Withholding This Tax
Paying Social Security tax is a time-honored tradition—since 1937, to be exact. Both employers and employees pay the tax. But when an employee hits the Social Security wage base, it’s game over for withholding and contributing the tax. Although the Social Security tax rate itself generally does not change from…Read More
Whoops! Use IRS Form 941-X to Correct Errors Made on Your Quarterly Form
Picture this: You fill out your quarterly Form 941 and submit it to the IRS. Everything seems fine and dandy … until you realize you made a mistake on the form. The panic sets in, and you’re left wondering what to do. Instead of stressing about the blunder, learn how…Read More
Break Your Employees Off a Piece of That … Paid Time Off?
Thinking about giving your employees paid sick or vacation days? Why not combine them under one paid time off plan? The U.S. Bureau of Labor Statistics (BLS) says that 41% of private sector workers have access to a consolidated leave plan. That means employees can use paid time off for…Read More
Can’t Make Payroll? Here’s What You Can Do
Help, I can’t pay my employees! If this thought has ever crossed your mind, you know how scary it can be. Realizing you can’t make payroll might make you feel anxious, embarrassed, and helpless. But, it doesn’t have to. There are a number of things you can do if you…Read More
Changes to W-2 Reporting for Tax Year 2020? You Can Thank COVID-19
If you thought keeping up with yearly tax law changes was hard enough, you might not be happy to hear this news. There are a couple changes to Form W-2 reporting you may need to pay attention to. Read on to learn about important changes to W-2 reporting for tax…Read More
6 Steps to Creating and Sticking to Your Payroll Calendar
Employer A runs payroll at the same time every regular pay period. No hiccups—just a smooth, reliable process. Employer B tends to scramble, often forgetting about cutoff periods and being forced to expedite payroll. Quite stressful, and a bit expensive after a while. The difference? Employer A uses a payroll…Read More
Which States Have Reciprocal Agreements … and What Does That Mean?
Do you have an employee who lives in one state but works in another? If so, you typically withhold state and local taxes for the work state. The employee would still owe taxes to their home state, which could turn into a hassle for them. Or could it? Cue reciprocal…Read More
What in the World Is a Fringe Benefit Rate?
As an employer, you probably offer your employees some types of fringe benefits. From health insurance to employee stock options to paid time off, there are a number of benefits out there. These benefits can impact your fringe benefit rate. So, what is a fringe benefit rate? Fringe benefits overview…Read More