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Archive for Payroll Taxes

Managing Payroll for a Growing Business

If you are like most small business owners, you are looking forward to 2015 and planning for your business to grow next year. Economic indicators offer some cause for optimism, including a job market that seems to be improving. In the midst of an improving economy, maybe your business is looking to expand and hire more employees. If so, you should consider whether or not you are ready to handle the additional employees from a payroll standpoint. (more…)

Posted in: Operating a Small Business, Payroll, Payroll Processing, Payroll Taxes

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Did Your 1099s Get Out on Time?

Oh, those pesky deadlines. Doesn’t the government realize that you, as a small business owner or solopreneur, have a million things on your plate all the time? You know in your head that doesn’t matter, a workplace deadline for employee tax reporting has to be met. But… (more…)

Posted in: IRS and Tax forms, Operating a Small Business, Payroll, Payroll Taxes

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SPECIAL NOTE! 3 Mandatory Employee Notices Due in January

Most small business owners know that they need to distribute their business’s 2014 W-2 forms to their employees before the end of January. But did you know that you also need to supply other year-end employee notices, too?

Tax reporting deadlines in payroll matters come fast! Are you reading?Annually, you should review all requirements concerning Federal and state employee notification reports, especially those containing supplemental tax information for your employees. You should prepare and distribute any mandatory reports to your employees to help them fulfill their personal tax filing obligations. Some mandatory notices that you’re required to provide to your employees include:

  • The special accounting rule/no federal income tax withholding on personal-use auto notice. If you provide employees with a company vehicle that they can drive for personal use, in most cases, this personal use is considered a taxable fringe benefit. As an employer, you’re responsible for withholding taxes on the fair market value (FMV) of this benefit, which is determined at least once a year. If you determine the FMV based on monthly valuations, you can simplify your tax reporting by using a special accounting rule that allows you to use the value of the fringe benefit for November and December of the calendar year, and combine that valuation with the value of the first ten months (January through October) of the following year. If you used this special accounting rule in 2014 to determine FMV, or you plan to not withhold federal income tax from the value of your employee’s personal use of company vehicles in 2015, you must provide employees with a notice by February 2, 2015. For more information, refer to the IRS Employer’s Tax Guide to Fringe Benefits.
  • Charitable contributions report. If your employees make charitable contributions to national or local non-profit organizations through payroll deductions, you’re required to report to each employee the annual total of charitable contributions the individual made. Consider using box 14 of the Form W-2 to report this annual total.
  • Earned Income Tax Credit (EITC) notice. The EITC is a tax credit for low-income working families. For federal purposes, the back of Copy B of the Form W-2 includes eligibility information about the EITC for your employees that meets notification requirements. However, some states may require a separate notification (other than the Form W-2, Copy B) and have a different annual deadline for notifying your employees about the EITC. To get the word out about this tax credit, January 30, 2015 is EITC Awareness Day.

Besides mandatory employee notifications, you also should consider processing and distributing other reports that may be helpful to your employees in completing their taxes as well.

If you need help identifying all of the mandatory and optional employee notifications your small business should make, contact The Payroll Department at 317-852-2568. By engaging the services of a professional payroll services provider, we’re your experts in all things concerning your payroll.

– Ariane of The Payroll Department Blog Team

Posted in: IRS and Tax forms, Payroll, Payroll Processing, Payroll Taxes, Rules, Regulations and Laws

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A Different Perspective on Small Business Payroll Taxes

There is no question that running a small business today is tough. Every expense and additional small business taxes makes it harder to make a profit and stay in business.

But small business owners and entrepreneurs have one thing to be thankful for… most of them don’t have to pay luxury taxes. Now if you will stretch your imagination and consider Major League Baseball teams as businesses, I’d like to share a recent news bit. (more…)

Posted in: Payroll, Payroll Processing, Payroll Taxes

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Average Pay Increases of 3% Expected in 2015

Financial experts are saying that pay increases in 2015 are likely to average about 3% – just about the same as average increases for the last two years. Inflation is currently running about 2.1% so that means the average employees are barely keeping ahead of inflation. (more…)

Posted in: Churches and Non-Profit Employers, Payroll, Payroll Processing, Payroll Taxes

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7 Payroll Pitfalls for Small Business Owners

7 Payroll Pitfalls for Small Business Owners

As an ambitious entrepreneur, interested in launching your own small business, The Payroll Department understands that you have a lot on your mind. As you make big decisions about the future, there’s a lot to consider. You’ve got to mull over the possibilities involving location and leased space for your workspace, logos, employees and training needs. You’ve got to juggle so many different scenarios just to somehow assure yourself success. But did you know that when small business owners fail, one of the reasons is frequently traced to taxes and payroll mistakes? These are the top reasons small business owners find themselves in hot water, heated directly by the flames of the IRS: (more…)

Posted in: IRS and Tax forms, Payroll Taxes

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Employers Paid $4.5 Billion in Payroll Tax Penalties

The IRS recently published data saying they handed out 6.8 million fines to U.S. employers as of the end of September, 2013, because of botched payroll taxes. According to an article in The New Entrepreneur, these penalties amounted to $4.5 billion that employers owed the government. (more…)

Posted in: IRS and Tax forms, Payroll, Payroll Taxes, Rules, Regulations and Laws

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Outsourcing Payroll is One Way to Demonstrate Responsible Leadership for Entrepreneurs

While her friend, Jasmin, poured her heart out to her, Olga sat quietly behind her desk. She was being a good friend by listening so intently. She was being an even better friend by biting her tongue instead of saying, “I told you so.” Jasmin began to sob as she explained that she was now in trouble with the IRS. (more…)

Posted in: IRS and Tax forms, Payroll, Payroll Processing, Payroll Taxes, Rules, Regulations and Laws

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Is Payroll a Ticking Time Bomb in Your Business?

At one time or another, every small business owner begins to feel like a circus juggler. Before they call on The Payroll Department, they try to stay in the know about employee training and performance, customer service, production and cash flow. For those entrepreneurs who are just starting out, they find themselves serving as the office decorator, plumber and housekeeping crew. (more…)

Posted in: IRS and Tax forms, Payroll, Payroll Processing, Payroll Taxes

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Understanding the Taxability of Fringe Benefits

I’d like to think that most business owners truly want to have employees who feel appreciated and are generally happy with their jobs and their compensation.  Happy employees generate a positive work culture which is contagious, spreading not only among employees but also to customers and clients as well.  (more…)

Posted in: Benefits and Health Care, Payroll, Payroll Taxes, Rules, Regulations and Laws

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