Blog

Posts Tagged payroll taxes

Could You Handle Different State’s Payroll Taxes and Regulations?

I was really excited for a colleague who got a big contract that was going to expand his company this year. He was excited because his small business would no longer be just a local business, but would now be a business that worked nation-wide. We celebrated with a congratulatory lunch. It wasn’t but a couple of weeks later that he called and was obviously down. I was afraid he’d lost the deal. But no, he said it was worse – it was about payroll taxes. (more…)

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

Leave a Comment (0) →

Local Taxes Make Payroll More Complicated

Every business, organization, and household needs a certain amount of money to keep things working. Small businesses sell their services and products for it. Charities fundraise for it. Individuals work for it. But what about governments? They can’t work, don’t have anything to sell, and have a hard time inspiring people to give to them. (more…)

Posted in: Payroll, Payroll Taxes

Leave a Comment (0) →

Legislation Can Change Everything … At Any Time

You never know when new legislation might be passed, turning your small business’s life upside down.  Just when you think you have things figured out and your business is on the right track, the government can decide that you need to change the way you operate.  Small business owners in New York are currently facing a scenario in which proposed legislation threatens to change the way they will be allowed to pay their employees. (more…)

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

Leave a Comment (0) →

Things to Know About Withholding County Taxes

A tax is a tax is a tax, right? Well, as anyone who has ever read a single paragraph of the state or federal tax code knows, there is rarely a simple answer to any tax-related question. If you’re a small business owner, you probably understand a little bit about the complexity of payroll taxes. Besides the responsibility of withholding federal taxes, small businesses must also withhold state and local taxes. As you will see, the rules governing county taxes alone can make you feel a little dizzy. (more…)

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

Leave a Comment (0) →

The Truth about Payroll Taxes

In the politically charged atmosphere during the couple of years preceding a presidential election, the topic of taxes – and payroll taxes in particular – takes center stage. It is payroll taxes that take a bite out of both employees’ paychecks and small business owners’ bottom lines. (more…)

Posted in: IRS and Tax forms, Operating a Small Business, Payroll, Payroll Processing, Payroll Taxes, Rules, Regulations and Laws

Leave a Comment (0) →

Tips and Service Charges: What’s the Difference?

Do you own a service industry small business, such as a restaurant, hair salon or hotel? Then it’s important as an employer that you understand your payroll responsibilities when it comes to calculating wages, employee reporting and tax requirements. One factor that affects your business’s payroll tax obligations is when your employees receive gratuities for their services. Do you know the rules? (more…)

Posted in: IRS and Tax forms, Operating a Small Business, Payroll, Payroll Processing, Payroll Taxes, Rules, Regulations and Laws

Leave a Comment (0) →

What Happens When YOU Get a Letter From the IRS?

What happens when you pick up the mail and there is an envelope from the IRS? Entrepreneurs and small business owners in every stage of development open it immediately. Those three letters definitely promote that piece of mail to priority status. (more…)

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

Leave a Comment (0) →

Are You Following the Federal Labor Standards Act?

Does your small business have to comply with the rules and regulations under the Fair Labor Standards Act? Well, of course, but which parts apply to your business and YOUR payroll?

Businesses considered covered enterprises, according to the U.S. Dept. of Labor’s Handy Reference Guide to the Fair Labor Standards Act, are those who employ “workers engaged in interstate commerce, producing goods for interstate commerce, or handle selling, or otherwise working on goods or materials that have been moved in or produced for such commerce by any person.”

For instance, under the Basic Wage Standards provisions, employees are entitled to a minimum wage of $7.25 per hour (effective June 24, 2009). However, some special provisions apply to workers in American Samoa and the Commonwealth of the Northern Marianna Islands.

34218984_sIn addition, nonexempt workers must be paid overtime at a rate of no less than one and one-half times their regular rates of pay after 40 hours of work in a workweek.

So then we have to ask, what defines a nonexempt worker?

To understand the Handy Guide, it might be better to ask who is an exempt worker? Now that includes a wide variety of workers when it comes to minimum wage and overtime pay, not limited to:

  • Executive, administrative, and professional employees
  • Outside sales employees
  • Employees in certain computer-related occupations
  • Employees of certain seasonal amusement or recreational establishments
  • Employees of certain small newspapers, fishing operations, or those engaged in newspaper delivery

There is a grey area covered by the word “certain” that makes entrepreneurs shiver.

When you are concerned with overtime pay only, there is another entire list and there is also a provision for those workers who fall under the category of “partial exemptions.”

Once you determine who does and who does not qualify for overtime pay, there is another section dedicated to computing overtime pay. It depends on how that person is paid – by the hour, by the piece or by salary. And, if salaried, you must consider if the employee is paid weekly or otherwise.

Yes, if you make a mistake or overlook something in your payroll, there are provisions in the Act for Enforcement and prosecution. Investigation, legal remedies, litigation and criminal procedures are outlined in the Act. And, as a final note, there are provisions in the Handy Guide to remind you that there are a number of other labor laws that require employer’s compliance.

The point is, simply, that every employer must comply with federal (and state) rules and regulations and IT IS COMPLEX and COMPLICATED. And, as we all know, it changes and you have new laws to understand and implement.

That is one of the reasons so many small business owners outsource payroll. The thought of making an error and being directed to those enforcement provisions is frightening. Business owners are focused on getting customers, getting work done and keeping employees and customers happy in the workplace.

The Payroll Department allows you to do what you need to do to keep the business running. We take care of accurately reporting and making deposits for payroll taxes to the government.

It’s a good arrangement.

-Elaine of The Payroll Department Blog Team

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

Leave a Comment (0) →

Do You Have Ghost Employees on Your Payroll?

No, we’re not implying your business is haunted and you’re paying salaries to spirits that may be hanging about. But your business could possibly have ghost employees of a different sort that you may not even be aware of if you don’t diligently monitor your company’s payroll.

Last year, Iraq’s new government found out they had 50,000 ghost soldiers on their payroll. These were actual soldiers who paid their officers a portion of their salaries and then didn’t show up for duty. Not only did this practice make their commanders richer, but it also weakens the country’s military force, leading to the ISIS takeover of Mosul.

If you’re thinking, “Well, that was Iraq. Something like that doesn’t happen in businesses in the U.S.” Think again. Just this year, a man who worked at the Knox County, TN, Trustee’s Office was jailed for fraud after he collected roughly $200,000 – four years’ worth of paychecks that he didn’t actually work for and yet received.

Ghost employees are not just found in "other" companies.Unfortunately, ghost employees can exist within your company:

  • A manager hires a nonexistent employee, then deposits the paychecks into a bank account he/she has set up.
  • A payroll clerk leaves a terminated employee on the payroll, then keeps the paychecks to cash for personal use.
  • An H.R. employee sets up personnel and payroll files using social security numbers of people who have died and collects the salaries.
  • A vice president hires a son who never or rarely shows up to work, but still pockets the paychecks.

However, you can safeguard your company against payroll fraud – saving your company thousands of dollars in damages. By hiring a payroll services provider, like The Payroll Department, to handle your payroll, we can provide your company with another check and balance to your payroll processing system. If an employee is stealing money through your payroll, it would become more difficult if The Payroll Department was monitoring your payroll.

In fact, The Payroll Department requires all the paperwork of your employees and makes all the deposits for your payroll. If more than one paycheck were deposited to the same checking account, The Payroll Department would catch it and make you aware of the potential problem. Also, The Payroll Department notes all the social security numbers of your employees when making tax payments, so they’re more likely to detect duplicate numbers.

If your business doesn’t have checks and balances in place for your payroll, you could be setting your company up to be the victim of fraud. But, by outsourcing your payroll services to a third party group, like The Payroll Department, you can eliminate the possibility of ghost employees haunting your payroll. Call us today for more information.

– Ariane of The Payroll Department blog team

Posted in: Operating a Small Business, Payroll Processing

Leave a Comment (0) →

Employers – 2015 FICA Tax Changes to Know

As a small business owner, wouldn’t it be nice if payroll taxes just stayed the same from one year to the next? You would know what’s expected of you and how to manage your company’s payroll taxes every year. Unfortunately, that’s just not the case. As of January 1, 2015, the government has made some FICA tax changes that employers need to be aware of since these changes will affect your company’s ability to accurately process your payroll. (more…)

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

Leave a Comment (0) →
Page 2 of 5 12345