Small business owners can take a collective breath – at least temporarily. U.S. District Judge Amos Mazzant in the Eastern District of Texas granted a preliminary injunction regarding the Dec. 1 implementation date of new Overtime Rules released by the Labor Department in May, 2016. (more…)
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…)
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…)
As an employer, whether you are a big or small business, you have the responsibility to hire employees who are authorized to work in the United States. One of the ways many employers ensure workers are legally able to work is by getting employees’ social security number. Easy, right? Well, not so much. Let me tell you a story from the offices of The Payroll Department. (more…)
Do you or your small business owe taxes to the state of Indiana? You may be in luck. Beginning September 15, 2015, Hoosier taxpayers can apply for Indiana’s 2015 Tax Amnesty program, which offers both individuals and businesses a limited-time opportunity to pay past-due taxes free of penalty, interest and collection fees. About 40 different tax types are eligible for tax amnesty, including individual and corporate income tax, sales and use tax, inventory tax, and withholding tax. (more…)
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…)
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?
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.
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…)
Have you experienced a confidential moment with an employee as he tearfully shares that his wife was recently diagnosed with cancer? And that he absolutely must take time off work to drive his wife to doctor appointments and chemotherapy treatments? That moment is terrible, isn’t it? (more…)