Payroll Taxes in 2021: The Dos and Don’ts
Filing payroll taxes accurately takes work, especially when keeping track of changing tax regulations. The following payroll tax tips will help your clients stay compliant. The subject of payroll taxes can be a prickly one for human resources p... Justworks
Bye Bye, Economic Realities!
On May 5, 2021, the Department of Labor (DOL) effectively withdrew the Trump administration’s independent contractor rule, continuing President Biden’s employee-friendly agenda in the labor and employment space. The much discussed “economic real... Laura D. Caty
COVID Leave Update: Voluntary Extension and Expansion of FFCRA Leave
As with any new presidential administration there is always a period of out with the old and in with the new. Many of you may have noticed the flurry of news reports regarding changes or new hires made by the new administration. If you are anything like... Christina N. Rogers
SECURE Act Offers New Retirement Opportunities for Part-Time Workers
If your client sponsors or works with a 401(k) plan that currently excludes part-time employees from participating or accruing vesting service, read this article closely. The Setting Every Community Up for Retirement Enhancement (SECURE)... John R. Kirk, JD, and Alex S. Mattingly, JD
Pandemic-Related Payroll Deferrals Become Due This Year
The Coronavirus Aid, Relief, and Economic Security (CARES) allowed all employers, regardless of whether they were impacted by the coronavirus pandemic, to defer the deposit of their 6.2 percent share of Social Security taxes thro...
What Year-End 2020 Will Look Like
The pandemic laid waste to many tax deadlines this year. But year-end for payroll rolls around like clockwork, regardless of current events, including the pandemic. Thankfully, almost all of the upheaval everyone experienced during 2020 had only a minor impact on employers’ Forms W-2 ... Alice Gilman
Stimulus Bill Provides Relief to Plan Participants
Earlier in the year, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted into law when it was signed by President Trump. The act is far-reaching for nearly every aspect of American life and business. This article focuses on Sections 2202 and 2203 of the CARES Act, w... John R. Kirk, JD, and Alex S. Mattingly, JD
Keep an Eye on Special Payroll Tax Credits for the Rest of the Year
Congress enacted two laws — the Families First Coronavirus Response Acti (FFCRA) and the Coronavirus Aid, Relief, and Economic Security Actii (CARES Act) — in response to the coronavirus pandemic, which devastated the country late last winter. Both law... Alice Gilman, Esq.
The Rules of Withholding, Redefined
The Tax Cuts and Jobs Act (TCJA)i is a far-reaching law, affecting almost every taxpayer. But, since most taxpayers are employees, one of its most profound impacts can be said to be on payroll administration. Due to structural changes in the Internal Revenue Code m... Alice Gilman
Reimbursing Employees’ Business Expenses after the TCJA
Reimbursing Employees’ Business Expenses after the TCJA The Internal Revenue Code does not require employers to reimburse employees’ out-of-pocket business expenses. Employees were not completely out-of-pocket if their employers chose not to reimburse those costs. The... Alice Gilman
A Deep Dive into the 2020 Form W-4
There are two basic tax forms employees use — Form W-4, Employee’s Withholding Certificate and Form 1040, U.S. Individual Income Tax Return. While employees often delegate preparing their Form 1040s to their accountants, they usually complete Form W-4 themselves. This ta... Alice Gilman, Esq.
Why 2020 Will Probably Be the Start of a New Era for Payroll
Your payroll operations have been humming along for quite some time. Forever, maybe. All of that is about to change. The IRS is resolved to shake up all things payroll, beginning next year. The changes are wide-ranging and profound. Here is what we know now, based on draft forms ... Alice Gilman, Esq
The Other Side of Employee Misclassification
Who wants to be an employee? Typically, employees are misclassified as independent contractors. And we know why — employers can save a bundle in Federal Insurance Contributions Act (FICA) and Federal Unemployment Tax Act (FUTA) taxes, as well as costly employee benefits, such as ... Alice Gilman, Esq.
The Problems with Form W-2c
Employees must receive Forms W-2, Wage and Tax Statement, by January 31. More than likely, they glace at their forms and then drop everything off with their tax professional. It is an annual ritual everyone understands. But that is assuming that all the information reported on t... Alice Gilman, Esq.
Value Versus Cost: A Payroll Primer
Tax and accounting professionals are certainly familiar with the concepts of value and fair market value. For example, the entire cost of employer-provided health insurance is deductible by the employer and the value is equally excluded from employees’ income. Likewise, ... Alice Gilman, Esq.
Mitigating Penalties for Filing Incorrect Forms W-2
Forms W-2 were filed with the Social Security Administration (SSA) by January 31, 2019, but that is the end of the story only if all those Forms W-2 are correct. While 100 percent accuracy is always the goal, it is rarely achieved. So, the second part of the year-end pro... Alice Gilman, Esq
Year-end Responsibilities for Payroll
The taxes that have been withheld from employees’ pay during the year, and the employer’s matching Federal Insurance Contributions Act (FICA) contribution, have been reported to the IRS quarterly on Form 941. Everything, except the employer’s matching FICA contribution, mu... Alice Gilman, Esq.