Archives › Payroll

2018 Social Security Wage Base set at $128,700

Social Security’s Old-Age, Survivors, and Disability Insurance (OASDI) program limits the amount of earnings subject to taxation for a given year. The same annual limit also applies when those earnings are used in a benefit computation. This limit changes each year with changes in the national average wage index. We call this annual limit the […]

2017 Social Security Wage Base set at $127,200

Social Security’s Old-Age, Survivors, and Disability Insurance (OASDI) program limits the amount of earnings subject to taxation for a given year. The same annual limit also applies when those earnings are used in a benefit computation. This limit changes each year with changes in the national average wage index. We call this annual limit the […]

Support for QuickBooks 2014 (Windows and Mac) ends after 5/31/2017

If you are using QuickBooks 2014 (Windows and Mac) then you won’t be able to use certain services and features after May 31, 2017. While the basic program will work, any add-on features like payroll (any level will not be updated with current tax tables), ViewMyPaycheck, live tech support, Online Backup, and Online Banking will […]

SIMPLE IRA Plan FAQs – Contributions

SIMPLE IRA Plan FAQs – Contributions Copied from https://www.irs.gov/retirement-plans/simple-ira-plan-faqs-contributions What types of contributions may be made to a SIMPLE IRA plan? Each eligible employee may make a salary reduction contribution and the employer must make either a: matching contribution or nonelective contribution. No other contributions may be made under a SIMPLE IRA plan. Can contributions made […]

S Corporation Compensation and Medical Insurance Issues (Updated 8/3/16)

S Corporation Compensation and Medical Insurance Issues When computing compensation for employees and shareholders, S corporations may run into a variety of issues. The information below may help to clarify some of these concerns. Reasonable Compensation S corporations must pay reasonable compensation to a shareholder-employee in return for services that the employee provides to the corporation […]

New Overtime Rule Effective 12/1/2016

The new overtime final rule will become effective on December 1, 2016, giving employers more than six months to prepare. The final rule does not make any changes to the duties test for executive, administrative and professional employees, but does: Raise the salary threshold indicating eligibility from $455/week to $913 ($47,476 per year), ensuring protections […]

CA Minimum Wage Increases to $10 per hour

Effective January 1, 2016, the minimum wage in California is $10.00 per hour. Read more… http://www.dir.ca.gov/dlse/faq_minimumwage.htm

Be on the lookout for IRS Payroll Tax Deposit frequency notices

Each year, during November and December, the IRS sends out FTD Federal Tax Deposit Frequency notices that inform you about what schedule that your payroll taxes must be paid. Your deposit schedule for a calendar year is determined from the total taxes reported on your Forms 941 in a four-quarter lookback period. The lookback period […]

Be on the lookout for state state UI rate notice for 2016

Each year during November and December, states send out UI (unemployment insurance) rate notices for the upcoming year. You want to make sure to input that new rate before the first payroll of 2016 to avoid miscalculation of the UI tax liability.

2016 Retirement Plan Contribution Limits

The elective deferral (contribution) limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan remains unchanged at $18,000. The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan remains unchanged at $6,000. […]

For 2016 Social Security Wage Base remains at $118,500

Social Security’s Old-Age, Survivors, and Disability Insurance (OASDI) program limits the amount of earnings subject to taxation for a given year. The same annual limit also applies when those earnings are used in a benefit computation. This limit changes each year with changes in the national average wage index. We call this annual limit the […]

IRS Tests W-2 Verification Code for Filing Season 2016

For filing season 2016, the Internal Revenue Service will test a capability to verify the authenticity of Form W-2 data. This test is one in a series of steps to combat tax-related identity theft and refund fraud. The objective is to verify Form W-2 data submitted by taxpayers on e-filed individual tax returns. The IRS […]

2015 SIMPLE IRA Plan FAQs – Contributions

SIMPLE IRA Plan FAQs – Contributions What types of contributions may be made to a SIMPLE IRA plan? Each eligible employee may make a salary reduction contribution and the employer must make either a: matching contribution or nonelective contribution. No other contributions may be made under a SIMPLE IRA plan. Can contributions made under a […]

FAQs about Affordable Care Act Implementation (Part XXII)

FAQs about Affordable Care Act Implementation (Part XXII) Source: http://www.dol.gov/ebsa/faqs/faq-aca22.html Set out below are additional Frequently Asked Questions (FAQs) regarding implementation of the Affordable Care Act. These FAQs have been prepared jointly by the Departments of Labor (DOL), Health and Human Services (HHS), and the Treasury (collectively, the Departments). Like previously issued FAQs (available at http://www.dol.gov/ebsa/healthreform/ […]

New California Mandatory Paid Sick Leave Law begins 7/15/15

Healthy Workplace Healthy Family Act of 2014 (AB 1522)   See overview: http://www.dir.ca.gov/dlse/ab1522.html See FAQ: http://www.dir.ca.gov/dlse/Paid_Sick_Leave.htm   An employee who, on or after July 1, 2015, works in California for 30 or more days within a year from the beginning of employment, is entitled to paid sick leave. Employees, including part-time and temporary employees, will earn at […]

Payroll taxes and rates: wage bases and limits-Multiple Years

Taxes and rates: wage bases and limits Article ID: 2000093  Source: http://payroll.intuit.com/support/kb/2000093.html Overview This article is about the rates and limits for Social Security, Medicare, federal income tax (FIT), state income tax (SIT), and state unemployment income (SUI). Assumptions You have employees subject to federal taxes. Details Wage base limits for DIY and Assisted payroll are […]

South Dakota’s Minimum Wage Increases to $8.50/hr on 01/01/2015

South Dakota’s Minimum Wage Increases to $8.50/hr on 01/01/2015 https://dlr.sd.gov/wagehrs/minimumwage.aspx

Fair Labor Standards Act (FLSA) Minimum Wage Poster

http://www.dol.gov/whd/regs/compliance/posters/flsa.htm

Minimum Wage Laws in the States

http://www.dol.gov/whd/minwage/america.htm

For 2015 Social Security Wage Base increases to $118,500

Social Security’s Old-Age, Survivors, and Disability Insurance (OASDI) program limits the amount of earnings subject to taxation for a given year. The same annual limit also applies when those earnings are used in a benefit computation. This limit changes each year with changes in the national average wage index. We call this annual limit the […]

IRS Announces 2015 Pension Plan Limitations

WASHINGTON — The Internal Revenue Service today announced cost‑of‑living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2015. Many of the pension plan limitations will change for 2015 because the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment. However, other limitations will remain unchanged because […]

Accountable Plan Expense Reimbursements

From IRS Publication 15 (2014) http://www.irs.gov/pub/irs-pdf/p15.pdf Employee business expense reimbursements. A reimbursement or allowance arrangement is a system by which you pay the advances, reimbursements, and charges for your employees’ business expenses. How you report a reimbursement or allowance amount depends on whether you have an accountable or a nonaccountable plan. If a single payment includes […]

QuickBooks Payroll: FAQs for 2014 FUTA Credit Reduction States

This article explains how the Federal Unemployment Tax Act (FUTA) credit reduction affects your FUTA taxes, Form 940, and Schedule A for 2014. http://payroll.intuit.com/support/kb/1000921.html

2014 Federal Unemployment Tax Act (FUTA) Credit Reductions

FUTA Credit Reduction What is a credit reduction state? A state is a credit reduction state if it has taken loans from the federal government to meet its state unemployment benefits liabilities and has not repaid the loans within the allowable time frame. A reduction in the usual credit against the full FUTA tax rate […]

What employees are exempt from hourly pay provisions of the FLSA?

Many employers want to treat their employees as salary employees instead of hourly employees. There are big potential problems if you do this with an employee that is not exempt from the minimum wage rules of the FLSA (Fair Labor Standards Act). Note that certain states have wage and hour rules that are more stringent […]