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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 […]

Obamacare – Extra Time to Small and Large Businesses

Treasury and IRS Issue Final Employer Mandate Rules for Obamacare, Giving Extra Time to Small and Large Businesses: http://www.accountingtoday.com/news/Treasury-IRS-Issue-Final-Employer-Mandate-Rules-Obamacare-69572-1.html?utm_campaign=tax%20pro%20today-feb%2012%202014&utm_medium=email&utm_source=newsletter&taxpro=1

IRS Semi-weekly and Next-Day Payroll Tax Deposit Requirements

If you have a tax liability of more than $50,000 in the look back period (2012Q3 + 2012Q4 + 2013Q1 + 2013Q2), the semi-weekly deposit schedule applies to you. As a semi-weekly schedule depositor, your deposit of accumulated taxes for wages paid on Wednesday, Thursday, or Friday is due by the following Wednesday. Deposit of […]

IRS Announces 2014 Pension Plan Limitations

IR-2013-86, Oct. 31, 2013 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 2014.  Some pension limitations such as those governing 401(k) plans and IRAs will remain unchanged because the increase in the Consumer Price Index did not meet the statutory […]

Employers may owe additional tax on FUTA wages paid in credit reduction states.

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 […]

For 2014 Social Security Wage Base increases to $117,000

For 2014 Social Security Wage Base increases to $117,000 Source: http://www.socialsecurity.gov/OACT/COLA/cbb.html

What Small Businesses Need to Do for Obamacare Before Oct. 1, 2013

Source: http://www.businessweek.com/articles/2013-09-03/what-small-businesses-need-to-do-for-obamacare-before-oct-dot-1 Karen E. Klein September 03, 2013 The health insurance marketplaces created by the Affordable Care Act will open on Oct. 1. Most small employers—those with 50 or fewer full-time employees—are not required to offer health insurance coverage under the Affordable Care Act. Even businesses with more than 50 full-time employees have gotten a one-year reprieve from penalties if […]

2013 Social Sec/Medicare Rates & Wage Bases

2013 Social Sec/Medicare Rates & Wage Bases Social Security: EmployEE: 6.2% on earnings up to $113,700 EmployER: 6.2% on earnings up to $113,700 Medicare: Employee/employer (each) 1.45% on all earnings* * Certain high-income taxpayers will be required to pay an additional Medicare tax beginning in 2013. For details, see the IRS information on this topic. Basics: Employer […]

QuickBooks Payroll Fees Changing for New Customers

Upcoming changes to the Intuit Payroll product line will apply to NEW small business payroll customers only, beginning July 22, 2013. Small business customers with existing payroll subscriptions will not be affected. The changes do not affect QuickBooks Enhanced Payroll for Accounting Professionals.  What’s Changing? Simplified product offerings that easily help clients choose the right payroll service […]

Questions and Answers for the Additional Medicare Tax

Questions and Answers for the Additional Medicare Tax: Source: http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Questions-and-Answers-for-the-Additional-Medicare-Tax The following questions and answers provide employers and payroll service providers information that will help them as they prepare to implement the Additional Medicare Tax which goes into effect in 2013. The Additional Medicare Tax applies to individuals’ wages, other compensation, and self-employment income over […]

2013 IRS Retirement Contribution Limits

2013 IRS Retirement Contribution Limits http://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics-SIMPLE-IRA-Contribution-Limits

Partners are not employees and should not be issued a W-2

A partnership is the relationship existing between two or more persons who join to carry on a trade or business. Each person contributes money, property, labor or skill, and expects to share in the profits and losses of the business. A partnership must file an annual information return to report the income, deductions, gains, losses, […]