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2012 SIMPLE IRA Contribution Limits

SIMPLE IRA contributions include: salary reduction contributions and employer contributions: a. matching contributions or b. nonelective contributions. No other contributions can be made to a SIMPLE IRA plan. Salary reduction contributions. The amount the employee contributes to a SIMPLE IRA cannot exceed $11,500 for 2011 and 2012. If an employee participates in any other employer plan […]

CA Employer New Hire Notice (Wage Theft Protection Act of 2011)

California Governor Brown has signed into law AB 469 (Chapter 655, Statutes of 2011) known as the Wage Theft Protection Act of 2011. Click here for the full text of the Bill. The provisions of the Act become effective January 1, 2012. Labor Code section 2810.5 was added by the bill which requires that all […]

Payroll tax cut extended for remainder of 2012

The Middle Class Tax Relief and Job Creation Act of 2012 (H.R. 3630) that was signed into law by President Obama on February 22, 2012, extends the 4.2% Social Security tax rate for employees through December 31, 2012. It also extends jobless benefits for between 63 weeks and 73 weeks, and averts a big cut […]

SD-Payroll Tax: 2012 Rates

2012 South Dakota Tax Rates and Wage Bases: Unemployment (UI): Rate: varies by employer UI account. First three year determined by statute: http://dlr.sd.gov/ui/uitaxfaqs.aspx#taxrates A “Contribution and Investment Fee Rate Notice for 2012” is mailed in November for the next year’s rates and wage bases. If you cannot locate, call SD DOL UI Insurance Division 605-626-2312. Wage […]

2012 Form W-4, Employee Withholding Allowance Certificate

Workers should review their withholding every year and if necessary, fill out a new Form W-4 and submit it to their employer. Workers who claimed exempt on their 2011 Form W-4 will need to complete a new Form W-4 for tax year 2012 by February 16, 2012 in order to maintain their exempt status.

Wages paid in excess of $18,350 within the first two months of 2012.

What to do regarding wages paid in excess of $18,350 within the first two months of 2012?  At this time, 4.2% Social Security Tax should be withheld on all wages for that period (01/01/12-02/29/12). Under the terms negotiated by Congress, the law also includes a new “recapture” provision, which applies only to those employees who receive […]

Payroll: 2012 Social Sec/Medicare Rates & Wage Bases

2011 Social Sec/Medicare Rates & Wage Bases Social Security: EmployEE: 4.2% on earnings up to $110,100* (see below) EmployER: 6.2% on earnings up to $110,100 Medicare: Employee/employer (each) 1.45% on all earnings * Section 601 of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 reduced, for wages and salaries paid in […]

CA-Payroll Tax: 2012 Rates

2012 California Payroll Tx Rates: http://www.edd.ca.gov/Payroll_Taxes/Rates_and_Withholding.htm#2012UIETTandSDIRates

Employers Required to Include Employee’s Date of Hire on New Hire Reports Starting 01/16/2012

Effective January 16, 2012, employers will be required to include an employee’s date of hire when submitting a new hire report. The date of hire is the date an employee first performed services for pay. This requirement was enacted in Section 802 of the Claims Resolution Act of 2010 (CRA; Pub. L. No. 111-291) signed […]

End of Quarter Payroll Tax Review

Here are some tricky things that we often have to fix for clients at the end of each quarter before the tax returns can be filed:  Tax rates aren’t correct This happens for three reasons: UI Rates typically change at the beginning of the calendar year and must be updated in QuickBooks. Rates sometimes change mid-year. […]

Wage Compensation for S Corporation Officers

FS-2008-25, August 2008 Corporate officers are specifically included within the definition of employee for FICA (Federal Insurance Contributions Act), FUTA (Federal Unemployment Tax Act) and federal income tax withholding under the Internal Revenue Code. When corporate officers perform services for the corporation, and receive or are entitled to receive payments, their compensation is generally considered […]

New QuickBooks Payroll Items Needed for Company Paid (Match) Retirement Contributions

In order to conform to new IRS W-2 reporting requirements, QuickBooks (in payroll update 21112) added new “tax tracking types” for employer paid (company match) retirement contributions. According to Intuit’s article Id 2001179 (http://payroll.intuit.com/support/kb/2001179.html), for companies with existing match transactions in the current year, a new payroll item needs to be setup with the new tax tracking […]

Should single member LLC owners be on payroll?

Should single member LLC owners be on payroll? The answer is it depends. A single member LLC (Limited Liability Company) that has not opted to be taxed as a corporation is taxed as a sole-proprietorship. Self-employed persons are not employees of their business, since there is no distinction between a business and its self-employed owner […]

New Hire Reporting – South Dakota

New Hire Reporting – South Dakota Send via fax:  1-888-835-8659 or 605-626-2842  https://www.state.sd.us/eforms/secure/eforms/E0778v1-LivePhoneReportWithAddress.pdf

IRS EFTPS Tax Payment Transmission Deadline

Payments must be scheduled at least one calendar day prior to the tax due date by 8:00 p.m. ET. Source: https://www.eftps.gov/eftps/direct/FAQGeneral.page

CA EFT Tax Payment Transmission Deadline

CA EFT Tax Payment Transmission Deadline: 3p PT one day prior to payment date. http://www.edd.ca.gov/payroll_taxes/faq_-_electronic_funds_transfer.htm#HowdoIensureatimelytaxdeposit

e-pay Tax Payment and Direct Deposit Transmission Deadlines in QuickBooks

Direct Deposit Transmission: There is a hard deadline of 5pm PT two business days before pay date. Wed 5pm PT for Fri pay day. e-pay of tax payments: 2 business days prior to payment date. Although IRS EFTPS has a transmission deadline of only 8p ET the day before payment date, QuickBooks requires you to […]

Payroll: 2011 Social Sec/Medicare Rates & Wage Bases

2011 Social Sec/Medicare Rates & Wage Bases Social Security: EmployEE: 4.2% on earnings up to $106,800 EmployER: 6.2% on earnings up to $106,800 Medicare: Employee/employer (each) 1.45% on all earnings From http://www.ssa.gov/pubs/10003.html

CA-Payroll Tax: 2011 Rates

CA-Payroll Tax: 2011 Rates http://www.edd.ca.gov/Payroll_Taxes/Rates_and_Withholding.htm#2011UIETTandSDIRates

CA-Payroll Tax: Debit cards replace UI checks

CA-Payroll Taxes: Debit cards replace CA unemployment benefit payment checks  http://www.edd.ca.gov/About_EDD/pdf/nwsrel11-29.pdf

SD-Payroll Tax: UI Surcharge rate 0% for Q2-2011

2011-Q2 Surcharge rate is 0%. http://dlr.sd.gov/ui/uitaxfaqs.aspx#taxrates