What FICA, Federal, State and Local Taxes are Businesses Required Withhold?
As an employer, you will have employment tax obligations if you have employees. As an employer you are responsible to withhold and deposit the employees’ portions of taxes and for some taxes pay an employer portion. It’s not easy to remember all of the taxes that need to be paid by the employer for payroll, […]
What Happens If I Pay My Business Payroll Taxes Late or Incorrectly?
The Failure to Deposit Penalty is applied to employers who fail to deposit employment taxes: This includes Federal Income Tax, Social Security and Medicare Tax and Federal Unemployment Tax. Employers are required to make monthly or semi-weekly federal employment tax deposits with the IRS. Your penalty is a percentage of the taxes you failed to […]
What are the Critical Distinctions Separating W-2 and 1099 Employees?
Freelancers or independent contractors differ primarily from regular employees in terms of their employment and tax status. W-2 employees A W-2 employee is regularly on payroll of an organization, and is hired to work for an unspecified period of time to perform an on-going activity. They also withhold taxes from their checks, sending them to […]
How Do I Decide Do Have W-2 or 1099 Employees?
If you’re considering hiring someone, and you’re trying to decide whether to classify them as a W-2 employee or independent contractor, you’ll want to pay attention to this section and the one that follows below that goes more in depth into the rules. But there are also additional factors that are involved when you are […]
How Can I Make Sure My Business Stays Compliant with Payroll Tax Laws?
If you’re running a business, it’s important to stay compliant with all payroll tax laws and regulations. As an employer, this means you’re withholding and paying various payroll taxes on a regular basis to ensure your business is up-to-date with everything it needs to be. But since many business owners focus more on the day-to-day […]
What Retention System Regulations Exist for Storing Payroll Records?
You can select the retention system that best suits you, and most employers are gradually moving toward digitized records. Some in the industry see it as a potentially positive development as well. Digitally storing documents has its benefits: It is effective regardless of whether you file on computer or on a safe server. Or if […]
What Payroll Mistakes Do Small Businesses Make Most Often?
You’re working hard at running your business. You don’t want to have to worry about an expensive payroll error. In fact, 40% of small businesses are fined on average $850 annually for failing to properly pay payroll taxes, this is no small issue. The following are some of the most common payroll blunders a business […]
How Do I Know If I Should Outsource Payroll Instead of Doing It In-House?
The payroll portion of your business is an essential function which must be accurate, timely and compliant with changing laws and regulations. You might be thinking whether or not to manage payroll in- house or outsource it to a professional employer organization. Making this choice will have a dramatic impact on how your business runs, […]
What Payroll Retention Records Are Businesses Required to Maintain?
Having good payroll records is fundamental to business in New Mexico. Beyond that, and for these reasons retention is legally required, keeping good records keeps your business safe during audits while also navigating employee disputes and providing historical information which can be used in business planning moving forward. Employers in New Mexico are subject to […]
Should You Outsource Your Payroll Processing?
Companies have obligations and must file things to employees. Payroll issues are complex for today’s high-tech business world. A company’s payroll department has many moving parts of employees’ pay. This includes the payroll processing, direct deposits into employees’ bank accounts, FICA, FICO, State Income tax payments to government agencies including the State and the Federal […]
