The federal government’s Employee Retention Credit proved to be a lifeline for many businesses and their employees. The eligibility rules were complex and changed over time, as noted in an extensive IRS chart. Not all owners may have been able to figure out whether they were eligible; however, the IRS is giving them a break: Even … Read more
In a 2020 survey, 44.9% of respondents said they would view their employers in a better light if they provided a financial wellness program, and nearly one-third said they would participate in a financial education program if their employer offered it. A different 2020 survey found that “62% of employers feel extreme responsibility for their employees’ financial wellness, … Read more
Wondering what your options are to reduce spending and increase income? Here are some tips: Organizing your finances is the foundation for financial success. Receipts scattered? Can’t keep up with payments that are due? Missed payments result in late fees and interest charges, and all those do are increase the overall amount to be paid … Read more
Do you ever wish you didn’t have to go through the hassle of preparing a payroll? Maybe it was simple when you just had one or two employees, but your company is growing and it’s becoming more complex. Some companies have a dedicated payroll manager—but that can be expensive. Other businesses have found find it … Read more
You can allow an employee to work two different jobs for your company. However, under the FLSA, you cannot classify an employee as both exempt and nonexempt — it must be one or the other. To know which one to use, you must first combine all of the employee’s job duties into one. Considering the … Read more
Unemployment income has always been taxable income. Those who apply for unemployment benefits can have federal tax, and any applicable state tax, withheld, but whether it’s done check by check or in a lump sum, the recipient has to pay. However, because 2020 was such a difficult year, the federal government granted a limited break. … Read more
Below are federal payroll tax rates and benefits contribution limits for 2022. Social Security tax In 2022, the Social Security tax rate is 6.2% for employers and employees, unchanged from 2021. The Social Security wage base is $147,000 for employers and employees, increasing from $142,800 in 2021. Self-employed people must pay 12.4% on the first $147,000. Medicare tax … Read more
The IRS has issued the 2022 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on Jan. 1, 2022, the IRS standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be 58.5 cents per mile … Read more
The IRS has announced the new retirement plan numbers for 2022. Retirement limits for 401(k) and similar plans are up. The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased to $20,500, up from $19,500. IRA limits have changed for certain savers. If during the … Read more
In Bloomberg Tax & Accounting’s 2019 Payroll Benchmarks Survey, 69.2% of respondents said they used outside vendors to perform payroll functions, while only 30.8% said they did not outsource payroll. Let’s look at the practical and financial reasons so many companies are taking the payroll outsourcing plunge. Payroll compliance Payroll laws are numerous in scope, … Read more
