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As accountants and CPAs, dealing with payrolltaxes is essential to managing finances for your business clients. Understanding the details of payrolltaxes helps you better assist your clients in fulfilling their obligations and maximizing tax efficiency. for paying state unemployment tax. By Nellie Akalp.
Inevitably, your clients with growing businesses will want to hire, so you’ll be better able to help them if you have a clear understanding of the differences between SUI (state unemployment insurance) and SIT (state incometax) and how they affect your clients’ businesses. Some states require employers to pay additional payrolltaxes.
This changing employment landscape requires employers to reassess their payrolltax withholding processes to ensure you are withholding the proper amount of state, local and unemployment taxes from your employees’ wages. Below we dive into the state and unemployment tax responsibilities employers need to know.
Members of Congress on both sides of the aisle have pushed to exempt Social Security payments from incometax, though no bipartisan proposal has emerged this Congress. At that point, benefits would face a 17% cut, according to the annual trustees report. Republican Reps. Angie Craig, D-Minn.,
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