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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. By Nellie Akalp. for both employees and employers.
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.
Employers were reimbursed with a payrolltax credit or a refund if the cost exceeded their tax liability. Credits were claimed through Form 941, the quarterly employment tax return. The credit will be against the employer’s share of Medicare tax. in February. What’s on the horizon?
She is the CEO of CorpNet , the most innovative way to start a business, register for payrolltaxes, and maintain business compliance across the United States. Nellie Akalp is a passionate entrepreneur, recognized business expert, and mother of four.
Property and payrolltaxes In addition to business or personal income taxes and sales tax, property and payrolltaxes are important considerations. Property tax rates can vary significantly, impacting the cost of owning or leasing business space.
Three COVID-19 relief bills enacted in 2020 had wide-ranging tax implications for companies, Oaks noted—the CARES Act, the Families First Coronavirus Response Act, and the Paycheck Protection Program Flexibility Act. This worker classification is expected to be model for other states, Oaks said.
Montana is a state that recently passed legislation that prohibits discrimination in the state based on vaccination status or possession of an immunity passport by an employer. The post Last Week in Payroll: The List and Legality of Employee Vaccination Requirements appeared first on Tax & Accounting Blog Posts by Thomson Reuters.
There’s another important distinction about tips and taxes: Even when workers don’t have a federal income tax obligation, workers and their employers must pay federal payrolltaxes, which fund Social Security and Medicare programs. It’s difficult to see Harris applying the exemption to the payrolltax.
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