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Tag: irs

IRS standard mileage rate 2024

IRS increases standard mileage rate for 2024

With business laws also evolving, staying up-to-date on changes to certain rules crucial for small to medium-sized business owners and HR professionals. Recent studies show that a significant portion of business expenses goes towards transportation costs, making it essential to stay updated with the latest IRS standard mileage rate changes.

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1099 and W2 employee

What are 1099 and W2 employees?

As a small business owner, it’s more important than ever to understand the intricacies of employment types. The two most common employee classifications are W2 employees (traditional employees) and 1099 contractors (those who may work for other employers throughout the year).  Recent statistics show that independent contractors, a group predominantly

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I-9 audit

How to survive an I-9 Audit

As the business compliance continues to become more complex, many business owners and HR managers find themselves facing certain audits.  One of these challenges is the I-9 audit. In this article, we’ll delve deep into what an I-9 audit entails, how it might be triggered, and the steps you can

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S-Corp Shareholder’s Health Insurance

When diving into the world of S-Corporations, one might come across the term “2% shareholder.” This term, while seemingly straightforward, carries with it specific tax implications, especially when it comes to shareholder’s health insurance benefits. In this article, we’ll break down who these 2% shareholders are and how their health

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Why do employers fear payroll?

Why do employers fear payroll?

Payroll.  It is probably a business owner’s least favorite part about operating a business.  But why is this the case?  Well, there are a handful of reasons.  We like to think that there are 5 big topics that scare a business owner or HR manager when they think about the

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Common IRS Notices

Common IRS Notices As a business owner, receiving a letter in the mail from the IRS can seem like a bad thing. You may immediately think that you are being audited, you made a mistake on your payroll taxes, or that you owe thousands of dollars in penalties and fines.

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Common W-2 mistakes to avoid

Common W-2 mistakes to avoid Every business that has at least 1 employee has to provide an IRS Form W-2 to each of its’ employees. The W-2 reports employees’ annual taxable wages and the amount of payroll taxes withheld from those wages. Inaccuracies or errors on these forms can result

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What to do with manual or voided checks

What to do with manual or voided checks When running a business there may be times when you will need to manually write an employee a check. This is especially true for small businesses. If this happens, it is important you know what to do with those manual or voided

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Final paystubs versus W2s

Final paystubs versus W2s Year end is fast approaching, which means it is almost time for employees to receive their final paystubs of the year. In addition to final paystubs, employers must provide a W2 to each employee by January 31st. But, are final paystubs and W2s the same? Let’s

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What is PFML?

What is PFML? Your employees may encounter a situation where they have to take time off from work to care for, or deal with, a medical situation. As an employer, are you allowed to terminate an employee after a certain period of missed time? Are you required to pay employees

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IRS Contribution Limits for 2023

IRS Contribution Limits for 2023 Each year, the Internal Revenue Service determines if the contribution limits for things like retirement plans and health savings will increase. Based on cost of living adjustments, the agency recently announced increases to most of these contribution limits. Let’s take a look at the new

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Are expense reimbursements taxable?

Eventually, almost all employers will need to provide reimbursement to an employee for a business expense. Employers need to know how to handle these reimbursements. One compliance challenge is whether or not a business needs to withhold proper payroll taxes on the expense. Let’s answer the question, are expense reimbursements

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Are retirement contributions pre-tax or post-tax?

Many businesses offer a retirement plan as part of their employee benefits package. In fact, many states are beginning to set up state run retirement programs to allow employees that do not have access to a retirement vehicle the chance to begin investing in their future. While there is no

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What is an Applicable Large Employer?

According to a study done by Statista, the number of Americans without health insurance was 48.6 million, an all-time high, in 2010. The Affordable Care Act, ACA, was enacted in 2010 for the purpose of providing affordable health insurance to more people. The ACA puts this responsibility on individuals, employers,

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Do nonprofits pay payroll taxes?

Payroll taxes are an employers worst nightmare. Withholding, matching and filing taxes properly can be an administrative burden and costly proposition for all businesses. But, what if your business is a nonprofit organization? Are nonprofits still required to pay payroll taxes? Continue reading for the answer. What is a nonprofit

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What is Form W-3?

A requirement of all employers with at least one employee is the annual reporting of employee wages and payroll taxes on Form W-2. According to the Internal Revenue Service, any employer that submits a Form W-2 must also submit a Form W-3 as well. So, what is Form W-3? What

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What is Federal Unemployment Tax?

Tax compliance is one of the most important responsibilities that new business owners undertake. Every time a business processes payroll, the proper payroll taxes must be withheld from each employee or paid by the employer. Federal Unemployment Tax, or FUTA, and State Unemployment Tax, or SUTA, make up one portion

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Tips for making the payroll process easier

Tips for making the payroll process easier One of the most important factors in running a successful business is the overall satisfaction of your employees. Engaged employees are more likely to stay with your company for the long-term and to produce exceptional work results. The easiest way to continue to

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What is e-verify?

What is E-Verify?

One of the documents required by the Internal Revenue Service of each employee is the Form I-9. The purpose of the Form I-9 is to verify an individual’s identity and eligibility to work in the United States. Many businesses use E-Verify to verify employment eligibility during their onboarding process. Let’s

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what are quarterly tax payments?

What are quarterly payroll taxes?

Every business with at least one employee is obligated to withhold and pay payroll taxes. These taxes are withheld for every employee during each pay period. However, while the taxes are withheld each pay period, typically they are not filed each pay period. Due to the fact that these withholdings

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wage garnishments

How wage garnishments work

At some point in time, most businesses will have employees that are required to have money taken from their paycheck to repay an outstanding debt. This is called wage garnishment. Since most garnishments have specific rules surrounding them, they can be a difficult thing to manage. Let’s take a more

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What are fringe benefits?

There are many things to consider when offering an applicant a position within your company. The salary of the position is probably the first thing a potential candidate will look for. After the position’s salary, the benefit package that you offer will be a key to attracting and hiring new

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employee retention tax credit

What is the Work Opportunity Tax Credit?

There are many tax credits that businesses can take for a variety of reasons. Knowing what these tax credits are and how to take them can allow businesses hundreds, or even thousands, of dollars per year in tax savings. One of these tax credits is the Work Opportunity Tax Credit.

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2022 Retirement Contribution Limits

In 2022, employees of businesses that offer retirement plans are eligible to increase their retirement account contributions per the Internal Revenue Service. Every year, the IRS reviews and makes any necessary changes to the contribution limits for retirement plans. These changes are based on the cost-of-living adjustments from the IRS.

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2022 HSA Contribution Limits

In 2022, participants of health savings accounts (HSA) and flexible spending accounts (FSA) are eligible to increase their contributions per the Internal Revenue Service. Every year, the IRS reviews and makes any necessary changes to the contribution limits for these types of plans. These changes are based on the cost-of-living

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business year end

Getting Ready for Payroll Year End

The weeks between Thanksgiving and New Year’s Eve can be extremely busy, stressful, and go by far too quickly. This is the time when businesses are planning ahead for the upcoming year. Before you can achieve your future business goals, you have to make sure you finish out the current

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