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
Owning and managing a business is an incredibly rewarding endeavor, but it also comes with its fair share of challenges. Beyond the day-to-day operations, there are numerous aspects to consider, especially when it comes to human resources and compliance. As an employer in Massachusetts, it’s crucial to navigate both state
As a business owner, HR director or office manager, you are bound to get asked question after question about your company’s policies and payroll practices. Continue reading to learn the important questions an employee will ask you and how you can answer them. What is the difference between gross and
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.
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
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
Common payroll mistakes to avoid Making mistakes in your business’ payroll process can cause unwanted problems. From increasing your workload, to costing your business additional money, and even upsetting your employees, mistakes can be crippling for a business. There are a handful of everyday errors that your business can easily
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
Things to consider when selecting a payroll software A priority of all businesses should be automating the payroll process. Whether a small business with 5 employees, or a large business with 500 employees, using software to pay employees has many advantages. Some advantages include reducing administrative burden, improving financial health,
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
Even with many businesses returning employees to the office, there are millions of Americans working remotely. The number of work from home jobs and employees is only expected to grow. When an employer has employees working remotely, there are many challenges that they must be aware of. From payroll taxes,
There are a number of different employee benefits. Businesses must know how they work and consider offering them to their employees. This will help in attracting and retaining strong employees. From retirement plans, to health insurance and even third party sick pay, all of these items make up a business’
As the workforce continues to evolve, working remotely is only increasing in popularity. Employees are even seeking remote only positions as they look to change the pre-pandemic work standards. However, from both the employee and employer standpoint, working remotely can bring additional compliance challenges. What happens if the employee works
Maine is one of many states that relies heavily on the influx of temporary foreign workers during the tourist season. These workers help staff seasonal businesses such as restaurants, hotels, fisheries, landscapers and more. Foreigners can apply for different types of visas to enter and work in the United States
One of the more effective practices businesses use to hire and retain employees is offering a strong benefits package. As with any aspect of payroll, once a business begins offering fringe benefits, tax compliance issues arise. Let’s take a look at how taxes work on employee benefits. What are fringe
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
There are many facets and challenges of running a business. While a potential business owner may be extremely talented in a certain field, being aware of everything that comes with operating a business is essential to long-term success. From hiring and retaining new employees, to knowing and complying with HR
All successful businesses must adhere to strong accounting practices. As part of a successful accounting system, businesses must set up and use a general ledger that works for their business. Continue reading for more on what a general ledger is and the role it plays in any business. What is
Business owners face many challenges when running a business. Two of the more critical tasks of business operations are accurately processing payroll and proper accounting practices. Let’s take a look on how accounting for payroll works. How do I record my payroll in my accounting system (Quickbooks, Xero, Peachtree, etc)?
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
Attracting and retaining key employees is key to the long-term success of any business. There are many strategies to achieve this, such as offering competitive salaries and strong benefits. Another strategy that businesses use is to offer a deferred compensation plan to certain employees. Continue reading for more information on
Work from home is here to stay. According to research from Ladders, 25% of workers in North America will be fully remote by the end of 2022. And those figures are projected to increase from there. Business owners often struggle with employee payroll taxes and remote workers increase the compliance
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
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
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
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
Understanding payroll taxes can be difficult as there are multiple parts to these taxes. Businesses with tipped workers have it even harder as their employee’s compensation is made up of hourly wages, regular tips, service charges, and more. These types of businesses are allowed to take a tax credit, called