at 3644 Vann Road, Suite 116, Birmingham, 35235 United States
Premier Payroll Service is locally owned and operated. We will reduce your labor costs by outsourcing the time consuming task of processing your payroll.
Why choose us? One of the first things you will notice about Premier Payroll is that we are a locally owned and operated business that answers the phone. No automated attendant, no buttons to push, no account numbers to enter. We will get to know you and you will get to know us. We can normally resolve payroll issues immediately verses other companies that make you wait until the next check cycle. What do we offer? -Payroll -Prepare Reports -Tax Reporting We also include: -Time and Attendance Systems -Tip Reporting Analysis each payday -Human Resources Support -Background Checks for your "cash handlers" -Pay Cards for your "non-banking employees" -Copies of reports sent to your CPA/Bookkeeper -Pay as you go Workers Compensation -Online Reporting -Direct Deposit/Paperless Payroll/Paper Checks -All Quarterly Payroll Tax Returns - Year End W-2's and 1099's -IRS Payroll Tax Issue Communication and Resolution
60 FB users likes Premier Payroll Services- Birmingham, Al, set it to 41 position in Likes Rating for Birmingham, Alabama in Professional services category
***6 Legal Guidelines For Paying Employees During Inclement Weather*** Although winter is winding down, there have been an unprecedented number of snowstorms and ice storms across the country. The question becomes, are you legally required to pay employees during inclement weather? Below we provide several guidelines to help you determine what your obligations are in accordance with the law. *Guideline #1: Non-Exempt Employees - The easiest class of employee to address during inclement weather is the non-exempt or ‘hourly’ employee. Under the Fair Labor Standards Act (FLSA), you are only required to pay these employees for actual hours worked. If non-exempt employees miss work because of bad weather, there is no requirement to pay them, regardless of the duration of the absence. However, if they report to work and stay until a decision about closing is made, they must be paid for those hours at the office. *Guideline #2: Exempt Employees - Exempt employees are a little trickier. An exempt employee is one who earns a set salary that is usually much higher than minimum wage. The Department of Labor requires exempt employees to be paid a salary of not less than $455/week; or $23,660/year. It is the employer’s task to determine whether or not an employee is exempt, based on salary and job duties. When it comes to inclement weather, exempt employees must receive their full salary in any workweek in which the employee is “ready, willing, and able to work.” *Guideline #3: Paying Exempt Employees When The Company Closes - If the company closes for less than a full workweek, the employer must pay exempt employees their full salary. As far as partial-day closings, deductions are prohibited. Thus, if an exempt employee reports to work for an hour and then chooses to go home because of the weather, or if your organization closes its doors, you must still pay an exempt employee their salary. However, one possible way to circumnavigate this rule is by requiring employees to use their accrued leave time for the missed day. *Guideline #4: Paying Exempt Employees When The Company Remains Open - The law tilts toward the employer’s favor if the office remains open, but the exempt employee can’t make it in due to the weather. In this case, you are not obligated to pay the day’s salary. Beware of partial-day absences, however, when an exempt employee arrives late because of weather-related commuting problems. Under those circumstances, exempt employees again must be paid a full regular day’s pay, regardless of whether management agrees that the situation was serious enough to warrant the late arrival. *Guideline #5: Working Remotely - In today’s business environment, both exempt and non-exempt employees may be able to work from home on bad weather days thanks to remote access to computer systems, cell phones and e-mail. Since you will likely be paying exempt employees anyway, you should take advantage of this option and have workers contribute from home. *Guideline #6: Adopt An Inclement Weather Policy - Having a clearly written policy will go a long way to helping your workplace function smoothly during bad weather. Your practices should be outlined in accordance with the FLSA and any applicable state laws. Some key points to include in your policy are: · Can non-exempt employees use vacation time to get paid for missed time due to bad weather, in the same way that exempt employees can? · How will you communicate a business closure to your employees? · Will employees who are unable to report to work for weather-related reasons be required to work from home? Executive Summary: Bad weather creates uncertainty and stress for employers and workers. With proper planning, employers can reduce some of that stress by having clearly written and communicated guidelines for how your organization will handle weather-related absences. In general, you should exercise caution in docking the pay of exempt employees who miss work because of inclement weather. Hourly workers, on the other hand, must only be paid for actual hours worked. With knowledge, preparation and communication, both employers and employees will understand the reasons a company will or will not pay employees when the bad weather blows in.
***Health Care Reform Updates*** 'Pay or Play' Delayed Until 2016 for Large Employers With Fewer Than 100 Full-Time Employees Newly issued final rules provide guidance for large employers who are subject to the shared responsibility ("pay or play") requirements under Health Care Reform. These employers may be liable for a penalty if they do not offer affordable health insurance that provides a minimum level of coverage to full-time employees (and their dependents), and any full-time employee receives a premium tax credit for purchasing individual coverage on the Health Insurance Marketplace (Exchange). Affected Employers The "pay or play" requirements apply only to employers employing at least a certain number of full-time employees (including full-time equivalent employees or FTEs). Employers will determine each year, based on their current number of employees, whether they will be subject to the requirements for the next year. • Employers with fewer than 50 full-time employees (including FTEs) are not penalized for not providing health coverage to employees. • Employers with 50 to 99 full-time employees (including FTEs) are subject to "pay or play," but the requirements will not apply until 2016 for employers who certify that they meet certain eligibility criteria related to workforce size, maintenance of workforce and aggregate hours of service, and maintenance of previously offered health coverage. • Employers with 100 or more full-time employees (including FTEs) are subject to the requirements for 2015 and must offer coverage to at least 70% of full-time employees (and their dependents, unless transition relief applies) to avoid a penalty for failing to offer health coverage, rather than 95% which will begin in 2016. An employer that offers coverage to at least 70% of full-time employees may nevertheless owe a penalty if any full-time employee receives a premium tax credit. Determining Full-Time Employees An employee is considered full-time for a calendar month if he or she averages at least 30 hours of service per week (or 130 hours of service in a calendar month). The final rules provide two methods employers may use to determine whether an employee has sufficient hours of service to be a full-time employee: • One method is the monthly measurement method under which an employer determines each employee's status by counting the employee's hours of service for each month. • The second method is the look-back measurement method under which an employer may determine the status of an employee during a future "stability period," based upon the hours of service of the employee in a prior "measurement period." (This method may be used only for purposes of determining and computing liability, and not for determining whether the employer is subject to the "pay or play" requirements.) The final rules describe approaches that can be used for various circumstances, such as for employees who work variable hour schedules, seasonal employees, and employees of educational organizations. Other Key Highlights The final rules also extend to 2015 a package of limited transition rules that applied to 2014 under the proposed regulations, including: • Employers First Subject to Requirements: Employers can determine whether they had at least 100 full-time or full-time equivalent employees in the previous year by reference to a period of at least six consecutive months, instead of a full year. • Non-Calendar Year Plans: Employers with plan years that do not start on January 1 will be able to begin compliance at the start of their plan years in 2015 rather than on January 1, 2015, and the conditions for this relief are expanded to include more plan sponsors. • Dependent Coverage: The policy that employers offer coverage to their full-time employees' dependents will generally not apply in 2015 to employers that are taking steps to arrange for such coverage to begin in 2016. • Look-Back Measurement Method: On a one-time basis, in 2014 preparing for 2015, plans may use a measurement period of six months even with respect to a stability period of up to 12 months. For more information on the "pay or play" requirements, you may review the Questions and Answers made available by the Internal Revenue Service.
**TAX TIPS 2014** 1. Contribute to retirement accounts If you haven’t already funded your retirement account for 2013, do so by April 15, 2014. That’s the deadline for contributions to a traditional IRA, deductible or not, and to a Roth IRA. However, if you have a Keogh or SEP and you get a filing extension to October 15, 2014, you can wait until then to put 2013 contributions into those accounts. To start tax-free compounding as quickly as possible, however, don’t dawdle in making contributions. Making a deductible contribution will help you lower your tax bill this year. Plus, your contributions will compound tax-deferred. It’s hard to find a better deal. If you put away $5,000 a year for 20 years in an investment with an average annual 8 percent return, your $100,000 in contributions will grow to $247,000. The same investment in a taxable account would grow to only about $194,000 if you’re in the 25 percent federal tax bracket (and even less if you live in a state with a state income tax to bite into your return). To qualify for the full annual IRA deduction in 2013, you must either: 1) not be eligible to participate in a company retirement plan, or 2) if you are eligible, you must have adjusted gross income of $59,000 or less for singles, or $95,000 or less for married couples filing jointly. If you are not eligible for a company plan but your spouse is, your traditional IRA contribution is fully-deductible as long as your combined gross income does not exceed $178,000. For 2013, the maximum IRA contribution you can make is $5,500 ($6,500 if you are age 50 or older by the end of the year). For self-employed persons, the maximum annual addition to SEPs and Keoghs for 2013 is $51,000. Although choosing to contribute to a Roth IRA instead of a traditional IRA will not cut your 2013 tax bill—Roth contributions are not deductible—it could be the better choice because all withdrawals from a Roth can be tax-free in retirement. Withdrawals from a traditional IRA are fully taxable in retirement. To contribute the full $5,500 ($6,500 if you are age 50 or older by the end of 2013) to a Roth IRA, you must earn $112,000 or less a year if you are single or $178,000 if you’re married and file a joint return. The amount you save for making a contribution will vary. If you are in the 25 percent tax bracket and make a deductible IRA contribution of $5,500, you will save $1,375 in taxes the first year. Over time, future contributions will save you thousands, depending on your contribution, income tax bracket, and the number of years you keep the money invested. 2. Make a last-minute estimated tax payment If you didn’t pay enough to the IRS during the year, you may have a big tax bill staring you in the face. Plus, you might owe significant interest and penalties, too. How could that happen? Withholding on your paycheck may be out of whack, or you may have received a big gain from selling stock. According to IRS rules, you must pay 100 percent of last year’s tax liability or 90 percent of this year’s tax or you will owe an underpayment penalty. If your adjusted gross income for 2012 was more than $150,000, you have to pay more than 110 percent of your 2012 tax liability to be protected from a 2013 underpayment penalty. If your tax payments were a bit light, you may be stuck. If you make an estimated payment by January 15, though, you can erase any penalty for the fourth quarter, but you still will owe a penalty for earlier quarters if you did not send in any estimated payments back then. But if your income windfall arrived after August 31, 2013, you can file Form 2210: Underpayment of Estimated Tax to annualize your estimated tax liability, and possibly reduce any extra charges. A note of caution: Try not to pay too much. It’s better to owe the government a little rather than to expect a refund. Remember, the IRS doesn’t give you a dime of interest when it borrows your money. 3. Organize your records Good organization may not cut your taxes. But there are other rewards, and some of them are financial. For many, the biggest hassle at tax time is getting all of the documentation together. This includes last year’s tax return, this year’s W-2s and 1099s, receipts and so on. If you really want to make tax season go smoothly, use a personal finance software program like Quicken throughout the year so you have easy access to all the information you need. How do you get started? Print out a tax checklist to help you gather all the tax documents you’ll need to complete your tax return. Keep all the information that comes in the mail in January, such as W-2s, 1099s and mortgage interest statements. Be careful not to throw out any tax-related documents, even if they don’t look very important. Collect receipts and information that you have piled up during the year. Group similar documents together, putting them in different file folders if there are enough papers. Make sure you know the price you paid for any stocks or funds you have sold. If you don’t, call your broker before you start to prepare your tax return. Know the details on income from rental properties. Don’t assume that your tax-free municipal bonds are completely free of taxes. Having this type of information at your fingertips will save you another trip through your files. 4. Find the right forms You won’t find all of them at the post office and library. Instead, you can go right to the source online. View and download a large catalog of forms and publications at the Internal Revenue Service Web site or have them sent to you by mail. You can search for documents as far back as 1980 by number or by date. The IRS also will refer you to a private Web site that lists state government sites where you can pick up state forms and publications. 5. Itemize It’s easier to take the standard deduction, but you may save a bundle if you itemize, especially if you are self-employed, own a home or live in a high-tax area. It’s worth the bother when your qualified expenses add up to more than the 2013 standard deduction of $6,100 for singles and $12,200 for married couples filing jointly. Many deductions are well known, such as those for mortgage interest and charitable donations. However, taxpayers sometimes overlook miscellaneous expenses, which are deductible if the combined amount adds up to more than two percent of your adjusted gross income. These deductions include tax-preparation fees, job-hunting expenses, business car expenses and professional dues. You can also deduct the portion of medical expenses that exceed 10% percent of your adjusted gross income. There is a temporary exemption from Jan. 1, 2013 to Dec. 31, 2016 for individuals age 65 and older and their spouses. If you or your spouse are 65 years or older or turned 65 during the tax year you are allowed to deduct unreimbursed medical care expenses that exceed 7.5% of your adjusted gross income. The threshold remains at 7.5% of AGI for those taxpayers until Dec. 31, 2016. Beginning Jan. 1, 2017, all taxpayers may deduct only the amount of the total un reimbursed allowable medical care expenses for the year that exceeds 10% of your adjusted gross income. 6. Don't shy away from a home office deduction The eligibility rules for claiming a home office deduction have been loosened to allow more filers to claim this break. People who have no fixed location for their businesses can claim a home office deduction if they use the space for administrative or management activities, even if they don’t meet clients there. Doctors, for example, who consult at various hospitals, or plumbers who make house calls, can now qualify. As always, you must use the space exclusively for business. Many taxpayers have avoided the home office deduction because it has been regarded as a red flag for an audit. If you legitimately qualify for the deduction, however, there should be no problem. You are entitled to write off expenses that are associated with the portion of your home where you exclusively conduct business (such as rent, utilities, insurance and housekeeping). The percentage of these costs that is deductible is based on the square footage of the office to the total area of the house. A middle-class taxpayer who uses a home office and pays $1,000 a month for a two-bedroom apartment and uses one bedroom exclusively as a home office can easily save $1,000 in taxes a year. People in higher tax brackets with greater expenses can save even more. One home office trap that used to scare away some taxpayers has been eliminated. In the past, if you used 10 percent of your home for a home office, for example, 10 percent of the profit when you sold did not qualify as tax-free under the rules that let homeowners treat up to $250,000 of profit as tax-free income ($500,000 for married couples filing joint returns). Since 10 percent of the house was an office instead of a home, the IRS said, 10 percent of the profit wasn’t tax-free. But the government has had a change of heart. No longer does a home office put the kibosh on tax-free profit. You do, however, have to pay tax on any profit that results from depreciation claimed for the office after May 6, 1997. It’s taxed at a maximum rate of 25 percent. (Depreciation produces taxable profit because it reduces your tax basis in the home; the lower your basis, the higher your profit.) 7. Provide dependent taxpayer IDs on your return Be sure to plug in Taxpayer Identification Numbers (usually Social Security Numbers) for your children and other dependents on your return. Otherwise, the IRS will deny the personal exemption of $3,900 for each dependent and the $1,000 child tax credit for each child under age 17. Be especially careful if you are divorced. Only one of you can claim your children as dependents, and the IRS has been checking closely lately to make sure spouses aren’t both using their children as a deduction. If you forget to include a Social Security number for a child, or if you and your ex-spouse both claim the same child, it’s highly likely that the processing of your return (and any refund you’re expecting) will come to a screeching halt while the IRS contacts you to straighten things out. The $1,000 child tax credit begins to phase out at $110,000 for married couples filing jointly and at $75,000 for heads of households. After you have a baby, be sure to file for your child's Social Security card right away so you have the number ready at tax time. Many hospitals will do this automatically for you. If you don’t have the number you need by the tax filing deadline, the IRS says you should file for an extension rather than sending in a return without a required Social Security number. 8. File and pay on time If you can’t finish your return on time, make sure you file Form 4868 by April 15, 2014. Form 4868 gives you a six-month extension of the filing deadline until October 15, 2014. On the form, you need to make a reasonable estimate of your tax liability for 2013 and pay any balance due with your request. Requesting an extension in a timely manner is especially important if you end up owing tax to the IRS. If you file and pay late, the IRS can slap you with a late-filing penalty of 4.5 percent per month of the tax owed and a late-payment penalty of 0.5 percent a month of the tax due. The maximum late filing penalty is 22.5 percent and the late-payment penalty tops out at 25 percent. By filing Form 4868, you stop the clock running on the costly late-filing penalty. 9. File electronically Electronic filing works best if you expect a tax refund. Because the IRS processes electronic returns faster than paper ones, you can expect to get your refund three to six weeks earlier. If you have your refund deposited directly into your bank account or IRA, the waiting time is even less. There are other advantages to e-filing besides a fast refund. The IRS checks your return to make sure that it is complete, which increases your chances of filing an accurate return. Less than one percent of electronic returns have errors, compared with 20 percent of paper returns. The IRS also acknowledges that it received your return, a courtesy you don’t get even if you send your paper return by certified mail. That helps you protect yourself from the interest and penalties that accrue if your paper return gets lost. If you owe money, you can file electronically and then wait until the federal tax filing deadline to send in a check along with Form 1040-V. You may be able to pay with a credit card or through a direct debit. With a credit card, expect to pay a service charge of as much as 2.5 percent. With direct debit, you may delay the debiting of your bank account until the actual filing deadline.
**We have listed below a number of changes for 2014 from the IRS and Department of Labor: IRS Announces 2014 Pension Plan Limits. The IRS has announced the 2014 pension plan limits. The elective deferral (contribution) limit for employees who participate in 401(k), 403(b), and most 457 plans remains unchanged at $17,500. The catch-up contribution limit for employees aged 50 and over for these plans also remains unchanged at $5,500. Social Security Wage Base to Increase in 2014. Social Security's Old-Age, Survivors, and Disability Insurance (OASDI) program limits the amount of earnings subject to taxation for a given year. The same annual limit also applies when those earnings are used in a benefit computation. This limit changes each year with changes in the national average wage index. We call this annual limit the contribution and benefit base. For earnings in 2014, this base is $117,000. 2014 Minimum Wage State Changes: A few states have increased their hourly minimum wage rate effective January 1, 2014. The new rates are: Arizona ($7.90) California will increase its minimum wage on July 1, 2014 to $9.00 per hour, and on January 1, 2016 to $10.00. Connecticut ($8.70) Florida ($7.93) Missouri ($7.50) Montana ($7.90) New York will increase its minimum wage to $8.00 effective December 31, 2013. Ohio ($7.95) Oregon ($9.10) Rhode Island ($8.00) Vermont ($8.73) Washington ($9.32) Click here for the Depart of Labor's Minimum Wage And Hour Division website. The Department of Labor announced that 13 states have Federal Unemployment Tax Act credit reductions for 2013. These states have unpaid federal unemployment account loan balances. Employers in FUTA credit reduction states will be charged an additional 0.6 to 1.2 percent of the first $7,000 earned by each employee during 2013. The following states are affected: Delaware has a 0.6 percent credit reduction requiring employers to pay up to $42 in additional FUTA costs for each employee for 2013. A credit reduction of 0.9 percent, increasing FUTA costs by up to $63 for each employee for 2013, applies to employers in Arkansas, California, Connecticut, Georgia, Kentucky, Missouri, New York, North Carolina, Ohio, Rhode Island and Wisconsin. Indiana has a credit reduction of 1.2 percent for 2013 that increases FUTA costs by up to $84 for each employee. To calculate how much additional FUTA tax that you company will owe, multiply your 2013 FUTA taxable wages for the affected states times the credit reduction percentage for your state.
4 Tips For Encouraging Your Employees To Use Direct Deposit: Tip #1: Let Employees Know It Saves Time And Hassle - Employees who use direct deposit are never forced to spend their lunch hours standing in bank lines in order to make sure their paychecks get into their accounts. Tip #2: Tell Them They Will Get Paid Even If They Are Not Around - Even on vacation or out sick, employees will still have their funds deposited into their accounts. Tip #3: Inform Them That Direct Deposit Has Increased Security - The chance of having a paycheck lost or stolen is virtually eliminated by using direct deposit. Tip #4: Create A "Direct Deposit Drive" - Designate a week for a Direct Deposit Drive. Put out some flyers or mention it in the newsletter, and list the benefits of signing up. If your company has various locations and departments, let employees know which day a payroll representative will visit their departments. Also let employees know what they will need in order to sign up (such as a deposit slip from their bank). Make sure that you give employees the extra time needed to sign up and have a giveaway to add an element of fun to the event. In addition, let your employees know how they will receive their pay stubs. Some employers issue paper pay stubs, while others send electronic pay stubs via e-mail. When deciding a method, keep in mind that some employees with little or no access to the Internet might object to the electronic pay stubs. Executive Summary: Good communication with your employees and anticipating objections can greatly increase participation and maximize the benefits that direct deposit offers your company and its employees.
***IRS: Shutdown will delay tax filing season*** Here's another reason to be annoyed at the 16-day government shutdown: It could delay tax refunds for millions of early filers by one or two weeks, the Internal Revenue Service announced Tuesday. The IRS won't start processing returns until at least Jan. 28 and possibly as late as Feb. 4, instead of the planned start date of January 21. Should the government shut down again in January over budget talks scheduled as part of the deal to reopen the federal government, refunds could be tied up even longer. Taxpayers still must file a return by April 15, and companies must still send W-2 and other tax forms on schedule, usually by Jan. 31. "While H&R Block is well prepared to adjust to the IRS announcement of a delay in the opening of the 2014 tax season, we are frustrated for our clients who are among the estimated 18 million taxpayers who typically file a return in January," the tax preparation company said in a statement. The IRS said it needs the extra time to program and test tax-processing systems. "The government closure came during the peak period for preparing IRS systems for the 2014 filing season," the IRS said in a release. "Programming, testing and deployment of more than 50 IRS systems is needed to handle processing of nearly 150 million tax returns." About 90% of the IRS was idled during the partial government shutdown, putting the IRS about three weeks behind in preparations, the IRS said. "Readying our systems to handle the tax season is an intricate, detailed process, and we must take the time to get it right," acting IRS Commissioner Danny Werfel said. During the closure, the IRS said, it received 400,000 pieces of correspondence, on top of the 1 million items already being processed before the shutdown. Every year brings new changes and tweaks to the tax law, all of which have to be entered into the IRS computers. "There are a lot of tax changes, particularly due to the 3.8% net investment income tax from the Affordable Care Act," said Melissa Labant,director of tax advocacy for American Institute of Certified Public Accountants. "The IRS has a lot of guidance they have to issue." That guidance, which goes out to tax preparers and individuals, also includes the matter of gay couples filing their federal returns as married couples. "What concerns me is not the initial delay, but if there is any additional hiccup between now and January, the delays could be longer," Labant said. The IRS will announce the date it will start to accept returns in December. There won't be any advantage to filing before that date. Electronic filers will still get their refunds more quickly than those who file by mail. Companies will have to adhere to the same deadlines to get information to employees and investors. This isn't the first time government gridlock has delayed the start of filing season. The 2013 tax filing season was delayed because Congress didn't pass laws pertaining to 2012 returns. And the IRS hotlines were closed for the Oct. 15 filing deadline for filers who requested extensions because of the most recent shutdown.
**Tips for Year End Tax Planning** There are ways to minimize the tax hit that often comes at this time of the year, and some of them involve H.R. and payroll issues. Here are some things to consider: 1. Hire a vet. You have until Dec. 31 to hire a veteran and qualify for the Expanded Tax Credit. The maximum tax credit is $9,600 per worker for employers that operate for-profit businesses, or $6,240 per worker for tax-exempt organizations. The amount of the credit depends upon how long the vet has been unemployed, the number of hours he/she works for your firm and the wage amount. If the veteran is disabled due to his service, the employer may receive the maximum credit. Visit www.irs.gov website and enter ‘WOTC’ in the search field for forms and more details about the expanded tax credit for hiring veterans. 2. Review fringe benefit packages. Check out IRS publication 15 to find what pre-tax fringe benefits are available. Consider offering employees fringe benefits instead of standard raises to help reduce your tax burden. Offering things like health vision and child-care assistance will save money in payroll taxes and your employees will be happy to receive tax-free benefits. 3. Bonuses . Keep in mind that bonuses are subject to payroll tax withholding and employer matching of FICA and Medicare taxes and payment of FUTA taxes. If you want to give a year-end bonus that is a flat amount, for example $1,000 rather than $923.84 after withholding's, then ask your payroll provider to gross up from the net figure. But do not make the mistake of paying out a bonus without processing it through payroll. The IRS and your state taxing agency will reclassify the bonus as wages and punish you severely for failing to treat the payment properly. 4. Prepare for 2013. Ask your employees to review the number of exemptions claimed and complete new W-4 Forms. Employees who claim exempt are required to submit a new Form W-4 by Feb. 18, 2013. Use IRS Publication 505 to determine how much withholding should be taken and how many exemptions to claim. 5. When posting payroll to your accounting program reconcile so that gross wages match the year to date wages on the payroll report. Employer paid payroll taxes should be kept as a separate line item on the profit and loss statement, and withholding's from paychecks should be assigned to a current liability account on the balance sheet. M any businesses neglect to balance payroll figures from the payroll report to the profit and loss statement and the balance sheet. It’s important that the figures you include for payroll expense on your Schedule C or other business income tax return match the totals reflected on Form W-3. 6. If you pay into the state unemployment fund, you should receive a statement by January 2013 which reflects any rate changes. Be sure to provide this information to your payroll provider in order to ward off any penalties for paying the wrong amount. 7. Don’t forget to include the cost of health insurance provided to your employees on Form W-2 at year end. Your payroll provider may neglect to ask you for the figures, so be sure that you are proactive in providing these figures to them.
**6 Payroll Tips for Small Business Owners** 1. Make sure that you properly classify your workers. Just because a worker agrees to be paid as an independent contractor doesn’t mean it’s the legal way of paying that person. If the worker performs the same services as offered by your business, the person must usually be classified as an employee. Like with anything related to the tax code, there are exceptions so for more in-depth information on this topic, check out IRS Publication 15. 2. You will need an employer identification number (EIN) and you will need to supply this number to your payroll-processing company. If your business entity is a partnership or corporation, you already have a number. If you do not have an EIN, contact the IRS at 1-800-829-4933 to apply for one. 3. Set your budget to include not only the wages that must be paid, but the payroll taxes that also must be paid to the federal and state governments. You are required to match the Social Security and Medicare that is withheld from your employee’s pay, which is equivalent to 7.65% of the gross pay. You must also fund the federal unemployment fund by paying FUTA tax. See Publication 15 for more information on rates and requirements. Depending upon the state in which your business is located, you may be required to pay other employment taxes. Find out the rates and include those percentages in your budget. 4. Ask your payroll-processing company to automatically make the federal and state tax deposits for you. Out of sight, out of mind, and in compliance. It can get very expensive very quickly if you do not keep up with payroll tax deposits. In fact, you can be levied a 100% penalty for failure to turn over the withholdings to the government by the due dates. Publication 15 outlines the due dates and other requirements for making the payroll tax deposits. If your in-house bookkeeper makes the deposits, double check to ensure they were made timely. 5. When it’s time to give raises, consider providing them in the form of tax-free fringe benefits such as health, dental, and vision insurance, child care subsidy, a cell phone or a retirement plan. Check out IRS Publication 15-B to see what fringe benefits are available and whether or not they are subject to taxation. 6. As part of the Patient Affordability Act, beginning in 2014, if you have more than 50 employees on staff, you will be required to provide health insurance. You needn’t pay the health insurance premiums, but there must be a plan in place in which your employees may choose to participate.
**Business Standard Mileage Rate Decreases to 56¢ in 2014** The IRS has announced that the business standard mileage rate for transportation expenses paid or incurred beginning January 1, 2014, will be 56 cents per mile, down one half cent from the 56.5 cents rate in effect during 2013 [Notice 2013-80, released 12-6-13]. The mileage rate may be used to compute the amount to reimburse employees who are using their own cars for business purposes. It may also be used by employers that elect to use the "cents-per-mile" valuation method for purposes of determining the amount that needs to be imputed to an employee's income for personal use of certain company-owned or leased non-luxury vehicles WARNING Because of the upcoming half cent reduction in the business standard mileage rate, employers reimbursing employees at the 2013 rate for business travel in their own vehicles need to be mindful of the rate change. To avoid having to include the extra half cent in its employees' income and the accompanying withholding and reporting responsibilities, employers should make sure they change to the 2014 rate for all business travel on or after January 1, 2014. In addition, the 2014 standard rate for miles driven for medical or moving purposes will decrease to 23.5 cents per mile, down from the 24 cents-per-mile rate in effect during 2013. Finally, the standard mileage rate for operating a passenger car for charitable purposes, which is set by law, will stay at 14 cents per mile in 2014.
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Simple: To Save Money and Time Do you spend hours researching the web on employment laws and don't know where to turn for answers?
Do you want all of the tools and services those big corporations have but don't have the funds nor the knowledge to get them?
Let us show you how outsourcing your payroll can save you money and provide you all of the big tools you need.
Click to find out the Benefits of Outsourcing.