IRS Issues Updated Form 8894

The Internal Revenue Service (IRS) has issued an updated Form 8994, which is used by employers to determine the tax credit for providing paid family and medical leave. To claim the credit, eligible employers must have a written program that pays at least 50% of wages to qualified employees for at least two weeks of annual paid family and medical leave. An eligible employer that pays 50% of wages may claim a general business credit of 12.5% of wages paid for up…

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Your Business Payroll Guide to Employee Tax Classification

Are you a small business owner concerned about improperly classifying your employees? You don't want to risk an audit, you need to be sure to get the right tax classification for everyone working for you.  Don't worry if you don't know anything about payroll taxes or what your tax liability may be, we've got you covered. Keep reading to learn all about what you're responsible for and how to know the right classification for each person working for you.  The Right Tax…

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Read more about the article Costly Mistakes: Failing to Remit Payroll Taxes on Time
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Costly Mistakes: Failing to Remit Payroll Taxes on Time

Like many businesses, you may be feeling the financial crunch and are tempted to use money you deduct for payroll taxes from employee wages. Failing to remit payroll taxes and retirement plan contributions in a timely manner is not only a violation of certain payroll tax laws, it can also subject your company to heavy penalties. When employers deduct income and Social Security taxes from employees’ wages, the money is not theirs to use. You must remit the deducted amounts, along with…

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W-2 vs. 1099: How Do They Affect Payroll Tax Liabilities?

Imagine you just hired someone to join your company. But you aren't sure if they're an employee or an independent contractor. Knowing how to compare W-2 vs. 1099 employees is crucial when hiring people. That way, you can take on the right amount of tax liability and manage payroll correctly. Keep reading to learn how these types of workers affect your payroll tax liability. Employee Classifications Classifying employees correctly can affect your payroll tax liability, and it can affect what you offer…

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SBA Announces Simpler PPP Loan Forgiveness for Smaller Loans

The Small Business Administration (SBA) and the U.S. Department of Treasury (Treasury) recently released a simpler Paycheck Protection Program (PPP) Loan Forgiveness Application Form 3508S and instructions. This updated, simple two-page application is for borrowers of $50,000 or less, and is not for use by borrowers who received PPP loans totaling $2 million or more together with their affiliates. This action streamlines the PPP forgiveness process to provide financial and administrative relief to small businesses. The SBA and Treasury have also eased…

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