What’s “on time” for a final payment of wages to an employee who’s fired? The answer matters, because in many states if you don’t pay on time, you’re on the hook for penalty wages on top of what’s due to the employee.
Aug. 1 is the date when information return penalties increase from $110 per form (up to $1,713,000) to $280 (up to $3,426,000) for these W-2 errors: failing to file 2021 W-2s in the first place or filing incorrect 2021 W-2s you haven’t yet corrected.
Fireworks on July 4 are loads of fun. Taking care of some routine payroll maintenance tasks now will keep fireworks from exploding at year-end.
Here’s your monthly guide to critical payroll due dates.
Employee’s craze for crypto leaves Payroll wondering … How do we handle lost checks?
School’s out soon. If you’re going to hire teenagers this summer, hire carefully. The Fair Labor Standards Act controls the jobs and hours teenagers may work. And regardless of their ages, minors can’t work in hazardous occupations.
How healthy are your payroll procedures? Could they, for example, detect two employees working together to embezzle company funds by cutting and then cashing checks, or an office manager who withholds employees’ taxes but fails to deposit them? Sound internal controls will pick up incidents such as these and save the company money and tax penalties.
Payroll is complicated and your time is limited. Spend two minutes reading these digests and you’ll be up-to-date on key payroll developments.
The IRS thought it had canned forever a tax-avoidance strategy used by owners of S corps and closely held C corps under which they manipulate their income and taxes by taking relatively small FICA-taxable salaries and large FICA-free distributions. Yet the strategy has resurfaced with some slight twists. These two unlucky taxpayers found out the hard way.
Here’s your monthly guide to critical payroll due dates.