Payroll Today

The Tax Cuts and Jobs Act changed the calculus by disallowing corporate deductions for expenses employees incur to entertain clients, customers, etc. That’s why we were intrigued by an idea purporting to allow you to skirt the Tax Cuts and Jobs Act’s 100% corporate deduction disallowance for your company’s entertainment expenses.
The most important thing you can do to guarantee as smooth a year-end as possible is to ensure that your wages and taxes reconcile and balance before you file your fourth quarter Form 941 and W-2s. The second most important thing is to ensure that your computers are secure.
For the first time in more than 15 years, employees exempt from the Fair Labor Standards Act will be getting a statutory raise.
The last thing any employer wants to do is play the equivalent of Where’s Waldo with its third-party payroll provider. Yet, that seems to be exactly what happened in upstate New York earlier this month.

Are You Experienced?

September 10, 2019

When Jimi Hendrix asked this question back in 1967 (according to Wikipedia), he didn’t know how prescient he was. So our question today is: Since when did everything in the workplace become an “experience”?
This may be a loaded question, since the withholding calculator was abysmally difficult to use. But we’re going to give the estimator a whirl, since it’s the primary tool you can recommend to employees for checking their withholding.
Five days after releasing the second draft of the 2020 W-4, the IRS released the second draft of Pub. 15-T, Federal Income Tax Withholding Methods for 2020. Along with the second draft of the W-4, this is the publication you need to begin reprogramming your payroll systems for 2020.
Well, we were getting worried. The IRS promised the second draft of the 2020 W-4 by the end of July. It released the form August 8. So not too bad, deadline wise.
The IRS wants to resurrect an old tax form—Form 1099-NEC—on which you would report payments to independent contractors.

Bad people doing payroll

July 30, 2019

It’s almost midsummer and we have our midsummer blues. So maybe a little humor, with a side of seriousness, will raise everyone’s spirits. The serious part: Take these as lessons in what not to do and who not to hire.