skip to Main Content

Payroll Tax Deposits: Know the Rules

Tax + FICA + Medicare Payroll taxes consist of three components: Federal income tax withheld from employee paychecks FICA tax withheld from employee paychecks (6.2% up to the Social Security Taxable Wage Base, which is $137,700 in 2020 and $142,800 in 2021) plus the same amount as the employer contribution to FICA Medicare tax withheld from employee paychecks (1.45% with…

Read More

Tax Deadlines for October

Friday, 10/2/2020 Deposit payroll tax for payments on Sep 26-29 if the semiweekly deposit rule applies. Wednesday, 10/7/2020 Deposit payroll tax for payments on Sep 30 - Oct 2 if the semiweekly deposit rule applies. Friday, 10/9/2020 Deposit payroll tax for payments on Oct 3-6 if the semiweekly deposit rule applies. Monday, 10/12/20  Kansas Withholding Tax Deposit Report (Form KW-5)…

Read More

IRS Issues Final Regs on Meals & Entertainment Deduction

The Tax Cuts and Jobs Act (TCJA) generally eliminated the deduction for business expenses considered to be entertainment, amusement, or recreation. However, under the new law, taxpayers can continue to deduct 50% of the cost of business meals as long as those expenses meet these criteria: The expense is an ordinary and necessary expense paid or incurred during the taxable…

Read More

IRS Guidance on Employee Deferral of Social Security Taxes

As you’re no doubt aware, in early August President Trump signed a memorandum allowing employees to defer their share of Social Security taxes between September 1 and December 31, 2020. This was intended as a measure to provide individuals with extra income during this time, but merely delays the payment of these taxes and doesn’t forgive them. And now we…

Read More

Charitable Giving in Light of the CARES Act

The CARES Act made some significant changes to tax strategies for charitable contributions in 2020 that all taxpayers should be aware of. With everything that's happening, these CARES Act provisions provide a way to benefit worthy organizations in need of assistance while meeting your own giving and financial planning goals. Charitable donors sometimes have to juggle their priorities between providing…

Read More

Health Savings Account Limits for 2021 and Why You Should Consider Having One

Each year, the dollar limits for many employee benefits and tax-related items are updated for inflation. Usually that happens in November for the next calendar year, but the update for HSAs occurs earlier in the year, and here they are: Health Savings Account (HSA) Contributions for 2021 An individual with self-only coverage under a high deductible health plan can contribute…

Read More

PPP Forgiveness Guidance Released

The first of the long-awaited guidance on PPP loan forgiveness has now been released by the Small Business Administration (SBA). The PPP Forgiveness Application provides step by step instructions to walk you through the process. There aren’t any surprises in this document, but there is some welcome clarification: Payroll Period One of the most frequent questions we’ve received is whether…

Read More

PPP and Economic Impact Payment Update

Paycheck Protection Program Well, it's been more than 6 weeks since the CARES Act was signed, issuing in a new set of acronyms we're now all familiar with. If you hear "PPP" now, you automatically know it's the Paycheck Protection Program, right? And attempting to comply with the PPP is probably top of mind for most small business owners right…

Read More