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…
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)…
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…
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…
The Paycheck Protection Program is the most talked about business provision of all the recent COVID-19 legislation. Many small businesses have applied and received loan proceeds intended to keep people employed during this economic downturn. It's a great program - but be sure you follow the rules, because there's a warning attached. The SBA issued their "interim final rule" (yes,…
There are three different types of leave under the Families First Coronavirus Response Act (FFCRA), each with a different duration, pay rate and eligibility criteria. The FFCRA’s paid leave provisions are effective April 1, 2020 and apply to leave taken between April 1 and December 31, 2020. Only businesses with fewer than 500 employees within the United States are subject…
On Friday, March 27, President Trump signed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which includes provisions for both businesses and individuals. The purpose of this post is to provide you with a high level overview of this legislation, explain how it integrates with previous COVID-19 legislation, and to direct you to links with additional details. As more…
This page is intended to be a "one stop shop" for payroll and tax resources that businesses need in order to stay on top of emerging legislation and guidance. Many governmental entities have established COVID-19 web pages listed below. Each heading is a clickable link that will take you to the appropriate page. We will update this page as new…
Are you hiring an employee or an independent contractor? Your answer to this question will make a big different on your business taxes. You need to know the different types of business relationships and what they mean for you as a small-business owner. The Fast Answer In terms of taxes, the difference between an employee and a contractor is simple…
Whether it's for the independence, flexible schedules, or the opportunity to do what you love, many of us have gone out on our own as part of the new "gig economy." We often think of freelancers as people who are writers, graphic designers, or software coders who work from the local coffee shop. But in our increasingly connected world, the…