Payroll is one of the most important aspects of any business, but it’s one that, when running smoothly, business owners don’t tend to think about; however, when there’s a payroll glitch, it jumps to the forefront of an owner’s mind. Here are several payroll mistakes that can cost you a bundle and how to avoid […]
HR and Payroll
PPP Loan Forgiveness in 2021
REFRESHER: What is the Paycheck Protection Program? The Paycheck Protection Program (PPP) is a Small Business Association (SBA)-backed loan to help businesses retain employees during the Coronavirus (COVID-19) pandemic enacted under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Funds can be used for payroll expenses and benefits and some non-payroll related expenses such […]
Employee Retention Tax Credit (ERTC)
Eligible employers are entitled to an Employee Retention Tax Credit (ERTC) of up to 70 percent of the first $10,000 in wages and certain health care plan expenses paid per employee for each of the first two quarters of 2021 according to the New Stimulus Act. What is the Employee Retention Tax Credit (ERTC)? Designed […]
New Form 1099-NEC
The IRS issued a new 1099-series form this filing season called Form 1099-NEC. It replaces Form 1099-MISC for reporting nonemployee, or subcontractor, compensation. The amounts previously reported in box 7 of Form 1099-MISC are now reported in box 1 of Form 1099-NEC. This may seem like a small change, but a number of payors and […]
New Payroll Tax Deferral
On 8 August 2020, President Trump issued a Presidential Memorandum to defer the collection of the employee portion of the FICA tax (6.2%). The deferral period begins 1 September 2020 and ends 31 December 2020 for employees earning less than $4,000 every two weeks ($104,000 per year). The employer must then withhold the deferred taxes […]
Contractor or Employee? The Rules for Classifying Workers
Contractor or employee? The difference matters – a lot. Be sure you’re using the correct classifications for your staff. Employees. Contractors. They both create and support products or provide services for your customers. They’re your company’s most valuable assets. But the IRS looks at each very differently. And when you hire people and start dealing […]