The so-called gig economy may be the wave of the future for a substantial number of workers. There are lots of implications – especially regarding taxes. The word “gig” has broadened from its original usage by musicians for an engagement for a performance to now include any type of job that’s temporary or flexible, where […]
Tax Information
Worker Classification: Pay Attention
It isn’t easy deciding whether a worker should be treated as an employee or an independent contractor. But the IRS looks at the distinction closely. Tax Obligations For an employee, a business generally must withhold income and FICA (Social Security and Medicare) taxes from the employee’s pay and remit those taxes to the government. Additionally, […]
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 […]
Presidential Payroll Tax Action on COVID-19
As you have probably heard in the news, President Trump signed a Presidential Memorandum deferring certain payroll tax obligations. A link to the announcement follows: https://www.whitehouse.gov/presidential-actions/memorandum-deferring-payroll-tax-obligations-light-ongoing-covid-19-disaster/. In summary, the memorandum instructs the Secretary of the Treasury to use his authority under 26 U.S.C. 7508A to defer the withholding, deposit, and payment of the employee’s portion […]
Tracking Mileage in QuickBooks Online
If you’re having to drive for work during the pandemic, let QuickBooks Online make sure you’re recording all of your deductible mileage. Many states are starting to open for business again. If yours is one of them and this is affecting you, we hope you’re taking steps to stay healthy. We also hope that you’ve […]
Tax Witching Hour
As many of you who trade securities know, a stock witching hour is the last hour of trading on the third Friday of each month as options and futures expire. There are triple and quadruple witching hours depending on the number of securities and markets expiring. Due to the coronavirus, we potentially have a sextuplet […]