Each year in January, the Taxpayer Advocate Service (TAS) presents its annual report to Congress, consisting of a summary of the ten most serious problems encountered by taxpayers each year. It may not be any surprise to those waiting for their Employee Retention Tax Credit (ERC) refund, but the most serious problems reported for this year are the IRS delays, inefficiencies and lack of transparency in their processing of these claims. Created in 1996 by Congress, the TAS is an independent organization within the IRS; their job is to ensure that every taxpayer is treated fairly under the Taxpayer Bill…
OSHA Recordkeeping and Reporting Begins February 1 The Occupational Safety and Health Act of 1970 created the Occupational Safety and Health Administration (OSHA) to ensure safe and healthful working conditions for workers. It is a division of the U.S. Department of Labor and they set and enforce standards, as well as reporting requirements. In short, it is one more set of government regulations many businesses will need to comply with, or otherwise, face penalties. Form 300A Posting Requirement From February 1 to April 30, 2025, covered employers* with 11 or more employees at any time in 2024, must post OSHA…
In this edition:
PayMaster Clients: Important Change to the 2023 Form W-2
Employee Retention Tax Credit Update
January is International Brain Teaser Month
Alabama Tax Change
Labor Law Posters - Do I Really Need Them?
Handy Guide to the 2023 Form W-2
2024 is coming to an end and 2025 is right around the corner. That means W-2's, FUTA credit, minimum wage changes and more. This PayMaster webinar relay will show you the year end review and the preparation needed for 2025.
Over the next few weeks, as your employees start to receive their 2024 W-2 form, they will likely have questions as to what all those numbers mean. For example, it is not uncommon for a salaried employee who earns a salary of $50,000 per year question why their Box 1 Wages only reflects $45,000. Did they get underpaid? Probably not. If the employee contributes to a pension plan (aka 401(k)) or has pre-tax insurance deductions, then those amounts reduces the “taxable” wage, which is what appears in Box 1. Some employees may also wonder why their Federal Income Tax withheld…
Under the provisions of the American Federal Unemployment Tax Act (FUTA), a Federal tax is levied on employers covered by the Unemployment Insurance program at a current rate of 6.0% on wages up to $7,000 a year paid to a worker. The law, however, provides a credit against federal tax liability of up to 5.4% to employers who pay state taxes timely under an approved state UI program. Accordingly, in states meeting the specified requirements, employers pay an effective Federal tax of 0.6%, or a maximum of $42 per covered worker, per year. The credit against the Federal tax may…
While the Federal minimum wage remains at $7.25 per hour for the past 16 years, 27 states and many cities, counties and locals have set increases effective January 1st, 2025 with a few announcing a change during 2025. Many states are continuing their march to $15.00 per hour with many states now exceeding that rate with places in Washington state that have a minimum wage above $20 per hour. A list of each state/local, along with the new hourly rate is listed below. States that do not have a minimum wage change scheduled may not be listed. All rates are…
Most years, the only thing we have to worry about when it comes to retirement plan administration is adjusting for the cost-of-living increase to contribution limits. Some years we don’t even have that, but this year is an exception with that, plus major changes you will need to make and consider. So first, the easy stuff. The cost-of-living increase, to the maximum amount an individual can contribute to their 401(k), 403(b), governmental 457 and the Thrift Savings plans, will be increased to $23,500, up from $23,000 in 2024. The catch-up contribution will remain at $7,500 and the limit on annual…
In this edition:
PayMaster Double Feature Webinar
FUTA Tax Reduction States Announced
State Minimum Wage Increases 2024
California Expands Paid Sick Leave in 2024
Holiday Closings
New 401k Plan Tax Credits Available
In this edition:
WOTC - A Little know tax credit with big potential
Bank Holidays
EEO-1 Report
PayMaster partners with Payro
Employers Must Use New Form I-9 by November 1st