Over the next few weeks as your employees start to receive their 2017 W-2 form, they will most likely have questions as to what all those numbers mean. For example, it is not uncommon for a salaried employee who earns $50,000 per year question why their Box 1 Wages only reflects $45,000. The response is, ‘do you contribute to a pension plan or have pre-tax insurance, then if so those amounts reduce your “taxable” wage, which is what appears in Box 1’. To assist you with those questions, here is an explanation of what is in each box and what…
Posts published in “Forms”
With the recent passing of the new tax law, we will find a significant delay in the IRS’ publishing of the 2018 W-4 Withholding Allowance Form. In the meantime, anyone hired in 2018 should complete the 2017 form, and they will not need to complete the 2018 form when it is released. Unless that is, if they want to later change their withholding. A Form W-4 remains in effect until the employee gives you a new one. When you receive a new form, begin withholding no later than the start of the first payroll period ending on or after the 30th…
United States Citizenship and Immigration Services (USCIS) Form I-9 is used for verifying the identity and employment authorization of all individuals (citizens and non-citizens) hired for employment. On July 17th USCIS released a new form and employers have 60 days to implement this new version. First introduced in November 1986, this form is completed by both the newly hired Employee (where they state their eligibility to work -Section 1), and the Employer (where they verify the employee’s eligibility -Section 2) within three days of hire. The list of acceptable documents referenced by the employer to verify the employee’s eligibility…