Press "Enter" to skip to content

Posts tagged as “IRS”

Spring Cleaning? Record Retention Guidelines to Help Clear the Clutter

0

A question I am often asked is ‘How long must I maintain my payroll records?’, and the answer is; “it depends”.   Reason being is that there are many different documents that are maintained within the payroll world by a myriad of federal, state, and local agencies, and a lots of overlap.  Some people put a blanket retention policy of seven years across all documents, but in some cases as we will see, even that may not be long enough.  Namely if the records are for an active employee. Let’s take a look at the more popular forms and documents, and bring some order to…

The 123s and ABCs of Reading a W-2

0

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…

W-2 Box 9 is Back as a Crimefighter

0

Ever since the IRS did away with the Advanced Earned Income Credit (EIC) in 2010, Box 9 on the W-2 form has sat there unused and neglected as a greyed out box.   The instructions simply read “Do not enter an amount in box 9.” Now, six years later, the IRS has an idea to help combat tax-related identity theft and refund fraud.  Their objective is to utilize this box to verify that the W-2 data submitted by taxpayers on e-filed returns is legitimate.   This year, the IRS will run a pilot program where a limited number of W-2s…