If you have followed the news over the past couple months, then you are likely aware of the debate in Washington D.C. over the extension of the payroll tax holiday. In 2011, the payroll tax holiday was passed which reduced the employee portion of the social security payroll tax from 6.2% to 4.2%. On Friday …
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Despite President Obama’s proposal to make the FUTA surtax permanent, Congress did not take action to extend the 0.2 percent surtax past its scheduled expiration on June 30. Mid-year changes to payroll taxes can complicate payroll processing and reporting requirements, particularly when changes involve federal taxes. About the FUTA The Federal Unemployment Tax Act (FUTA) …
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The IRS’s attempt to close the “tax gap”, the difference between taxes owed and taxes actually paid to the IRS, is officially underway. The Employment Tax National Research Project is auditing 6,000 U.S. employers through 2012 to try and claim some of the $60 billion of uncollected employment taxes the IRS estimates make up the …
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The IRS is continuing to define eligibility for purposes of claiming the tax benefits under the Hiring Incentives to Restore Employment Act (Pub. L. No. 111-147). According to QE19 of the FAQs About Qualified Employees, updated July 29 on the IRS website, individuals who were self-employed during the 60 days prior to the date of …
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Jobs Bill Legislation (H.R. 2847) Employers that have hired qualified unemployed workers beginning on February 3, 2010, will not be required to remit the employer share of the Social Security tax (6.2 %) for those individuals while they are employed for 2010. The employer is still required to withhold and remit the employee’s share of …
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As part of the National Research Project, examiners for the Internal Revenue Service will begin 6,000 planned audits of businesses to take place over the next 3 years. The audits will focus on employment taxes, specifically backup withholding for 1099s, fringe benefits, employee-independent contractor status, and executive/officer compensation. The purpose of this article is to …
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