Does Payroll Software Calculate Taxes Automatically?
Yes, the best payroll software can automatically calculate your business’s taxes. There are more than a few moving parts when you first learn about payroll management and how to handle your employees’ payroll taxes. Save time by investing in payroll software that can handle both FICA and self-employment taxes. The Internal Revenue Service expects most […]
How Do I Choose the Right Payroll Software For My Business?
Consider all the features, integration, and support that your business needs as you look for the right payroll software. Ask yourself the below questions before you invest in a specific program: What are my business’s payroll needs? Consider the number of people that you employ now and how you hope to grow your business in […]
Can Payroll Software Handle Direct Deposit Payments?
The short answer is, sometimes. All payroll software offers unique features and capabilities. The ability for payroll software to handle direct deposit payments is possible if you invest in a specific program. Look for comprehensive direct deposit tools if you decide that you want your company to invest in that type of payroll software. The […]
Do I Need to Send a W2 Form for Reimbursements to Employees?
Yes, you should generally send a W2 form for reimbursements to your company’s employees. Report substantiated employee business expense reimbursements in box 12 of each applicable Form W2, Wage and Tax Statement. Tax any unused expense amounts as wages. Send the W2 forms to employees so that certain ones can report excess reimbursements in line […]
How Do I Report Income from Health Savings Accounts on a W2 Form?
Report income from employee benefits, such as a Health Savings Account, in box 12 of a Form W2. Use code W when you report your employer contributions and the employee’s contribution through a cafeteria plan. Report additional non-excludable employer contributions to an HSA with the employee’s income in boxes 1, 3, and 5. Use box […]
How Do I Report Income from Employee Stock Purchase Plans on a W2 Form?
Report the income of Employee Stock Purchase Plan shares as wages on Form W2. Fill in box 1 of a Form W2, Wage and Tax Statement with the total earned amount. An employer may also include the reported compensation from box 1 in box 14. Enter the same information in boxes 16 and 18 if […]
How Do I Report Income from Employee Educational Assistance on a W2 Form?
Report certain income from employee educational assistance as wages on an employee’s Form W2. There are specific exceptions and guidelines for how you report these benefits. Assistance benefits that exceed $5,250 belong in box 1 of Form W2. Do not include the payments in box 1 that meet the threshold but the Internal Revenue Service […]
Can I File a 1099 Form for Payments Made to an Independent Consultant?
Yes, you can file a 1099 form for payments that you make to your independent consultants. The slightly different title does not prevent employers from using the form. The main difference with a contractor and consultant is that an “independent contractor” is a legal umbrella term. Whereas, an independent consultant is a non-legal classification for […]
Can I File a 1099 Form for Payments Made to a Vendor?
Simply put, sometimes. The Internal Revenue Service does not require businesses to report all payments that you make to an independent contractor with a 1099. Make sure you know when to report your payments using the form to avoid any unnecessary complications for the business and your hired contractors. Use a Form 1099-MISC or Form […]
Can I File a 1099 Form for Payments Made to a Marketing Agency?
Yes, you oftentimes should file a 1099 form for payments that you make to a marketing agency. There are times when the Internal Revenue Service will not object to you not issuing the Form 1099-MISC or Form 1099-NEC. Complete a Form 1099-NEC for marketing contractors that provided you with services during a tax year that […]