W-2 Rate Meaning
Employers and employees pay four federal payroll taxes when they work in the United States. Each tax has a different W-2 rate that you need to know for your business. They are: Social Security Tax – The total Social Security tax is 12.4%. Employers contribute to half of the tax by paying 6.2%. Medicare Tax […]
What are the Types of Payroll?
Running your payroll in-house means that you need to choose between purchasing cloud-based or server-based payroll software. Each type of payroll software offers key advantages. Consider how the benefits align with your immediate needs, including meeting employment tax due dates. Cloud-Based Payroll Benefits Multitasking – Add more resources or perform a multitude of tasks […]
What are Two Types of Payroll Systems?
The two types of payroll systems for businesses include payroll software and outsourcing. There is a third option of managing payroll by hand, but that leads to needless errors. Choose a payroll method for your business after carefully considering the pros and cons. Payroll Software Advantages Lower cost – Vendors do not create identical […]
How to Pay Temporary Employees
Temporary employees meet short-term business needs in similar ways to contract workers. How you pay temporary employees differs in noticeable ways. Use W-2 forms if your business is the party responsible for paying temporary employees. Make sure you understand all the additional temporary employee prerequisites to properly classify and pay your workers. Temporary Employees – […]
How to Give Employee Bonus Without Taxes
Are you wondering how to pay bonuses to employees without taxes? Regretfully, that is not an option. Employers must withhold taxes from employee bonus payments. The IRS mandates different guidelines based on whether you issue stand-alone bonus checks or integrate bonuses into regular wage compensation. Employers withheld a flat rate of 22% for all stand-alone […]
What If I Forgot to File a 1099 Form?
The short answer is, you will pay a fine. It does not need to be a hefty fine if you take the proper steps moving forward. Employers can resolve any missing 1099 forms. It is not necessarily too late to send a missing information return, whether your business or the Internal Revenue Service realizes it […]
How to Give 1099 Form to Employee
Many employers view paying freelancers as easier than paying employees. You do not need to worry about paying unemployment tax or FICA taxes. Hire independent contractors if you want to save certain costs, like benefits. Make sure you know the steps for how to pay the workers. Step 1 – Confirm that your worker is […]
How to Fill Out a 1093 Form: A Guide
Completing tax forms for each calendar year may feel overwhelming without factoring in your business’s 1093 form. The Colorado Department of Revenue mandates the use of DR-1093 for reporting purposes. The Department utilizes any business’s data to reconcile all of the payments received from employees in the most recent calendar year. Ensure that all of […]
How to Fill Out a 1099 Form as an Employer
Payers send completed 1099 tax forms to the IRS and all independent contractors. We outlined below the steps to take when completing and filing Form 1099-NEC. Identify which workers are contractors. Independent contractors work for your business, but they operate separately from it. They establish their own hours, pay their own FICA taxes, and control […]
How to Fill MW-507 Form
Form MW-507 collects employee information to establish tax statuses and exemptions. Review each Form MW-507 to confirm the employees included the required information to make claims. Line 1 – The line includes the total amount of personal exemptions. Line 2 – Review additional withholdings. Employees use the line to ask you to withhold more if […]