How to Pay W-2 Employee
Today’s employers possess more options when the time comes to decide how to pay their W-2 employees. The common options are checks, direct deposit, and pay cards. The often-used first two options come with pros and cons to consider before you make any immediate decisions. Physical Checks – Writing out or printing physical checks provides […]
How to Pay Employees with W-2
Some employers decide that the best way to pay their business’s employees with W-2 is with an hourly wage. Issue IRS Form W-2 for each of your employees on an annual basis. Fill out every applicable employee’s name, address, gross wages, and the amount of income taxes withheld from the wages. Send employees a copy […]
How to Correct an Incorrect 1099
There is not a separate 1099 correction form if you make an error during filing season. Use the same form as the original 1099 that you submitted. Keep in mind that there are two categories of 1099 errors. Type 1 errors require only one corrected form. Submit two 1099 forms for Type 2 error corrections. […]
How to Amend Form 941
Use IRS Form 941-X to amend Form 941 errors. Do not wait to amend a previously filed Form 941 once you notice a mistake. File a separate Form 941-X for each Form 941 that you need to correct. File Form 941-X separately from Form 941 as well. The exception is if you did not file […]
How Much Does Direct Deposit Cost a Business?
The cost of direct deposits varies between payroll processing software. Many businesses prefer using direct deposit because of its efficiency and ease. You generally can find free direct deposit deposit services with the purchase of a larger software program. Make sure whatever you use is not riddled with hidden fees. The overall direct deposit benefits […]
Do 1099-MISC Need to be Filed with the State?
That question is a bit nuanced but the short answer is, possibly. The state deadline for Form 1099-MISC is similar to the Internal Revenue Service’s deadline. File your 1099-MISC forms on the next business day if the deadline lands on a weekend. Check beforehand whether you work in a state that requires you to file […]
What Happens If a 1099 is Late?
Prepare to pay some type of penalty if you file a late 1099 form. The major deadline to put down on your calendar is Jan. 31. Send out a 1099 form by that date to the person or company that you paid for their services. That is only one important deadline when you prepare 1099s […]
What 1099 Forms Do I Send to Contractors?
Send specific independent contractors 1099-NEC and 1099-MISC forms. The contractors must meet certain prerequisites in order to receive the two types of 1099 forms. Send contractors a Form 1099-NEC if they: Do freelance work for you. Send a 1099-NEC to individuals who operate as LLCs or as sole proprietors that you paid during a calendar […]
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 […]