How is FICA Calculated?
The current tax rate that is applicable for employers is 6.2% for Social Security. The present day Medicare tax rate is 1.45% for employers. The employer FICA tax burden is 7.65%. Likewise, your employees also contribute 7.65%. The total FICA contribution should equal 15.3%. Employers factor in multiple components when they calculate the taxes that […]
Why Should You Separate HR and Payroll Software?
Combining HR and payroll software is an unfortunate trend in businesses across the country. Mixing HR and payroll functions is an increasingly common strategy in American companies. However, these departments have discrete functions and limited overlap when it comes to company responsibilities. If you’re considering a new payroll software, don’t overcomplicate things by combining HR […]
How to Classify Workers with Trucking Payroll Software
Business owners will have different ideas on how to use trucking payroll software. Those who primarily hire company drivers may decide that they want software that prioritizes W-2 services. Others may search for trucking payroll products with reliable 1099 capabilities for paying independent contractors. The bottom line is that trucking software should benefit all the […]
Simple Payroll Software for Small Businesses
Investing in a simple payroll software is a great option for small businesses overwhelmed with payroll. It’s also a great choice for those looking to make accounting more efficient. Small business owners do not need a complex software tool to complete payroll. Often, you end up paying for more tools that you do not need […]
Should I Do 1099 or W2, Answered
As tax season arrives, you are likely asking yourself, “Should I do 1099 or W2 for my employees?” Employers face this question frequently and sometimes have a hard time remembering which form is appropriate for which type of employee. The IRS has consequences for those who misclassify workers. To protect yourself from potential consequences, read […]
Which Small Business Payroll Forms Matter Most
As a business owner, using small business payroll forms allows you to collect and report crucial payroll information. However, using these forms also means familiarizing yourself with what they all mean and when you must file them. Before you create your first small business, you should know that tax season does not only revolve around […]
Common Payroll Tax Mistakes and How a Payroll Software Reduces Errors
If you are a small business owner responsible for completing payroll, you may have made your share of payroll tax mistakes. Payroll takes careful attention and a certain degree of expertise to avoid mistakes. However, the right payroll software can make the process more manageable for business owners. AMS payroll software is a great investment […]
Understanding Payroll Tax Deposit Rules as a Small Business
All employers need to familiarize themselves with payroll tax deposit rules. Making these payments to the federal government are part of your responsibilities as an employer. You also must file the correct reporting and informational returns. Another duty as an employer includes providing your employees and/or contractors with W-2 or 1099 reports. These reports explain […]
You Asked, We Answered: How Payroll System Works
If you are considering implementing new payroll procedures, you might wonder how payroll system works. Essentially, how payroll system works is that it helps ensure accuracy in employee compensation and tax information. There are a few different payroll system options for companies: Full-time accountant Payroll service In-house payroll Payroll software A payroll system makes running […]
W-2 Employee vs 1099 Contractor: What’s the Difference?
More than ever, employers are hiring short- and long-term contractors to product high-quality work in almost every field. The employee vs contractor classification, however, is about more than the number of hours a person works; it dictates the type of form you’ll need to complete upon hiring. Each employer has a different reason for making […]