Q. We recently ran a fireworks stand for a business in another state. They have stands over about 4 different states and they hire people to manage them for them. This was our first year running the stand. We sold off of commission. We were to receive 20-25% of net sales that we took in. [...]
It’s been in the news a lot lately—how unfit Americans have become. The First Lady is advocating programs to fight childhood obesity while AARP started an online movement to get its members fit over this summer. Everyone is being asked to join in and help. But for employers and especially for payroll helping fight obesity [...]
Q. I have a unique variation of your “Social Security Tax on Everything” post… My wife’s small company decided to change their paycheck provider in July. The provider “reset” all employees yearly total earnings to zero and are therefore collecting the Social security tax from scratch. The provider claims they have to do this by IRS [...]
A good question today for discussion: “My husband is self-employed with no other employees. I generate his paychecks. This year, he has been doing a few jobs outside of our county; therefore, the local tax amounts vary from county to county. The payroll program I use is a very basic program so there are not a lot of [...]
At my day job at Symmetry Software, we have been searching for some new employees to fill some open positions. We are outsourcing the candidate search to a local employment agency. In this economy, with almost 10% of those looking for a job unemployed, there is a huge pool of well qualified labor just waiting to [...]
Q. I have a pretty new business in Arizona and will soon be hiring my first employees for a big job. They will be temporary only. What do I do? Should I just call them contractors and give them a 1099? A. Good question and probably one of the most frequent questions from new employers. [...]
Q. A 2% shareholder of an s corporation is also an emploeye. The corporation offers health insurance under a premium only 125 cafeteria plan. Is the shareholder/employee eligible to participate? If so should the corporation’s contribution be reported as wages? A. There are lots of good articles already on the web about 2% shareholders of S corporations. [...]
Q. My payroll person told me that the filing status on the W-4 doesn’t necessarily mean the same thing as my marital status. Is that true? What is filing status? A. Filing status on the W-4 and filing status on your tax return are not necessarily the same thing. The W-4 drives withholding only. The [...]
Hooray!! The annual update to the document every employer is anticipating finally occurred. Okay, maybe not all employers were as excited to see this as I was. Publication 15 should be every employer’s best friend. This document contains instructions on everything from obtaining an Employer Identification Number (EIN) to withholding, to employer taxes. How does [...]
Q. We have an employee who is working on an extended assignment (1+ years) in another state. This is not the state of his residence. My company is paying his apartment rent. Is this taxable income to the employee? A. That is a very good question. In these turbulent economic times, employees are more apt [...]
