SEPTEMBER 24TH, 2008
By CPA SAM
Q. I received a bonus check and the amount that was on the paystub was $500 less than what the bonus came out to. When asking the owner he stated that money was used to pay for the employer’s share of the taxes. On top of that, they took out taxes for my portion as well. On the paystub, it does not show the taxes that were taken out. Did I get cheated?
A. The short answer is Read more »
JUNE 4TH, 2008
By CPA SAM
Q. I will be hiring my first employees later this year. Should I do payroll myself or use a payroll company?
A. This question has been asked by companies ranging in size from the single employee shop to the multi-national corporation. The trick is, how much are you willing to pay, or how much time are you willing to spend to stay compliant with the myriad of tax laws at the federal, state and local level? For smaller employers, it is much more difficult to handle payroll in-house. Your expertise is in the area of business that you run, not in payroll.
When you are able to support it, hiring an employee with payroll/hr experience can be a great thing for your business. That being said, there are many payroll companies out there that Read more »
MARCH 11TH, 2008
By CPA SAM
Q. Where do I send FICA, Medicare, taxes?
A. If you are an employer, FICA, Medicare and Federal withholding taxes should be deposited according to the schedule assigned by the IRS to your company. Very small employers can deposit and report these withholding amounts on Form 944 annually. The other deposit requirements are Monthly, Semi-weekly and Daily depending on the amount of the deposit. All of this is discussed in Publication 15 in section 11, “Depositing Taxes.”
To answer your question, you can Read more »
