Category Archives: Payroll

Taxation of Christmas Bonuses for Your Employees

Are you thinking of giving your employees a Christmas bonus, holiday bonus, or year-end bonus? What’s the best way to handle these year-end bonuses? Can they be handled ‘under the table’? Do you have to include them as wages on … Continue reading

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Posted in Business taxes, Payroll | 7 Comments

Special Payroll Pricing for Illinois Non-Profit Organizations

This is from our sister-company, Complete Payroll, Inc.: FOR IMMEDIATE RELEASE: Complete Payroll Offers Special Non-Profit Pricing to Help Community Crystal Lake, IL – June 26, 2012 – Complete Payroll, Inc., a locally owned and operated payroll service company, announced … Continue reading

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Good News – Payroll Tax Cut Extended through 2012!

Congress gave all wage earners a short-lived 2012 reprieve by temporarily extending the 2% payroll tax cut though February of 2012. The payroll tax, frequently referred to as FICA or OASDI on your paycheck, has historically been 6.2%. This is … Continue reading

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New Credits for Hiring Veterans

Congress recently passed legislation that extends and expands the Work Opportunity Credit (WOTC) for hiring unemployed veterans. This effectively gave a one-year lease on life to the WOTC, but only with respect to qualified veterans who begin work for the … Continue reading

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Independent Contractor versus Employee Status – A New Focus of the IRS

If you are a small business owner, whether you hire people as independent contractors or as employees will impact the amount of taxes you withhold from their paychecks, as well as how much and what types of taxes you pay. … Continue reading

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Reimbursing Employees for Health Insurance

Many small businesses do not have a group health insurance plan in place for their employees. Yet, as an added benefit, employers may want to reimburse all or a portion of the individual health plan that the employee maintains and … Continue reading

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Illinois Small Business Job Creation Tax Credit

There is still time to hire employees for your Illinois business to qualify for the Illinois Small Business Job Creation Tax Credit. By creating at least one new, full-time position that meets the eligibility requirements, you may be eligible to … Continue reading

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IRS Phasing Out 8109 Coupons for Tax Payments

The IRS has issued proposed regulations that would eliminate paper coupons for deposits of employment taxes, corporate income and estimated taxes, and many other taxes (REG-153340-09).  The paper 8109 coupon payment system will be shut down at the end of … Continue reading

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Posted in Payroll, Tax legislation, Uncategorized | Tagged , , | 1 Comment

Misclassifying Workers Can Be Costly!

With the current economy, and not always knowing what lies ahead, most business owners and executives tend to be financially conservative and preserve the cash of the business.  This conservative approach frequently carries over to hiring activities, with many employers … Continue reading

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Hiring Family Members in a Family Business

In today’s tough job market, students seeking summer employment, young adults looking for full-time employment, and college graduates looking to begin their careers are finding it difficult to land a job.  The family business may be the only place for … Continue reading

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Reasonable Compensation is Becoming a Hot Issue

Corporate officers will sometimes attempt to disguise what should be payment for services as distributions of cash, dividends, and loans as a means of avoiding payroll taxes on the income.  Because they are pass-through entities, Sub Chapter S corporations are … Continue reading

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Special Payroll Tax Exemption Form Now Available

WASHINGTON — The Internal Revenue Service today released a new form that will help employers claim the special payroll tax exemption that applies to many newly-hired workers during 2010, created by the Hiring Incentives to Restore Employment (HIRE) Act signed … Continue reading

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Payroll tax holiday and up-to-$1,000 credit for employers who hire unemployed workers.

A key tax change affecting business was made in the recently enacted Hiring Incentives to Restore Employment (HIRE) Act. To help stimulate the hiring of workers by the private sector, the new law exempts any private-sector employer that hires a worker who … Continue reading

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Posted in Payroll, Tax legislation | Tagged , , , | 7 Comments

COBRA premium subsidy extended and expanded

On December 19, 2009, the 65% COBRA premium subsidy that was due to expire December 31, 2009 for newly terminated employees was extended. The extension adds another six months to the maximum period that the COBRA subsidy can run, and also extends … Continue reading

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New bill would limit employment tax relief on misclassified workers

In another example of the intention by Congress and the IRS to crackdown on misclassification of workers as independent contractors, Rep. James McDermott (D-Wa) introduced legislation that would make it more difficult for employers to receive protection from a potentially … Continue reading

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