Payroll Taxes

Payroll taxes are taxes that are often calculated and remitted based on a percentage of an employee's wages, but they can also include fixed charges. Payroll taxes consist of two types of taxes: 1) taxes that... more +
Payroll taxes are taxes that are often calculated and remitted based on a percentage of an employee's wages, but they can also include fixed charges. Payroll taxes consist of two types of taxes: 1) taxes that are withheld by an employer from an employee's wages and 2) taxes paid by an employer based on the amount of an employee's wages. These taxes may be advanced income tax payments on behalf of an employee. They are also employer and employee payments to a variety of government programs, such as social security, and unemployment/disability insurance. less -
News & Analysis as of

Opening a Law Practice? Pay Attention to Tax Issues

You’ve decided to open your own law office and are ready for your clients’ cases, but are you also ready to handle the tax issues that go hand-in-hand with running your own business?...more

Social Security Disability Trust Fund Will Be Empty in Less Than Two Years

If Congress doesn't act, the trust fund that provides a significant portion of federal Social Security Disability Insurance (SSDI) benefits will run dry in 2016, according to testimony at a recent hearing of the Senate...more

New Bay Area Commuter Benefits Program Imposes Obligations on Employers

The California Legislature enacted the Bay Area Commuter Benefits Program in 2012 to require certain employers to provide financial incentives to employees to commute to and from work via some means other than driving alone. ...more

Lingering Questions About the San Francisco Gross Receipts Tax

The first installment payment for the new San Francisco Gross Receipts Tax was due April 30, 2014. Many questions about the new tax remain. While the City has provided some relief from installment underpayment penalties,...more

Supreme Court Finds that Severance Pay is Wages for Purposes of Payroll Taxes

On March 25, 2014, the Supreme Court held in United States v. Quality Stores, Inc. that severance payments are taxable wages for FICA purposes. This decision confirms employers’ responsibility to treat severance pay as...more

Another Fortune 500 Employer is Leaving California…

Charles Schwab announced last week that it is planning to move “a significant number of San Francisco-based jobs” out of state over the next three to five years. According to a recent article in Forbes, “Observers close to...more

Complying With Wage Garnishments in Texas—What You Need to Know

When you have tens of thousands of employees, it is very likely that your payroll and human resources (HR) departments receive wage garnishment orders for employees every week. Texas law is restrictive in this area, and it is...more

Employee Benefits: FICA Refund on Severance Pay?

Following a major new development on the coverage of severance pay under Federal payroll tax (FICA) rules, affected employers should consider filing protective tax refund claims with the IRS....more

Court Continues A Fairly Busy Term

Perhaps coincidence, perhaps not, but on "Cyber Monday" the U.S. Supreme Court refused to "click yes" to consider two cases contesting the constitutionality of click-through-nexus when, as discussed further below, it denied...more

Will Automatic Gratuities at Restaurants Be a Thing of the Past?

Automatic gratuities for large parties are commonplace in many restaurants, bars, and hotels throughout the country. However, as of January 2014, the Internal Revenue Service (IRS) now classifies these automatic gratuities as...more

Preserve Your Right To A Payroll Tax Refund

A disagreement between two federal appeals courts regarding whether payroll taxes must be paid on severance payments made to laid-off workers has landed the issue in front of the U.S. Supreme Court. Oral arguments began...more

The IRS and Gun Control

Earlier this month, the First Circuit Court of Appeals held in a case of first impression that evidence seized by IRS special agents from the taxpayer's home was admissible even though IRS Special Agents were armed when they...more

Reminder for IRS Rule Regarding Tips and Automatic Gratuities for Your Employees!

Hospitality industry employers sometimes add an automatic gratuity to the customer’s bill, especially for large customer groups, e.g., automatic 15% to 20% for a party of six or more customers. Beginning January 2014,...more

Automatic Gratuities Are Now Wages For FICA Tax Purposes

Restaurateurs and wait staff beware: beginning this month, the IRS will classify automatic gratuities not as "tips," but as service charges reportable as regular wages which are subject to payroll tax withholdings. ...more

Beware of Entering into Business with your Spouse

The U.S. Fourth Circuit Court of Appeals, which covers Maryland, recently rendered a tax decision noteworthy to all married couples who participate in their business together. The case, Johnson v. U.S., decided November 5,...more

Take 5 Newsletter: An Employer's "Top 5" Action Items for 2014

It's December, and human resources professionals and law departments are reflecting on the issues addressed in 2013 and giving thanks for incident-free holiday parties. But the big question is this: What issues should get...more

Employer Obligations for Additional Medicare Tax

The Internal Revenue Service recently released final regulations and updated questions and answers to help employers and taxpayers comply with the new 0.9 percent Medicare payroll tax increase on high-income earners that...more

The “Relocation Costs” Reimbursement Arrangement: A Section 409A Trap for the Unwary.

When an employer requires an employee to move his or her primary residence to work, or continue working, for the employer, oftentimes the employer, as an inducement for the employee to accept the offer employment or continue...more

Illinois Set To Legalize Same-Sex Marriages; Employers Must Take Numerous Steps To Comply With The Law By June 2014

On November 20, 2013, Illinois Governor Pat Quinn will sign the Religious Freedom and Marriage Fairness Act, which the Illinois General Assembly passed last week and which will make Illinois either the 15th or 16th state to...more

New York State now allows employers to make payroll deductions for inadvertent overpayment of wages

Section 193 of the New York Labor Law proscribes an employer’s right to make deductions from its employees’ paychecks with very limited exceptions. In November 2012, the law was amended to allow employers to make payroll...more

The IRS Formal Guidance Recognizing Same-Sex Marriages Has Benefit and Payroll Implications for Employers

After months of speculation, on August 29, 2013, the Internal Revenue Service published formal guidance on the treatment of same-sex spouses under the Internal Revenue Code. In Revenue Ruling 2013-17, the IRS confirmed that a...more

Consumer Financial Protection Bureau Issues Bulletin About Federal Regulation Of Payroll Cards

Many employers are using or considering using payroll cards to pay employees. A number of states have wage payment laws restricting employers' use of such cards. On September 12, 2013, the Consumer Financial Protection...more

Tax Law Blog: Is This the End of Automatic Gratuities?

Starting in January, the IRS will begin treating automatic gratuities as wages which are subject to payroll tax withholding. Many restaurants add the automatic gratuity to large groups to ensure the server is tipped...more

IRS Says: Be Careful If You Outsource Payment

The IRS recently issued a fact sheet containing tips for employers who outsource payroll duties....more

Avoiding Double Payroll Tax With Your Asset Acquisition

When it comes to taxes, you would probably – and rightfully – guess that the majority the United States government collects are income taxes. ...more

81 Results
|
View per page
Page: of 4