News & Analysis as of

Payroll Taxes Internal Revenue Service

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 -

With Tax Day Nearly Behind Us, Justice Department Pivots to Warnings About Employment Tax Violations

by Fox Rothschild LLP on

Following a relentless flurry of press releases announcing criminal charges against tax evaders in the run up to today’s tax filing deadline, the Justice Department wasted no time in turning its attention to its next target:...more

FICA Taxes and Administrative Traps for Employers

by Sullivan & Worcester on

The nuances of the Social Security and Medicare tax system – collectively FICA taxes – continue to confound and increase the potential liability of employers who are not well versed in this area....more

Tax Truths: Volume 1, No. 2 – December 2016

by Ballard Spahr LLP on

AN ANALYSIS OF TAX LAW PROPOSALS OF THE PRESIDENT-ELECT AND THE HOUSE - President-elect Trump made tax reform a highlight of his campaign, calling for fewer tax brackets, lower individual rates, and reduced corporate tax...more

Defenses Payroll Tax Fraud

by Sanford Millar on

Prosecution for payroll tax fraud is a high priority for the IRS and Department of Justice. Payroll tax fraud occurs in several manners, including false worker classification as independent contractors, understatement of...more

Tax Court Case Demonstrates IRS’ Vigorous Pursuit of Trust Fund Recovery Penalty

by McGuireWoods LLP on

A recent U.S. Tax Court case illustrates how aggressive the Internal Revenue Service (IRS) has become in using the trust fund recovery penalty (TFRP) to collect trust fund taxes. The taxpayer against whom the IRS assessed...more

Health Law Insights: October 2016

by Roetzel & Andress on

ALERT: Immediate Action Required by Health Care Providers to Comply With Section 1557 of the Affordable Care Act by October 16, 2016 - The U.S. Department of Health and Human Services (“HHS”) Office of Civil Rights...more

Did You Know That Payroll Taxes Non-Compliance Can Get You Into TROUBLE?

by Foodman CPAs & Advisors on

S Corps are corporate entities through which the income and or losses of the entity pass through to its owner’s personal income tax return. It is estimated that 100% of the shares of approximately 70% of small businesses...more

Form W-2 and 941 Actions May Be Required Immediately for Retroactive Increase in Section 132 Transit Benefits

by McDermott Will & Emery on

The Consolidated Appropriations Act of 2016 (the Act) retroactively increased the 2015 employer and employee Federal Insurance Contributions Act (FICA) and Federal Income Tax exclusion limit for transit benefits, from $130...more

New IRS Initiative Highlights Trust Fund Tax Compliance Issues

by Hinshaw & Culbertson LLP on

The IRS has begun a new initiative focused on payroll tax compliance for employers, and specifically the timely deposit of withheld payroll and income taxes. Those taxes, which are withheld from an employee's paycheck and...more

New IRS Early Interaction Initiative Will Help Employers Stay Current with Their Payroll Taxes

by McGuireWoods LLP on

To help employers stay current with their employment tax responsibilities, the IRS announced on Dec. 8, 2015, a new early initiative to notify employers who may be falling behind on payment of their employment taxes. IRS News...more

Wait’s Over: IRS Says Waiting Time Penalties Aren’t Wages

by Seyfarth Shaw LLP on

We’ve long known that California law does not treat Labor Code Section 203 penalties as “wages.” Earlier this year, the IRS published its view on how to treat those penalties (often referred to as “waiting time penalties” or...more

Treasury and the IRS Issue Proposed Regulations Implementing Supreme Court Same-Sex Marriage Ruling

by Franczek Radelet P.C. on

In recent guidance, the Department of Treasury and the IRS issued proposed rules that clarify under the Internal Revenue Code (Code) that the terms “spouse” and “husband” and “wife” refer to individuals who are lawfully...more

Best in Law: Tax Ruling Confirms Protocol on Job-Related Judgments

by Best Best & Krieger LLP on

The California Court of Appeal recently confirmed that employment-related settlements or judgments are wages from which employers must withhold payroll taxes. In Cifuentes v. Costco Wholesale Corp., Cifuentes...more

Employers Must Withhold FICA Taxes for Students who Change Status to H-1B Starting October 1

As students and scholars’ status change from F-1, J-1 or other FICA exempt statuses to H-1B starting October 1, these employees will become subject to FICA taxes upon the effective date of their H-1B status....more

2015 Form 1095-C Reporting: IT Vendor Survey

by Balch & Bingham LLP on

On August 18, 2014, we posted our, “First Look at ACA Employer Compliance Software.” It’s time for an update. We invited less than a dozen vendors to answer these twenty-two questions....more

Obergefell v. Hodges – Same-Sex Marriage Now Legal in all 50 States

by Snell & Wilmer on

Same-sex Marriage Now Legal in All 50 States - In 2013, the Supreme Court, in United States v. Windsor, struck down Section 3 of the Defense of Marriage Act (“DOMA”) which defined marriage, for Federal purposes, as...more

IRS Updates Guide to Auditing Nonqualified Deferred Compensation Plans

The Internal Revenue Service (IRS) recently updated its “Nonqualified Deferred Compensation Audit Techniques Guide.” The Guide provides a framework for the IRS to audit nonqualified deferred compensation (NQDC) plans. Since...more

Telemedicine Providers: Are My Doctors Employees or Independent Contractors?

by Foley & Lardner LLP on

Many telehealth companies, particularly those with multi-state footprints, look to an independent contractor model when developing their network of physician providers. An independent contractor model (using 1099 contractors)...more

Employee Benefits: IRS Finalizes Affordable Care Act Reporting Forms (3/15)

The Internal Revenue Service (IRS) recently finalized reporting forms for employers and insurers to report information required by Internal Revenue Code (Code) Sections 6055 and 6056. ...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

by Gray Reed & McGraw on

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

by Holland & Knight LLP on

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

Automatic Gratuities Are Now Wages For FICA Tax Purposes

by Akerman LLP - HR Defense on

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

by Pessin Katz Law, P.A. on

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

Employer Obligations for Additional Medicare Tax

by McDermott Will & Emery on

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

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