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 -

Tax Extensions Available to Victims of California Wildfires

by Moskowitz LLP on

Yesterday, the IRS announced that victims of the California wildfires have been granted extensions to file certain individual and business tax returns. ...more

IRS Releases TE/GE Work Plan for 2018

by Morgan Lewis on

The IRS will focus on private benefit, private inurement, payroll tax, and other compliance issues associated with exempt organizations in upcoming year....more

My Business Owes IRS Employment Taxes: What Do You Do? IRS Employment Taxes and “Trust fund Recovery Penalty” (Part 7)

by McNair Law Firm, P.A. on

Businesses that have employees and pay wages and salaries must withhold federal employee income taxes and the employee’s share of federal employment taxes (FICA) from these wages and salaries. The employer must “match” the...more

Lessons Learned from Katrina and Hurricane Harvey Relief Guidance to Date for those Affected by Hurricane Harvey

by Winstead PC on

Following Hurricane Katrina (“HK”), excellent minds in the government worked to provide helpful guidance on relief that employers could elect to utilize to assist employees impacted by that hurricane or other disasters either...more

IRS and States Crack Down on POS Systems: Zapper Software

by Bowditch & Dewey on

A good point of sale (“POS”) system is critical for any business engaged in sales to the public and having one in place goes a long way to ensuring that revenue and profits are being reported properly to federal, state and...more

IRS Encourages Self-Assessment to Identify Fringe Benefit Errors

by Ruder Ware on

As much as I love tax law, filling out another tax form isn’t high on my list of fun things to do. So when the IRS issues a form that isn’t legally required to complete, should you? If you are an employer that provides one or...more

The FICA Tax Exemption For Non-Resident Aliens In The U.S. Under F, J, M, Or Q Visas

by Jackson Lewis P.C. on

A common issue for employers of non-resident aliens authorized to work in the U.S. is whether (and when) such individuals are exempt from FICA taxation. Under the Internal Revenue Code, a nonresident alien (“NRA”) in the...more

Cannabis Industry FAQ

by Pepper Hamilton LLP on

Can marijuana businesses receive federal copyright protection? Yes. The requirements for registration with the U.S. Copyright Office are that the work is original, creative and fixed in some form of expression. These...more

Who Says There Is No Such Thing as a Free Lunch? -- the US Tax Court in Jacobs v. Commissioner Ruled That There May Be Such a...

by Garvey Schubert Barer on

Judge Ruwe ruled in Jeremy M. Jacobs and Margaret J. Jacobs v. Commissioner, 148 T.C. 24 (June 26, 2017), that a free lunch may exist today under Federal tax law. In this case, the taxpayers, owners of the Boston Bruins of...more

The Gig Economy, Independent Contractors, and New York Law

by Mintz Levin - Mintz Edge on

The gig economy (on-demand work) is a disruptive factor in many industries, including the housing market (Airbnb, Homeaway), transportation services (Uber, Lyft, Juno, Via), delivery services (Postmates, Caviar, Instacart),...more

Timing is Everything: IRS Raises the Stakes for Employers Who Delay FICA Taxation of Deferred Compensation

by Ward and Smith, P.A. on

Employers, both for-profit and tax-exempt organizations, often overlook the complex FICA tax rules applicable to deferred compensation. Unfortunately, this oversight now can be a real problem for the employer. When an...more

IRS Provides Guidance to Employers Using Payroll Service Providers

by Nexsen Pruet, PLLC on

These days, the majority of mid-to-large employers use payroll service providers for ease of payroll recordkeeping and administration. These third party providers help ease the burden of calculating taxes and withholding,...more

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

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