As part of the new tax cuts for 2011, the Social Security (OASDI) payroll tax withholding for employees has been cut by a full 2 percentage points from 6.2 percent to 4.2 percent of wages paid. This late action has created problems for both the IRS and employers in implementing this last minute change. The IRS recently issued guidance to employers: Employers should start … [Read more...] about New Reduced Payroll Tax for Employees Can Be a Headache for Employers
Small Business
Due Date Reminders – Business January 2011
January 1 - Earned Income Credit If you are an employer and have employees who were receiving advanced Earned Income Credit payments in 2010, stop making those payments – they are no longer allowed. January 18 - Employer’s Monthly Deposit Due If you are an employer and the monthly deposit rules apply, January 18 is the due date for you to make your deposit of Social … [Read more...] about Due Date Reminders – Business January 2011
Congress Extends Tax Breaks – the details
Congress, in an eleventh-hour compromise agreement worked out with the Obama Administration and the GOP Leadership, has extended many of the Bush era tax reductions. The following is an overview of the more frequently encountered tax changes that will have an effect on just about every taxpayer. INDIVIDUAL PROVISIONS Individual Tax Rates – Under the Bush era tax cuts, the … [Read more...] about Congress Extends Tax Breaks – the details
Due Date Reminders
Due Date Reminders – Individual December 2010 December 1 - Time for Year-End Tax Planning December is the month to take final actions that can affect your tax result for 2010. Taxpayers with substantial increases or decreases in income, changes in marital status or dependent status, and those who sold property during 2010 should call for a tax planning consultation … [Read more...] about Due Date Reminders
Last Chance to Qualify for the 2011 Retention Credit
There are two tax incentives to induce businesses to hire, during 2010, individuals who have been unemployed for at least 60 days. The first incentive exempts the employer from the matching 6.2% Social Security payroll tax on a qualifying employee’s wages for the remainder of 2010. The second incentive is a Retention Credit, available on the employer’s 2011 tax return, for … [Read more...] about Last Chance to Qualify for the 2011 Retention Credit