Category Archives: Payroll & EFTPS

Setting Reasonable Compensation for S Corporation Shareholder-Employees

Since an S-Corporation is not taxed at the entity level but rather each owner is taxed at the individual income tax rate on his or her respective ownership percentage of the business income, typically, the shareholder-employee wants to minimize compensation … Continue reading

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Employers in 13 states will face higher 2013 FUTA rates

The U.S. Department of Labor (DOL) has issued the final list of states for which employers will not be eligible to claim the maximum amount of state unemployment tax credits on their 2013 federal unemployment (FUTA) tax return because the … Continue reading

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Employers in 17 states may face higher 2013 FUTA rates

Employers in 17 states (and the Virgin Islands) may not be eligible to claim the maximum amount of state unemployment tax credits on their 2013 federal unemployment (FUTA) tax return, because their state has had an outstanding federal unemployment insurance … Continue reading

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Employers in 19 states may face higher 2012 FUTA rates

As you may recall from last year, state which are in default of their federal unemployment insurance (UI) loan for at least two years are not eligible to claim the maximum amount of state unemployment tax credits on their 2012 federal … Continue reading

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Withholdings for Post-2012 Additional Medicare Tax

The 2010 Patient Protection and Affordable Care Act includes a provision that, effective for tax years beginning after 2012, imposes an additional 0.9% Medicare tax on taxpayers receiving wages with respect to employment in excess of $200,000 ($250,000 for married couples … Continue reading

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Payroll Tax Compromise Insight

As we already know, the 2% payroll tax cut for employees is scheduled to expire on February 28th. On Monday, the House Republican leaders said that they will support extending the federal payroll tax holiday through the end of the year … Continue reading

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Bad News for Georgia Businesses When It Comes to 2011 FUTA Taxes

Most businesses do not realize that the amount they pay in Federal Unemployment Taxes (FUTA) for their employees each year is tied to credit allowed for state unemployment taxes paid.  This credit is contingent on each state being current on … Continue reading

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100% Bonus Depreciation Expires

Last week, the “Temporary Payroll Tax Cut Continuation Act of 2011” (H.R. 3765) was signed into law.  This bill extend the much talked about payroll tax cut and unemployment benefits until the end of February, 2012. Unfortunately, the Senate stripped … Continue reading

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House and Senate approve bill temporarily extending the payroll tax cut

Late on December 22, House and Senate leaders agreed to end their stalemate over extending the payroll tax break. Under the agreement, for the first two months of 2012, a 4.2% Social Security tax would continue to apply to workers’ … Continue reading

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Social Security wage base increases to $110,100 for 2012

The Social Security Administration has announced that the wage base for computing the Social Security tax (OASDI) in 2012 increases to $110,100 from $106,800, which was the wage base for 2009 through 2011. The $3,300 increase, which is about 3%, … Continue reading

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