Employers must file each employee’s IRS Form W-2, Wage and Tax Statement, with the Social Security Administration and provide a copy to the employee. If filing by mail, employers must also submit Form W-3, Transmittal of Wage and Tax Statements, which transmits Copy A of Form W-2 to the SSA. However, employers that file electronically […]
It’s long been a policy that employees are exempt from the Fair Labor Standards Act’s minimum wage and overtime protections if they are employed in a bona fide executive, administrative or professional capacity. To fall within this EAP exemption, an employee generally must meet three tests, according to the DOL. Be paid a salary, meaning […]
The Department of Labor’s final rule for employee or independent contractor classification under the Fair Labor Standards Act rescinds the 2021 Independent Contractor Rule, replacing it with guidance on analysis that’s more consistent with the FLSA as interpreted by longstanding judicial precedent, and was scheduled to take effect March 11, 2024. The final rule reduces […]
In the recently released Rev. Proc. 2023-23, the IRS has made annual inflation adjustments to health savings accounts: For calendar year 2024, a “high deductible health plan” is defined as a health plan with an annual deductible that is not less than $1,600 for self-only coverage or $3,200 for family coverage, and for which the […]
Employers generally must withhold income tax from employees’ wages. To figure out how much tax to withhold, you need to use the employee’s Form W-4, the appropriate method and the appropriate withholding table described in Publication 15-T, Federal Income Tax Withholding Methods. You’ll deposit your withholdings based on your business and the amount you withhold. […]
Below are federal payroll tax rates and benefits contribution limits for 2023. Social Security tax In 2023, the Social Security tax rate is 6.2% for employers and employees, unchanged from 2022. The Social Security wage base is $160,200 for employers and employees, increasing from $147,500 in 2022. Self-employed people must pay 12.4% on the first $160,200. Medicare tax In […]
The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA). This means that individuals and households that reside or have a business anywhere in the state of Florida qualify for tax relief. The tax relief postpones various tax filing and payment deadlines that occurred starting on September 23, 2022. As […]
Form 941-X, Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund, may be your key to getting all the Covid relief your business is entitled to. It’s a 30-page form and the rules are complex, but here are the basics. First, understand how to use Form 941-X. According to the IRS: “Generally, you may […]
The IRS announced the updated amounts Friday in Rev. Proc. 2022-24, as it does each year under Sec. 223(g). The revenue procedure also includes the revised maximum amount that may be made newly available for excepted-benefit health reimbursement arrangements (HRAs) under Regs. Sec. 54.9831-1(c)(3)(viii). The increases are in response to our country’s recent spike in inflation, […]
On Oct. 29, 2021, the U.S. Department of Labor published a final rule reviving and modifying the 80/20 rule for tipped employees. Note that the 80/20 rule governs the basis on which tipped employees must be paid under the Fair Labor Standards Act (FLSA). Under the DOL’s final rule, hospitality employers who want to pay […]