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CARES Act Payroll Tax Deferral: What You Need to Know

by Tim AustinMay 5, 2020 4:41 PM

In response to the economic impact of the COVID-19 outbreak, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law on March 27, 2020. Among many different types of loans and incentives, the CARES Act introduced tax relief for businesses in the form of payroll tax credits, enhanced net operating loss (NOL) deductions, and payroll tax deferment. However, the payroll tax deferral section of the CARES Act raised several questions for small and medium-sized businesses, especially those that received loans from the Paycheck Protection Program (PPP).

To help answer these questions, the IRS released guidance on April 10, 2020, regarding payroll tax deferrals. Here’s what business owners need to know when it comes to paying taxes on social security this year.

 Small business owner defers payroll taxes under CARES Act.

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Payroll

How to Handle Payroll For Out-of-State Employees

by Tim AustinFebruary 17, 2020 8:00 AM

It’s already difficult to manage payroll for a small business, but it can get even trickier if you have employees who work out of state. Whether you have remote employees, live near a border, or have any other reason for an employee to complete their work in a different state, there are certain rules set by the Department of Labor (DOL) and other federal and state agencies that you need to follow when handling payroll for those workers.

A map of the U.S. for out-of-state employees with certain payroll requirements.

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Payroll

Summer Intern Series: Keeping Up with the Future of HR

by Andrea LibalJuly 18, 2019 3:51 PM

When you’re thinking of starting a business, your passion is ultimately what drives you to provide the best product or service. The first thing that comes to your head is not about the technology you need for payroll, or how you are going to recruit top talent. Need an employee handbook? “I’ll type something up real quick.” 

These are just a few of the many human resource topics you can easily put on the backburner without realizing the full scope of responsibilities you now carry as a business owner. As for the future of HR, it’s only getting more crucial for businesses to stay compliant with laws and stay protected.

Two small business owners responsible for many HR functions, including payroll and taxes. 

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Human Resources

How to Calculate Payroll and Income Tax Deductions

by Tim AustinApril 15, 2019 8:00 AM

As an employer, you have a responsibility to handle every step of your business’ payroll. One of the more notable steps is handling the tax deductions that are withheld from every employee’s gross wages. To help, we’ve put together some pointers on how you can calculate the various deductions found on each paycheck.

A small business owner calculating payroll deductions for employees.

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Payroll

Payroll Forms: A Guide for Small Business Owners

by Tim AustinJanuary 17, 2019 8:00 AM

Payroll forms can put a lot of pressure on business owners. When you’re in charge of a small business, it’s up to you to make sure that these forms are not only completed accurately, but on time as well. If you’re not careful, the penalties can range from $50 per faulty form all the way up to hundreds of thousands of dollars for notable violations.

One of the biggest struggles of managing payroll forms is simply knowing which forms apply to your business and what they do. We’ve compiled a list of payroll forms that you’ll likely need to know for your small business and how they work.

A small business owner calculating taxes for various payroll forms. 

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Payroll

Keys to a Smooth Payroll Conversion Process

by Tim AustinNovember 29, 2018 12:00 PM

Whether you’re trying to find a way to save time and energy by outsourcing payroll administration or your old payroll partner just isn’t cutting it, you’re going to have to deal with the process of switching to a new payroll system, also known as payroll conversion. A rough transition to a new payroll system can lead to serious issues, including IRS penalties for non-compliance. Fortunately, there are some ways to help alleviate some potential issues that can arise when you convert your payroll process to a new system.

A small business owner going going through the payroll conversion process with a PEO. 

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Payroll

What is the Difference Between Income Tax and Payroll Tax?

by Tim AustinSeptember 14, 2018 8:00 AM

Payroll taxes are complicated, especially when you don’t have any payroll training. Small business owners have several tax responsibilities that they must manage throughout the year, which can take up hours of your time each month. Of course, if you incorrectly calculate the tax withholdings for someone’s paycheck, both the employee and the federal or state government may have a bone to pick with you.

One of the most time-consuming and difficult parts of payroll tax management is that there is more than one type of tax that you need to handle. You are responsible for withholding multiple types of taxes from your employees’ wages, including income tax and payroll tax. These taxes each have specific rules in terms of how you and your employees contribute to them and what groups regulate them. Here’s a rundown of the difference between income tax and payroll tax.

Income tax and payroll tax documents for a small business. 

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Payroll

How to Manage Payroll for a Small Business

by Tim AustinSeptember 12, 2018 8:00 AM

Payroll isn’t nearly as simple as just paying your employees. Payroll management encompasses several different steps and responsibilities. Each part of the payroll process requires you to take certain actions or make decisions that impact how your employees are paid and ensure that your business is compliant with any government regulations that apply.

As a small business owner, it’s your responsibility to either take care of each of these steps—or find a trusted company that provides payroll services for small businesses. Here’s a guide to help you learn what it takes to properly manage payroll for a small business.

 

A small business owner managing payroll by herself.

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Do I Need Payroll Software for My Small Business?

by Tim AustinMay 24, 2018 8:00 AM

Let’s be honest; what business owner looks forward to managing payroll? While payday may be exciting for your employees, it’s likely that you’re not thrilled about having to put together payroll reports, track deductions, and oversee every other critical aspect of payroll administration, especially if you do everything by paper. 

For some small business owners, payroll administration is just a necessary part of business life and the business isn’t big enough to justify its own HR department. While payroll administration is necessary, it doesn’t have to be a big burden. Online payroll software can give you the tools to take some of the pain out of payday preparation. Here are a few questions you should consider when evaluating your payroll management process.

Small business owner using online payroll software. 

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Payroll

What are the Different Functions of Payroll Management?

by Tim AustinMay 4, 2018 8:00 AM

Whether you have a single paid employee or run a small business with many employees, you need to pay attention to payroll. However, payroll involves more than cutting a few checks. Good payroll management is comprised of several different functions that help you properly pay your employees and keep your business compliant with government regulations.

Payroll documents for a business handling payroll management. 

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