HR PEO Blog

The Internal Revenue Service has made a recent announcement suggesting part-year or seasonal employees to do a “paycheck checkup”. The changes made from The Tax Cuts and Jobs Act (enacted earlier in the year) have made some significant differences in how the withholding tax gets calculated this year.  Part-year and seasonal workers are especially vulnerable to incorrect calculations due to the limited or shorter period of employment, instead of calculating income on the entire year of employment.


The easiest way for a part-year or seasonal employee to do a checkup is to visit The Withholding Calculator on IRS.gov. The calculator has been designed to help estimate income and deductions to make sure the right amount of tax is being withheld. Based on the results of the calculator, employees can then change their filing and allowances on Form W-4 to update their tax withholding.

 

More information can be found at the IRS news release here: https://www.irs.gov/newsroom/seasonal-part-year-workers-urged-to-check-tax-withholding-amount

The Withholding Calculator can be found here: https://www.irs.gov/individuals/irs-withholding-calculator

Published in IRS
Wednesday, 28 March 2018 14:52

IRS Tax Withholding Calculator

2018 brought several changes, a primary one being our tax law. As always, it’s important for you or your employees to understand the taxes being taken from their paycheck. It helps prevent an unanticipated tax bill when 2018 taxes are filed. The IRS has created a new W4 withholding calculator to assist taxpayers in calculating the correct amount of taxes for their paychecks. Interested? Follow the link below to use the IRS withholding calculator. 

https://www.irs.gov/individuals/irs-withholding-calculator 

Published in W-2

IRS announces additional assistance for identity theft victims

The IRS has recently announced the creation of a toll free hotline for use by Identity Theft Victims. The new IRS Identity Protection Specialized Unit (800 908-4490) will take actions to mark the affected accounts so that identity theft issues may be resolved more quickly and reduce the burden of resolving any related issues in future years.

For further information individuals may go to IRS.gov’s Identity Theft website at: http://www.irs.gov/individuals/article/0,,id=136324,00.html

Published in IRS
Tuesday, 16 October 2007 18:00

Social Security Increase

SSA announces increase in taxable wage base and monthly benefits for 2008.

The maximum amount of earnings taxable for Social Secuirty in 2008 is increasing to $102,000.00.  This is a $4,500.00 increase from 2007's wage base of $97,500.00. Along with this wage base increase is a 2.3% Cost of Living Adjustment (COLA) to the monthly benefits.  The COLA is based off of the Bureau of Labor Statistics' Consumer Price Index for Urban Earners and Clerical Workers.  The 2.3% increase will begin with the January benefits sent out by the Social Security Administration.

For more information the SSA has a fact sheet at:

http://www.socialsecurity.gov/pressoffice/factsheets/colafacts2008.htm.  

Published in Social Security

 The economic stimulus package contains provisions affecting employers.

The American Recovery and Reinvestment Act of 2009, or simply stated stimulus package, will affect many aspects of employment over the next several years.  The stimulus package addresses employee benefits, taxable income, unemployment benefits and information privacy rights. Over the next several weeks, StaffScapes’ blogs will be written to explain in more details these items.  However, this blog will give a brief description of the affected programs. These changes include:

·        Potential subsidy for COBRA or state continuation of Health Insurance for laid-off workers.

·        Tax credit for 2009 and 2010, reducing Income Tax withholding or claimed on tax return

·        Increase non-taxable amount of mass transit and vanpool benefits

·        Unemployment had major revisions including: extended coverage period; increase maximum benefits; exclusion of a portion of benefits as taxable income; increasing reasons to award benefits

·        Changes to HIPAA electronic records retention and transmission as well as expanding definition of Business Associate and responsibilities

Now more than ever, small to medium sized businesses need to partner with experts in the employment industry.  StaffScapes, Inc., as a full service PEO (Professional Employer Organization), assists and guides our clients through the maze of employment rules, laws and regulations.  Contact us today, to learn more about how StaffScapes can help you weather this economic and regulatory storm. 

Wednesday, 03 January 2007 17:00

Updating W-5's

W-5 update annually

W-5 is a form also known as EIC (Earned Income Credit) that allows low-income individuals and families to receive a refundable federal tax income during the year.  There are certain requirements an individual has to meet when filing for EIC.  Employees who do qualify should turn in a new EIC (W-5) and a new W-4 by January 1st  to their employers, because the EIC expires annually, on December 31st. As one of the many benefits of using StaffScapes, StaffScapes will provide a W-5 to any employee who requests it, and will file it, once it is returned to them.  For more information about W-5, or W-5 qualifications, you can call StaffScapes at 303-466-7864 or visit www.irs.gov.

The Internal Revenue Service recently released final guidance on the small business health care tax credit included in the Health Care Reform enacted earlier this year. A one-page form as well as instructions for small employers, were included in this release.

Small for-profit businesses will use the new Form 8941 to claim the credit for the 2010 tax year. The IRS also posted the Instructions to Form 8941 to help small employers correctly calculate and claim the credit.

The Small Business Health Care Tax Credit, included in the health care reform legislation, signed by President Obama on March 23, is designed to encourage small employers to offer health insurance coverage for the first time or maintain coverage they already have. In general, the credit is available to small employers that pay at least half the cost of single coverage for their employees.

Published in IRS
Tuesday, 08 February 2011 17:00

Tax Retirement Saver’s Credit

Did you know there is a new government program that will allow you to save for retirement?  The Retirement Savings Contributions Credit allows for up to a $1,000 credit for single individuals and $2,000 credit for married couples for contributions made to 401(k) or IRA programs during the 2010 tax year.  The plan is available for those workers who are 18 years of age or older and who meet the following income guidelines:

• Filers who are single or married filing separately, with adjusted gross income of $27,750 or less in 2010
• Filers who are the head of a household and have made less than $41,625 in 2010 
• Filers who are married and filing a joint return and have a combined income of less than $55,500 in 2010

If you are eligible, here are some helpful tips for claiming your credit:

• If you use tax preparation software for your tax returns, you should use Form 1040A, Form 1040 or Form 1040NR. The credit is not available with Form 1040EZ.  Be sure to watch for and answer questions that refer to the saver’s credit, retirement savings contributions credit and/or credit for qualified retirement savings contributions.
• If you prepare your tax returns manually, you should complete Form 8880, Credit for Qualified Retirement Savings Contributions, to determine the credit rate and amount. Transfer the amount to the designated line on Form 1040A, Form 1040 or 1040NR.
• If you use the services of a professional tax preparer be sure to ask about the saver’s credit.

Additional online information can be found on the IRS website.