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
Tuesday, 18 November 2008 17:00

2009 Payroll Limits

Quick tips for new limits in 2009

401K – $16,500, catch up $5,500

Social Security – 106,800

Federal Minimum Wage – $6.55,  effective July 24, 2009  $7.25

Colorado Minimum Wage - $7.28 effective January 1, 2009

Health Savings Accounts - $3,000 individual, $5950 family

Transportation in a commuter highway vehicle and any transit pass - $120 per month

Qualified Parking - $230.00

Remember if you employee elected Exempt on their W-4 in 2008 they will need to complete a new W-4 by February 16, 2009.

2008 W-2 are required to be sent to employee’s by January 31, 2009

Make sure you posters are up to date, they are free, contact StaffScapes today to make sure you are compliant.

Published in Payroll
Sunday, 13 January 2008 17:00

2008 Exempt Employees

Information for those who wish to continue exempt tax status for 2008.

For employees who are claiming exempt on their W-4, February 15, 2008, is an important date to keep in mind.

If an employee claims exempt on their W-4’s, the employer will not withhold federal tax on their income, however Social Security tax and Medicare will be applied.  Every year, those who claim exempt on their W-4 will need to renew their status in the beginning of the new year, if they wish to continue as exempt. 

Anyone who has filed “exempt” on his or her W-4, (2007) is required by the Internal Revenue Service to complete a new W-4 each year. If not completed and received by StaffScapes on or by February 15, 2008, the filing status and exemptions will automatically be changed to “single and 0”.

As a reminder, StaffScapes will send personal letters to all current employees claiming exempt and notify them of the deadline.

If you have any questions, regarding the W-4 and exempt status, please call StaffScapes at 303-466-7864.

Published in Employees
Monday, 17 December 2007 17:00

2008 W-4 Form

IRS releases the new 2008 W-4 form

The IRS has released the 2008 version of the W-4 form.  The W-4 form should be filled out by all newly hired employees in 2008 and any current employees wanting to make changes to their withholding allowances or marital status. For a copy of the new form go to http://www.irs.gov/pub/irs-pdf/fw4.pdf.

Published in W-4
Wednesday, 07 March 2007 17:00

The W-4 Form

W-4 is one of the most common forms Americans fill out. Here are a few things to remember when completing a W-4.

A W-4 is an IRS form that determines the federal tax that will be withheld from an employee’s paycheck. Filling out a W-4 is one of the first forms an employee will complete when hired. 

When filling out a W-4, make sure the information you write is correct and clear. 

The most important lines for an employee to complete are lines 1-7 of the “Employee’s Withholding Allowance Certificate.”

Always remember to sign your completed W-4.

Always remember to check the appropriate box for filing single or married. 

If you have questions about your withholdings- or want to verify you are withholding the correct amount, you can visit www.irs.gov and use the IRS withholding Calculator

If you are exempt from taxes- make sure to write EXEMPT on line 7.

Any incomplete W-4’s will automatically be defaulted to a tax status of single and 0 withholdings, the highest amount of tax will be deducted from your income.

Colorado requires all employers to report all new employees within 20 days of their hire date. StaffScapes sends copies of the employee’s W-4 to the Colorado State Directory of New Hires, so it is important that all W-4’s are completed accurately.

Published in W-4
Thursday, 08 January 2009 17:00

Claiming “Exempt" on your Form W-4

An exempt status is good for only one year.

If you have filed “exempt” on your 2008 W-4, you are required by the Internal Revenue Service to complete a new W-4 for 2009. You must give your employer a new Form W-4 by February 15th to continue your exemption. If by February 15th your employer has not received a new Form W-4, the filing status will be defaulted to single with 0 withholding allowances.

 If you claim exempt, but later your situation changes so that you will have to pay income tax, you must file a new Form W-4 with your employer within 10 days after the change. Your claim of exempt status may be reviewed by the IRS. If you have any question  please contact StaffScapes Payroll Department at (303) 466-7864

For additional information please visit http://www.irs.gov/

Published in W-4

The “Making Work Pay" provision of the stimulus package will reduce income tax withholding for majority of employees.

The IRS has just released the changes to the income tax withholding tables used to calculate employees’ tax withholdings from their pay checks. The change comes from the $400 to $800 refundable tax credit provided under the stimulus package. This tax credit will be provided to employees through out 2009 and 2010 by changing the tax withholding from their normal paychecks. This credit is for employees making less than $75,000 individually or $150,000 for married couples. A new W-4 form is not needed to claim this tax change.  StaffScapes  recommends that employees with multiple jobs or couples that combined put them in higher tax brackets should contact their tax advisor to verify and/or revise their W-4.

The IRS has made it clear that the new tax withholding tables are to be used as soon as possible, but at the latest by April 1, 2009.  As of Monday, March 2, 2009, StaffScapes’ employees will have the advantage of having their checks processed using the new tax tables, resulting in more “take home” pay for most employees.  Additional information about the stimulus package, including the “Making Work Pay” provision, can be found on the IRS website at: http://www.irs.gov/newsroom/article/0,,id=204335,00.html?portlet=6.

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.

Thursday, 14 December 2006 17:00

Exemption Withholdings

When filling out a W-4 many employees assume that their tax status will continue to stay the same, unless they make changes to it. This is not the case for employees who claim exempt on their taxes…

If an employee claims exempt on their W-4’s, the employer will not withhold federal tax on their income, however Social Security tax and Medicare will be applied.  Every year, those who claim exempt on their W-4 will need to renew their status in the beginning of the new year, if they wish to continue as exempt. Employees who claimed exempt in 2006 will have their exempt status expire in February 16, 2007 unless they renew their status by filling out a 2007 W-4. If the employee does not renew their status by the specified date, their tax status will default to single and 0 withholdings.  At the beginning of the new year, StaffScapes sends a letter to their exempt employees to remind them of the deadline, and attach a new W-4 for them to complete and update.

You can find more information about tax exempt status and W-4’s at www.irs.govor by calling StaffScapes at 303-466-7864.

Published in IRS