Everyone’s heard the saying, “you scratch my back, I’ll scratch yours.” In payroll, when these agreements happen between states, we call them reciprocal agreements. In other words, “you take my tax, I’ll take yours.”
The holiday season is known for a lot of pleasant things—eggnog, scented candles, and family time all come to mind. But if you’ve been in the payroll profession long enough, there’s a good chance you associate it with something else: federal and state tax notices. And when those come in, it’s time to pick up the phone. Gulp.
Contractor or employee? With 57 million workers, or 36 percent of the U.S. workforce, participating in the gig economy, the line between contractors and employees has never been blurrier. The tax filing implications are even more complicated.
New year, new limits. Earlier this month, the IRS published its long-awaited updates to 401(k) and IRA contribution limits for 2019.
Because retirement plans can be funded on a pretax basis (meaning deductions are taken from employee paychecks before taxes like social security), the IRS limits how much employees can contribute to them annually. These limits are subject to a periodic review to account for changes in the cost of living, inflation, and other factors.
We’ve all heard the old saying about death and taxes. But going further, what are the tax implications of death?
There’s no denying the emotional toll when we lose a loved one or colleague. But even in death, payroll still needs to be processed. We'll break down the common scenarios that might occur when an employee passes.
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A new proposal served up by New York Governor Andrew Cuomo has restaurant owners asking for the check.
The New Jersey Division of Taxation recently signed off on a new tax rate of 10.75% on individuals with an income over $5 million. The new rate is applied to $5,000,000 in income regardless of filing status (ex: single, married, etc). The new rate is certain to generate more tax revenue for the state. It also gives New Jersey the distinction of having the third highest top-income tax rate in the United States—slightly behind Hawaii’s 11% (for income over $200,000) and California’s 13.3% (imposed on income over $1 million).
Call it a case of legislative déjà vu. A potential follow-up to 2017’s historic Tax Cuts and Jobs Act (TCJA) could throw HR and payroll professionals for a loop later this year.