Tag: Payroll
Should You Use QuickBooks Desktop or QuickBooks Online? | business.com
Self Employed? Independent Contractor??
It is critical that business owners correctly determine whether the individuals providing services are employees or independent contractors.
Please see IRS – SELF EMPLOYED CENTER for additional clarifying information.
Determining Whether the Individuals Providing Services are Employees or Independent Contractors
Generally, you must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee. You do not generally have to withhold or pay any taxes on payments to independent contractors.
Before you can determine how to treat payments you make for services, you must first know the business relationship that exists between you and the person performing the services. The person performing the services may be –
- An independent contractor
- An employee (common-law employee)
- A statutory employee
- A statutory nonemployee
- A government worker
In determining whether the person providing service is an employee or an independent contractor, all information that provides evidence of the degree of control and independence must be considered.
More information available here
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Are you eligible for retroactive unemployment benefits?
This article from the penny hoarder may help clarify.
https://www.thepennyhoarder.com/make-money/career/retroactive-unemployment-benefits/
Executive Orders – The $400 boost
What do the president’s executive orders mean to you? There’s a good article from The Penny Hoarder, link below
https://www.thepennyhoarder.com/make-money/career/executive-order-unemployment/
Check Your Payroll Tax Withholding Annually
This year has brought about changes for many people. Visit the #IRS Withholding Estimator to make sure your taxes are still covered in your current financial situation.
Visit http://irs.gov/withholding
Payroll Taxes….Huh????
What are payroll taxes and what does the President’s order do?
Payroll taxes consist of Social Security taxes and Medicare taxes. Every pay period, an employee pays 6.2% of their earnings for Social Security and 1.45% for Medicare taxes. Workers pay the 6.2% Social Security tax on annual earnings up to $137,700.
Meanwhile, the employer pays the same rate per paycheck, adding up to a combined 12.4% Social Security tax and 2.9% Medicare tax.
In late March, the $2.2 trillion CARES Act said employers could defer paying their share of the Social Security tax from March 27, when Trump signed the CARES Act, to the end of the year. They can pay back one half of the sum by the end of next year and the second half by the end of 2022.
From Article: https://www.marketwatch.com/story/what-does-trumps-payroll-tax-deferral-mean-for-your-paycheck-not-much-experts-say-2020-08-10
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