A W-2 is a form issued to an employee from their employer. This form contains information such as the employee’s gross income, their local, state, and federal tax withholdings, social security withholding, and more. As long as an employee is paid at least $600 by an employer throughout the year, they will be issued a W-2 from that employer.
The IRS is infamous as a daunting government agency. You’d be forgiven for conjuring some not-so-positive adjectives about their paper forms, confusing acronyms, and complex tax filing processes. But with the new Taxpayer First Act law, the IRS is making moves to change its kafkaesque perception. Signed into law earlier this month, it sets deadlines and some new processes to move the agency into the 21st Century. Let’s take a look at how the new law impacts HR and payroll professionals.
Tax season is upon us and of all the forms employees, CPAs, HR professionals, and accountants prioritize, the W-2 is at the top of the list. The W-2, formally known as the IRS Wage and Tax Statement, doesn’t have to be challenging. As long as you receive your W-2 in time and the individual forms are filled out correctly, your tax season shouldn’t be a problem. Let’s take a look at the W-2.
Running Michigan payroll can be a complicated affair. From withholding taxes, submitting the right payroll documents, and settling on a payroll schedule, there is a lot to manage. Fortunately, Dominion is here for you! We’ll outline the essential payroll documents you need to ensure accurate and compliant Michigan payroll.
Those new to processing payroll in-house might be a little overwhelmed at the prospect of calculating taxes. After all, miscalculating deductions can result in having to reissue paychecks and can even lead to fees and penalties from the IRS. That is why it’s important to have the right training and tools at your disposal to ensure you’re calculating your taxes correctly every time. Make sure the resources you’re referencing are from a reliable source, and more importantly, up-to-date. Below are a few tips I’ve compiled to help make your tax calculations a little less daunting.
First things first, compliance is everything in the back office. Whether you’re running the payroll, tracking employee hours, calculating who is eligible for ACA, or what have you, the key to success is making sure all your ducks are in a row. Issues with compliance can lead to hefty fines and working backward to correct what has been wronged. All-in-all, it should be avoided at all costs and with the help of a few tools, it can be for the most part. Even the most seasoned HR and payroll professionals can find themselves with a penalty due to error.
On the evening of Thursday, December 22nd, we released an update to our Onboarding feature. During the Add New Hire process, you will be offered the option to select a state other than the current default of Michigan. The states offered are based on two conditions: Whether the client state tax has been activated for that client, and whether the state has been made available by our project team. Keep in mind it will only show you the options of the state(s) in which your business resides.
When dealing with the world of taxation, it’s important to know the intricate details so you can avoid fees and penalties. In this blog, I want to specifically cover deductible taxes versus non-deductible taxes. A tax deduction is a reduction in the income that is able to be taxed, essentially lowering the amount of taxes paid.