Employees taxes
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Understanding Employee Taxes
Employee taxes can be one of the most difficult to understand areas of running a business and hiring employees. If you don't understand all of the complexities involving employee payroll tax, it can also get you into a heap of trouble.
The first employee tax factor you should understand is what taxes you are responsible for as an employer. There are three employee taxes that you will be responsible for paying.
The first is Medicare and Social Security tax. This is often referred to as FICA and provides welfare benefits funding for senior citizens. As an employer you are responsible for paying half of the FICA taxes and withholdings for your employee while the remaining half is withheld from their paycheck.
You are also responsible for paying federal unemployment tax.
This tax funds the state unemployment benefits and the administrative costs associated with those benefits. It is important for you to know that you must pay federal unemployment tax on the first $7000 earned by each person you employ during the calendar year.
In addition to federal unemployment tax, you must also pay state unemployment tax. These taxes are based on the location and size of your business as well as the number of employees you employ. Due to the fact that each state operates its own unemployment program, these rates do tend to vary; so it's best if you check with your own state's unemployment division for specific details.
In addition to the taxes you must pay as an employer, you are also responsible for withholding employee tax. Even though this is the employee's contribution, it is your responsibility to handle the employee tax withholding.
You will need to pay close attention to the employee tax form, or W-4, completed by the employee in order to know exactly how much money you need to deduct from the employee's paycheck. Usually the amount of money you must withhold will depend on the number of withholding allowances claimed by the employee, their marital status and any exemption from withholding taxes that the employee might claim.
It is very important that you stay on top of your employee's tax forms because they have the right to change them by submitting a new W-4. If an employee submits a new employee tax form, thereby changing the amount of their withholding and you fail to deduct the correct amount of money, you could be subject to penalties by the IRS.
You will need to deposit both the taxes that you are responsible for paying along with the employee tax withholdings in an authorized depository for Federal taxes. You can do this by either mailing or delivering your check or money order. These taxes will be due either semi-weekly or monthly.
Your employee tax withholding due dates will be determined by the size of your payroll, dictated by the schedule. Usually, however; if your payroll is less than $2,500 every three months, you can file quarterly. If your employee taxes are larger, you'll need to file more often.
In addition to the employee taxes named above, recently there has been much discussion in the media regarding a proposed employee health tax. If instituted this tax would impose a $3000 tax on employers for each employee who is not covered by health insurance. The intend of the proposed bill is to force employers to cover more employees by health insurance; however critics of the bill claim that the proposed employee health care tax will only lead to more unemployment.
Summary: As most employers know, employee taxes can be a real headache.
Unfortunately, the employee payroll tax problem is a headache that simply must be endured. With a little understanding and careful attention to detail; however the hassle of filing employee tax withholdings can be a little less of a bother.
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PerfectSoftware and Aspen Systems Establish OEM Relationship
Norwalk, CT (ContentDesk) August 8, 2004 --
Perfect Software, a leading provider of Human Resource Management & Payroll Systems, today announced it has formed a strategic relationship with Aspen Systems, Inc., a leader in food industry software and services.
As part of the new association, Aspen will offer its existing and new clients Canopy Payroll and Canopy Human Resources software applications."These two new modules provide the payroll and HR features that our customers are demanding. The OEM relationship allows us to provide these features directly to our customers as integrated modules without involving outside vendors," said George Puype, president of Aspen Systems, Inc."These highly functional and flexible products will be seamlessly integrated into the Aspen solution allowing them to focus on their core competency," said Mike Gabriele president of Perfect Software.
"The benefit of the OEM relationship is that the end user gets expertise in both the...
Payroll > PerfectSoftware and Aspen Systems Establish OEM Relationship
Midsize Business ERP ? Great Plains Standard vs. Professional
If you are in the growing mode and reach the point when you need to move away from old accounting application and incorporate something, which could be considered as industry standard ERP, you should know general direction and where to look for additional information.
Microsoft Business Solutions gives you several ERP packages to choose from: Microsoft Great Plains Standard/Professional/Small Business Financials, Microsoft Navision, Microsoft Axapta, Microsoft CRM.
In this small article we will concentrate on Microsoft Great Plains selection options.? Pricing.
Microsoft Great Plains Professional price is about two times higher than Microsoft Great Plains Standard.
You should probably know the history.
Current Great Plains Standard was formerly available on Pervasive SQL and ctree and the product line name was Great Plains Dynamics.
This product was targeted to midsize and small businesses (with growing potential, for tiny business...
Payroll > Midsize Business ERP ? Great Plains Standard vs. Professional
Wriker Chevrolet partners with United Way of Franklin County Tennessee this year for a 2nd annual Truck Driveaway.
Wriker Chevrolet partners with United Way of Franklin County this year for a 2nd annual "Truck Driveaway".
Wriker will be giving away a 2004 Chevy Colorado or $10,000 cash to the winner of person's eligible to win through United Way of Franklin County.
Anyone contributing an hour's pay per moth through payroll deduction through their employer or an individual giving a $100 one-time denotation is eligible for the truck.Wriker owner Mr. Fred Walker remarks:
The thirty-one years I've been a dealer here in Winchester, Tennessee have been wonderful.
Our store has changed drastically in those 31 years.
We have grown from a small rural Tennessee dealership to a regional retailer for Chevrolet, Pontiac & GMC cars and trucks. We also market a full line of Exiss aluminum horse trailers and stock trailers.
This growth allows us to be a compassionate partner in the community.Deadline for eligibility is: Oct 8, 2005Truck will be given away at half-time...
Payroll > Wriker Chevrolet partners with United Way of Franklin County Tennessee this year for a 2nd annual Truck Driveaway.
General Contractor Liability Insurance
Normally, it is difficult for general contractors to work without general insurance.
General contractor liability insurance is intended to guard operators and owners of companies from claims that may come from a broad spectrum of sources. These exposures could be just about anything, including liability engendered by accidents from the operations of the insured party, contractual liability, products manufactured by the insured party, etc.
The liability you select, whether it is one, two, or three million dollars, determines the cost of general contractor liability insurance. Also factored into the rates the rates are the kind of work undertaken, gross receipts and total payroll expenses.
Similar to auto insurance, when it comes to general contractor liability insurance, you will first have to make a down payment and then follow it up with installments.
Before buying general contractor liability insurance, it is best to compare the quotes available...
Payroll > General Contractor Liability Insurance
Can a tiny piece of Pay stub add devilish costs to my organization?!?
The pace & volume of modern change is focusing attention on ways human resource activities can be used to ensure organization members have what it takes to successfully meet their challenges. From personal HR to Strategic HR, this field has become the prime focus area of top management. Generating value additions is the buzz word and contributions from this department and not limited to talent pool alone. This goes on to show that the functional area is not just to get the best in human resources but also optimizing operations to boost the bottom line of the organization.
That leads us to the nitty-gritty of the whole HR business. Organizations today want to position their business for profitable growth and look relentlessly for web-based, integrated workforce automation solutions that would function smoothly with their existing business systems.
The aim is to move away from largely manual and paper based business processes to consolidating vital organizational...
Can a tiny piece of Pay stub add devilish costs to my organization?!?
Payroll > Can a tiny piece of Pay stub add devilish costs to my organization?!?
Treasury Software Puts an End to ?The Check is in the Mail? with ACH Universal?
Businesses with recurring transactions now have an easy and secure way to automatically collect funds from customers, make payments to vendors, and send payroll to employees. "ACH Universal reduces the wait time, fraud risk and high costs associated with processing paper checks," said Debbie Glasser, Vice President. "In addition, its unique point-and-click interface allows corporate customers to consolidate and transfer funds between banks." "What makes this solution unique is its compatibility with all accounting packages, payroll services, and any bank that accepts a NACHA file," Glasser said. "Whether your needs are basic or complex -whether you want to copy and paste from an Excel spreadsheet or you work with a major accounting package- ACH Universal can handle it," said Glasser."ACH Universal is easily installed on a desktop without MIS support. It is also available on a multi-user (SQL) and Citrix version.
It can be immediately downloaded from the company's website for trial...
Treasury Software Puts an End to ?The Check is in the Mail? with ACH Universal?
Payroll > Treasury Software Puts an End to ?The Check is in the Mail? with ACH Universal?