Employees of a business are compensated in a number of ways for their labor. Though direct payment is an obvious example, it also includes benefits paid alongside. However, all of these areas are subject to taxation, though some areas are taxed more or less. The most common form of compensation is a wage or salary, […]
To satisfy federal and state laws as well as your employees, payroll records must be meticulously kept. Payroll records are maintained through a documentation system which details employee payments and taxes. This information may include hours worked, wages, taxes and deductions which must be withheld, and check payments which must be delivered to employees. The […]
Whenever employees are paid for their labor, deductions must be made for a number of reasons. There are three deductions commonly made in the United States: deductions which are required by law on the federal and state level, deductions for the employer’s convenience, and deductions for the employee’s convenience. As required by law, deductions from […]
As mentioned in a previous article, certain amounts from employee wages are deducted and sent to the IRS for Social Security and Medicare. When an employer deposits these amounts, there are certain rules established by the IRS which must be adhered to. Whenever deductions are taken out of an employee’s pay, this amount is a […]
Self-employed business owners have to pay self-employed contributions act, or SECA, taxes in addition to regular income tax. These types of businesses include sole proprietorships, partnerships, and S corporations. Self-employed business owners must pay 15.3% of net income for Social Security, Medicare, and Old Age Survivors and Disability Insurance. Workers who are not self-employed only […]