Know Your Lookback Period for Payroll Taxes

A lookback period is the length of time that the IRS uses to measure the amount of taxes paid by an employer. The lookback period also helps the employer determine its deposit schedule.Payroll Taxes, Filings and Lookback PeriodsEmployers must withhold federal income...

Which Employees Are Exempt From Tax Withholding?

Tax withholding is a seemingly inevitable part of working, but there are exceptions, as shown by the following information about employees exempt from withholding.Student employeesGenerally, individuals employed by a school, college or university where they are also...

2018 Changes for J-1 Visa Taxes

Wages earned by J-1 employees have always been taxable for Federal and State income tax but exempt from Social Security and Medicare. As a result of tax reform in 2018, there is no longer a personal exemption for J-1 employees. Prior to 2018, the personal exemption...

401(k) and IRA Contribution Limits Increase

The IRS has announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2019. The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s...

2018 Tax Wrap-Up

The tax reform passed at the end of 2017 runs to about 70,000 words. It’s a large and complicated piece of legislation, and we can look forward to additional guidance and clarifications. For now, here are summaries of some of the key provisions impacting 2018...

Debunking 4 Common Payroll Myths

Many companies subscribe to myths about payroll. Let us “bust” them for you. 1. I don’t have enough employees to use a payroll service. Even if you have only one employee, there’s still a lot to be done in terms of payroll. Ultimately, you must...