Q. Our business is interested in using a “common paymaster.” Can we report all the
A. Yes. The corporation that serves as the common paymaster reports the entire tax information on a single Form 941, Employer’s Quarterly Federal Tax Return. Similarly, it reports the full amount of each employee’s wages on a single W-2 for 2009. If an employer has previously has been reporting wages separately, it must notify the IRS that it is using a common paymaster and identify the responsible entity.
Tip: Although each quarter stands on its own, it may be easiest to switch over to the common paymaster setup for the first quarter of a new year.
- Stay cool as political campaigns heat up
- Check cashing 'convenience fee' is an illegal deduction under state wage law
- 7 ways to slash your '08 taxes: personal filing strategies
- 6 tax reasons why you should put your spouse on the payroll
- Breaking the nest egg: 7 tax-wise strategies for tapping your portfolio in retirement