Undeposited payroll taxes can pile up so quickly that the IRS has a name for them—pyramiding. It also has a very effective solution: personally charging a company’s responsible persons with 100% of the undeposited taxes. Relief: an express installment agreement.
Ineffective payroll management and shoddy payroll systems can result in personal liability (including JAIL TIME) for non-compliance.
Business Management Daily helps our readers with information on payroll processing and tips on timesheets that will help you to implement payroll programs that pay off.
NOTE: Saturdays, Sundays and legal holidays as observed in the District of Columbia are taken into account to determine due dates. Under the federal deposit rules, you’re allowed a deposit shortfall of the greater of $100 or 2% of your tax liability.
The IRS has made several permanent and temporary changes to its Voluntary Classification Settlement Program. Under VCSP, you can voluntarily reclassify independent contractors as employees for future tax periods on favorable tax terms. You’ll be liable for just over 10% of the wages paid to those reclassified workers for the past year; no penalties or interest will be due.
Q. We have heard that the U.S. Department of Labor has issued a timekeeping app that allows employees to track their time on smartphones. Should we permit employees to use this in our workplace?
While everyone else is watching college basketball’s “March Madness,” paper W-2 filers will be at their desks sorting through those forms for errors and preparing to file W-2c forms. W-2 e-filers have until April 1 to file their original W-2s with the SSA, but even this extra time won’t be enough to avoid the W-2c hook if errors are discovered after filing.