New Worker Classification Rule: W-2 or 1099?
AccuPay » Payroll
by AccuPay Inc.
1M ago
The DOL issued a final rule, effective March 11, 2024, which makes it more difficult for an employer/organization to pay “workers” as 1099 contractors as opposed to W-2 employees. The new DOL rule broadens the definition of an “employee” with the intention that more workers should be classified as employees. As such, more workers will have the protections of the FLSA, which apply to employees but do not apply to “independent contractors.” This new rule replaces the previous 2021 rule as to worker classification. All employers should review the correct status of their independent contractors ..read more
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New DOL Overtime Rule – What to Do?
AccuPay » Payroll
by AccuPay Inc.
1M ago
The Department of Labor has announced a final rule that will increase the Fair Labor Standards Act’s (FLSA’s) annual salary-level threshold from $35,568 to $43,888, effective July 1, 2024.  An additional increase to $58,656 will take effect on Jan 1, 2025.  Furthermore, the final rule states that after July 1, 2027, the salary threshold will update every three years based on wage data at that time. WHO IS AFFECTED? The new rule affects those who are employed in positions meeting the requirements for the executive, administrative, professional, and highly compensated employee exempt ..read more
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Start 2024 Off Right – Check Your Withholdings!
AccuPay » Payroll
by Larry the Payroll Guy
4M ago
One way your employees can get the new tax year off to a good start is by checking their federal income tax withholding. They can do this using the Tax Withholding Estimator on IRS.gov. This online tool helps employees avoid having too much or too little tax withheld from their wages. It also helps self-employed people, who have wage income, estimate tax payments that they should make to avoid unexpected results at tax time. Having too little withheld can result in a tax bill or even a penalty at tax time. Having too much withheld results in less money in their pocket. The estimator can help ..read more
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HOW TO READ YOUR 2023 W-2
AccuPay » Payroll
by Larry the Payroll Guy
5M ago
Years ago, W-2 forms were fairly straight-forward, reporting wages paid to your employees along with tax withholdings. The days of simple W-2’s are long gone! Wages reported in boxes 1, 3 and 5 for income, social security and Medicare tax withholdings are frequently 3 different amounts – and confusing to your employees. The number of IRS required alphabetical “codes” in Box 12 range from “A to Z”, and are now on “round 2” of the alphabet with “codes” AA- FF”. Box 12, Code “DD” reports the combined employer – employee cost of employer – sponsored health insurance premiums for 2023 and is f ..read more
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2024 IRS PAYROLL FIGURES
AccuPay » Payroll
by Larry the Payroll Guy
6M ago
SOCIAL SECURITY WAGE BASE Wages will be taxed up to $168,600 for FICA in year 2024. The 2024 rates for FICA (6.2%) and Medicare (1.45%) remain unchanged. FUNDING 2024 RETIREMENT PLANS Minor changes were made to retirement plan funding for 2024. Funding limits for employee payroll contributions to various types of “qualified” retirement plans during 2024 are as follows: 401k, 403b, 457 govt. plans – maximum employee elective deferral of $23,000 with additional catch-up of $7,500 for employees 50 and over SIMPLE IRA – maximum employee elective deferral of $16,000 with additional catch-up of $3 ..read more
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Employer Sponsored 529 College Funding Program
AccuPay » Payroll
by Larry the Payroll Guy
7M ago
Employers looking for low cost employee benefit programs should consider sponsoring an Indiana College Choice 529 “payroll deduction” program for employees. This PayDay will discuss the advantages of IRS Section 529 plans as to both tax benefits as well as how employers can offer this program at zero cost to employees. WHY DO PEOPLE SET UP IRS 529 PLANS FOR THEIR KIDS, GRANDKIDS OR EVEN THEIR OWN EDUCATION? IRS Code Section 529 provides that anybody can establish a plan to help save for college (or in some cases K-12 education) for their children, grandchildren, their own education, or anybody ..read more
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Preparing for a Smooth Year-End
AccuPay » Payroll
by Larry the Payroll Guy
7M ago
The end of 2023 is quickly approaching, but there is still work to do to ensure a smooth year-end. Putting in a little time before your final payroll of the year will help prevent expensive, time-consuming adjustments later on. BEFORE YOUR LAST PAYROLL OF 2023 Review your Employee Data – Before issuing W-2’s, you must verify that employee information is accurate and up to date. AccuPay’s iSolved clients can find the “Employee W2 Verification” report under Reporting/My Reports. (If you are not currently working with AccuPay, ask your payroll provider for a report showing details of all employe ..read more
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Personal Use of Company Car
AccuPay » Payroll
by Larry the Payroll Guy
8M ago
AccuPay has assisted our clients for many years with calculating and reporting “personal use of a company vehicle” taxable compensation to employees. We believe that employers should calculate and report compensation for personal use of employer-provided vehicles for the following 2 reasons: Tax law is very clear that the personal use of an employer vehicle by an employee is taxable compensation to the employee; and CPA firms acknowledge that IRS business/organization tax audits pay particular attention to vehicle expenses and the business/personal use of the vehicles. Employer ..read more
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Updated New Hire Form I-9
AccuPay » Payroll
by Larry the Payroll Guy
8M ago
The U.S. Citizenship and Immigration Services (USCIS) has released a new version of the I-9 form for employers to use.  The previous version is usable until October 31, 2023, and then employers are required to use the revised form I-9.  WHAT’S CHANGED? Some of the changes include: Sections 1 and 2 are now on a single page, helping to reduce the length of the I-9 Preparer and/or Translator Certification piece has become a standalone supplement that can be used when necessary. Section 3, Reverification and Rehire, have also become a standalone supplement that employers can use when ne ..read more
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Indiana County Income Tax Increases
AccuPay » Payroll
by Larry the Payroll Guy
8M ago
The following Indiana counties increased their county income tax rates effective for wages paid on or after October 1, 2023. Adams – 1.6% Clinton – 2.65% Dearborn – 1.4% Henry – 1.8% Vanderburgh – 1.25% A Quick Guide to Indiana County Income Taxes In Indiana, it’s important to review your employees’ county tax withholdings at the beginning of each year to ensure that accurate county taxes are withheld with each payroll. Below is a quick review of Indiana county income tax withholding rules: Where did the employee reside and work on New Year’s Day? Answers to these questions on&nbs ..read more
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