The selection of a “pay frequency” by an employer is important and should “fit” your company objectives and comply with state law. New employers must adopt a pay frequency along with any “holdback period,” and existing employers may wish to change their pay frequencies for various reasons. This article explains the primary items to consider to adopt the pay frequency which best fits your organization.  STATE LAWS REGARDING MINIMUM PAY FREQUENCIES The starting point in selecting the pay frequency which best matches your organization is to review the state “minimum pay frequency” laws of th ..read more

SECURE ACT 2.0 The Secure Act 2.0 legislation was signed into law on December 29, 2022, as an enhanced version of retirement plan law changes which began with the original Secure Act back in 2019. Every employer who currently sponsors a “qualified retirement plan,” or is considering starting a plan, should consult with an expert who can advise them of the many attractive options contained in Secure Act 2.0—-which contains nearly 100 separate provisions regarding retirement plans. This PayDay will summarize many of the provisions contained in The Secure Act 2.0, but advice from TPA’s and retire ..read more

The following IRS Newswire was issued on March 20, 2023 Issue Number:    IR-2023-49 Inside This Issue IRS opens 2023 Dirty Dozen with warning about Employee Retention Credit claims; increased scrutiny follows aggressive promoters making offers too good to be true WASHINGTON – In a further warning to people and businesses, the Internal Revenue Service added widely circulating promoter claims involving Employee Retention Credits as a new entry in the annual Dirty Dozen list of tax scams. For the start of the annual Dirty Dozen list of tax scams, the IRS spotlighted Employee R ..read more

AccuPay has been assisting our clients with various aspects of Employee Retention Tax Credits for over 2 years now. Our original role pertaining to ERC credits in early 2021 was to learn as much as possible about the ERC law, concepts and strategies for the purpose of educating our employer-clients about the Employee Retention Tax credit legislation. We researched the law, read all we could find about ERC tax credits from authors and the IRS and listened to many webinars from large ERC consulting firms on various aspects of the ERC credits. We then started writing PayDay’s to educate our clien ..read more

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 2021 and is f ..read more

The end of 2022 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 2022 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

SOCIAL SECURITY WAGE BASE Wages will be taxed up to $160,200 for FICA in year 2023. The 2023 rates for FICA (6.2%) and Medicare (1.45%) remain unchanged. FUNDING 2023 RETIREMENT PLANS Moderate changes were made to retirement plan funding for 2023. Funding limits for employee payroll contributions to various types of “qualified” retirement plans during 2023 are as follows: 401k, 403b, 457 govt. plans – maximum employee elective deferral of $22,500 with additional catch-up of $7,500 for employees 50 and over SIMPLE IRA – maximum employee elective deferral of $15,500 with additional catch-up of ..read more

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

AccuPay has been helping clients of our payroll/HR services firm calculate and file ERC tax credit claims, resulting in IRS refund checks, for 2 years now. We have educated many of our clients and their business associates on ERC concepts, eligibility, calculations, filing procedures, etc. and have had dozens of conversations with the IRS as we monitor the progress of pending ERC claims. We have also had many discussions with CPA’s and other experts in ERC tax law and filing procedures. And, finally, we have seen countless promotions from dozens of “firms” who have “popped up” this year to “he ..read more

Now is an excellent time for both employees and employers to make sure they will reach their payroll, tax and financial objectives for calendar year 2022. The following items should be reviewed for possible action steps before your last payroll of 2022. ON TRACK TO MEET YOUR RETIREMENT FUNDING OBJECTIVE? An employee can contribute up to $20,500 this year from payroll as “elective deferrals” to their 401(k) and 403(b) retirement accounts. If an employee is at least age 50 by 12/31/22, an additional $6,500 can be contributed as a “catch-up” contribution. If you are participating in a&n ..read more