Due to recent updates in the payroll withholding tables, the IRS recommends your employees do a “paycheck checkup”. Using the withholding calculator now can avoid an unexpected tax bill or penalty when employees file their tax return. IRS Withholding calculator: https://apps.irs.gov/app/withholdingcalculator/ If your employees would like to make a change to their tax withholding, please have them complete a new Form W4. A copy of this form can be found on our website or https://www.irs.gov/. *Please do not instruct your employees to contact Payroll Perfect directly.  For your business and their identity security, we can only speak with authorized company contacts*

Probably the most common misunderstandings employers have is how to properly classify workers as either employees or independent contractors.  The largest cause of confusion and errors comes when someone has a friend or industry peer that miss-classifies their workers.  Even though your friend has never had a problem, does not mean the IRS or other entity that could investigate your business would agree with your friend or be soft on miss-classification penalties! Don’t make this mistake, the IRS has provided in depth documentation to educate the public on their position and the costly risks of doing it wrong.  Below are a few IRS web-pages to help you understand the differences and help you avoid making this mistake in your business:[…]

The US Department of Homeland Security has issued a Scam Alert stating employers have been receiving scam emails requesting information from employee I-9 forms. USCIS website states: “These scam emails come from a fraudulent email address: news@uscis.gov. This is not a USCIS email address. The body of the email may contain USCIS and Office of the Inspector General labels, your address and a fraudulent download button that links to a non-government web address (uscis-online.org). Do not respond to these emails or click the links in them.” For more I-9 information on this and other events, see the following webpage https://www.uscis.gov/i-9-central/whats-new

Payroll Perfect Utah

Basic Self Employment Tax Difference S-Corporation or Sole Proprietor (Schedule C/Single Member LLC) In our example, the owner used written resources and webpages, as well as information gathered from others in the industry.  They then decided on a reasonable wage for their work, if they were to hire an employee to do the job. ***This example is only to show the basic differences in Self-Employment tax between these entity types, and is not an accounting guide or to be used for any legal purpose.  The amounts shown do not include unemployment or worker’s compensation.*** Wages need to follow IRS guidelines for “Reasonable Compensation”.  The following is taken from the IRS website and may be a good starting point for deciding[…]