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Payroll Tax

Businesses should review their key payroll tax responsibilities

Federal Income Tax, Federal Unemployment (FUTA Tax, FICA, Local Taxes, Medicare Taxes, Payroll Tax, Social Security Tax, State Income Tax /

As a business owner, you know that running payroll involves much more than just compensating employees. Every paycheck represents a complex web of tax obligations that your company must handle accurately and consistently. Indeed, staying compliant with payroll tax rules is essential to maintaining your business’s reputation and avoiding costly penalties. That’s why it’s essential […]

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How the Social Security wage base will affect your payroll taxes in 2026

Employees, FICA, Medicare Taxes, Payroll Tax, Self Employment Tax, Social Security, Social Security Tax /

The 2026 Social Security wage base has been released. What’s the tax impact on employees and the self-employed? Let’s take a look. FICA tax 101 The Federal Insurance Contributions Act (FICA) imposes two payroll taxes on wages and self-employment income — one for Old-Age, Survivors, and Disability Insurance, commonly known as the Social Security tax,

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Payroll tax implications of new tax breaks on tips and overtime

(FLSA) Fair Labor Standards Act, Employees, Federal Income Tax, Modified Adjusted Gross Income (MAGI), One, Big, Beautiful Bill Act, Payroll Tax, Self Employed, Small Business, Tips And Overtime /

Before the One Big Beautiful Bill Act (OBBBA), tip income and overtime income were fully taxable for federal income tax purposes. The new law changes that. Tip income deduction For 2025–2028, the OBBBA creates a new temporary federal income tax deduction that can offset up to $25,000 of annual qualified tip income. It begins to

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A tax guide to choosing the right business entity

Business Entities, Employees, Limited Liability Company, Partnerships, Payroll Tax, S Corporation, Small Business, Small Business Owners, Small Business Tax Tips, Sole Proprietors /

One of the most critical decisions entrepreneurs make when starting or restructuring a business is choosing the right entity type. This choice directly impacts how the business is taxed, the level of administrative complexity and regulatory compliance obligations. While legal liability considerations also matter, we will focus on tax implications. For liability advice, consult a

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6 essential tips for small business payroll tax compliance

Federal Income Tax, Federal Unemployment (FUTA Tax, FICA, Payroll Tax, Small Business, Small Business Owners /

Staying compliant with payroll tax laws is crucial for small businesses. Mistakes can lead to fines, strained employee relationships and even legal consequences. Below are six quick tips to help you stay on track. 1. Maintain organized records Accurate recordkeeping is the backbone of payroll tax compliance. Track the hours worked, wages paid and all

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Employers: In 2025, the Social Security wage base is going up

Employees, FICA, Payroll Tax, Self Employment Tax, Small Business, Small Business Owners, Social Security /

As we approach 2025, changes are coming to the Social Security wage base. The Social Security Administration recently announced that the wage base for computing Social Security tax will increase to $176,100 for 2025 (up from $168,600 for 2024). Wages and self-employment income above this amount aren’t subject to Social Security tax. If your business

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Working remotely is convenient, but it may have tax consequences

Business Deductions, Business Expenses, Employees, Federal Income Tax, Payroll Tax, Remote Working, Small Business, State Income Tax, State Tax, Tax Laws /

Many employees began working remotely during the pandemic and continue doing so today. Remote work has many advantages for employers and employees, and as a result, it’s here to stay in many industries. But it may also lead to some tax surprises, especially if workers cross state lines. Double taxation may occur It’s not unusual

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A refresher on the trust fund recovery penalty for business owners and executives

Federal Income Tax, Payroll Service, Payroll Tax, Small Business, Small Business Tax Tips, Small Business Tips, Trust Fund Recovery Penalty /

One might assume the term “trust fund recovery penalty” has something to do with estate planning. It’s important for business owners and executives to know better. In point of fact, the trust fund recovery penalty relates to payroll taxes. The IRS uses it to hold accountable “responsible persons” who willfully withhold income and payroll taxes

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Help when needed: Apply the research credit against payroll taxes

C Corporation, Income Tax, Payroll Tax, Payroll Tax Election, Research Tax Credit, Small Business, Small Business Owners, Social Security & Medicare (FICA) taxes /

Here’s an interesting option if your small company or start-up business is planning to claim the research tax credit. Subject to limits, you can elect to apply all or some of any research tax credits that you earn against your payroll taxes instead of your income tax. This payroll tax election may influence some businesses

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Infrastructure law sunsets Employee Retention Credit early

(CARES ACT), Employee Retention Tax Credit (ERTC), Payroll Tax, Small Business, Small Business Owners, Tax, Tax Credits /

The Employee Retention Credit (ERC) was a valuable tax credit that helped employers survive the COVID-19 pandemic. A new law has retroactively terminated it before it was scheduled to end. It now only applies through September 30, 2021 (rather than through December 31, 2021) — unless the employer is a “recovery startup business.” The Infrastructure

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