Federal Payroll Taxes – DougFreemanCPA.com

Employers: The Social Security wage base is increasing in 2022

Employees, FICA, Medicare Taxes, Payroll Tax, Self Employment Tax, Small Business, Social Security & Medicare (FICA) taxes, Social Security Administration, Social Security Disability Insurance (SSDI) / Douglas Freeman

The Social Security Administration recently announced that the wage base for computing Social Security tax will increase to $147,000 for 2022 (up from $142,800 for 2021). Wages and self-employment income above this threshold aren’t subject to Social Security tax. Background information. The Federal Insurance Contributions Act (FICA) imposes two taxes on employers, employees, and self-employed […]

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Employers have questions and concerns about deferring employees’ Social Security taxes

Employees, Small Business, Social Security, Tax, Tax Withholding's, U.S. Treasury Department / Douglas Freeman

The IRS has provided guidance to employers regarding the recent presidential action to allow employers to defer the withholding, deposit, and payment of certain payroll tax obligations. The three-page guidance in Notice 2020-65 was issued to implement President Trump’s executive memorandum signed on August 8. Private employers still have questions and concerns about whether, and

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Employee vs. independent contractor: How should you handle worker classification?

Employees, Federal Income Tax, Federal Taxes, Independent Contractors, Medicare Taxes, Small Business / Douglas Freeman

Many employers prefer to classify workers as independent contractors to lower costs, even if it means having less control over a worker’s day-to-day activities. But the government is on the lookout for businesses that classify workers as independent contractors simply to reduce taxes or avoid their employee benefit obligations. Why it matters. When your business

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