The IRS released Notice 1036 to assist employer’s with determining the payroll tax consequences of the fiscal cliff. 2013 Withholding Tables. Notice 1036 includes the 2013 Percentage Method Tables for Income Tax Withholding. Employers should implement the 2013 withholding tables as soon as possible, but not later than February 15, 2013. Employers can use the … Continue reading The Moment You Have All Been Waiting For: Payroll Tax Guidance for 2013
Employment Tax: Yet Another Opportunity to Come Clean - Whether a worker is performing services as an employee or as an independent contractor depends on the facts and circumstances. This determination may be difficult for many companies and may lead to significant exposure. In order to facilitate voluntary resolution of potential worker classification issues and … Continue reading Employment Tax: Yet Another Opportunity to Come Clean –
On September 21, 2011, the IRS announced the launching of the Voluntary Classification Settlement Program. This program will provide employers with the ability to resolve past worker classification issues and achieve certainty under the tax law at a significantly reduced employment tax rate by voluntarily reclassifying their workers. Under the program, eligible employers can obtain … Continue reading MORE BREAKING NEWS: IRS Announces New Voluntary Worker Classification Settlement Program
On September 19, 2011, Commissioner Shulman and Secretary of Labor Solis signed a memorandum of understanding that will allow for the sharing of information intended to combat employee misclassification. The sharing of information and collaboration between the two agencies is intended to help reduce the incidence of misclassification, reduce the tax gap, and improve compliance … Continue reading THE INK IS STILL WET: IRS, DEPARTMENT OF LABOR AND STATES TEAM TOGETHER -SHARING OF INFORMATION ON WORKER CLASSIFICATION
The American Jobs Act submitted to Congress this week calls for a temporary payroll tax cut and a temporary credit for increased payroll. The specific tax breaks in the proposal include: For 2012, the employee's portion of Social Security tax would be 3.1%; the employer's portion would also be 3.1%, up to the … Continue reading Who Will Be Subject to Employment Tax and at What Rate?
In a speech to a joint session of Congress on September 8, 2011, President Obama proposed cuts to both employee and employer payroll taxes for 2012 and tax credits meant to encourage hiring of unemployed workers. The President's proposal, the American Jobs Act, would cut employee Social Security payroll taxes in half in 2012. It would … Continue reading Employment Tax Cuts – Stay Tuned
In Chief Counsel Advice 201120021, the Service concluded that an enterprise's tool reimbursement plan failed the accountable plan business connection requirement because it impermissibly recharacterized wages and reimbursed employees for tool expenses incurred before the start of employment. The IRS reiterated its view that for an expense to satisfy the business connection requirement of the … Continue reading Increased Employment Tax Scrutiny: IRS Continues to Crack Down on Tool Plans