Basics of Tax-Efficient Investing

Money Talk

This phrase was designed to encourage investors to buy tax-free municipal bonds that provide a higher after-tax return than higher-yielding taxable bonds. In a more general way, the advertisement was also promoting the concept of tax-efficient investing. This is the process of (legally) structuring an investment portfolio so the least amount of tax is paid. If you expect to be in a higher tax bracket, consider Roth (after-tax) investments.

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Ten Tax Planning Tips for 2022

Money Talk

Now that 2021 income tax season has been over for a month and the dust has settled, it is time to start some serious tax planning for 2022. Planning now provides seven months to take action and/or implement changes to avoid a stressful “tax scramble” at the end of the year. In an earlier blog post , I described 12 tax planning topics for 2022. Improve Your Tax Records - If disorganized records were a problem for 2021 taxes due in 2022, set up a better system.

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Ten Tips for Tax Withholding on Multiple Income Streams

Money Talk

A big concern of people with multiple income streams is adequate tax withholding. Nobody want to pay the IRS tax underpayment penalty, which is 0.5% of the amount owed for each month or partial month of unpaid taxes. Below are ten tax withholding tips for taxpayers with multiple streams of income: Inventory Your Total Income- Make a list of projected income sources for the current year, using previous income listed on your 2021 tax return as a guide.

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Who Pays Payroll Taxes? (+ Cheatsheet)

Patriot Software

You must withhold payroll taxes from employee wages and remit them to the proper agencies. Depending on the payroll tax, you must match employee contributions. But, not all payroll taxes are created equally. So, who pays payroll taxes?

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The Ultimate Guide to Hiring and Running Payroll for Global Talent Compliantly

Employ global talent without worrying about complex compliance regulations, local labor laws, and hidden risks.

Who Pays Unemployment Tax?

Patriot Software

Unemployment benefits are funded by unemployment taxes, which are paid based on employee wages. But who pays unemployment tax? Types of unemployment taxes Before you can learn who pays unemployment taxes, you need to know about the two types […] READ MORE.

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Thirteen Tax Topics for Older Adults

Money Talk

All of these events impact income taxes. This post describes thirteen tax-related topics (in no particular order) that people should be familiar with in later life. Funds must be withdrawn by the RMD deadline: December 31 of each tax year. 2020 tax returns for 2022 premiums).

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Payroll Tax vs. Income Tax

Patriot Software

Tax withholding comes with the territory of being an employer. Employment taxes can be broken down into payroll taxes and income taxes. But when you hear about a payroll tax deferral, you probably want to know the exact difference between payroll tax vs. income tax.

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Twelve Tax Planning Topics for 2022

Money Talk

The 2021 income tax season will soon be in the history books. With income tax calculations still fresh in our heads, this is a great time to do some tax planning for 2022. Here are 12 tax topics to consider: Itemized Deductions- Only about 10% of taxpayers can itemize since the Tax Cuts and Jobs Act went into effect in 2018. Changed Income- A change in household income this year- up or down- will affect income taxes.

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Tax Filing: Paper or Ether?

Money Talk

I am one of the 10 million or so tax filers that the IRS probably hates. I continue to file my taxes on paper. But the process is cumbersome and it is so much easier for me- as an admitted frugal tax geek- to fill out paper forms, double check my math, and priority mail my tax return. Yes, I could hire someone or buy $100 software to complete my tax return but, as I said, I actually like filling out tax forms. True confession time!

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How to Achieve Your Cybersecurity Goals for Employee Data

Speaker: Gallagher

Join our employee benefits compliance experts as they address the current state of cyber, best practices when developing and maintaining a cybersecurity program for employer-sponsored benefits, and resources to help you meet cybersecurity goals for your employee data.

What Taxes Do Businesses Have To Pay?

Kollath CPA

If you’re running a business, you’re on the hook for a variety of taxes. But What Taxes Do Businesses Have To Pay? Let’s take a look at the main categories: Income tax . All businesses except partnerships must file an annual income tax return.

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Government maintains income tax thresholds

Employee Benefits

Autumn budget 2022: The government will maintain the current freeze on income tax personal allowance and higher-rate tax thresholds until April 2028. But for them, the threshold at which individuals pay tax at 45% has been reduced to £125,140. Uncategorised Tax and legislation

What Exactly Is a “Tax Year”?

Kollath CPA

What Exactly Is a “Tax Year”? A tax year is an annual accounting period for keeping records and reporting income and expenses. Types of Tax Year. You can adopt either type of tax year unless you have a required tax year.

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Is The Adoption Tax Credit Right For You?

Kollath CPA

However, with the help of the government, you can obtain an adoption tax credit that was worth $14,400 in 2021. This year, the adoption tax credit is now $14,890. The adoption tax credit comes with many different rules and limitations. Is The Adoption Tax Credit Right For You?

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10 Things You Need to Know About Payroll-Only Registration

Before you go forward with payroll-only registration as a solution for hiring in another country, you should know it’s more complex than just filing some paperwork. In this ebook, you’ll learn about many of the challenges companies run into.

What Are Payroll Taxes?

Patriot Software

Employers juggle many responsibilities, including calculating and withholding payroll taxes and other deductions. But, what exactly does payroll taxes include? If you’re wondering about understanding payroll taxes, never fear—your payroll taxes breakdown is here.

Do Employers Have to Pay Unemployment Taxes?

Patriot Software

As a small employer, you have all sorts of payroll taxes to worry about: income taxes, Medicare tax, and Social Security tax. But, what about unemployment taxes? Do employers have to pay unemployment taxes? Do employers have to pay unemployment taxes?

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Withholding Tax Added to New Pennsylvania Tax Portal in November

American Payroll Association

The Pennsylvania Department of Revenue announced that withholding tax will be added to the new myPATH tax portal in late November. myPATH is replacing e-TIDES

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The Tax Implications of Independent Contractors

Kollath CPA

You don’t generally have to withhold or pay any taxes on payments to independent contractors, as you do with employees. For an official ruling, you can file Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding, with the IRS.

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What’s Your Payroll Tax Deposit Schedule? If You’re Not Sure, Read This

Patriot Software

How often you pay the IRS depends on your payroll tax deposit schedule. Your schedule, and thus payroll tax deposit due dates, depends on the type […] READ MORE. Payroll Payroll TaxesWhen you have employees, your responsibility isn’t just to pay them.

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Government reduces 45% income tax threshold

Employee Benefits

Autumn budget 2022: The government has reduced the threshold at which the 45% rate of income tax becomes payable, from £150,000 to £125,140. ” The post Government reduces 45% income tax threshold appeared first on Employee Benefits. Uncategorised Tax and legislation

Do Nonprofits Pay Payroll Taxes?

Patriot Software

When it comes to payroll taxes, for-profit businesses have it pretty straightforward. For-profits pay payroll taxes. Do nonprofits pay payroll taxes? Do nonprofits pay payroll taxes? Businesses can be categorized as nonprofits or for-profits.

Government scraps 45% tax rate on incomes above £150,000

Employee Benefits

Mini Budget 2022: The UK government has announced that it will scrap the 45% tax rate on incomes above £150,000 as of 6 April 2023. The post Government scraps 45% tax rate on incomes above £150,000 appeared first on Employee Benefits. Uncategorised Pay strategy Tax and legislation

State Tax ID: What Is It, How to Apply, & Beyond

Patriot Software

More than likely, you also need a state tax ID number. Payroll Payroll Taxes State-mandated LawsIf you have employees, you have responsibilities—one of which is to obtain a Federal Employer Identification Number (FEIN). But, that’s not the only identifying number you need.

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Filing the Final Tax Return

Kollath CPA

As a survivor, executor or administrator of an estate, you are obligated to file an income tax return reporting all the deceased’s income up to his or her date of death. Filing the Final Tax Return. If tax is due, submit payment with the return.

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APA’s Guide to Local Payroll Taxes Is Updated for 2023

American Payroll Association

Local income tax compliance can be challenging. APA’s Guide to Local Payroll Taxes, updated for 2023, can help. It is available in both online and print versions

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All About Quarterly Tax Returns

Kollath CPA

IRS Form 941 is a tax form that businesses file quarterly. It is how businesses report income taxes. As well as payroll taxes, Social Security, and Medicare taxes that the business withheld from employee paychecks over the previous tax year.

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What Is Local Income Tax?

Patriot Software

Here’s another tax to add to the payroll checklist: local income tax. Cities, counties, small areas, and localities across the country have a local income tax for individuals working or living in the area. But, what is local income tax? What is local income tax?

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Child Tax Credits as Monthly Payments – Should I Unenroll?

Stratus.HR

The IRS recently announced that its program to provide advanced monthly payments of 2021 Child Tax Credits will begin in July. What is the Child Tax Credit? The Child Tax Credit is something a taxpayer typically claims when filing taxes.

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Connecticut’s Tax Amnesty Program Launches

American Payroll Association

A three-month tax amnesty program in Connecticut runs through January 31, 2022, and includes withholding tax

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“Do I Need to Pay That?” All About FUTA Tax Exemption

Patriot Software

As an employer, you’re responsible for many different payroll taxes, including FUTA tax (aka, federal unemployment tax). But in some cases, you may not be responsible for paying FUTA tax. In fact, some businesses are exempt from the tax altogether.

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2021 Tax Prep Tips for Small Businesses

Take It Personel-ly

As tax season rolls around, it can be a time-consuming and challenging process for small business owners to get things in order. tax code can be complex, and finding yourself out of compliance could lead to steep penalties.

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Employee Retention Tax Credit

360PEO Inc.

You may be eligible for the Employee Retention Tax Credit (really!) payroll #cashflowmanagement #bookkeeping #financeEmployee Retention Tax Credits (#ERTC) under CARES ACT have been available for #SMB yet there has been confusion. CARES ACT Tax ERTC Tax Credit

Washington Governor Delays Long-Term Care Insurance Payroll Tax

American Payroll Association

The governor of Washington has announced a delay collecting the payroll tax associated with the Washington long-term care insurance program until April 2022

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Court Rules Seattle Payroll Expense Tax Is Constitutional

American Payroll Association

The Washington Court of Appeals ruled that the Seattle payroll expense tax is an excise tax on businesses and not a tax on employee income and is therefore constitutional. The Seattle payroll expense tax remains in effect

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