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4 Things You Need to Know About Payroll Tax - Ahola

Written by aholaadmin | Jun 17, 2019 11:49:12 AM

If you have multiple offices, or remote employees in various states, you could be subject to different payroll tax laws and rates…

1. Extra compensation must be carefully timed.

Incentivizing employees with bonuses is a great way to boost performance, and it’s important that the bonus checks are distributed at the same time that payroll taxes are paid. Otherwise, you could be subject to a penalty. The same goes for overtime payments.

2. Tax laws differ from state to state.

If you have multiple offices, or remote employees in various states, you could be subject to different payroll tax laws and rates.

3. Borrowing withheld tax funds can lead to big problems.

Many small businesses make the fatal mistake of falling behind on remitting withheld taxes to the IRS. Failing to send those funds on time can result in costly penalties, or even legal action. It’s illegal to use payroll taxes for anything other than their intended purpose—even if you have every intention of paying them back.

4. Last month’s tax regulations may not be this month’s tax regulations.

Even after you have a payroll system in place, create a quarterly calendar reminder to re-evaluate and ensure compliance regarding the latest requirements.

If you don’t already have a dedicated payroll specialist on staff, partnering with us can provide a priceless peace of mind. We can manage your employee payments, tax withholdings and remittances, as well as all related paperwork and filings. Contact us for more information.

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