We mentioned the new Alabama Overtime Reporting Requirements in an December 18, 2023 email, but we wanted to follow up (and include on this blog) with some updates from QuickBooks since so many of you use QB for your payroll. Act 2023-421 passed by the Alabama legislature exempts overtime wages from Alabama income tax for overtime [...]
The Alabama Department of Labor has released its 2023 Tax Rate Notices in the last few weeks. Since paper copies of these notices are no longer mailed, employers should log into their Alabama Department of Labor eGov account to access the 2023 rate notice. We have seen significant changes in the rates for 2023, so it [...]
The IRS often contests an employer’s classification of workers as independent contractors as opposed to employees. If a worker is labeled as an independent contactor, the employer does not have to pay its fair share of federal payroll taxes, nor does it have to provide costly fringe benefits available to employees. This can result in [...]
A SERP may sound like a creature from a science fiction movie, but it is actually a popular retirement savings vehicle for the top brass. Typically, the SERP—an acronym for Supplemental Executive Retirement Plan—is used to complement a 401(k) or other qualified plan. It offers generous benefits to a chosen few and enables an employer [...]
The new American Rescue Plan Act (ARPA) includes relief for both individuals and businesses. Case in point: A key provision in the new law provides tax-free COBRA subsidies to ex-employees for a limited period of time. To top things off, employers are entitled to a payroll tax credit for the resulting costs. Background: Under the [...]
The pandemic has seen a dramatic rise in the instances of Unemployment Fraud in the United States. The Alabama Department of Labor has confirmed nearly 30,000 cases throughout the state. We have seen plenty of this type of fraud as well. Businesses and employees are being targeted, with scammers using real names to file unemployment claims [...]
For most PPP loan recipients, the 24-week Covered Period ended during the past several weeks, so now it is time to apply for forgiveness with your lender. The forgiveness application used and amount of documentation required will first depend on the amount of your PPP loan. If you received a PPP loan of $50,000 [...]
We often get asked by clients and their employees, “When Should I File a New W-4?” At a minimum, we suggest reviewing your filing annually. Often, a large refund or tax bill is a good reminder to check your withholding. The IRS offers its own Tax Withholding Estimator that is very useful. If you [...]
On Friday, August 28th, the IRS issued Notice 2020-65 to provide details for implementation of the Presidential Memorandum issued by President Trump on August 8th that provided a deferral of certain payroll taxes for employees. What we know now: The employee’s share of Social Security tax withholding (6.2%) is deferred for applicable wages paid [...]
The CARES Act allows for the deferral of the employer’s social security tax deposits from 3/27/20 through the end of 2020. The deferred amounts must be deposited over the next two years, half of the deferred amount by 12/31/21, and the other half by 12/31/22. Originally, the CARES Act prohibited PPP recipients from exercising this [...]