Practical HR Tips, News & Advice. Updated Daily.
FICA stands for the Federal Insurance Contribution Act, which outlines the required income tax withholdings related to social security and Medicare. Employers are required to withhold this tax from employee paychecks on behalf of the employee and submit them to the IRS. Unlike most payroll taxes, employers also have a separate employer FICA tax responsibility […]
April 15 is commonly known as Tax Day, because that’s when most people’s federal and/or state income taxes are due. As such, your employees may be experiencing extra stress at this time of year. Consider offering them the benefit of financial wellness training by using basic tax training information in today’s Advisor.
Yesterday’s Advisor presented basics of expense reimbursement (courtesy of Compensation.BLR.com); today, details of processing and taxation.
Gillihan is counsel in the Atlanta office of Alston & Bird LLP. His tips came at a recent webinar sponsored by BLR® and HR Hero®. Reasons for having insurance from employee’s perspective: Risk mitigation Negotiated discounts Reasons to Get Insurance Through the Employer: The income tax/Federal Insurance Contributions Act (FICA) exemption for employer premiums and […]
Tax Consequences of Bonuses Bonuses paid in consideration for services rendered are almost always taxable wages subject to income tax withholding, FICA, and FUTA. These include production, incentive, and nondeferred profit sharing bonuses. The Internal Revenue Service has also ruled that bonuses paid to employees for signing or ratifying an employment contract are considered wages […]
According to a new IRS notice, leave donated by an employee to a qualified employer-sponsored leave bank following a major disaster is not considered income to the donating employee, as long as the leave received by an affected employee is treated as wages for purposes of FICA, FUTA, and income tax withholding. Our HR Management […]
If your employees take home tips, you should be aware that a new U.S. Supreme Court decision approves the way the Internal Revenue Service figures your tax liability on those tips. And if you should want to dispute the amount owed, you’ll now need to keep more detailed records of each employee’s tips.
In an appeal by the Cleveland Indians baseball team, the U.S. Supreme Court has ruled that back wages are subject to federal Social Security and unemployment taxes in the year they are paid, rather than in the year they were earned. The dispute arose out of a settlement of grievances asserted by major league baseball […]