Your business is also required to pay into the state's unemployment insurance fund, which usually costs around 6% of payroll. And some employers offer additional benefits, like a 401(k), disability insurance, and paid time off (PTO). What are the penalties if you misclassify employees? Betwee...
If the referral bonus is at or below $1 million, how much is taxed depends on whether the bonus is combined with an employee’s regular wages or given separately. If combined, federal income tax is taken out from the total combined amount, in the same way as a regular pay period. If...
Those classifications play a huge role in how both you, the employer, and they, the employee, are taxed—and if you misclassify an employee as a contractor or a non-exempt employee as exempt, it could lead to HUGE (and expensive) issues down the road. How to avoid it: Misclassifying ...
Payroll classification: Classifying employees as hourly, salaried, or independent contractors affects how they’re paid and taxed. Step 3: Track employee work hours. For hourly teams, accurate time tracking is everything. Whether you use paper timesheets, punch clocks, or digital time tracking softw...
Many companies track information about paid time off (PTO) for vacations, sick days, holidays, etc. in their payroll records. This is particularly important for companies that give employees a set amount of PTO days each year. Salaries and wages ...
While overtime pay increases your employees' earnings, it's important to understand how this additional income is taxed. Check out our article to learn whetherovertime also means higher taxes. Does PTO count towards overtime? ...
The activity entails learning and working to enable the company to achieve its set goals; therefore, more practical work is involved than the theory. Some companies pay for internships, but others don't, depending on the state rule upon paying internships....
Also, as you're crunching numbers and trying to make your case,don't forget to include taxes. Depending on when you were fired or let go, whatever your income is can still be taxed if it's over a certain amount. Also, whatever severance pay you do receive can be taxed, so keep the...
These two plans differ in the way the money is taxed. With ISOs, the employees pay no taxes until they later sell the shares they have bought (exercised). At that time, any money they made off of the transaction is subject to capital gains tax instead of income tax. They must, however...
Social Security.The Social Securitymaximum taxable earningsthis year is $168,600—anything you earn in wages after that amount won’t be taxed for Social Security. If you expect to hit that maximum before mid-year, it might make sense to delay retirement until later in the year because you...