5. You’re struggling to stay compliant As you (hopefully) know, a significant part of processing payroll is handlingpayroll taxes. To remain compliant, you must accurately calculate, withhold, and remit applicable payroll taxes (e.g.,FICA tax). Not staying compliant can spell doom for your ...
To compute the taxable income, you must add the predicted adjusted gross income, regular income subject to tax, annual credits, and deductions taken through tax returns. To determine your deductions, look at your estimated taxes from last year. Although it may seem easy, many people delay submi...
For the 2025 tax year, the Social Security wage base limit has increased. The first $176,100 of your combined wages, tips, and net earnings are subject to any combination of the Social Security part of self-employment tax, Social Security tax, or railroad retirement (tier 1) tax. This i...
The IRS has stated that option (a) will give employees the most accuracy and privacy of the three since the Tax Withholding Estimator will compute all the relevant entries for the form–but of course the Withholding Estimator must be updated for 2025 in order to be accurate. Option (b) als...
How to compute your Annual Income Tax or ITR dues Before you begin, you’ll need to check whether you’re on the 8% Income Tax Rate or the Graduated Income Tax Rate. The easiest way to do this is to check your Certificate of Registration from the BIR. This will indicate which tax sc...
Similar to the first payment, further payments with various dates may be made for the same invoice. When the due date has expired and there is still an unpaid balance, an invoice must compute an automated reversal. Any payment received after the due date will be considered an addition, and...
If you have people working with you (or for you) and you’re in charge of payroll, consider taxes in your business costs. It’s best tohire a tax accountantso you know how to properly compute taxes.You’ll also have to factor in additional costs like health insurance, dental, and paid...
Cross receives a monthly paycheck from a bakery plant of $3,500.30. She is married and is entitled to 3 withholding allowances. How much is her taxable income? Compute employee FICA taxes for the year on earnings of $108,000 at 6.2% on a limit of $117,000 for OASDI...
3. Payroll If you plan to hire employees, you need some type of payroll system. Gusto and Bill.com are good options, but there aremore on the marketif you want to shop around. If you’re hiring only contractors, a payroll platform is helpful, but not entirely necessary. ...
A reliable time tracking system is needed to compute accurate compensation. Instead of using outdated manual logs, use the best time andGPS tracking appsto effectively monitor your employees and record the hours they work. Workforce management apps will come in handy when you need to verify an ...