7 Considerations When Preparing Your Payroll Budget

Most companies spend 20% to 30% of their annual revenue on payroll. The exact amount varies based on the employer’s size, industry, and staffing and operational needs. In some industries, such as service, it’s not uncommon for payroll to encompass up to 50% of revenue. For other industries, such as manufacturing and food and beverage, … Read more

The Essentials: HR, Benefits and Payroll Checklists

Human resources, employee benefits and payroll functions are separate yet intertwined, and checklists are essential to staying on top of your responsibilities for each one. Below are examples of what might be included in these checklists. Human resource management checklist HR department plan: Lays out the structure and operation of your human resources department. Recruiting … Read more

Is This Your Situation: You’re Spending Too Much on Bookkeeping

Wondering what your options are to reduce spending and increase income? Here are some tips: Organizing your finances is the foundation for financial success. Receipts scattered? Can’t keep up with payments that are due? Missed payments result in late fees and interest charges, and all those do are increase the overall amount to be paid … Read more

Is This Your Situation: Feeling Overwhelmed by Payroll

Do you ever wish you didn’t have to go through the hassle of preparing a payroll? Maybe it was simple when you just had one or two employees, but your company is growing and it’s becoming more complex. Some companies have a dedicated payroll manager—but that can be expensive. Other businesses have found find it … Read more

Can You Be Exempt and Nonexempt at the Same Time?

You can allow an employee to work two different jobs for your company. However, under the FLSA, you cannot classify an employee as both exempt and nonexempt — it must be one or the other. To know which one to use, you must first combine all of the employee’s job duties into one. Considering the … Read more

Unemployment and Tax: Back to Normal

Unemployment income has always been taxable income. Those who apply for unemployment benefits can have federal tax, and any applicable state tax, withheld, but whether it’s done check by check or in a lump sum, the recipient has to pay. However, because 2020 was such a difficult year, the federal government granted a limited break. … Read more

Payroll Tax Rates And Contribution Limits For 2022

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Below are federal payroll tax rates and benefits contribution limits for 2022. Social Security tax In 2022, the Social Security tax rate is 6.2% for employers and employees, unchanged from 2021. The Social Security wage base is $147,000 for employers and employees, increasing from $142,800 in 2021. Self-employed people must pay 12.4% on the first $147,000. Medicare tax … Read more

IRS Announces Mileage Rates For 2022

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The IRS has issued the 2022 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on Jan. 1, 2022, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be 58.5 cents per mile driven … Read more

Taxable and Nontaxable Employee Benefits

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As the unemployment rate falls from its 2020 high, employees are switching jobs in record numbers. The new stability in the economy means workers have more leeway to shop around for jobs that fit their lifestyles, needs and values. Now, the onus is on employers to provide an environment that makes their star team members … Read more

The Whys and Hows of Outsourcing Payroll

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In Bloomberg Tax & Accounting’s 2019 Payroll Benchmarks Survey, 69.2% of respondents said they used outside vendors to perform payroll functions, while only 30.8% said they did not outsource payroll. Let’s look at the practical and financial reasons so many companies are taking the payroll outsourcing plunge. Payroll compliance Payroll laws are numerous in scope, … Read more

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