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Payroll

How to handle 401(k) excess deferrals like a pro

12/18/2024
Employees are often advised to max out their 401(k) contributions up to the annual pretax limit ($23,500 for 2025). But contributing too much can have an unintended side effect: Your plan can be disqualified. The IRS has posted an issue snapshot for its 401(k) plan auditors on excess deferrals. You can use it to ensure excess deferrals are corrected expeditiously.

In the Payroll Mailbag: January ’25

12/18/2024
Employee or independent contractor? … Gift boxes of pricey food: Taxable or not?

IRS can do better with scanning payroll returns

12/18/2024
Many employers continue to file their Forms 941 and 940 on paper because the IRS’ e-filing system is cumbersome and expensive. Paper forms are prone to transcription errors, as IRS personnel manually input your figures into computers. In a recent report, the Treasury Inspector General for Tax Administration concluded the IRS needs to do a better job of scanning tax returns.

Jan. 31 is Have Fun at Work Day (only joking)

12/18/2024
Year-end isn’t a barrel of laughs. But cheer up! There is light at the end of this tunnel if you check off these final items from your to-do list by Jan. 31.

January 2025: Employer’s business tax calendar

11/30/2024
Here’s your monthly guide to critical payroll due dates.

The catch with 401(k) catch-up contributions

11/20/2024
Employees aged 50 and over have had the option of making additional 401(k) pretax contributions, called catch-up contributions, for more than 20 years. SECURE 2.0 increases the catch-up contribution amount to the greater of $10,000 or 50% more than the regular catch-up amount in 2025 for individuals who have attained ages 60, 61, 62 and 63 before the end of 2025. This is not as straightforward as it appears.

Look, up in the sky, it’s the W-2 that stole Christmas

11/20/2024
Year-end begins to become overwhelming in December. The best way to combat the onset of panic is with a little humor. You can mix a lot of metaphors in one headline, but you can’t mix up your W-2 responsibilities, because neither the Social Security Administration nor the IRS will be sympathetic.

In the Payroll Mailbag: December ’24

11/20/2024
When are reimbursements taxable if they cross years? … Does a logo on a jacket affect taxability?

Conundrum: FMLA leave during the holidays

11/20/2024
Dec. 25 and Jan. 1 fall on Wednesdays this holiday season. Holidays falling on Wednesdays usually take the pressure off employers to give off either the day before or the day after, just to round out the week and to show some good will. But Wednesday holidays don’t eliminate all of the FMLA leave considerations you must address.

Two-minute payroll reads: December ’24

11/20/2024
Payroll is complicated and your time is limited. Spend two minutes reading these digests and you’ll be up to date on key payroll developments.