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Payroll

IRS clarifies the parameters of Section 530 relief

01/13/2025
Way back in the dim mists of antiquity, the IRS embarked on a campaign to reclassify independent contractors as employees, sticking employers with huge tax bills. In response, Congress added Section 530 to the Revenue Act of 1978. As a result, the IRS was forbidden from publishing regulations or revenue rulings with respect to the employment status of any individual for purposes of payroll taxes. But this doesn’t mean the IRS can never issue guidance interpreting Section 530.

Friday wrap: Tax deadline extended, 2025 labor penalties, disaster relief and more

01/10/2025
Tax deadline extension, inflation-adjusted penalties, wildfire disaster relief and more to end the week.

February 2025: Employer’s business tax calendar

12/31/2024
Here’s your monthly guide to critical payroll due dates.

Two last-minute laws ease 1095 reporting

12/19/2024
Two laws combined will ease your health-care information reporting responsibilities. The president has indicated he will sign them. These two laws become effective for Forms 1095-C required to be furnished to employees after Dec. 31, 2024.

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.