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Current payroll news and a task to complete in June

on Monday, 06 June 2016. Posted in Recently Added, It's Your Money

June is the end of the second quarter, and you're no doubt gearing up for next month's due date for your federal payroll tax returns. But you may also need to complete one task before the end of June: securing your eligibility to claim the Work Opportunity Tax Credit. Here are the details, as well as other current payroll news.

 

  • Work Opportunity Tax Credit. You can claim this federal tax credit when you hire employees who are members of "target" groups. Normally, you have 28 days after an eligible worker's first day to complete the necessary paperwork for the credit. But the 28-day rule has been extended for some new workers hired between January 1, 2015, and May 31, 2016. For certain employees hired within that time period, the deadline for filing the required form is June 29, 2016. The extended date gives you a chance to review your personnel files for credit-eligible employees.


  • Employee leasing. Do you outsource your payroll management tasks to a Professional Employer Organization (PEO)? If so, you may have been concerned about reports that some of these companies failed to send the required payroll taxes to the IRS, leaving employers on the hook for unpaid taxes. A voluntary certification program implemented by the IRS may help ease your concern. Hiring a PEO that's certified under the new rules shifts the liability for failing to remit payroll taxes to the PEO.


  • Incorrect payroll notices. If you were confused by the changes to April due dates caused by various federal and state holidays, take heart. The IRS was confused, too. As a result, some payroll deposits that were made correctly on April 18 (instead of April 15) were flagged as late, and the IRS issued penalty notices. You can hold off replying to the notice. The IRS will let you know when the mistake is corrected.

 

Contact us for more details about these and other payroll issues. We're here to help.

 

DavisAssociates

"Tax Tips" are published weekly to provide current tax information, tax-cutting suggestions, and tax reminders. If you would like more information on anything in "Tax Tips," or if you'd like to be on our mailing list to receive other tax information from time to time, please contact our office.

The tax information contained in this site is of a general nature and should not be acted upon in your specific situation without further details and/or professional assistance.

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