Frequently Asked Questions about Payroll
Answers to common questions regarding payroll for employers and employees.
What is an EIN, and why do I need one?
An EIN (Employer Identification Number) is a unique identifier assigned by the IRS that is required for reporting taxes and other documents.
What forms must new employees complete?
New employees should complete Form W-4 for tax withholding and Form I-9 to verify employment eligibility.
How do I determine the correct amount of payroll taxes to withhold?
Payroll taxes include federal income tax, Social Security, and Medicare. The amount withheld depends on the employee’s W-4 and current tax tables.
What is supplemental pay, and how is it taxed?
Supplemental pay includes bonuses, commissions, and overtime. It may be taxed differently than regular wages.
When are W-2 and 1099 forms due?
Employers must provide these forms to employees and the IRS by January 31 each year.
Why does my paycheck differ from my W-2?
Non-taxable items and/or pre-tax deductions not reflected on your W-2 may be present on your final pay stub.
How do I update my tax withholding?
Submit a new Form W-4 to your employer to adjust your federal tax withholding.
What are pre-tax and post-tax deductions?
Pre-tax deductions reduce your taxable income, while post-tax deductions do not (wage garnishments).
How is overtime calculated?
Overtime is typically paid at 1.5 times your regular rate for hours worked over 40 in a week.
What is the typical payroll schedule?
It varies by employer. Common schedules include weekly, biweekly, semimonthly, and monthly pay periods.
What should a payroll policy include?
A comprehensive policy covers pay periods, overtime, deductions, and procedures for payroll errors.
Are there penalties for late tax payments?
Late payments can result in penalties and interest charges.
How can I improve payroll accuracy?
Utilize payroll software, maintain accurate records, and stay updated on tax laws to ensure compliance.
Should I outsource payroll processing?
Outsourcing can save time and reduce errors, especially for complex payroll needs.
We offer a variety of Payroll services to help run your business efficiently.
