Tax Tip: Are You A Household Employer?

Between full time jobs, children, and pets many people pay others to help them with household chores and related tasks. If you pay an individual to run errands for you, babysit your children, walk your dog, or do other types of work for your home, you may have additional tax obligations as a “household employer.” […]

IRS Announces New Voluntary Worker Classification Settlement Program

Last week the Internal Revenue Service launched a new program that will enable many employers to resolve past worker classification issues. This new program will allow employers the opportunity to get into compliance by making a payment covering past payroll tax obligations. This is part of a larger “Fresh Start” initiative the IRS has implemented […]

Tips From the IRS for Employers Outsourcing Payroll

Outsourcing payroll duties to third-party service providers can streamline business operations, but employers are ultimately responsible for paying federal tax liabilities. Recent prosecutions of individuals and companies who – acting under the guise of a payroll service provider – have stolen funds intended for payment of employment taxes makes it important that employers who outsource […]

Revenue officers given 15 days to contact employers included in federal tax deposit alert cases

[IRS Memorandum SBSE-05-0711-064, 7/1/2011]: The IRS Small Business/Self-Employed (SB/SE) Division has issued an internal memorandum that instructs its revenue officers to contact employers in Federal Tax Deposit (FTD) Alert cases within 15 calendar days. The FTD Alert program (the Alert program) is a proactive process that provides for early intervention by the IRS when semiweekly […]

Keeping Employee Records for Tax Purposes

Small businesses can avoid trouble with the IRS by keeping the right employee records and tax documents. If your small business has employees — or if you use independent contractors — you must keep certain records in order to avoid getting into trouble with the IRS. Basically, you need to keep records of all wages […]