Overview: The most important payroll process for all employers is undoubtedly withholding for federal, state and local income and employment taxes and timely remitting the amounts collected to the appropriate government agencies. In turn, proper withholding leads to correct employee paychecks, and timely remitting of withheld taxes avoids serious employer penalties.
The income and employment tax withholding process requires an employer to understand:
Author: Rena Pirsos, JD, Legal Editor
Updated to reflect forthcoming notice requirements under the state paid sick leave law.
Updated to reflect accelerated filing deadlines and new electronic filing threshold amounts starting with 2016 forms filed in 2017.
Updated to reflect the extended deadline for furnishing ACA information reports to employees in 2017 and temporary penalty relief for 2017 reports filed in good faith.
The Social Security Administration has issued inflation-adjusted figures for 2017, including the Social Security taxable wage base, the earnings tests for retirees who return to work, the quarter of coverage requirement for Social Security benefits, and the cost of living adjustment (COLA) for Social Security benefits.
Updated to include forthcoming changes to Form IL-941 and the filing and payment schedules.
Updated to reflect notice requirements under Montgomery County's Earned Sick and Safe Leave Law, effective October 1, 2016.
Updated to include information on the forthcoming change in the local income tax structure and rates.
In-depth review of the spectrum of New Jersey employment law requirements HR must follow with respect to withholding taxes.
An explanation of the process of payroll withholding of federal, state and local income taxes and Social Security and Medicare (FICA) taxes.