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
Year-end is a time typically focused on endings and for HR that means finalizing benefits enrollment, processing performance appraisals and completing payroll filings. But equally important is to prepare for new compliance requirements that will ring in the New Year.
Updated to include information regarding the forthcoming effective date for the notice provisions of the paid family and medical leave law.
Updated to include forthcoming inflation-adjustments to penalty amounts for 2019 information returns, and proposed regulations regarding de minimis error safe harbor exceptions to information return filing penalties.
Updated to reflect important new information regarding terminated employees under IRS Notice 2018-92.
Updated to reflect a forthcoming rate reduction in Georgia, Missouri and North Carolina, effective January 1, 2019.
Updated to reflect new hire requirements under the forthcoming amendment to New York City Human Rights law regarding lactation room accommodations.
Updated to include new information (under the October checklist) regarding moving expense reimbursements and payments, effective January 1, 2018.
An explanation of the process of payroll withholding of federal, state and local income taxes and Social Security and Medicare (FICA) taxes.