Inova Payroll Blog

Employee or Independent Contractor?

Posted by Misty Mathews on Apr 26, 2017

In today’s gig economy, more workers are finding themselves classified as independent contractors and fulfilling multiple roles for multiple employers. Freelancers, temporary workers, drivers, and consultants often gain freedom in choosing their own work schedule and how they will complete the work, but often do not enjoy the same benefits as traditional employees.

Independent contractors are not covered by the Fair Labor Standards Act (FLSA); they are treated differently in terms of taxes, benefits, and worker protections and receive a 1099-MISC form instead of a W-2 each year.

For small business owners and human resource specialists, differentiating between employees and contract workers isn’t as simple as it used to be and the risks of worker misclassification are no joke.

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Topics: Employer Basics

An Overview of California's Paid Sick Leave Law

Posted by Misty Mathews on Feb 23, 2017

This post was updated March 2018.

Among a number of regulatory changes in 2018, more and more states and municipalities are enacting their own laws and ordinances for paid sick leave, ensuring employees have protected time off for their own illness or to help a family member. These rules are designed to be employee-friendly, and they can come with unique challenges for employers, especially those whose current policies and practices are at odds with the new requirements.

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Topics: Employer Basics

Essentials to Earning Work Opportunity Tax Credits

Posted by Grace Ferguson on Aug 17, 2016

Despite the declining unemployment rate, many veterans struggle to find jobs matching their education, skills and experience. In an effort to hire veterans and other individuals facing barriers to employment, the federal government established the Work Opportunity Tax Credit (WOTC) program – which rewards employers with a tax credit for each eligible new hire. Employers can reduce federal income tax by up to $9,600 per eligible hired employee, so it’s a good idea for employers to understand how the WOTC applies to their business.

In this Q & A, you will find relevant WOTC information, including target groups, eligibility requirements, how to calculate and claim credits, plus tips for getting the most out of the program.

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Topics: Employer Basics

Payroll Tax Rules for Employers

Posted by Grace Ferguson on Aug 10, 2016

The mazelike world of payroll taxes can be perplexing for employers. The key to breaking through the initial confusion is to identify the two categories of payroll taxes: employee taxes, which are withheld from employees’ wages; and employer taxes, which are the employer’s portion of taxes. Employee and employer taxes are imposed on federal, state and local levels – knowing which ones pertain to your business is an essential element of staying in compliance and avoiding payroll tax penalties.

This handy guide provides a basic understanding of payroll taxes, including withholding, remittance and reporting guidelines, plus important tips for employers who outsource payroll duties.

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Topics: Payroll, Small Business, Employer Basics

New Hire Packet Essentials

Posted by Inova Payroll on Apr 12, 2016

New employees want to feel like part of the team. What better way to welcome them than with a complete new hire packet that offers all the information employees need to get started with the company?

An essential onboarding item, your new hire packet will set expectations by covering your obligations as an employer and your new hire’s responsibilities as an employee. The contents of your new hire packet will vary depending on your state, number of employees, and industry.

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Topics: Small Business, Employer Basics

Tip Reporting Cheat Sheet

Posted by Inova Payroll on Mar 24, 2016

Tip income represents special payroll and reporting challenges for restaurant employers. Underreporting of tip income triggers a two-fold effect: inadequate withholding of the employee’s share of taxes and underpayment of the employer’s portion. Still, that’s just one side of the tip reporting coin. On the other side are requirements you must meet, such as minimum wage, tax withholding and tip allocation.

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Topics: Payroll, Employer Basics

Magic numbers: Employee counts and federal employer reporting

Posted by Melanie Crow on Feb 17, 2016

Growing your business means you’ve got a to-do list that multiplies, seemingly overnight. Let’s knock a few things off that list, with simple employer reporting guidelines based on employee counts and helpful links to corresponding forms. 

1+ employee(s) and payroll tax reporting

Congratulations! You’re on your way. Here are all the basic federal payroll tax forms you’ll need to file if you have one or more employees. You can also review the 2016 IRS document “Employer’s Tax Guide” – if you dare.

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Topics: Employer Basics

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Covering payroll & HR basics, industry trends, and important  legislation affecting employers.

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Thank you for visiting our blog. Please note that we do our best to fully research the blog topics you see here and present accurate and up-to-date information. We believe the information to be accurate but make no claims as such. We also want to share with you that we do not provide professional accounting, financial, legal or tax advice and we recommend contacting a licensed accounting, financial, legal or tax advisor for business advice. For any comments related to the blog, please email us at info@inovapayroll.com.