Below are federal payroll tax rates and benefits contribution limits for 2022. Social Security tax In 2022, the Social Security tax rate is 6.2% for employers and employees, unchanged from 2021. The Social Security wage base is $147,000 for employers and employees, increasing from $142,800 in 2021. Self-employed people…
Do you have employees or independent contractors? It’s not always an easy question to answer, but the IRS insists you get it right, because there’s a huge difference in how you should treat them. Fortunately, the IRS has some guidance. The government recognizes five different kinds of…
The end of the year always means the possibility of last-minute tax changes, and this year, that’s especially true. Some of the new legislation may mean major changes starting in the new year, but other proposed bills, such as new capital gains and qualified dividend tax rates, may…
In COVID Tax Tip 2021-123, the IRS clarifies some of the confusion surrounding the powerful but complex Employee Retention Credit. The IRS is addressing changes made by the American Rescue Plan Act of 2021 that apply to the third and fourth quarters of 2021. These changes include: …
COVID-19 has triggered many brick-and-mortar entities to to either strengthen or create their online presence. This, in turn, has forced them to address sales tax complexities they didn’t have to contend with when all sales were local. Understanding sales tax thresholds The internet sales tax requirement is…
On Friday, the U.S. House of Representatives passed H.R. 3684, the “Infrastructure Investment and Jobs Act,” a $1.2 trillion infrastructure bill in a 228-206 vote, sending the legislation to President Joe Biden for his signature. The bill includes the following tax law changes: Employee Retention Credit Prior to the…
The New York State Department of Taxation and Finance recently issued Notice N-21-5, providing relief to taxpayers adversely affected by Post-tropical Depression Ida, and extending the tax deadline to January 3, 2022, for the filing of certain returns and payments due on October 15, 2021. The extension applies to various…
The U.S. Small Business Administration (“SBA”) has announced new enhancements to the COVID Economic Injury Disaster Loan (“EIDL”) program, a federal disaster relief loan designed to better serve and support small businesses still reeling from the pandemic, especially hard-hit sectors such as restaurants, gyms, and hotels. The COVID EIDL…
The IRS has issued IR-2021-179 granting victims of Hurricane Ida located in New York and New Jersey to file various individual and business tax returns and make tax payments until January 3, 2022. The IRS is offering this relief to any area designated by the Federal Emergency Management Agency…
In July 2021, the California Assembly enacted California Assembly Bill 150 joining the numerous other states (including New York, New Jersey, Connecticut, Maryland, Rhode Island, etc.) that have enacted a pass-through entity (“PTE”) tax. The new law, applicable to tax years beginning on or after January 1, 2021 and ending…
