Indiana Withholding: Lake County Implements New Payroll Tax

 

Payroll Mate® software is helping Indiana employers comply with the new Lake County local income tax withholding requirements.

What the new tax means for employers:

Beginning in October 2013, Indiana employers and withholding agents should begin withholding a 1.5 percent local income tax on Lake County resident’s wage income. If the Lake County resident works in a different Indiana county, their employer should stop withholding tax for the other county and begin withholding for Lake County on October 1st, 2013.

Very Important Note for Employees:

Because the local tax did not become effective until October, a prorated rate of .375% resident rate (.0625% nonresident rate) will be used for figuring Lake County tax on the 2013 Indiana income tax returns.

How to Configure the New Tax inside Payroll Mate:

Please refer to this question on how to create local payroll tax. You need to follow the same steps with 2 changes: Make the rate 1.5 (or whatever rate the state sent you) and name the new tax “Lake County Local Tax”.

 

If you do not already use Payroll Mate you can download a free trial here.

Oregon New Withholding Return Penalties

Oregon House Bill 2464 creates additional penalties for Oregon personal income tax withholding filers who fail to file a withholding return or who file fraudulent returns.

The new penalties apply to payments made in tax years beginning on or after January 1, 2013.

Under the new bill, a person who fails to file a withholding report, or who files an incomplete or incorrect return or report, shall be subject to a penalty of $50 per information return after the date on which the return or report is due, up to a maximum penalty of $2,500. A person who knowingly fails to file a report or who knowingly files an incomplete, false or misleading return or report, shall be subject to a penalty of $250 per information return after the date on which the return or report is due, up to a maximum penalty of $25,000.

Our Payroll Mate payroll software helps Oregon employers comply with government regulations and process payroll smoothly.

Free trail download of Payroll Mate is available from:

http://payroll.realtaxtools.com/

 

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Ohio Payroll Tax Reduced Effective Sep 1, 2013; Tables Updated

A new version of Payroll Mate ® payroll software has been released to implement Ohio’s New Income Tax Cut.

Ohio’s House Bill 59 (H.B. 59) cuts Individual Income Tax Rates 10% or $3 billion over the next three years.

Ohio employers must implement the new withholding tables starting September 1, 2013.

Below are the new tables:

 

More Than    But Not More Than                                               Amount To Be Withheld Is:

 

$              0 $    5,000.00 0.581% of such amount
5,000.00 10,000.00 29.05 plus 1.161% of excess over $   5,000.00
10,000.00 15,000.00 87.10 plus 2.322% of excess over $ 10,000.00
15,000.00 20,000.00 203.20 plus 2.903% of excess over $ 15,000.00
20,000.00 40,000.00 348.35 plus 3.483% of excess over $ 20,000.00
40,000.00 80,000.00 1,044.95 plus 4.064% of excess over $ 40,000.00
80,000.00 100,000.00 2,670.55 plus 4.644% of excess over $ 80,000.00
100,000.00 3,599.35 plus 5.805% of excess over $100,000.00

 

Click here to download a new version of Payroll Mate with the latest withholding tables.

 

How to Print IRS Form 943 using Payroll Mate Software

 

Payroll Form 943 is used by agribusinesses, farm owners and other employers of agricultural workers for reporting the withholding of federal income taxes (FIT) and FICA taxes (Social Security / Medicare) on wages paid to agricultural workers. Form 943 is used for agricultural employees even though the employer may employ non-agricultural workers. Please consult with the IRS if you are unsure if you need to file form 943 or 941.

Our Payroll Mate software generates ready-to-sign 943 and 943 schedule A by following these simple steps:
1. Under the company Federal Tax Information setup make sure the company type is set to “Agricultural (Form 943)”.

2. Click on the “Forms” button from the left toolbar inside the software and then select “943”.

3. Payroll Mate will show a screen with all the boxes required for filing form 943 pre-populated. Make sure to preview and double check this information especially boxes (1 through 6).

4. If you would like to make any adjustments, click the “Override Calculations Button” and enter new values.

5. If you are a tax preparer (accountant, CPA) you can enter the preparer info by selecting “Edit Preparer Info” and entering your information. The info you enter in this screen will be saved by the payroll software so you do not have to re-enter each time.

6. Click the “Preview” button to see how the final 943 form will look like.

7. When you are ready to print the 943 return click “Print” and select the desired printer.

9. Sign, and mail Form 943 to the IRS.

If you do not already use Payroll Mate you can download a free trial by visiting the page below:

http://www.realtaxtools.com/download.html

 

Payroll Mate Best Value in Payroll Software

 

2013 Form 941 Published

We have released a new copy of our Payroll Mate payroll software with support for the latest 2013 form 941 (Employer’s Quarterly Federal Tax Return). The IRS has introduced a number of changes in the form for 2013 to reflect the recent updates in tax laws and regulations.The percentage on Box 5a is now .124 instead of 0.104. This change reflects the increase in employee portion of social security tax from 4.2% to 6.2%.

The IRS also introduced a new box : 5d Taxable wages & tips subject to Additional Medicare Tax withholding.  This box is used to report additional Medicare tax which became effective in 2013 for wages above $200K.

If you already own a copy of Payroll Mate 2013, you will automatically get this new 941 form through the built-in auto update feature. If you would like to download an evaluation copy of Payroll Mate 2013 you can do so by visiting our payroll software download page.

 2013 IRS Form 941