Payroll

Wednesday, December 8th, 2010

Oregon Payroll Laws and Payroll Rates for 2011

 

Employers in Oregon are required to follow Oregon payroll laws and regulations even when using an Oregon payroll service or accountant. 

Our Payroll Software calculates Oregon payroll taxes and gives employers everything they need to prepare Oregon payroll. A FREE payroll software trial can be downloaded from the link below.
 

  Download FREE Payroll Accounting software trial  


Oregon Payroll Laws- 2011 tax rates:
Employment: New employer rate: 3.3%
Wage base rate: $32,300
Workers Benefit Fund: No change in rate: 2.8 cents per hour
Transit taxes:
TriMet: 0.006918
Lane: 0.0067 

 

Oregon Payroll Laws- Electronic W-2 and W-2 Filing 

Effective for calendar year 2010, businesses with 50 or more employees and all payroll service providers are required to report W-2 information electronically. The transmittal due date is March 31, 2011. Only Form W-2 are filed electronically; paper W-2s or other forms of media are not accepted. Note: Although employers are not required to submit paper copies of W2 information, it is important to keep copies in case you are requested to do so at a later date. 

Oregon employers can use our W2 Software to print and eFile Oregon and SSA W2 Forms. To learn more you can visit our W2 Software page. 

Oregon Payroll Laws-Outsourcing Payroll:
 

When outsourcing payroll, whether using a Oregon payroll service provider or Oregon bookkeeping firm, it is important to be aware of the following: 

A. The employer is ultimately responsible for correctly reporting and paying state and federal payroll taxes, even if the third party is making the deposits. Be sure that your payroll provider has up to date information to correctly file and pay all payroll tax obligations. Even if the third party payroll provider fails to correctly report and pay all payroll tax obligations, the employer is still held liable for any penalties and interest that is assessed. 

B. Periodically review your account to make sure everything is current and up to date. Contact the different tax agencies if needed to verify that your account is current. 

C. If there are issues on the account, correspondence is always sent to the employer address on record. Make sure that you report any address changes so that you are kept informed of any tax matters involving your business.

Monday, November 15th, 2010

How to Payroll | How to Payroll Taxes

 

How to Payroll? How to Payroll Taxes?  Two common questions asked by many US small businesses nationwide every day. We try in this post to show you step by step how to payroll and how to payroll taxes. Please feel free to download a free demo of our payroll software and see how easy it’s to do payroll yourself.

Go here to download payroll software free demo

The first step even before generating payroll is to research payroll software to ensure you are completely satisfied with your program. A few features to be mindful of when choosing payroll software are automatic calculations, customizable income, tax and deduction categories, support for tax forms and payroll tax reports, technical support and cost of the program.

Once you have purchase software for payroll you will collect data relating to your company and employees. Business address, Employers Identification Number and State Unemployment Account Number are items that will be entered when setting up the company in the new company wizard. Employee’s address, social security number, filing status, number of exemptions, and type of income and pay frequency will be entered in the employee set-up wizard. Social security number, filing status and number of exemptions is the type of information employers can find on Form W-4.

Generate paychecks by entering the number of hours worked in the check details screen for each employee. Once all checks have been created in the system you will print paychecks and paystubs for your employees. Bring a check into view click print selected check, this allows the user to print a single check with a paystub. To print multiple checks at one time users will pull a check printing report and select which employees to print paychecks for.

Easily prepare federal forms to submit to the IRS. Use small business payroll software to automatically populate Form 941, 940, 944, W2 and W3 with payroll income tax information. Simply choose a form from the forms screen in Payroll Mate, enter data if applicable (boxes outlined in red may require data entry) and print.

Quarterly forms such as Form 941 are submitted to the IRS, due the end of the following month after the preceding quarter ends. Annual forms such as Form 940 are submitted to the IRS, due by January 31st of the following year. Form W2 must be issued to employees no later than January 31st of the following year and submitted to the Social Security Administration by February 28th of the following year. For example the tax year 2010 annual forms are due January 31, 2011.

See how simple do it yourself payroll can be by downloading a free 30 day evaluation from our software download page: FREE Payroll Software Download

Sunday, November 14th, 2010

FREE Payroll Book

 

The FREE Payroll Book is our FREE gift to our customers and small businesses everywhere. The FREE Payroll Book is designed to help introduce business owners to the main concepts in payroll and payroll preparation.

 

Download FREE Book about payroll, payroll taxes and payroll processing.

 

Book Table of contents

Part one

About Real Business Solutions

Introduction and History of Payroll and Payroll Taxes

Terminology

Methods of Payroll Preparation

Payroll Processing Steps

Why Buy Payroll Software and Prepare Payroll in House?

How to Choose the Right in House Payroll Preparation Software

Part Two

If You are Responsible for Running Payroll for Your Entity What Do You Need To Do?

You Have a New Employee What Now?

Minimum Wage Requirements

Employees Time Tracking

Time to Prepare Payroll

Direct Deposit

Year End Payroll Requirement

Payroll Preparation – Good Habits For In House Software Users

Helpful Websites

Download FREE Payroll Book NOW

Monday, October 4th, 2010

Payroll Accounting: Cafeteria Plan Payroll Taxes | Cafeteria Plan Payroll Deduction

 

In payroll accounting terminolog  a cafeteria plan, a section 125 plan, is a plan that allows employees to choose between receiving cash or taxable benefits versus certain qualified benefits that the law provides an exclusion from wages. As a rule cafeteria plans do not include deferred compensation however 401K benefits can be included in a cafeteria plan.

“Most plans today work as a salary reduction, deductions that are considered pre-tax deductions. Both employees and employers gain from this agreement. Employees see reduced taxable wages (gross income) as contributions are not subject to federal, state or social security payroll tax withholding. Employers in turn see a savings on employer contributions of FICA, FUTA and workers’ compensation insurance premiums.

Qualified cafeteria plan benefits can include dependent care assistance, adoption assistance, group term life insurance (including costs that cannot be excluded from wages), accident and health benefits (not including Archer MSAs or long term care insurance) and health savings account, HSAs (distributions from an HSA may be used to pay eligible long term care insurance premiums or qualified long-term care services).

For purposes of a cafeteria plan common-law employees, full-time insurance agents who are current statutory employees and leased employees who have provided services basically full time for at least one year under employer’s direction. Of course there are exceptions those exceptions are regarding S Corp Shareholders, plans favoring highly compensated employees and plans that favor key employees. Do not treat the benefit as a reduction in distributions to the S Corp Shareholders. The previous two situations above employers will include the value of taxable benefits the employees have selected in their wages.

Payroll Mate payroll accounting software allows users to add any type of income or deduction category that meets their needs. User-defined incomes and deductions support both taxable and pre-taxed categories therefore supporting Section 125 Cafeteria Plans.

Create a pre-tax deduction (Cafeteria plan) for yourself by downloading a free payroll software demo.

Monday, October 4th, 2010

Payroll Accounting: Payroll Fringe Benefits | Payroll Tax Fringe Benefits

A fringe benefit is a type of pay for services carried out. A fringe benefit is taxable unless the law specifically excludes it. See for yourself how Payroll Mate treats fringe benefits by downloading a free payroll software demo.

The value of a fringe benefit must be included in an employee’s pay if the value is more than the sum of the amount the recipient paid for the benefit or the law excludes the amount from the pay. Recipients of any fringe benefit, whom are considered employees, are subject to employment taxes. The fringe benefit is subject to Payroll taxes and must be reported on Form W2. Special payroll accounting rules apply to fringe benefits based on the recipient of the benefit and the tax-exempt fringe benefit laws.

Fringe benefits are tax exempt if they fall into specific exclusion rules. The benefit will be exempt from federal income tax and possibly social security, Medicare and or FUTA and will not be reported on W2 forms.

Some types of fringe benefits considered tax-exempt under the current payroll accounting rules:
Accident and health benefits
Achievement awards
Working condition benefits
Adoption assistance
Athletic facilities
De minimis (minimal) benefits
Dependent care assistance Educational assistance Employee discounts. Employee stock options
Group-term life insurance coverage Health savings accounts (HSAs) Lodging on your business premises Meals Moving expense reimbursements No-additional-cost services Retirement planning services Transportation (commuting) benefits Tuition reduction Volunteer firefighter and emergency medical responder benefits

Payroll software providers will find valuable information in IRS Publication15-B regarding treatment of fringe benefits under employment taxes.

Our payroll accounting solution supports user-defined Income, Tax, and Deduction categories. This feature allows employers to enter fringe benefits in a manner required by law. Easily enter fringe benefits as taxable or tax-exempt.

Find more information about our cost effective payroll software online at http://www.realtaxtools.com/  or try Payroll Mate for yourself by downloading a payroll software free trial.