On Demand Webinar
Webinar Details $219
- Webinar Length: 100 Minutes
- Guest Speaker: Vicki Lambert
- Topic: Payroll, Human Resources
- Credit: ATAPR 1.5, ATATX 1.5, CPE 2.0, HRCI 1.5, SHRM 1.5, ATAHR 1.5, RCH 1.5
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This webinar covers the basics of withholding, depositing, paying and reporting payroll taxes. It provides a good solid foundation for the payroll beginner or an excellent refresher course for the seasoned professional.
Background:
Federal income taxes are such a common occurrence in present times it is easy to forget their relatively recent origin. It is also easy to forget that the withholding of these taxes fall under IRS regulations that are strict and non-yielding in many cases. Simply put, the employer either collects the amount due from the employee or pays their own portion and sends it directly to the IRS. But though it sounds simple and basic it is critical for the employer to withholding the taxes correctly based on several factors including:
- The type of payroll frequency used by the employer
- The information supplied on the employee’s Form W-4
- The taxable wage base and rate in effect for OASDI or social security taxes
- The rate in effect for Medicare tax
- If the employee is subject to the Additional Medicare Tax
- Status of the employees such as nonresident alien or expatriate
- The wage base and rate in effect for federal unemployment insurance or FUTA
The penalties are severe for failing to comply with employment tax rules and procedures since the IRS imposes both civil and criminal penalties on employers. In addition to these penalties, employers also have to pay interest on any underpayment of tax that is a result of noncompliance with these same regulations.
Then once the taxes are withheld and paid they must be reported and reconciled. Which forms are used for the initial reporting and when are they due? Which forms are used to correct already submitted forms? These are critical questions that the payroll professional must have answers to right on the tip of their tongues. So although we like to refer to this as basic payroll it is anything but basic. In actuality it is the foundation that supports both quarter-end and year-end as well as all other IRS compliance issues facing the payroll department.
Your Benefits For Attending:
- Introduction to the federal tax system
- Obtaining an EIN
- Federal Income Tax
- Methods of withholding
- How to handle supplemental wages
- FICA Taxes
- What is OASDI
- What is Medicare
- What is the Additional Medicare Tax
- What are the current wage bases and rates
- How do totalization agreements affect FICA taxes
- Are there special rules for nonresident aliens on visa
- FUTA Tax
- Who is subject
- Current rate and wage base
- Effect of credit reduction
- Computing and paying the tax
- Who is subject
- Basic rules for Successor employers
- Basic rules for Common Paymaster
- Deposit rules
- Reporting requirements
- Penalties for noncompliance
Who Can Benefit:
- Payroll Executives/Managers/Administrators/Professionals/Practitioners/Entry Level Personnel
- Human Resources Executives/Managers/Administrators
- Accounting Personnel
- Business Owners/Executive Officers/Operations and Departmental Managers
- Lawmakers
- Attorneys/Legal Professionals
- Any individual or entity that must deal with the complexities and requirements of Payroll compliance issues
- Introduction
- Our Focus For Today - Federal Income Tax 00:01:07
- Our Focus For Today - FICA Taxes 00:01:59
- Our Focus For Today - FUTA 00:002:37
- Intro to Federal Tax System 00:02:56
- Obtaining an EIN 00:06:50
- Federal Income Tax 00:08:23
- Method for Withholding 00:08:32
- Publication 15-T 00:09:43
- Employer Worksheets 00:10:18
- Employer Worksheet #1A 00:10:27
- Employer Worksheet #1B—New In 2022 00:10:41
- Employer Worksheet #2 00:10:54
- Employer Worksheet #3 00:11:17
- Employer Worksheet #4 00:11:26
- Employer Worksheet #5 00:11:35
- Alternative Methods 00:11:42
- Alternative Methods - Annualized Wages 00:12:16
- Alternative Methods - Cumulative Wages 00:12:47
- Alternative Methods - Part-Year and Continuous Employment Method 00:13:25
- Alternative Methods - Example 00:13:36
- Example 1 00:14:51
- 2024 Percentage Table 00:16:59
- Example 1 - Employer Worksheet 00:18:43
- Example 2 00:22:17
- Example 2 - Form W-4 00:22:41
- Example 2 Employer Worksheet 00:23:42
- Example 3 Form W-4 00:25:00
- 2024 Percentage Table 00:25:51
- Example 3 Employer Worksheet 00:26:18
- Example 3 Employer Worksheet —Step 1 00:26:30
- Example 3 Employer Worksheet— Step 2 00:28:44
- Example 3 Employer Worksheet—Step 3 00:29:18
- Example 3 Employer Worksheet —Step 4 00:30:51
- Nonresident Aliens 00:32:21
- 2024 Withholding Procedure 00:34:24
- Step 1 00:35:04
- Example 00:35:45
- Example Cont’d 00:36:13
- Nonresident Aliens 00:36:36
- Form W-4 Nonresident Aliens 00:37:26
- NRA Claiming Exempt by Treaty 00:38:11
- Supplemental Wages 00:38:38
- Two Acceptable Methods 00:39:32
- Supplemental Rates--2024 00:40:22
- Example 1—Aggregate Same-Time Payments 00:40:53
- Example 2—Aggregate Pay at Separate Times 00:41:36
- Example 3—Aggregate Pay at Separate Times 00:43:31
- Example 4—Alternate Pay 00:44:28
- Have Not Withheld Taxes 00:45:59
- Vacation Pay 00:46:27
- FICA Taxes 00:447:22
- FICA Taxes - Federal Insurance Contributions Act 00:47:29
- OASDI—2024 00:48:21
- Medicare 00:50:24
- Additional Medicare Tax 00:51:20
- Totalization Agreements 00:51:39
- Nonresident Aliens 00:53:02
- Common Paymaster 00:55:44
- Successor Employer 00:57:00
- Deposit Rules FIT & FICA 00:57:43
- Deposit Rules 00:57:46
- Lookback Period for 2024 00:58:30
- Lookback Period 00:59:43
- Monthly Depositor 01:00:37
- Semiweekly Depositor 01:00:50
- Semiweekly Depositor - Table 2 01:01:15
- Semiweekly Depositor - Example 01:01:26
- $100,000 Rule 01:02:12
- $100,000 Rule (Continued) 01:02:34
- Business Days and Holidays 01:03:08
- Federal Holidays for 2024 01:03:37
- How to Deposit 01:04:02
- Accuracy of Deposits Rule 01:04:18
- Examples for Semiweekly Depositor 01:05:13
- Reporting FIT & FICA 01:06:17
- Reporting Federal Taxes - FIT and FICA 01:06:20
- Reporting Federal Taxes - Semiweekly Depositors 01:06:40
- Penalties 01:09:37
- Penalties - Failure to Deposit 01:09:40
- Penalties - Assess “Averaged” Failure To Deposit 01:10:01
- Penalties 01:10:51
- FUTA Taxes 01:11:27
- FUTA 01:11:32
- Subject to FUTA 01:13:07
- 2024 Rate and Wage Base 01:13:32
- Credit Reduction 01:116:25
- Example - Calculating and Depositing FUTA 01:23:50
- 940 For 2023 - Parts 1 - 4 01:25:01
- 940 For 2023 - Parts 5 - 7 01:25:23
- Successor Employer for FUTA 01:26:14
- Common Paymaster 01:28:27
- Are There Any Questions? 01:33:14
- Presentation Closing 01:42:07
- Additional Medicare Tax 00:51:20
- Aggregate Method 00:39:39, 00:44:49
- Alternate Method 00:39:58
- Annualized Wages 00:11:58, 00:12:24, 00:26:41
- Average Estimated Wages 00:12:00
- Continuous Employment Method 00:11:42, 00:13:31
- Cumulative Wages 00:12:00, 00:12:34
- EIN 00:01:38, 00:07:36
- Exempt 00:10:07, 00:16:49, 00:33:33, 00:37:25
- Federal Income Tax (FIT) 00:08:29, 00:32:26, 00:44:55, 00:57:53, 01:06:20
- Federal Insurance Contributions Act (FICA) 00:02:00, 00:37:02, 00:47:28, 00:56:02, 00:57:53, 01:06:20
- Federal Unemployment Tax Act (FUTA) 00:02:38, 00:37:03, 01:11:27, 01:26:26
- Form 8233 00:38:29
- Form 940 01:21:40
- Form 941 01:06:22
- Form 941-X 01:00:30
- Form 944 01:06:28
- Form SS-4 00:07:10
- From W-2 00:37:05
- From W-4 00:05:24, 00:11:13, 00:14:57, 00:27:41, 00:33:31
- Garnishment 00:27:46
- Lookback Period 00:58:09
- Nonresident Alien (NRA) 00:01:49, 00:02:19, 00:10:11, 00:32:45, 00:36:55, 00:53:06
- OASDI 00:02:05, 00:47:49, 00:49:14
- Part-Year Employment Method 00:11:42, 00:13:28
- Publication 15-T 00:09:47, 00:11:55
- Regular Wages 00:46:37
- Sovereign Citizen 00:04:17, 00:52:55
- Supplemental Wages 00:01:47, 00:38:47, 00:46:34
- Totalization Agreements 00:02:14, 00:51:39, 00:53:15
- Vacation Pay 00:46:29
- Wage 00:02:08, 00:28:41, 00:35:48, 00:38:52, 00:57:10, 01:27:06
- Wage Base 00:48:27, 00:50:37
Additional Medicare Tax: Income up to a threshold amount is subject to the “regular” Medicare tax. Under the Affordable Care Act, taxpayers who earn above a set income level (depending on filing status) pay 0.9% more into Medicare on top of the regular contribution. This extra tax is called the Additional Medicare Tax.
Aggregate Method: Under the aggregate method of withholding, an employer combines supplemental wages with regular wages and withholds on the total as if it were a single payment for the regular pay period.
Alternate Method: Use the supplemental rate for the wages as required instead of Form W-4 to compute the tax withholding amonut.
Annualized Wages: Annualized wages, or annualized salaries, are a way to calculate an employee's yearly earnings by dividing their annual wages by the number of hours they work in a year. This method ensures that employees receive a consistent wage each year, even if their hours or hourly wage change
Average Estimated Wages: The average estimated wages method is a way to calculate the amount of tax to withhold from an employee's paycheck. The method uses the employee's average estimated wages for a calendar quarter to determine the tax amount. If the original estimate is incorrect, adjustments can be made during the quarter. The tax is then withheld in equal amounts for each payroll period in the quarter. This method cannot be used if the computation only includes tips.
Continuous Employment Method: Continuous employment is when an employee works for the same employer without a break or with short breaks that don't interrupt their employment. It can also apply when an employee transfers from one employer to another, if the two employers are associated in some way.
Cumulative Wages: Cumulative wages is the total amount of wages paid to an employee during a calendar year, including the current payroll period.
EIN: The Employer Identification Number, also known as the Federal Employer Identification Number or the Federal Tax Identification Number, is a unique nine-digit number assigned by the Internal Revenue Service to business entities operating in the United States for the purposes of identification.
Exempt : Exempt employee is a term that refers to a category of employees set out in the Fair Labor Standards Act. They do not receive overtime pay, nor do they qualify for the minimum wage
Federal Income Tax (FIT): Federal income tax is withheld from each W-2 employee’s paychecks throughout a tax year. FIT tax pays for federal expenses like defense, education, transportation, energy, and interest on the federal debt.
Federal Insurance Contributions Act (FICA): The Federal Insurance Contributions Act is a United States federal payroll contribution directed towards both employees and employers to fund Social Security and Medicare—federal programs that provide benefits for retirees, people with disabilities, and children of deceased workers.
Federal Unemployment Tax Act (FUTA): The Federal Unemployment Tax Act (FUTA) is a federal law that imposes an unemployment tax on employers. The FUTA tax funds the federal government's oversight of each state's unemployment program. Only employers pay FUTA tax. You must deposit the tax quarterly and file an annual form.
Form 8233: IRS Form 8233 must be completed when a non U.S. citizen is claiming tax treaty exemption from income taxes for income received for services provided as an independent contractor.
Form 940: Use Form 940 to report your annual Federal Unemployment Tax Act (FUTA) tax. Together with state unemployment tax systems, the FUTA tax provides funds for paying unemployment compensation to workers who have lost their jobs. Most employers pay both a federal and a state unemployment tax. Only employers pay FUTA tax.
Form 941: Federal form 941, also called a quarterly federal tax return, is an IRS return that employers use to report their FICA taxes paid and owed for the period. The IRS uses this form to calculate the amount of employer tax payments made during the year as well as the amount of taxes due at the end of the year.
Form 941-X: Adjusted Employer's Quarterly Federal Tax Return or Claim for Refund.
Form 944: Form 944 is designed so the smallest employers (those whose annual liability for social security, Medicare, and withheld federal income taxes is $1,000 or less) will file and pay these taxes only once a year instead of every quarter.
Form SS-4: Use Form SS-4 to apply for an employer identification number (EIN).
Form W-2: Form W-2 is an Internal Revenue Service tax form used in the United States to report wages paid to employees and the taxes withheld from them. Employers must complete a Form W-2 for each employee to whom they pay a salary, wage, or other compensation as part of the employment relationship. - Wikipedia (https://en.wikipedia.org/)
Form W-4: Form W-4 (otherwise known as the "Employee's Withholding Allowance Certificate") is an Internal Revenue Service (IRS) tax form completed by an employee in the United States to indicate his or her tax situation (exemptions, status, etc.) to the employer.
Garnishment: A legal summons or warning concerning the attachment of property to satisfy a debt
Lookback Period: A lookback period is a 12-month period when the IRS examines an employer's total payroll tax liabilities to determine if the employer needs to make monthly or semiweekly deposits. Lookback periods depend on whether the employer reports their tax liabilities quarterly on Form 941 or annually on Form 944.
Nonresident Alien (NRA): This income is taxed at a flat 30% rate, unless a tax treaty specifies a lower rate. Nonresident aliens must file and pay any tax due using Form 1040NR, U.S. Nonresident Alien Income Tax Return or Form 1040NR-EZ, U.S. Income Tax Return for Certain Nonresident Aliens with No Dependents.
OASDI: OASDI stands for old age, survivors, and disability insurance tax, and the money that your employer collects goes to the federal government in order to fund the Social Security program.
Part-Year Employment Method: The part-year wage method is calculated by multiplying your expected annual wages by the percentage of the year that you will be working. The proper tax withholding amount will subsequently be calculated by your employer based on your modified projected wages using IRS withholding guidelines.
Publication 15-T: Employers use Publication 15-T to figure the amount of federal income tax to withhold from their employees' wages.
Sovereign Citizen: Sovereign citizens believe that courts have no jurisdiction over people and that the use of certain procedures (such as writing specific phrases on bills they do not want to pay) and loopholes can make one immune to government laws and regulations.
Supplemental Wages: Supplemental wages are additional payments made to an employee outside of their regular wages. They include overtime, bonuses, commission, and more. If an employer provides supplemental wages, they may be required to withhold taxes from these payments.
Totalization Agreements: Totalization agreements are international tax treaties that seek to eliminate dual taxation with regards to Social Security and Medicare taxes in the United States.
Wage: A fixed regular payment, typically paid on a daily or weekly basis, made by an employer to an employee, especially to a manual or unskilled worker.
Wage Base: The taxable wage base is the amount of an employee's income from which the IRS calculates an individual's tax liability for Social Security. In other words, the taxable wage base is the income an employee earns on which Social Security taxes must be paid.
