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All Tax Shark payroll plans offer
Your payroll taxes, filed automatically.
Aside from calculating payroll, we file your taxes to the correct tax authority every we run payroll.
No upcharge, it’s included.
Small business owners are accustomed to fulfilling several roles at the same time, including that of payroll processor. Unfortunately, this does not always serve them well. Not only is running a small business payroll time-consuming, it also requires in-depth knowledge of multiple federal, state, and local tax laws. With new tax laws added and others changing every year, dealing with payroll can become a full-time job in itself. Busy small business owners are increasingly looking for payroll services in Roseville, CA to help them process payroll more efficiently.
Payroll is typically the function of a company’s human resources department. Those who run payroll determine each employee’s gross amount of pay based on hours worked, hourly wage, or salaried amount. Payroll clerks must also withhold taxes from every employee’s paycheck, including 1.45 percent for Medicare and 6.2 percent for social security (FICA). For 2020, the Internal Revenue Service (IRS) stops withholding these payments for single filers once their income reaches $137,700. Employers must match the amounts paid to Medicare and social security for each employee.
Before new employees can receive a paycheck, they must complete a I-9 form to provide the company with their full legal name, mailing address, social security number, signature, and date. The human resources department uses the information on this form to help verify the employee’s eligibility to work in the United States. Each new employee must also complete a W-4 form with the following information:
The human resources department uses the information employees list on their W-4 form to determine how much federal, state, and local taxes to withhold. This department also deducts amounts for voluntary benefits such as health and dental insurance. Employees must complete a new W-4 form if they add or lose a dependent or wish to change their voluntary withholding amount.
Recordkeeping is an essential aspect of small business payroll. The person in charge of generating employee paychecks must maintain a separate file for each employee. At the end of the year, the payroll clerk uses this information to generate a W-2 form. Employees use the information provided on this form to file their federal and state tax returns.
Determining the amount of payroll taxes and submitting payments to the proper taxing authorities is yet another function of payroll. California, for example, requires employers to submit payments for three taxes in addition to the state income tax withheld from each employee’s paycheck. The employer pays 100 percent of the cost of Unemployment Insurance and Employment Training Tax while employees contribute to the State Disability Insurance program.
In addition to quarterly payroll tax deposits, California businesses need to file reports titled Quarterly Contribution Return and Report of Wages (Form DE-9) and Quarterly Contribution Return and Report of Wages Continuation (Form DE-9C). All companies have the option of outsourcing payroll functions to a third-party payroll company rather than completing the tasks in-house.
According to the IRS, a payroll company is a third-party organization that takes over some or all of the payroll functions for its clients. All small business owners must understand that the IRS does not consider ignorance of tax and payroll laws a valid reason for not abiding by them. A business can still receive a fine or other penalties for not following IRS or state government guidelines when it comes to payroll processing.
Outsourcing payroll allows small business owners to avoid missed deadlines and unnecessary fines while maintaining a focus on running the company. However, the client company is ultimately responsible for ensuring that withholding and deposit amounts are correct and reports are filed on time. When searching for payroll services in Roseville, CA, small business owners can ask whether the payroll company offers a service guarantee against errors.
A payroll service provider performs several other duties besides those already described. Here are some additional tasks a payroll company can assist clients with as listed by the IRS:
As a leading tax services company in the Roseville area, Tax Shark offers small business payroll services. We invite small business owners to contact our Roseville office at 916-542-9244 to request an appointment to learn more about each of our payroll services. New clients can also complete an online information request form or email us at firstname.lastname@example.org.