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The payroll tax rate is a total of 15.3% of the employee’s salary. This is split between the employee and the employer. Both parties pay 6.2% Social Security and 1.45% Medicare tax. These taxes are under the FICA. Employers match the payroll tax that needs to be withheld from the employee’s income and pay their…

Payroll Tax Suspension is now on as President Trump signed the executive order. Now, all workers who earn less than $104,000 are going to see a 6.2% increase in their paychecks. The payroll tax suspension applies to all workers with net earnings of less than $104,000. The 6.2% Social Security tax suspension is going to…

Form W-2 is updated every year by the Internal Revenue Service but the overall use of it remains the same. For the 2021 tax season, the IRS will change Form W-2 but these changes won’t be anything significant. Form W-2 is still going to be used for reporting income paid to employees and taxes withheld…

When paying taxes online using a credit card, you will have a couple of options. The Internal Revenue Service doesn’t accept credit card payments on IRS.gov but there are approved payment processors that accept payments from credit and debit cards. You can see the full list of payment processors below. Pay1040 PayUSAtax OfficialPayments Each of…

The Internal Revenue Service started handing out stimulus payments months ago but there are still people who haven’t received their stimulus checks. If you’re one of them, the only way to check the status of your stimulus payment is through the IRS Get My Payment. If you’ve tracked the status of your tax refund in…

The Internal Revenue Service has moved the tax filing and tax payment deadline to July 15. This is for easing the financial burden of the taxpayers caused by the coronavirus crisis. With the tax filing deadline postponed, taxpayers have three months in extra to file their tax returns. For this to take effect, taxpayers don’t…

Wage and Tax Statement, Form W-2 reports income, Social Security, and Medicare taxes withheld from the employee’s salary. It also reports wage, salary, and other compensation paid to the employee. The employee will then use Form W-2 to file a federal income tax return. Because of this, employees count on their W-2 to file a…

Form 1099-MISC is used for reporting miscellaneous income paid non-employees such as contractors. If you hired a contractor to do some work for you in your business, you are required to furnish them with a Form 1099-MISC—the same way as furnishing employees with Form W-2, Wage and Tax Statement. Both Forms 1099 and W-2 report…

The tax withholding tables are used by employers to figure out how much tax needs to be withheld from the employee’s pay. The federal law requires all employers to withhold tax from employees’ salary. Since it is mandatory for everyone to pay federal income taxes during the course of the tax year, employees have no…

Form W-2 and Forms 1099 are used to report income. The only thing that differentiates the two is the type of income being reported. While Form W-2 reports wage, salary and other compensation paid to employees by an employer, Form 1099 reports all other types of income. There are more than just one type of…