New Jersey has become the 10th state to adopt mandatory paid sick leave. It goes into effect on October 29, 2018. The state sick leave law overrules all municipal ordinances. Employers who have already have a leave policy in place are free to continue to...
Identity theft victims being scammed by emails and web sites posing to be the IRS is increasing at an alarming rate. Many victims fall into the trap of answering emails which they think is from the IRS releasing confidential information such as social security numbers...
The taxpayer operated a sole proprietor vending machine business, in which he deducted compensation paid to his two children. The IRS disallowed the education for amounts paid to his children after determining that the amounts were not ordinary and necessary expenses paid or incurred in...
The IRS requires a single member LLC that has employees to have two Federal ID numbers(EIN). One EIN is assigned to the individual owner (as a sole proprietor) and one is assigned to the LLC. You cannot use the online application to apply for these...
Small Business Payroll Processing Options Let’s face it there are other options besides using Digit Payroll Corp to get your payroll processed. Yes, we would love your business, but most of all, we want you to choose the right one for you. When it comes to managing...
Around the end of July of every year the State of New Jersey issues a bill to all employers for an “Annual Assessment”. This is a mandatory tax which is not part of your normal payroll tax. It is a similar envelope in which New Jersey...
The IRS will start random audits of payroll tax returns starting in February of 2010. They are estimating 6,000 employers will be audited over the next three years. The IRS will be examining issues such as worker classification violations (employee vs. subcontractor) as well as...
Healthcare savings account (HSA) is a medical savings account that can be used on a tax-advantaged basis. To be eligible for an HSA a participant must be covered by a high deductible health plan. HSA accounts belong to the employees and they can take the...
Amounts paid for health insurance for more than 2% shareholder of an S Corporation should be reported to Digit Payroll by the end of the year. These amounts should be included in the shareholder's Form W-2 . This amount is included as income for federal...
The New Jersey Senate approved a bill that grants six weeks of leave at reduced pay to workers who stay at home to care for a new child or sick relative. According to the Paid Family Leave Act (A873) workers can collect up to two-thirds...