Recent Posts

Payroll trends to watch

Payroll trends to watch

Here are some payroll trends to watch in 2023: Overall, these trends reflect a growing emphasis on employee experience, automation, data analytics, compliance, and integration in payroll processing. Employers that stay on top of these trends are likely to be more successful in managing their 

Why Should I Document my Payroll Process?

Why Should I Document my Payroll Process?

It is important to document your payroll process for several reasons: Overall, documenting your payroll process is an essential part of ensuring accuracy, compliance, and efficiency in your payroll operations. It can help protect your organization from legal issues, reduce errors, and increase transparency and 

Is Group Term Life Taxable?

Is Group Term Life Taxable?

The taxable portion of Group Term Life Insurance refers to the portion of the insurance coverage that is subject to federal income tax.

Under the Internal Revenue Service (IRS) rules, the cost of group term life insurance coverage provided by an employer is generally tax-free up to a certain limit. For tax year 2023, the limit is $50,000 of coverage or the employee’s actual coverage amount, whichever is less.

If an employer provides Group Term Life Insurance coverage that exceeds the IRS limit of $50,000, the excess amount is considered taxable income to the employee. The taxable amount is based on the IRS premium table rates and is calculated according to the employee’s age and the amount of coverage that exceeds the limit, you can find that information in the IRS publication 15-B, Employer’s Tax Guide to Fringe Benefits https://www.irs.gov/pub/irs-pdf/p15b.pdf

It’s important to note that if an employer pays for the Group Term Life Insurance coverage on behalf of the employee, the entire cost of the coverage is considered taxable income to the employee. However, if the employee pays for the coverage through payroll deductions, only the portion of the coverage that exceeds the IRS limit is taxable income.

In summary, the taxable portion of Group Term Life Insurance is the portion of the insurance coverage that exceeds the IRS limit of $50,000 or the employee’s actual coverage amount, whichever is less.

What is a Fringe Benefit?

What is a Fringe Benefit?

A fringe benefit is a form of non-wage compensation that an employer provides to an employee in addition to their regular salary or wages. These benefits can come in many forms, including: Fringe benefits can be a valuable way for employers to attract and retain 

How to help prevent payroll fraud

How to help prevent payroll fraud

Payroll fraud can be costly for businesses and can cause financial losses, reputational damage, and legal issues. To prevent and detect payroll fraud, employers can implement a number of measures, including: By implementing these measures, employers can help prevent and detect payroll fraud, protecting their 

What are Local Withholding Taxes?

What are Local Withholding Taxes?

Local withholding taxes are taxes that are withheld from an employee’s paycheck by their employer and are paid to local government entities. These taxes are in addition to federal and state withholding taxes.

Local withholding taxes can include taxes for city, county, and school district purposes. These taxes are typically used to fund local government services, such as schools, roads, and infrastructure.

The amount of local withholding tax that an employee has to pay depends on the employee’s location and the local tax rate. Employers are responsible for calculating and withholding the correct amount of local tax from their employees’ paychecks and remitting it to the appropriate government agency.

It is important for employers to stay up-to-date on local tax laws and regulations to ensure compliance with local tax requirements. Failure to comply with local tax laws can result in penalties and fines for both the employer and the employee.

Refer to our Resources Page for helpful Local Withholding Tax links.

Additional Medicare Tax

Additional Medicare Tax

The Additional Medicare Tax is a tax that was introduced as part of the Affordable Care Act (ACA) and is designed to help fund Medicare. It is a 0.9% tax that applies to wages, salaries, and self-employment income above certain thresholds.The threshold for the Additional 

Social Security and OASDI are they the same?

Social Security and OASDI are they the same?

Yes, Social Security and OASDI (Old-Age, Survivors, and Disability Insurance) are essentially the same thing. OASDI is the official name of the program that provides retirement, survivor, and disability benefits to eligible individuals. It is commonly referred to as Social Security because it is administered