article thumbnail

Computational Bridge Option Added to 2021 Version of Publication 15-T

ThomsonReuters

The IRS has added an optional computational bridge to its 2021 version of Publication 15-T (Federal Income Tax Withholding Method) that employers can use if they want to treat 2019 or earlier Forms W-4 as if they were 2020 or later Forms W-4 for the purposes of determining federal income tax withholding. Background.

article thumbnail

What is IRS Form 941?

ThomsonReuters

Highlight: The IRS Form 941 is one of the most important payroll-related tax returns used by businesses to report employment taxes, including federal income tax withholding, Social Security tax, Medicare tax, and Additional Medicare tax. What taxes are reported on Form 941?

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Last Week in Payroll: Backup Withholding

ThomsonReuters

The IRS requires the payer of certain income payments to be reported on information returns (e.g., Generally, the payer does not withhold taxes from these types of payments, as it is assumed that the payee will report and pay taxes on this income when the federal income tax return is filed.

payroll 98
article thumbnail

Clean Energy and Climate Action Offer Tax Benefits

CPA Practice

Make targeted, tailored investments in rural America to improve electricity service, expand access to affordable clean energy, advance climate-smart agriculture and forestry practices, and support agriculture-based biofuels. In addition, tax incentives are a primary tool in the Act to encourage energy innovation.

Tax 115
article thumbnail

The Certified Payroll Professional Corner

ThomsonReuters

Federal income tax withholding. Employers should not withhold federal income tax from the wages of a statutory employee. Form W-2. Statutory employees should receive a Form W-2 (Wage and Tax Statement). This should not be done for H-2A agricultural workers since they are not statutory employees.

payroll 95
article thumbnail

Tax Breaks for Businesses: Discovering the Benefits of the IC-DISC

CTP

The benefit of creating an IC-DISC is that some or all of the taxable income from export sales will be taxed at a lower rate—namely, the qualified dividend rate. The highest qualified dividend rate is 20%, whereas the ordinary income tax rate can be as high as 37%.

Tax 111
article thumbnail

Last Week in Payroll: Localization of Work

ThomsonReuters

The H-2B temporary non-agricultural worker program is designed to serve U.S. workers to perform non-agricultural work of a temporary nature. The Iowa legislature passed a significant tax bill modifying the state’s income tax laws. businesses unable to find a sufficient number of qualified U.S.

payroll 98