The Federal Unemployment Tax Act (FUTA) mandates each state’s taxable wage base must at least equal the FUTA base of $7,000 per employee. States use different formulas to determine their taxable wage base; some adopt the FUTA wage base as law while others use a percentage of the state’s average annual wage. Then there are […]

With recent labor shortages and inflation on the rise, business owners are being forced to reevaluate their compensation planning. As it stands, employers struggle with attracting and enticing new hires, as well as structuring salary increases to keep current employees satisfied. A recent report by Payscale, a pay data firm, unveiled key insight from management-level […]

The concept of a “ghost employee” is one that all business owners and HR professionals should be aware of. This fraudulent activity occurs when an employee is added (or kept) to your payroll, even if they are not an employee or have left the company. Ghost employees could be as innocent as individuals who have […]

In Tax Tip 2021-103, the Internal Revenue Service (IRS) recently reminded employers to undertake a thorough selection process when choosing a payroll services provider. Proceeding carefully is critical to both lessening the likelihood of fraud and ensuring that your compliance obligations are met. When deciding on a payroll service provider, employers should clearly understand their payroll […]

The end of the year is quickly approaching, so it’s imperative to start preparing for your year-end payroll reporting as soon as possible. As you’re probably familiar, the year-end payroll process can be overwhelming for a business owner, with the need to accurately calculate taxes, wages and deductions for all your employees in a short […]

The U.S. Department of Education (DOE) issued a press release extending the federal student loan relief until Jan. 31, 2022. According to the announcement, this will be the final extension setting a “definitive end date” for the relief. The extension is welcomed by students and parents alike, as the relief was set to expire on […]

The U.S. Department of Labor (DOL) recently issued a notice of proposed rulemaking to implement President Biden’s Executive Order 14026, requiring federal contractors to pay a $15 per hour minimum wage to employees working on federal contracts starting Jan. 30, 2022. The DOL’s proposed rule creates the standards and procedures to implement and enforce the […]

In an effort to assist small and medium employers in claiming credits for voluntarily offering paid sick and family leave under the American Rescue Plan Act (ARPA), the Internal Revenue Service (IRS) drafted over 120 new FAQs to provide further clarity. While there were existing FAQs about tax credits for qualified leave wages paid for employees’ leave taken before […]

Last month, the Internal Revenue Service (IRS) issued a new notice containing guidance for employers who wish to claim the Employee Retention Credit (ERC) in the first two quarters of 2021. Employers can access the credit before filing their employment tax returns by simply reducing employment tax deposits. DM Payroll Solutions highlights the top five changes to […]

The Internal Revenue Service (IRS) created a new fact sheet offering guidance for small to mid-size employers wishing to leverage the refundable tax credits under the American Rescue Plan Act (ARPA). The new guidance states the tax credits will reimburse employers for the cost of offering paid emergency sick and expanded family and medical leave […]