Monthly Archives: August 2009

Are You Classifying Your Workers Properly?

One of the steps we recommend to clients who use independent contractors, and who therefore face a heightened risk of a costly IRS payroll tax or benefits audit, is a quick review of some of the key things the IRS … Continue reading

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Work Opportunity Tax Credit Available to Employers

Employers may qualify for a tax credit known as the work opportunity tax credit that is worth as much as $2,400 for each eligible employee ($4,800 for certain veterans and $9,000 for employees who are “long-term family assistance recipients”). The … Continue reading

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Will the “Making Work Pay” tax credit hurt you next April?

The new “Making Work Pay” tax credit is being paid to taxpayers in advance through reduced payroll withholding. The reduction was accomplished by tweaking the payroll withholding tables, which does not consider all specific tax circumstances. You may not have … Continue reading

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Be Sure to Maintain Documentation for the COBRA subsidy under ARRA

Under the American Recovery and Reinvestment Act of 2009, certain individuals who are eligible for COBRA continuation health coverage, or a similar coverage under state law, may receive a subsidy for 65% of the premium paid.  These individuals are required … Continue reading

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New bill would limit employment tax relief on misclassified workers

In another example of the intention by Congress and the IRS to crackdown on misclassification of workers as independent contractors, Rep. James McDermott (D-Wa) introduced legislation that would make it more difficult for employers to receive protection from a potentially … Continue reading

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