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Why it’s Time to Look at Outsourcing Your Payroll Service?

Payroll outsourcing has become almost the number one resource for many new businesses worldwide and it’s easy to see why. Outsourcing enables companies to hire the best without compromising quality and for most business owners they don’t have the ability to waste money on in-house teams. However, many aren’t sure why they should look at outsourcing so, isn’t it time you started to find out why?

No More Space Taken

How much space do you have in your home? Are you someone who has tones of space available or very little? In truth, if you have limited space available within the home you need to think about outsourcing. You can have your payroll taken care of properly but without the need to have the professionals within the office. That is going to prove very useful and certainly it will enable most the ability to get the service they need without compromising their office space. Hiring a payroll service can be really quite useful and certainly a way to get the assistance for your business. That is why it’s time to outsource.

No Costly Training

It can often be extremely costly to go through payroll training. It doesn’t matter if you are the one going through the training or if an employee is, you are going to find it’s very costly. Payroll training truly costs thousands and that can be just for a basic course. It’s not ideal to say the least and certainly it’s causing a lot of businesses some trouble. However, when you look into payroll outsourcing you can find there is no need to train. You can avoid hefty training costs and you can find it makes everything far easier as well. That’s why it’s maybe time to consider outsourcing today. Click here.

No Need for Employees to Juggle Two Jobs

Employees often have a lot of things to do on a daily basis and when they also have to take care of payroll it’s not really fair. Yes, they can usually deal with the two but it takes a lot out of them and it’s not really ideal either. Trying to juggle two jobs at once, even if it’s just once or twice a week, it can be very difficult. A lot of employees fall behind on what they should be doing and it’s very costly to say the least. When you look at hiring a payroll service you can actually avoid employees juggling two jobs at once. It will make things far easier for them.

Hire a Professional Today

Payroll is a crucial part of any business and without having a professional here it can be very difficult to keep the business running smoothly. If employees are not paid on time or are paid incorrectly they could end up walking out. People aren’t willing to wait longer to be paid than they agreed to and it’s causing a lot of concern to say the least. However, when you look at outsourcing you could make things far simpler for everyone involved, including you! Payroll outsourcing is a great solution and one you should consider too. To find out more, check out http://payrollserviceaustralia.com.au/payrolloutsourcing/

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How the New Medicare Tax Will Effect Payroll For Employees

As per the new regulations, now the employers have to deduct 0.9% additional hospitality tax for the people who are falling in the category of high-income taxpayers (commonly referred as additional Medicare tax).

This new tax slab was adopted from 1st Jan, 2013.

Individuals, employers and the payroll service providers all now have to re-work on their slabs in order to attain this new tax change. As per 2012, Federal Insurance Contributors Act (FICA) wages were subject to a 2.9% Medicare tax, which was bear by the company as well as the employees with the equal percentage of 1.45% each.

Now, from the beginning of 2013, under the act of patient protection and affordable care; employees will have to accept an additional liability of 0.9% on FICA wages and self-employment income. The people who will fall under these categories are:

• $250,000 for joint fillers
• $125,000 for married taxpayers filling form separately (and)
• $200,000 for individuals who are household heads and other filers.

In comparison with the regular Medicare tax, additional Medicare tax will not give any consideration to employer portion. However, employers will be obligated to suppress the additional tax for an employee whose wages exceed $200,000 in a calendar year.Read post at http://www.bobsguide.com/guide/news/2017/Apr/3/sage-announces-the-launch-of-sage-one-payroll-in-kenya/

How to calculate a tax?

With this new policy in picture, now individuals are required to recompense additional medical taxes with their income tax returns. They have to implement straight forward formula while filling up their taxes.

An individual has to calculate the excess of wages (or self-employed income) on top of applicable threshold income. Once the sum is ready, he can then multiply that amount by 0.9% in order receive the accurate amount of tax he is liable for. Hiring the best payroll services like payroll services Australia is very important.

An individual can follow this three step process to calculate the medical tax:

1. Understand your category in which you are falling and then take the sum of additional medical tax on wages which you are exceeding as a threshold.

2. Deduct the applicable threshold by the total amount of medical wages which you have received in a calendar year.

3. Now, calculate the additional Medicare tax over the self-employment income to extent it exceeds the reduced threshold.

Claims, refunds and further adjustments:

Payroll For EmployeesCurrent regulations also entitle an individual to make interest-free adjustments if there is a case of under or over payment without too much of a hassle. Taxpayers will be able to do these adjustments by filling up an appropriate correction form (e.g. 941-x form). He later can also apply for the reimbursement for the overpaid amounts or can request for the collection for the underpaid amounts from his wages before the end of the year.

It is important to note that under payments can only be adjusted in the same year. The employer will be held responsible for the correct amount of tax, even if it’s unable to deduct the underpaid amount for his employee’s payroll processing.