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Best Household Online Payroll Service 

Online payroll services like www.payrollserviceaustralia.com.au, aren’t just for companies. You can also make use of these online payroll services for your household. We all know that most households are paying salaries for your household employees, and you don’t need to do this all on your own.  With paying a small fee, the payroll company will ensure that all your payments to your household employees are done correctly.

Why using an online payroll service

By now, we know that there are many businesses that are making use of payroll outsourcing companies for making payments to the business’s employees every month. But, the one thing that many people don’t really know, is that you can also make use of these payroll services, if you are paying salaries to household employees as well.

You don’t need to just use these services for a business. There are just as many benefits in making use of a payroll service for your household as for your business. They are also doing your taxes for you, so that you don’t need to pay extra for a financial expert for doing it for you.

Easy to use

Many people are afraid to use the payroll outsourcing services of these companies, because they are afraid that it is going to be difficult to set up. And, that it might be a hassle to add someone new to the service, and to remove someone that isn’t working for you anymore.

But, the facts are that these services are really easy to use, and you don’t need to be worried about using these services. They made sure that their software is easy to understand and easy to use. It is user-friendly.

Great customer service

With using payroll services, normally comes with great customer service. You don’t need to worry about anything, and if you can’t really understand their software, you can call or email them, and they will assist you immediately.

It is important to know that you can call your payroll services anytime, when you have any enquiries, and if you are not understanding something. Even, if you want to add a household employee or remove an employee, you can contact the service, and they will do everything for you.

Not costing as much as what you might think

You might think that making use of payroll services, is going to cost you a lot of money, but if you are just a household and they needing to just ensure payment for a couple of household employees, you don’t need to worry about paying too much.

These services are really affordable, and offer services that you will pay lots of money extra for, by doing it somewhere else.

We are all really busy, going from our workplace to our homes, helping our kids with their homework and making dinner. The last thing that you should worry about, is making sure that you are paying the salaries of your household employees on time. With using the payroll services, you will not need to worry about this anymore, and you will be able to focus on the more important things in life.

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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.