Payroll deductions should include state income tax and payroll insurance deductions As a Professional Employee Organization, our clients ask us to handle their payroll responsibilities including two of the most talked about deductions: their state income tax and payroll insurance deductions. The state income tax is part of the statutory payroll tax deductions. As required by law, statutory Payroll Tax Deductions are payroll taxes that must be withheld from your employees paycheck. You must hand these withholdings over to the multitude of tax agencies on all levels of government. Local tax withholdings (city, county, or school district taxes, state disability or unemployment insurance). State income tax withholding Federal income tax withholding Social Security tax withholding Medicare tax withholding The payroll insurance deductions are part of the Voluntary Payroll Deductions Voluntary deductions pay for various benefits which the employee has chosen to parti ...

You make the call: Is this gas station employee non exempt, vs exempt? Two decisions from different federal appellate courts illustrate the potential uncertainty in classifying an employee as an exempt employee. You make the call: Is this gas station employee non exempt, vs exempt? In Thomas v. Speedway SuperAmerica, LLC1, the court pondered whether the store manager of a chain of gas station-convenience stores was properly classified as an exempt employee. The key issue in the case was whether the employee's primary duty was management. She spent approximately 60 percent of her time on non-managerial tasks such as stocking merchandise, sweeping floors, cleaning bathrooms, operating the register and clerical duties. However, she also hired, trained, disciplined, scheduled and evaluated employees. She recommended increases, most of which were approved, and terminated some employees without prior approval from her district manager. Is this gas station employee exempt? Based ...

Employer Payroll Taxes – How to stay out of trouble Many growing companies have questions like, “How do employer payroll taxes work?” At Modern Business Associates, many of our small clients come onboard with our payroll processing to let us handle their entire payroll processing burden, which includes payroll taxes. Our systems are set up to ensure your business does not get into trouble by missing withholdings or taking the wrong amounts. As background, you should know that employer payroll taxes are the state and federal taxes that you, as an employer, are required to withhold and/or to pay on behalf of your employees. After having each new employee complete their IRS form W-4, we’ll use this information to calculate the amount of federal income tax to withhold from the employee’s wages. Most all of the states have income tax structures that are based on the federal blueprint, so you will use the same W-4 to calculate the amount of state income tax to withhold as well.   You ar ...