It's summer! And summer in the Pacific Northwest means sunshine, waters warm enough to raft in, cookouts with family and friends, hiking beautiful mountain trails, trips to the coast......and payroll changes. Wait what?! Well okay...thankfully that last one isn't an annual tradition. But unfortunately, employers in Oregon will have to reckon with some payroll changes that are just around the corner. Below is our round-up of things for Payroll Administrators to address before working on their tans.
Did you survive year end and getting all those W2s into the waiting hands of your employees? If you answered "Yes!", then a big CONGRATULATIONS to you...and welcome to 2022! We have all hit the ground running and, believe it or not, we are well into February already. With April right around the corner, we thought now would be a good time to remind everyone about two new taxes that went into effect in Oregon and could require filing.
With a new year come many new changes and updates to payroll requirements. 2022 will be no exception, and with the new year quickly approaching, we've compiled the following extensive list of items that may initiate some payroll changes in your organization. We understand that this is a very long list to review, but we hope it provides a valuable reference guide for your organization. You might start thinking about these and act sooner than later.
With a new year come a lot of new changes and updates to payroll requirements. 2021 is quickly approaching, so - as in past years - we compiled the following list of items that may initiate some payroll changes in your organization. You might start thinking about these now and take action sooner than later.
Here we are. The first of October. Does everyone know what that means? Yes, it means the leaves are falling and changing colors, and the holidays are quickly approaching. Payroll/Accounting departments know what it means, too: it’s time, once again, for quarter end.
At the end of September, the IRS issued an updated Form 941 and instructions to be used beginning third quarter of 2020. The Form 941 has been revised to allow employers, who have elected to defer the withholding and payment of the employee share of social security tax on wages paid on or after September 1, 2020, to include the deferral on line 13b. The following additional guidance was also released on completing Line 16, to avoid failure-to-deposit penalties:
On August 8, 2020, President Trump signed an executive action that postpones the collection of employee payroll taxes from September 1st through December 31st. This affects the Social Security FICA taxes. The idea behind taking this action is that, during these difficult economic times due to the COVID pandemic, deferring tax withholding has the potential to put more money in working Americans' pockets to help boost the economy. This action of the Executive Branch results from Congress being unable to arrive at a compromise regarding another round of stimulus assistance.
With everything that has happened this year, does anyone else feel like we are in some strange time warp? Anyone know what month it is? Oh that is right, it's June. Crazy to think that we are halfway through 2020 already! So July is just next month, and it brings with it some important deadlines and potential changes for payroll and accounting departments. Here are some critical dates in July that you don't want to lose track of.
On May 16, 2019, House Bill 3427 was signed into law creating the Corporate Activity Tax (CAT). This new tax doesn’t replace the corporate income tax. It is in addition to that longstanding tax. The CAT became effective January 1, 2020, and it applies to all types of businesses with Oregon commercial activity that generate revenue in excess of $1 million (although businesses with $750,000+ in revenue are required to register with the Department of Revenue). Very few businesses are exempt from the CAT (e.g. nonprofit organizations, farmers, school districts, hospitals, long-term care facilities). This gross receipts tax is expected to raise at least $1 billion in annual revenues, intended to fund state investments in education.
** This article was originally sent to our Bennett/Porter clients via email on 4/17/2020 **
It's Friday, and the end of another fast-changing week for businesses and their employees. To help you keep up with and respond to events that impact your business, we've put together some helpful notes and notifications.
CAT Tax Webinar
Figuring out how much you owe to the State of Oregon for the new Corporate Activity Tax is not straightforward. And every company who has revenue of more than $1,000,000 per year is required to make estimated tax payments for the new tax that Governor Brown mandated last summer.
More help brings more questions and new confusion. On March 27, 2020, Congress passed a second round of economic stimulus in response to the COVID-19 pandemic: the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Some of the relief elements contained within this latest act include:
- Paycheck Protection Program Loans
- Additional Unemployment Benefits
- Student Loan Payments Suspension
- Funding for Hospitals, Airlines/Airports, and Food Assistance Programs
- Government Checks to Individuals
- Small Business Debt Relief
- Economic Injury Disaster Loans & Emergency Economic Injury Grants
Here is a closer look at some key aspects.