Payroll Support to End for QuickBooks 2015

Payroll Support to End for QuickBooks 2015

Per Intuit’s (the creators of QuickBooks) yearly tradition to retire an older version of their QuickBooks software, Intuit has announced that on May 31, 2018, QuickBooks Desktop 2015 will be discontinued, and as such all current 2015 users are advised to upgrade to Intuit’s newer 2018 software. Are you currently using QuickBooks 2015 for your payroll and taxes? Here’s everything you need to know about the changes and what to expect come May 31. Why Is QuickBooks Discontinuing Service? Application sunsetting happens for a number of reasons, but in the case of QuickBooks, the answer is simple: Intuit regularly discontinues their older products to ensure that all users run off of the same data – thereby eliminating the incongruent hassle of maintaining an outdated service. Plus, with so many new features and user-friendly upgrades to their latest version of QuickBooks, the change is sure to be beneficial for all involved. Which Features Will Be Affected? While an unsupported version of QuickBooks will continue to work, as of May 31st, all users still operating off of QuickBooks Desktop 2015 will find access to their Payroll, Online Banking, and Merchant Services denied. All paycheck and tax calculations – whether using Basic, Standard, Enhanced, or Assisted Payroll – will be inaccurate, as well as automatic tax filing ceasing to process. Access to Intuit’s services or online support will also be canceled and users will be unable to submit information such as direct deposits, filings, and payments. Customers with the Annual Support Plan, however, will continue to have full access until their yearly subscription expires, at which point they must upgrade to a...
Tips For Using the Withholding Calculator

Tips For Using the Withholding Calculator

Are you needing to use the new withholding calculator to determine how you should claim for tax purposes on your W4 form? In the last blog, I discussed that the recent tax reform brought about a change in the withholding schedule and a new W4 form has been issued. If you missed the post, you can read it here: http://affordablebookkeepingandpayroll.com/need-update-w4-form/ For those who have a simple tax return, there may not be any change needed in order to have proper tax amounts withheld. But if you have a more complicated return because of self-employment tax, unearned income, or even capital gains or dividends, you  may need to use the withholding calculator. The IRS has provided some tips to help you use this feature: Gather your most recent pay stub from work. Check to make sure it reflects the amount of Federal income tax that you have had withheld so far in 2018. Have a completed copy of your 2017 (or possibly 2016) tax return handy. Information on that return can help you estimate income and other items for 2018. However, note that the new tax law made significant changes to itemized deductions. Keep in mind the Withholding Calculator results are only as accurate as the information entered. If your circumstances change during the year, come back to the calculator to make sure your withholding is still correct. The Withholding Calculator does not request personally-identifiable information such as name, Social Security number, address or bank account numbers. The IRS does not save or record the information entered on the calculator. As always, watch out for tax scams, especially via email or...
Do You Need to Update Your W4 Form?

Do You Need to Update Your W4 Form?

On February 28, the IRS announced it has updated the withholding calculator and W4 form. Since tax reform legislation was signed into law this year, federal withholding amounts have changed. In order to make sure you have the correct amount of tax withheld, you may want to review the information and submit a new form to your employer. The Tax Cuts and Jobs Act made changes to the tax law, including increasing the standard deduction, removing personal exemptions, increasing the child tax credit, limiting or discontinuing certain deductions and changing the tax rates and brackets. If changes to withholding should be made, the Withholding Calculator gives you the information needed to fill out a new Form W-4, Employee ‘s Withholding Allowance Certificate. Submit the completed W-4 to your employer. The IRS encourages you to use the Withholding Calculator to perform a quick “paycheck checkup.” Checking your withholding can help protect against having too little tax withheld and facing an unexpected bill or penalty at tax time in 2019. It can also prevent you from having too much withheld; with the average refund topping $2,800, you might prefer to have less tax withheld up front and receive more in their paychecks. As a first step to reflect the tax law changes, the IRS released new withholding tables in January. These tables were designed to produce the correct amount of tax withholding — avoiding under- and over-withholding of tax — for those with simple tax situations. This means that people with simple situations might not need to make any changes. These situations include singles and married couples with only one job, who...
The New 2018 IRS Payroll Tax Withholding Tables

The New 2018 IRS Payroll Tax Withholding Tables

The Internal Revenue Service has released Notice 1036, which updates the income-tax withholding tables for 2018 reflecting changes made by the tax reform legislation. This is the first in a series of steps that IRS will take to help improve the accuracy of withholding following major changes made by the new tax law. The updated withholding information shows the new rates for employers to use during 2018. Employers should begin using the 2018 withholding tables as soon as possible, but not later than Feb. 15, 2018. Many employees will begin to see increases in their paychecks in February to reflect the new law. The time it will take for employees to see the changes in their paychecks will vary depending on how quickly the new tables are implemented by their employers and how often they are paid — generally weekly, biweekly or semi-monthly. The new withholding tables are designed to work with the Forms W-4 that workers have already filed with their employers to claim withholding allowances. “The IRS appreciates the help from the payroll community working with us on these important changes,” said Acting IRS Commissioner David Kautter. “Payroll withholding can be complicated, and the needs of taxpayers vary based on their personal financial situation. In the weeks ahead, the IRS will be providing more information to help people understand and review these changes.” The new law makes a number of changes for 2018 that affect individual taxpayers. The new tables reflect the increase in the standard deduction, repeal of personal exemptions and changes in tax rates and brackets. For people with simpler tax situations, the new tables...
CA Passes Salary History Ban

CA Passes Salary History Ban

AB 168 passed into law on October 12, 2017, amending the California Fair Pay Law by prohibiting all California employers from inquiring into an applicant’s salary history starting January 1, 2018. Specifically, under the new law, all California employers are required to follow these rules during the hiring process: Employers cannot use (rely on) the salary history information of an applicant when determining whether to offer employment to an applicant or Employers cannot use (rely on) the salary history information of an applicant when determining what salary to offer an applicant. Employers cannot seek salary history information, including compensation and benefits, about an applicant. Upon reasonable request, employers must provide the pay scale for a position to an applicant applying for employment. It is important to note that the law does not prohibit an applicant from voluntarily disclosing salary history information to a prospective employer. If an applicant voluntarily and, without prompting, discloses salary history information to a prospective employer, the law does not prohibit that employer from considering the voluntarily disclosed salary history information. Next step for employers California employers should review this new law and provide training to those people involved in the hiring process about the new requirements, as these new requirements impact the interview process.  In addition, all California employers should review their job applications and verify that any inquiries regarding prior salary history or wage rates are removed from the application before January 1st. This information was written by Laurian Rutterbush and shared on https://blog.eplaceinc.com....
CA Minimum Wage Increase January 1, 2018

CA Minimum Wage Increase January 1, 2018

January 1, 2018, will bring about another minimum wage increase in California. This change is due to Law SB3 which increases the California minimum wage to $15.00 per hour for large employers by the year 2022. Firms with 25 or fewer employees must meet this minimum pay rate by 2023. Once this rate of $15.00 per hour is reached, rates will then increase up to 3.5 percent (rounded to the nearest 10 cents) in relation to inflation. Below is the chart that shows the minimum wage schedule through 2023. If you have employees exempt from overtime, you’ll have to make sure their wages are adjusted, if necessary, due to this change. California labor law requires that anyone not subject to overtime must earn at least twice the minimum wage. Review your pay scale for any employees currently classified as non-exempt. This will help you keep track of whether or not an employee is to receive overtime pay. It’s also important to make sure you have posted the new labor law poster which reflects this new rate. If an employee’s rate of pay will increase on January 1, they must receive notice from the employer by January 7. However, this notice is not required if the change is reflected on a timely itemized wage statement given no later than January 7. Remember that if you are in the City of Los Angeles or unincorporated cities under county jurisdiction, there is a different pay scale which must be followed as it goes into effect at a faster rate than the state minimum wage. Effective Date Employers With 26 or more Employees Employers...

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