Payroll & Tax Blog

Who should you hire?

The Economist says that the single biggest problem in business today is unsuccessful hiring. Hiring mistakes can cost a large company $1.5 million or more a year and countless wasted hours. This statistic becomes even more startling when you consider … Continue reading

Employee or Independent Contractor?

It’s critical that business owners correctly determine whether the individuals providing services are employees or independent contractors. If you have any doubts, contact a payroll service provider such as Manager’s Payroll for advice. There are three categories of facts that … Continue reading

5 Smart uses for your flex-spending account

A flexible spending account offered through your employer, and administered by your payroll service, is a great fringe benefit that lets you pay medical and child-care expenses with pre-tax dollars. Make sure you take full advantage of it when deciding … Continue reading

Healthcare payroll rules changed for Cafeteria Plans

If you offer a Sec. 125 cafeteria plan to your employees, take note that the IRS has expanded the permitted election rules for health coverage under this plan. Notice 2014-55 permits a cafeteria plan to allow an employee to revoke … Continue reading

Business passion does not equal payroll processing

Like most business owners, you started your business with passion. Unfortunately, also like most owners, that passion tends to get lost somewhere along the way, usually about the time you find yourself mired down in complex administrative work…like payroll or … Continue reading

Payroll service tips for filling out a W4

We find many errors on form W4 from our client’s employees. Some require the form to be redone, while other mistakes are probably costing the employee undue hardship with income tax owed at the end of the year. Here’s a … Continue reading

Compensation and the S-corp Shareholder

In working with business owners for many years, I’ve seen just about every variation possible when it comes to owner (shareholder) compensation verses distributions or draws. According to the IRS, “Distributions and other payments by an S corporation to a … Continue reading

Employees are Exempt or Non-Exempt

A surprising number of payroll service providers, and business owners don’t know or understand the key differences (or implications) of determining whether employees are exempt or non-exempt. Having a good understanding of the rules can save you a lot of … Continue reading