Avoiding potential payroll tax pitfalls: be ready for potential changes in the law this year

摘要

Among the many proposals to stimulate the economy that the Republican-led .108th Congress is studying, is a month-long "holiday" on payroll taxes. This holiday, or even another proposal for a payroll tax moratorium for one year on an employee's first10,000 dollar of income, may or may not help increase productivity or improve the moribund U.S. economy. The proposals have, however, focused attention on the complex payroll withholding system with which every business owner must deal. Surprisingly, many of the withholding rules that every employer must comply with are contained in old statutes--at least old by tax standards. In recent years, a few of the relevant Internal Revenue Service forms have been revised, but not much has changed at the conceptual level. Do you understand the withholding issues as they apply to your turf business?