The first half of the year often sees employers and employees alike preparing for all of the necessary tasks of tax season. One of the policies you will need to be aware of is the proper attitude and operating procedure for payroll tax. Standardizing payments and delivery to all workers is easier to do with an up-to-date HR software solution.
In a column for Detroit Lakes Online, Howard Kossover recently answered an anonymous question about whether or not payroll tax applies when an employee is in the midst of retirement. The person asking the question was concerned whether or not part-time work would also effect payroll tax as he or she prepares for complete retirement.
The answer from Kossover is that payroll taxes always apply, no matter what the employee’s age. Businesses should remember to include them in order to follow the law and file all taxes correctly.
“Everyone working in employment or self-employment covered by Social Security must pay payroll taxes regardless of age or eligibility to Social Security benefits,” he writes. “Your 2015 earnings would have to be better than the years already used to compute your retirement amount to increase your monthly retirement amount.”
These conditions could change depending where you operate your business and what the legal restrictions are. In Vermont, for example, Governor Peter Shumlin has intended to put a tax of .07 percent on businesses, according to the state’s NPR affiliate, although this has been met with opposition.
HR Software Solutions has superior levels of industry knowledge that make it perfectly poised to meet all concerns about proper payroll functions. That’s how it can help you avoid errors with a process that is accurate and will enable you to retain employees.