The Middle Class Tax Relief and Job Creation Act of 2012 (the “Act”) was signed into law on February 22, 2012. The legislation extends, through the end of 2012, the two percentage point payroll tax cut for employees and self-employed individuals that had been in place for 2011 and the first two months of 2012 Background As part of an economic stimulus law, the...
Read MoreA commonly held belief is that a plan administrator must withhold 20% of the amount of plan distributions for federal income-tax purposes from all retirement plan distributions. But this is simply not the case. As a business owner – or as an employee – it is important to understand the rules surrounding federal income-tax withholding resulting from a request for a...
Read MoreThe IRS has announced a new initiative for employers, known as the Voluntary Worker Classification Settlement Program. The program allows employers who have misclassified workers as “independent contractors” rather than “employees” to reclassify the workers. The employers would only have to pay a small percentage of the employment tax liability that would have been...
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