Additional Medicare Tax

Beginning January 1, 2013, employers are responsible for withholding the 0.9% Additional Medicare Tax on an employee's wages and compensation that exceeds a threshold amount based on the employee’s filing status. You are required to begin withholding Additional Medicare Tax in the pay period in which it pays wages and compensation in excess of the threshold amount to an employee. There is no employer match for the Additional Medicare Tax.
For additional information see the IRS questions and answers.

Source: IRS.gov/understanding-employment-taxes

How to avoid confusion for holiday pay

With the 4th of July just around the corner it's important provide clear guidelines to employees in regards to holiday pay.  To avoid confusion or a potential situation of discrimination, employers should ensure that their holiday pay policies are consistently applied. Criteria should be explicitly defined as it pertains to eligibility for holiday pay, such as whether the benefit applies to full time employees only or whether it is inclusive of part time employees who work a minimum number of hours each week.  

 

More information about this can be found through Altitude Payroll's HR Support Center.

Altitude Payroll is Now on Blogger

Altitude Payroll has now joined the world of blogging.  We will periodically post articles and features that will help you better manage your business.