Archive for the 'STAFFING AGENCIES' Category

NJ Employers-Reduce Your Unemployment Tax Rates-August Deadline

July 29th, 2014

NJ Employers can Reduce their NJ Unemployment Rates by making a Voluntary Payment- the Deadline is August 19, 2014

Avoid NJ DOL Audits- S-Corp Owners Should Take Reasonable Compensation

January 8th, 2014

In an S-Corporation, a popular choice of tax entity among businesses, an owner who works for the company is required to take wages. How much of the company’s income is classified as wages versus S Corp. income (reported to the owner on Form K-1) is up to the owner. The net income will be taxed regardless of how it’s classified. The big difference lies in federal employment taxes, which are not paid on K-1 income.

Good News for NJ Employers: Federal Unemployment Tax (FUTA) Surcharge Avoided

November 1st, 2013

New Jersey employers can breathe a sigh of relief, as Governor Christie has announced that new fiscal management practices have brought New Jersey’s Unemployment Insurance Trust Fund into solvency for the first time since 2009. This spares businesses from a drastic tax surcharge, as Federal Unemployment Tax (FUTA) was set to increase from the base rate of 0.6% ($42 maximum per employee) to 1.5% ($105 maximum per employee). The surcharge is imposed when a state has borrowed from the Federal Unemployment Trust Fund and increases each year. In 2012, NJ employers paid 1.2% due to the surcharge ($84 maximum per employee). By repaying the loan to the Feds, employers will not be subject to this surcharge on their 2013 FUTA wages and will only pay the base rate of 0.6% ($42 maximum per employee).

Tax Planning Tips for the new 3.8% Net Investment Income Surtax

October 29th, 2013

With a new 3.8% tax on “unearned” income kicking in in 2013, it’s very difficult to limit your tax to just “ordinary” income tax. If your income is earned, you pay 15.3% Self-Employment (Social Security) tax. If your income is un-earned, you now have the new 3.8% Net Investment Income (NII) tax to pay.

NJ Division of Taxation Warns of Solicitations Mailed to Businesses

October 23rd, 2013

Many NJ businesses have recently received a solicitation concerning “Annual Corporate Records Form”. The mailing, which has an official appearance, solicits a fee of $125 in return for the recording of corporate shareholders, directors and officers. The Division of Revenue is alerting all New Jersey businesses that there is no requirementto file this form State of New Jersey, and the sender isn’t affiliated with the State.

Jeff Urbach to Speak at Jewish Business Network Biz Expo

October 16th, 2013

Jeff Urbach will be speaking at the Jewish Business Network’s (JBN) Biz Expo. In his speech entitled “What is the value of your business?” Jeff will cover the various elements and factors that affect the value of your business and will clarify how to maintain and increase its value.

Sleepy’s Wage and Hour Case Goes to NJ Supreme Court

September 13th, 2013

The New Jersey Supreme Court has agreed to rule on a case that will have a broad impact on NJ businesses and workers. In Hargrove v. Sleepy’s, Plaintiffs Sam Hargrove, Andre Hall and Marco Eusebio accused Sleepy’s of using an “Independent Driver Agreement” as a ruse to avoid paying them employee benefits. The case was initially dismissed by U.S. District Judge Peter Sheridan in March 2012, as he applied the common-law “right to control” test. This test focuses on how much control the employer has of the workers. In this case, the plaintiffs drove for several other companies in addition to Sleepy’s, and maintained their own trucks, paying for gas, tolls, tickets and repairs. This bolstered the argument that they were in fact independent contractors.

On appeal, the National Employment Law Project, a New York non-profit workers advocacy group, contended that the “right to control” test shouldn’t be a determining factor. They reasoned that the New Jersey statutes at issue- the Wage Payment Law and the Wage and Hour Law- define “employee” more broadly than common law.

NJ Employer Contribution Deadline Arriving Soon

July 19th, 2013

Beginning 2012, employers no longer receive an annual paper Notice of Employer Contribution Rates. Instead, the notice is now accessible through the Tax Web Enabled System (TWES). As a result of this change, it’s urgent that you check your TWES account as soon as possible.

Payroll Cards Under Investigation by N.Y. Attorney General

July 12th, 2013

New York Attorney General Eric Schneiderman has launched an investigation into companies that pay hourly employees by depositing payroll onto pre-paid cards. Why the concern? Payroll cards, like debit cards, typically have fees associated with inquiries, card replacement, ATM withdrawals, or inactivity. Schneiderman’s concern is that the fees associated with these cards may be insufficiently disclosed or excessive and that the fees reduce employees’ take home pay. Payroll cards can raise a host of legal issues for the employer as well.

Obamacare Employer Mandate Delayed Until 2015

July 3rd, 2013

The Obama administration has announced that the employer mandate, a key component of Obamacare, has been postponed until January 2015. This would have fined businesses with more than 50 employees up to $3,000 per uninsured worker.

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