Payroll laws in oklahoma can impact your requirements with taxes and reporting
Payroll has a lot to do with a company’s accountability. Companies need to comply with all payroll tax requirements so they are in good, financial standing. When it comes to it, companies want to report fairly and avoid payroll tax penalties. And how do you avoid these penalties? The only way to avoid fines is to understand all key federal and state tax requirements.
So what is your organization responsible for? When it comes to payroll, the company is responsible for:
Paying their share of taxes
Depositing back the taxes previously withheld from the employee’s paycheck
Arranging reconciliation reports
Report according between accounting and payroll departments
File all payroll tax returns
Employer-portion of payroll taxes includes:
Social Security tax. (6.2%)
Wage base limit – $118,500
Medicare tax (1.45%)
No wage base limitations
Federal unemployment taxes (FUTA)
State unemployment taxes (SUTA)
It is important to file and report payroll taxes and deposit payroll taxes within an appropriate time period.
Companies are required to report:
Report all federal tax deposits
Form 940/940EZ – Federal Unemployment tax return
Form 941- Quarterly payroll tax return
Form 945 – Withheld federal income tax
Form W-2- Wage and tax statements
There are other various reporting requirements that payroll specialist need to be familiar with:
Form 1098/1099 – Mortgage interest of $600 or more in the time of a trade from an individual
Pension Plan limitations –Companies contribution to an employee retirement plan need to be reported and filed
S Corporation Shareholders – paid health insurance premiums on behalf of 2% shareholder employee must be reported on Form W-2
Company vehicle for Employee’s personal use – Reporting the value of a business vehicle per annum
W-2 Box 12 Reporting – with 250 + employees in the organization, there is a requirement for filing cost of group health plan coverage and should be reported with Code DD in Box 12.
New hire reporting
Verification of Eligibility of Employment
Some important payroll tips to keep in mind are to schedule FICA and income tax deposits on a semi-monthly or bi-weekly basis, switch to electronic payroll filing, and have quick turnarounds in payroll deficiencies.
LUXA Enterprises is a group specializing in payroll services for small and mid-size businesses in the Tulsa and surrounding areas. LUXA Enterprises provides help in payroll processing services for small businesses to increase each entity to grow from a trusted provider.