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Payroll Taxes

Payroll taxes include all the tax items withheld from the paycheck of the employee and those matching taxes from the employer. In addition, FUTA and SUTA is include (Unemployment Taxes).

Bookkeeping – Payroll Cycles (Lesson 32)


Similar to the bookkeeping cycle, the payroll cycle has many frequent activities, fewer incremental requirements and one important end of the year report.   This lesson explains these respective cycles and how they tie together for the final year [...]

Bookkeeping – A Simple Payroll (Lesson 31)


In Lesson 30 I explained the payroll account structure using parent-child accounts.   This lesson is a part of the daily operations section of bookkeeping illustrating an actual payroll entry.   If you haven’t done so yet, please read: [...]

Bookkeeping – Payroll Structure (Lesson 30)


Every bookkeeper needs to understand how to process a payroll.   This is one of the many regular tasks in the bookkeeping cycle.   In this lesson I’m going to illustrate a payroll structure as it pertains to the chart of accounts.   But [...]

Bookkeeping – Accounting Cycles (Lesson 29)


The bookkeeping cycle is like a huge giant clock with several dozen gears from a multiple cog gear rotating the most frequently turning cog cascading into the one large gear that once turned changes the timer one year forward.   The [...]

Owner Compensation in an S-Corporation


One of the tax attributes of an S-Corporation over other forms of tax entities is the ability to reduce the overall tax obligation.  Naturally the lower the overall tax requirement the more profit generated for the owner(s).   The S-Corporation [...]

Booth Rental – Legal and IRS Compliance


A long standing custom in the hair salon industry is owners of salons leasing out booths to hair stylists.  If not properly documented and exercised appropriately, the owner opens the door for many legal issues.  Booth rental is legal in many [...]

Payroll – Introduction to Basic Concepts


Payroll is envisioned as the simple employer employee agreement related to compensation for services.  I often think of this as the simple handshake whereby the employer agrees to pay the employee a set rate per hour of work.  This was true a [...]
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