The FICA Tax From the Employer’s Viewpoint FICA funds Social Security and Medicare programs that support Americans throughout their lives. Established in 1935 during the Great Depression, FICA originally provided benefits only to retirees. Over time, its scope expanded...
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The Essentials of Payroll Tax Recordkeeping Federal agencies such as the IRS and the Department of Labor require employers to maintain detailed information on wages, hours and taxes; state laws often impose additional regulations. Some records, such as payroll...
What Are the Rules on Overtime? Before we can fully understand what overtime is, we need to understand how the Fair Labor Standards Act defines a workweek. FLSA says that an employee’s workweek is a fixed and regularly recurring...
Payroll Accounting: The Basics Payroll is an integral part of every business. The payroll accounting process involves paying wages, calculating hours, applying benefits, deducting taxes and collecting garnishments, all while staying in compliance with federal rules, state laws and...