Cheers to all of the fines business owners will receive when they decide to write checks without the proper tax deductions🍹🍹🍹
Your employee comes into the office giving you this sad story on why he needs his stipend NOW. You feel bad for him, so you take out the company’s checkbook and give him a $1000 check even though he has already received his direct deposit for the pay cycle. Do you know the difference between Gross & Net pay?
Since you were thinking with your emotions, you wrote a $1000 check assuming all tax deductions were implicated but it wasn’t😒😒 In order for his information to show correctly on his W-2, you would have to GROSS UP the pay.. oh that’s not all... You didn’t include it when you filed your quarterly return!!!! CHEERS🥂🥂 Now you will be fined to amend your quarterly returns. Imagine if you did that with 10 employees and Quarter 1 and 2 has passed; the fines would be tremendous.
Let King HR Sevices help you implement policies to reduce costs within your operations. If you are the business owner in the scenario and not sure how to handle the situation, gives us a call at 941-518-9679 for a free consultation. #humanresources #b2b #entrepreneur #helpingbusinessesgrow #smallbusiness #checks#payroll #payrollservices #payrollprocessing #bradenton #sarasota #stpetersburg #tampa#salon #charterschool #medicaloffice #restaurant