Annual Tax Adjustments for 2023

The Internal Revenue Service has released the tax year 2023 annual inflation adjustments for dozens of tax provisions, including the tax rate schedules and other tax changes. Here are some of the key changes. Standard deduction The standard deduction for married couples filing jointly for tax year 2023 rises to $27,700, which is up $1,800 from the previous year. For single taxpayers and married individuals filing separately, the standard deduction rises to $13,850 for 2023, up $900, and for heads of households, the standard deduction will be $20,800 for tax year 2023, up $1,400 from the amount for tax year 2022. Marginal rates For tax year 2023, the top tax rate remains 37% for individual single taxpayers with incomes greater than $578,125 ($693,750 for married couples filing jointly). The other rates are: 35% for incomes over $231,250 ($462,500 for married couples filing jointly) 32% for incomes over $182,100 ($364,200 for…read more...

Is This Your Situation: Overwhelmed by Hiring and Recruitment

To get started simplifying your hiring and recruitment chores, use technology to target the right people: Create a recruitment strategy that starts with understanding project needs and company goals. Identify the critical roles needed, and create a profile for candidates who will succeed in the open positions. Target the audience with job ads. You may want to use an applicant tracking system (ATS). Take technology a step further by allowing top talent to apply for a job via mobile devices. Nine in 10 job seekers search for jobs through their mobile devices, and 78 percent say they'd apply to jobs via mobile devices if the process were that simple. Use technology to market open positions to potential candidates and create a positive impression of your organization. Streamline recruitment: Take the simplified experience of hiring via technology to recruitment managers throughout the interviewing and background-checking process. Use an ATS to create…read more...

How Do Taxes Work With Bonuses?

Bonuses, frequently given at the end of the year, are a popular "thank you" for a job well done, and smart business owners know they can build loyalty, helping retain the most productive employees. However, both owners and employees often misunderstand how taxes work with bonuses, leading to confusion and frustration. Fortunately, with some education and preparation, the situation can work out for everyone. In brief, bonuses are income and are subject to relevant federal and state taxes — including FICA. Businesses must enter any bonuses on their employees' Form W-2s. However, when it comes to federal income taxes, the withholding is different from the regular paycheck. The IRS allows two withholding methods. If the bonus is separate from the regular paycheck, an employer will typically use the percentage method, which means the 22% rate applies to everyone. This is an easy system for the employer. However, employees who are…read more...

Why Use Time and Attendance Software?

How do you track your employees' time and attendance? It's easier said than done, but modern companies have options. Read through to see how to manage pay, appropriately compensate employees for their work and eliminate bottlenecks in payroll.   Documentation is key to wage and hour compliance. Simplify time tracking by automatically calculating hours worked as well as vacation time, holidays, sick days and overtime. There was a time, not so long ago, when time sheets were filled in manually. Spreadsheets were the next development, but today, managers can choose among a variety of software options that can solve a variety of problems. Time and attendance software digitizes the process of tracking when employees start and end shifts. Many systems incorporate mobile apps and remote clock-in options that are especially useful if some or all of your workforce is remote. By centralizing time and attendance data, you can analyze labor…read more...

Exactly What Is Diversity, Equity and Inclusion?

In the workplace, diversity, equity and inclusion, also known as DEI, refer to the qualities and experiences that make each person unique and how employers can use those attributes to support business goals. To truly understand diversity, equity and inclusion, you'll need to break down each term.   Diversity Diversity refers to the similarities and differences among individuals. It takes all facets of personality and individual identity into account. Examples of diversity include: Race. Ethnicity. Nationality. Age. Disability. Sex. Gender Identity. Language. Generation. Neurodiversity. Sexual orientation. Religious beliefs. Veteran status. Physical characteristics. Family background. Socioeconomic status. Life experiences.   Equity In the workplace, equity is about ensuring fair treatment of all employees when it comes to access, opportunity and advancement within the company. To achieve equity, employers must identify and work to remove obstacles to fair treatment, especially for underrepresented and disadvantaged populations. This requires a keen understanding of the…read more...

Toxic Workplaces Have Consequences!

HR CRISIS MANAGEMENT TRENDS Toxic workplaces have consequences, but many times, company leaders don’t realize that until there is a crisis. Keep reading to read more about toxic workplaces and how you can prevent them. A recent survey of 40,000 workers at 125 companies conducted by the workplace consulting firm Emtrain reported some eye-opening statistics about toxic workplaces. For example, the survey found that 83 percent of employees wouldn't report harassment, 41 percent of employees aren't confident management would take harassment complaints seriously, and 29 percent of employees surveyed have left jobs because of workplace conflict. Toxic workplaces are defined as workplaces that cause employees to feel stressed, depressed and drained, which makes them unhappy about coming to work every day, makes them less productive, affects other employees and ultimately take an economic toll on the company. This can become a vicious cycle. Companies can take the following steps to…read more...

Quiet Quitting

Is one of your employees doing the bare minimum — just enough to avoid getting fired? This employee might be engaging in the latest trend: "quiet quitting." Keep reading for more on this fast-growing occupational phenomenon. CBS News says, "There's a new term for clocking in and doing the bare minimum at work: 'quiet quitting.'" This employee practice is a type of disengagement in which employees no longer go above and beyond at work. They do as little as possible, but just enough to keep their jobs. The term "quiet quitting" first gained popularity on the social media website TikTok. According to NPR, "In July [2022], a video was posted that went viral, sharing a user's experience encountering quiet quitting for the first time." Thereafter, many users began sharing their own experiences with quiet quitting. When employees quiet quit, they are basically (and silently) rebelling against their work conditions in…read more...

Here’s Looking at You, Kid!

Crushing That Next Video-Streamed Job Interview Means Job Seekers Should Follow A Common-Sense Formula Employers, looking to save time (and time is money), are taking advantage of today’s much-improved video streaming technology in search of top talent. Video-streamed recruiting interviews have arrived. Several surveys report, in fact, that about 60 percent of HR professionals take advantage of video interviews.   Gone are the days of shaky, unreliable video streaming. Broadband internet has changed the video interview landscape. Today’s video interviews are so close to the real thing. Job applicants need to give them the same rapt attention that they place on in-person interviews.   For instance, while in the past I might have hired people in 19 out of 20 telephone interviews, just 1 of my 5 recent video interviews with candidates resulted in an offer. My clients want the best candidates to rise to the next hiring level. Yet,…read more...

ACA and IRS Letter 5699

We recently received a call from a company that had received a Letter 5699 from the IRS.   They were wondering what it meant, what they needed to do, and if they should panic. While you should not panic, you do need to pay attention to this important letter. What is a Letter 5699?  A Letter 5699 is sent by the IRS to employers who have not complied with ACA reporting requirements.  It is an inquiry asking why the employer has not filed the Forms 1094-C and 1095-C to the IRS in previous calendar years.  This letter must be responded to within 30 days of receiving the letter.  A Letter 5699 informs an employer that the IRS believes they may have been an Applicable Large Employer (ALE) for the tax year(s) in question and, as a result, certain reporting requirements were due, but have yet to be received by the IRS.  The letter…read more...

Tis the Season To Be Jolly… and to Plan the Company Holiday Party!

While the season is certainly jolly, the holidays can also cause employer liability as you begin to plan your company holiday celebrations.  We have some great ideas for you to celebrate the holidays season and to keep you and employees safe, fun, respectful, and inclusive.   Outside the Box Holiday Festivities Consider distributing toys to underprivileged children followed by a nice lunch.  Or head to an escape room.  People can come together and build their teams while having fun and creating lasting memories! Celebrate During Work Hours Consider a catered holiday lunch at the office or at a nice restaurant during the workday.  Close the office at 12 PM and invite all employees out to enjoy their work colleagues during the holiday season. Schedule a holiday potluck lunch at the office! Have a Secret Snowman exchange with a set dollar limit. These are a lot of fun! Re-consider the Alcohol If you…read more...

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