In my last post on what you should look for on your most recent paycheck stub I made reference to IRS Form W-4-the Employee’s Withholding Allowance Certificate. Along with an I-9, Employment Eligibility Verification, all employers are required to collect, and keep on file, the W-4. The IRS has just released the newest version of the W-4. You should destroy all of your existing copies of the 2013 version, and start using the 2014 version. The I-9 is expires on 3/31/2016 so continue using the current version.
These documents assure that:
- I-9: an employee is eligible to work in the United States by verifying an employees documents such as Social Security Cards, passports, and other personal identifiers.
- W-4: the deductions which an employee wishes to be deducted from their pay check.
One of the ways a company can pay their employees is to do it themselves. Just follow the 67 pages of directions in Circular E, the Employer’s Tax Guide. Although you CAN, I wouldn’t recommend that you Do. Payroll taxes in particular are very complex and carry heavy fines and/or penalties for mistakes or delays in filing. This is a reason most accountants and bookkeepers stay far away from doing payroll. Their are many taxes associated with payroll, from federal income taxes, state income taxes, federal unemployment, state unemployment and more. See my recent post on Doing it Yourself vs Outsourcing payroll for a full discussion of the pros/cons of either option.
If you have any questions on your paycheck stub, utilization of the documents listed in this article, or if you are a company with questions on how you have been doing payroll, don’t hesitate to contact me for a free review.
Connecting the Dots: a payroll related informational series created for the friends and clients of Mitch Zucker…
ConnectPay Payroll Services
2352 Main Street, Suite 303
Concord, Ma 01742