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Withholding

Federal income tax withholding from wages and Form W-4 adjustments, including midyear checkups and additional-withholding planning

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Student Loan Wage Garnishment Is Back in 2026: What Employers Must Do When an Order Lands on Your Desk

Federal student loan wage garnishment resumed in 2026 and needs no court order. Employers must withhold up to 15% of disposable earnings while leaving the worker at least $217.50 a week (30 times the federal minimum wage), remit with the case number each pay period, never fire an employee over a single garnishment, and book withholdings to a Garnishments Payable liability account rather than an expense.

mike

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Statutory Employees: The W-2 Workers Who File Like a Business

Statutory employees are the IRS hybrid class between contractors and employees — commission drivers, full-time life insurance agents, home workers, and traveling salespeople under IRC section 3121(d)(3). Employers withhold Social Security and Medicare but no income tax, issue a W-2 with Box 13 checked, and the worker deducts expenses on Schedule C without owing self-employment tax. Covers the four qualifying categories, the three FICA conditions, and the misclassification errors that trigger back taxes and penalties.

mike

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When Your Payroll Provider Fails to Deposit Your Taxes: Why the IRS Still Comes After You

If a payroll company withdraws your tax money and never deposits it, the employer still owes the full tax plus penalties. A payroll service provider or reporting agent assumes no liability, a Section 3504 agent shares it, and only an IRS-certified CPEO is solely liable for its work-site employees. This guide covers the Trust Fund Recovery Penalty that reaches owners personally, seven warning signs of a failing provider, and the monthly EFTPS verification habit that catches a missed deposit at a 2% penalty instead of 10%.

mike

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Connecticut Paid Leave Is 0.5% in 2026: How Employers Can Catch Over-Withholding and Reconcile CTPL

The Connecticut Paid Leave contribution rate is 0.5% of subject wages for 2026, capped at the $184,500 Social Security wage base — a maximum of $922.50 per employee per employer. This employer guide covers the quarterly filing calendar, a six-step payroll reconciliation, and how to correct doubled 1% deductions, overpayments, and duplicate remittances.

mike

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Employer Differential Wage Payments Credit: How to Track Reservist Pay and Claim Form 8932

The Section 45P credit equals 20% of up to $20,000 in differential wage payments per qualified employee—a maximum of $4,000 each—when an employer keeps paying civilian wages during active-duty military service over 30 days. Learn the 91-day employee test, how Form 8932 flows to Form 3800, why the payments skip Social Security and FUTA but not income-tax withholding, and a bookkeeping system that keeps the calculation auditable.

mike

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