Pioneer Educator

When you have employees, you need to stay on top of changing employment tax rates. Rates impact the amount of money you withhold from employee wages. To reflect recent legislation, there are new 2018 income tax withholding tables you need to know about. Below, you will first find information about how withholding tables work. Then, you can learn about the new 2018 tables, when you must implement them by, and more. What are income tax withholding tables? You will use an employee’s Form W-4 and the income tax withholding tables to determine how much federal income tax to withhold from employee wages. New hires are required to fill out Form W-4, Employee’s Withholding Allowance Certificate, when they start working at your business. On this form, the employee can claim withholding allowances. The more allowances an employee claims, the less you withhold for federal income tax. Employees can claim allowances for many reasons, including if they have dependents. Once you have an emp...

In this part, let’s look at the key requirements for both the 1099-MISC and the 1099-K ( Pioneer Educator ). What payments do you need to report and where do you report them? Our goal is to help you better understand your obligation and all the required information you need to collect. Keep in mind there are many types of information returns used for reporting income, but we’ll focus on two of the most common information returns: the 1099-MISC and 1099-K. It is recommended to talk with a tax advisor to understand the reporting requirements for your particular circumstances. 1099-MISC Thresholds and Reporting Requirements In general, companies must send 1099-MISC forms if they’ve paid a nonemployee $600 or more during the year. But, there are other requirements depending on the type of payments and the relationship between the payor and payee. According to IRS guidance, a form 1099-MISC may be required if a company makes the following types of payments: • Royalties:  At l...