With so many employees having worked outside their home state or country during the pandemic, sometimes without notifying their HR departments, employers may have failed to withhold payroll taxes properly without realizing it.
The Work Opportunity Tax Credit (WOTC)—an incentive for employers to broaden their job applicant pools and hire from certain groups of people who may need assistance finding jobs—has been reauthorized and extended through the end of 2025.
Some employers have been surprised by the new requirement to report wages paid for leave taken under the Families First Coronavirus Response Act (FFCRA) on employees’ W-2 forms. But W-2s can be corrected if they’ve already been issued.
Starting Jan. 1, 2021, the maximum earnings subject to the Social Security payroll tax will increase
U.S. employers have not rushed to offer their workers a suspension of Social Security payroll taxes through the end of the year. Some are waiting for additional guidance that may clear up lingering confusion or protect employers from the obligation to pay deferred taxes of employees who leave the job.