2016 Wage and Tax Updates for Small companies [Infographic]

by using Rachel Bailey January 19, 2016 apply @rachelb414

January 19, 2016

For some small business homeowners, it should really feel like an epic feat just to declare they’ve made it through the holiday season. however the following couple of months could arguably show to be much more…neatly, taxing.

were you aware that despite the federal minimal wage being set at $ 7.25 (due to the fact 2009), more than 1/2 of the states and territories within the U.S. have a minimum wage that’s better than that? Some states have wages which are set to raise even larger in the midst of the year as well.

With approximately a million and one things to take into account that every day, state tax updates and minimal wage standards can easily slip through the reminiscence cracks. When it comes time to file taxes and finalize payroll funds, these numbers change into much more critical.

right here’s why. Underpaying estimated taxes, submitting late and having inaccuracies are just a couple of ways small companies can (and were) penalized by way of the internal revenue carrier (IRS). For small companies working on a small trade price range, the very last thing they can find the money for both from a psychological and monetary standpoint is to pay these penalties only for overlooking some aspect of taxes.

of course, hiring a qualified is one strategy to deter this penalty chance, however even prior to that, a great place to start out is by way of getting familiar with state-specific rules (particularly those that were updated this yr).

This infographic displays some outstanding modifications this year that could have an effect on small companies. A majority of the federal pointers remain unchanged from 2015, including the Social safety taxable wage base per employee, pension plan limits and the Federal Unemployment Tax Act (FUTA) taxable wage base per worker.

maintain this infographic as a resource to make sure planning for the remainder of 2016 is a breeze!

the original model of this publish can be found here.