IRS statement on Dec. 26, 2018

"The IRS is working to develop withholding guidance to implement the tax reform bill signed into law on December 22.  We anticipate issuing the initial withholding guidance in January, and employers and payroll service providers will be encouraged to implement the changes in February. The IRS emphasizes this information will be designed to work with the existing Forms W-4 that employees have already filed, and no further action by taxpayers is needed at this time. 
 
Use of the new 2018 withholding guidelines will allow taxpayers to begin seeing the changes in their paychecks as early as February.  In the meantime, employers and payroll service providers should continue to use the existing 2017 withholding tables and systems".

Source: https://www.irs.gov/newsroom/irs-statement-withholding-for-2018

According to this IRS statement, employers can continue to use the current 2017 federal tax rate for 2018 paychecks right now. However, many states released the new 2018 state tax tables. Employers need to use the new 2018 state tax tables for 2018 paychecks.

ezPaycheck payroll software clients and ezAccounting software clients can update software to use the latest 2018 state tax tables for 2018 payroll. 

How to update ezPaycheck payroll software

How to update ezAccounting software

EzPaycheck 2017 payroll software speeds up and simplifies payroll tax calculation, paycheck printing and tax reporting for small businesses. However if you like to calculate the taxes manually, you can find the step by step guide below

Karen is married, with 1 allowance. Her salary rate is $39000. She gets one pay check each month.

1. Her gross income for each paycheck is $3250

39000/12=$3250

2. Her standard deduction for each paycheck is $337.5

Year 2017 Standard Deduction is $4050

For each paycheck: 4050/12=$337.5

3. Her taxable income for each paycheck is:

3250-337.5=$2912.5

4. Federal tax

Check Monthly tax table for married person

http://www.halfpricesoft.com/federal_income_tax_2017.asp

155.40 + 15% x (2912.5-2275.00)=$251.02

Table 4 -- Monthly Payroll Period

Related Links

How to Calculate Federal Withholding Tax Automatically

http://www.halfpricesoft.com/payroll-software/calculate-federal-withholding-tax.asp

How to Generate After the Fact Paychecks and Create the Paystubs

http://www.halfpricesoft.com/payroll-software/after-fact-payroll-checks.asp

How to Print W2 Forms on White Paper

http://www.halfpricesoft.com/w2-software/print-w2-forms-blank-paper.asp

How to Print 1099 Forms

http://www.halfpricesoft.com/1099-misc-software/howto-file-print-1099-misc-forms.asp

Employment Tax Due Dates
http://www.halfpricesoft.com/employment_tax_due_dates.asp

EzPaycheck payroll software is designed to automate paycheck processes to reduce the time spent on running payroll. The software’s graphic interface leads users step-by-step through setting up employee information, importing data, calculating payroll—including calculation of federal, state and local taxes; deductions for Medicare, insurance and 401(k) plans; and printing paychecks.

Priced at just $89 per installation, ezPaycheck’s graphical interface and functions are so intuitive that even users without much computer or accounting experience can start automating payroll processes within minutes of installation. Additionally, customers can try ezPaycheck payroll software without cost or obligation for 30 days.

If you have completed 2016 paychecks, you can use ezPaycheck 2017 to print W2 and 940 forms. You do not need to roll back to the previous version.

If you have NOT completed 2016 paychecks, you can try the following steps to roll back to ezPaycheck 2015 version.

Steps to roll back to ezPaycheck 2016 version:

Step 1: Backup data

Your data should be safe during this process. However, we always suggest customers backup data first.

If you cannot use ezPaycheck backup function, you can back up the data manually. The default data folder is
C:\Users\Public\Documents\Halfpricesoft\ezPayCheck 

You can back up this folder or just the .mdb files (Microsoft Access Database files) inside this folder

Step 2:  Uninstall ezPaycheck 2017 

Step 3:  Download ezPaycheck 2016 Payroll Software

http://www.halfpricesoft.com/payroll_software_download_2016.asp

After you finish 2016 paychecks, you can download the latest version ezPaycheck payroll software and purchase the new key at

http://www.halfpricesoft.com/index.asp#purchase

ezPaycheck 2017 installation package will update ezPaycheck tax tables. You should run it after you finished the paychecks for Year 2016. With ezPaycheck 2017, you can still access your 2016 paychecks, view reports and print 2016 W2 forms. 

If you still have questions, you can reach us for support at

http://www.halfpricesoft.com/support.asp

IRS released the new form 940 for 2015 year-end report. ezPaycheck software new version has been released. Current customers can download the new version for free at ezPaycheck download page at

http://www.halfpricesoft.com/payroll_software_download.asp

If you have finished 2015 paychecks, you can use ezPaycheck 2016 to print W2 and 940 forms. You do not need to roll back to the previous version.

If you have NOT finished 2015 paychecks, you can try the following steps to roll back to ezPaycheck 2015 version.

Steps to roll back to ezPaycheck 2015 version:

Step 1: Backup data

Your data should be safe during this process. However, we always suggest customers backup data first.

If you cannot use ezPaycheck backup function, you can back up the data manually. The default data folder is
C:\Users\Public\Documents\Halfpricesoft\ezPayCheck 

You can back up this folder or just the .mdb files (Microsoft Access Database files) inside this folder

Step 2:  Uninstall ezPaycheck 2016 

Step 3:  Download ezPaycheck 2015 Payroll Software

http://www.halfpricesoft.com/payroll_software_download.asp 

After you finish 2015 paychecks, you can download the latest version ezPaycheck payroll software and purchase the new key at

http://www.halfpricesoft.com/index.asp#purchase

ezPaycheck 2016 installation package will update ezPaycheck tax tables. You should run it after you finished the paychecks for Year 2015. With ezPaycheck 2016, you can still access your 2015 paychecks, view reports and print 2015 W2 forms. 

If you still have questions, you can reach us for support at

http://www.halfpricesoft.com/support.asp

EzPaycheck 2015 payroll software speeds up and simplifies payroll tax calculation, paycheck printing and tax reporting for small businesses. However if you like to calculate the taxes manually, you can find the step by step guide below

Example 1:

Kevin is single with zero allowance. He is paid $240 per week.

1. His gross pay for each paycheck is $240

2. His standard deduction for each paycheck is $0

3. His taxable income for each paycheck is $240

4. Federal Tax

17.8 + (240-222)*15%=17.8+18*15%=17.8+2.7=$20.5

Current Federal Income Withholding Tax table
http://www.halfpricesoft.com/federal_income_tax_2015.asp

Table 1 -- Weekly Payroll Period

Example 2:

Karen is the employee of company ABC. She lives in Arizona. Her withholding rate is single/withhold at a single rate.  She has two allowances and no extra withholds.  She gets paid $10 per hour biweekly.  She works 64 hours for each biweekly pay period.

Followings are the steps to calculate the federal tax:
 

1. Gross pay for each paycheck: 
 
For each pay period, the gross pay is $640
 
2. Deduction for each paycheck:
The standard deduction is $4,000 per year (For Year 2015).
She can get total $4000*2=$8000
For each pay period the deduction is: $8000/26=$307.69

 
3. Taxable income for each paycheck
So for each paycheck, the taxable income is: 640-307.69=$332.31
 
4. Federal tax 
(332.31-88.00) * 10%=244.31*10%=$24.43

Current Federal Income Withholding Tax table
http://www.halfpricesoft.com/federal_income_tax_2015.asp

Table 2 -- Biweekly Payroll Period

Related Links

How to Calculate Federal Withholding Tax Automatically

http://www.halfpricesoft.com/payroll-software/calculate-federal-withholding-tax.asp

How to Generate After the Fact Paychecks and Create the Paystubs

http://www.halfpricesoft.com/payroll-software/after-fact-payroll-checks.asp

How to Print W2 Forms on White Paper

http://www.halfpricesoft.com/w2-software/print-w2-forms-blank-paper.asp

How to Print 1099 Forms

http://www.halfpricesoft.com/1099-misc-software/howto-file-print-1099-misc-forms.asp

Employment Tax Due Dates
http://www.halfpricesoft.com/employment_tax_due_dates.asp

EzPaycheck payroll software is designed to automate paycheck processes to reduce the time spent on running payroll. The software’s graphic interface leads users step-by-step through setting up employee information, importing data, calculating payroll—including calculation of federal, state and local taxes; deductions for Medicare, insurance and 401(k) plans; and printing paychecks.

Priced at just $89 per installation, ezPaycheck’s graphical interface and functions are so intuitive that even users without much computer or accounting experience can start automating payroll processes within minutes of installation. Additionally, customers can try ezPaycheck payroll software without cost or obligation for 30 days.

ezPaycheck payroll software is designed for Windows system. However, customers can run it on Mac machine installed with boot  Camp, Virtual Printer or Parallels.

1 Using Boot Camp from Apple

Boot Camp comes with your Mac and lets you install Microsoft Windows. No need to download anything yourself — just open Boot Camp Assistant and it will guide you through the rest.

https://support.apple.com/boot-camp

Then you can follow the Quick Start Guide on set up ezPaycheck
http://www.halfpricesoft.com/payroll-software/quick-start-guide.asp

EzPaycheck small business payroll software saves employers' time by simplifying payroll tax calculation, paycheck printing and tax reporting. However if you like to calculate the taxes manually, you can find the step by step guide below

For example:

Karen is the employee of company ABC. She lives in Arizona. Her withholding rate is single/withhold at a single rate.  She has two allowances and no extra withholds.  She gets paid $10 per hour biweekly.  She works 64 hours for each biweekly pay period.

Followings are the steps to calculate the federal tax:
 

1. Gross pay for each paycheck: 
 
For each pay period, the gross pay is $640
 
2. Deduction for each paycheck:
The standard deduction is $3,950 per year (For Year 2014).
She can get total $3950*2=$7900
For each pay period the deduction is: $7900/26=$303.85

 
3. Taxable income for each paycheck
So for each paycheck, the taxable income is: 640-303.85=$336.15
 
4. Federal tax 
(336.15-87.00) * 10%=249.15*10%=$24.92

Current Federal Income Withholding Tax table
http://www.halfpricesoft.com/federal_income_tax_2014.asp

Table 2 -- Biweekly Payroll Period

Related Links

How to Calculate Federal Withholding Tax Automatically

http://www.halfpricesoft.com/payroll-software/calculate-federal-withholding-tax.asp

How to Generate After the Fact Paychecks and Create the Paystubs

http://www.halfpricesoft.com/payroll-software/after-fact-payroll-checks.asp

How to Print W2 Forms on White Paper

http://www.halfpricesoft.com/w2-software/print-w2-forms-blank-paper.asp

How to Print 1099 Forms

http://www.halfpricesoft.com/1099-misc-software/howto-file-print-1099-misc-forms.asp

Employment Tax Due Dates
http://www.halfpricesoft.com/employment_tax_due_dates.asp

EzPaycheck payroll software is designed to automate paycheck processes to reduce the time spent on running payroll. The software’s graphic interface leads users step-by-step through setting up employee information, importing data, calculating payroll—including calculation of federal, state and local taxes; deductions for Medicare, insurance and 401(k) plans; and printing paychecks.

Priced at just $89 per installation, ezPaycheck’s graphical interface and functions are so intuitive that even users without much computer or accounting experience can start automating payroll processes within minutes of installation. Additionally, customers can try ezPaycheck payroll software without cost or obligation for 30 days.

We have released the new ezPaycheck payroll software for Year 2014. The new version include:

- The new 2014 Federal income tax tables
- The new 2014 State income tax tables
- The latest W2 and W3 Forms for the coming 2013/2014 tax season

Designed with simplicity in mind, this payroll software is easy to install, setup and use for first-time payroll software who may not know more about accounting and computer. Small Businesses looking for ways to save money on payroll processing and tax reporting can try out ezPaycheck payroll solution free for 30 days from http://www.halfpricesoft.com/payroll_software_download.asp, with no obligation and risk.

EzPaycheck is $89 per installation. We also launched 2013 and 2014 payroll software combo special offers for new customers who need to prepare year-end tax forms. New customers can purchase ezPaycheck 2013 at regular price $89 and get ezPaycheck 2014 at just $1.

This offer is good from Dec 12 to Dec 31, 2013.

EzPaycheck payroll software automates paycheck processing for small businesses. However, if you generate a paycheck with mistake (wrong amount, wrong pay peroid or others), you need to delete this check and enter a new check.

EzPaycheck does not allow users to edit a paycheck which may cause tax calculation errors. Followings are the step if you create a paycheck with wrong information.

1. Back up the current database first
2. Delete the wrong check and checks after it.
3. Add the checks back with right data

How to backup data
http://www.halfpricesoft.com/articles/sb-payroll-backup.asp

How to reset check number in case you need to use the same check
- You can reset current check number from check setup screen. You can access this screen by clicking the left menu "Checks->Check setup".

ezPaycheck payroll software makes small business payroll an easy job. Some customer wants to know how to adjust an employee’s gross pay up by a specific dollar amount for one pay period. Specifically, an employee gets a raise that is retroactive and their pay needs to be adjusted to pay them for the additional gross pay they were short the previous week(s).

EzPaycheck is very flexible. Customers can add a customized wage field for the extra payment

You can add a customized payment type. Here is a sample

1.       Click Start ezPaycheck left menu “Wage Setup” to open wage set up screen

2.       Check one non-regular Wages field

3.       Click the button behind it to rename it

4.       Input new name

5.        save it

6.       Click “SAVE” buttons

When you add a new check, just enter the extra payment. EzPaycheck will calculate the taxes and deductions automatically.

ezPaycheck payroll software speeds up payroll tax calculation, paycheck printing and year-end tax reporting. We just launched the year-end payroll software promotion for businesses who want to start computerized payroll software in Oct. New customer can now purchase ezPaycheck 2013 and 2014 combo version at just $99. The regular price of ezPaycheck 2014 is $89. Since IRS has not published the 2014 tax tables, ezPaycheck 2014 is not available right now.

Customer will get 2013 key code once the transaction completes. The 2014 update package link will be sent by email before Jan 1, 2014.

Hoping to keep ezPaycheck small-business payroll software affordable for every size company, Halfpricesoft.com launched 33% off promotion on ezPaycheck today. New customers can now get ezPaycheck at just $59 (the regular price is $89).

EzPaycheck simplifies and automates payroll tax calculations, paycheck printing and tax form filing. Customers are welcome to download and try ezPaycheck payroll software before purchasing.

Question: I have an employee. She is single with 3 allowances for federal tax withholding. She is paid at $21.79/hour and 21 hours per pay period. We paid her twice a month. I used your ezPaycheck payroll software to generate the paycheck.  However, I find $0 federal tax withhold on her paycheck. Is it correct? Why?

Answer: Your employee can claim allowances on the W-4. Each allowance will lower her taxable income.  The more allowances she claims the less federal income tax she pays; the less she claims, the more federal tax she pays.

The standard deduction is $3,900 per year (For Year 2013).

For your employee, her taxable income is not high enough to withhold federal tax. Here are the step by step calculations.

1. Gross pay for each paycheck:                                                               

$21.79*21 hours= $457.59                                                           

For each pay period, the gross pay is $457.59                     

2. Deductions for each paycheck:    

The standard deduction is $3,900 per year (For Year 2013).                                                          

She can get total deductions                                                      

$3,900   X             3 =          $11,700                

For each pay period the deduction is:                                                    

$11,700                 /              24           = $487.50            

3. Taxable income for each paycheck                                                     

So for each paycheck, the taxable income is:                                                      

457.59   -              $487.50                 =             - $29.91

So for this employee, her taxable income is $0. So you will see $0 federal tax on this paycheck.

Related Links

• How to calculate federal withholding tax using the percentage tables

http://www.halfpricesoft.com/payroll-software/how-to-calculate-federal-withholding-tax.asp

• Federal Income Tax Tables

http://www.halfpricesoft.com/federal_income_tax_2013.asp

We redesigned ezPaycheck 2013 to make it more user-friendly. In response to your requests, several new features were added to ezPaycheck 2013 payroll software

-          EzPaycheck can print the logo on check now

-          EzPaycheck allows users to customize check layout, change font, add the second signature line and add extra text fields now.

-          ezPaycheck supports more custom wage fields now

-          It supports more custom deduction fields now

-          New user interface with more form level help buttons

-          Database backup reminder

Option 1: If you have NOT installed ezPaycheck on your machine before, you can click here to install it directly.  

Step by step guide can be found at download page

http://www.halfpricesoft.com/payroll_software_download.asp

Option 2: If you have already installed ezPaycheck earlier version on your machine, please follow these steps: 

Step 1: If you need to keep your data, please back up your database first. Otherwise you can skip this step. 

Your data should be safe during this process. However, ezPaycheck 2013 may not be able to transfer your data to the new folder if your machine is with higher security settings. 

We would like to suggest you backup them to a folder or USB disk you can access easily. You can refer to this article for more details on database backup.

http://www.halfpricesoft.com/articles/sb-payroll-backup.asp

Step 2: Download ezPaycheck 2013 and install it. You can find step by step guide on the download page

Step 3: Start ezPaycheck 2013. If you cannot find your company database, you can use the restore function to restore your backup file.

http://www.halfpricesoft.com/business-blog/post/2011/06/07/How-to-restore-payroll-data.aspx

A fringe benefit is a form of pay (including property, services, cash or cash equivalent) in addition to stated pay for the performance of services. Some forms of additional compensation are specifically designated as “fringe benefits” in the Internal Revenue Code.

Fringe benefits commonly include health insurance, group term life coverage, education reimbursement, childcare and assistance reimbursement and cafeteria plans. Fringe benefits for employees are taxable wages unless specifically excluded by a section of the Internal Revenue Code (IRC).

The IRC may provide that fringe benefits are nontaxable, partially taxable, or tax-deferred.

Taxable – Includible in gross income unless excluded under an IRC section. “Taxable” means the benefit is included in the employees' wages and reported on Form W-2, Wage and Tax Statement, and generally is subject to Federal income tax withholding, social security (unless the employee has already reached the current year social security wage base limit), and Medicare. If the recipient is an employee, this amount is includible as wages. For example, bonuses are always taxable because no IRC section excludes them from taxation

.

Nontaxable (excludable) – Excluded from wages by a specific IRC section; for example, qualified health plan benefits excludable under section 105.

Partially taxable - Part is excluded by IRC section and part is taxable. Benefits may be excludable up to dollar limits, such as the public transportation subsidy under IRC §132.

Tax-deferred – Benefit is not taxable when received, but subject to tax later. For example, employer contributions to an employee's pension plan may not be taxable when made, but may be taxed when distributed to the employee.

(Source: http://www.irs.gov/pub/irs-tege/fringe_benefit_fslg.pdf)

ezPaycheck small business payroll software can handle fringe benefits. It comes with default settings for health Insurance and 401K. Users can also add customized deduction fields to handle taxable or non-taxable fringe benefits easily. Learn more at
http://www.halfpricesoft.com/business-blog/post/2011/05/05/How-to-add-a-new-payroll-deduction.aspx

More information about ezPaycheck payroll software can be found at product page.

As a business owner, it is not uncommon you hire some employee that has some sort of wage garnishment on their earnings.

Wage garnishment is a legal procedure in which a person’s earnings are required by court order to be withheld by an employer for the payment of a debt such as child support.

Title III of the Consumer Credit Protection Act (CCPA) prohibits an employer from discharging an employee whose earnings have been subject to garnishment for any one debt, regardless of the number of levies made or proceedings brought to collect it. 

ezPaycheck payroll software comes with the flexible features and you can add a new custom deduction fieldly easily for wage garnishment. You can deduct it from ezPaycheck automatically by the fixed amount or by percent.

Step by step guide on how to add a new field to handle wage garishment can be found at
http://www.halfpricesoft.com/business-blog/post/2011/05/05/How-to-add-a-new-payroll-deduction.aspx

More information about Wage Garnishment can be found at
http://www.dol.gov/compliance/topics/wages-garnishment.htm

2012 Michigan state tax rate changed on Oct 1, 2012. The new income tax withholding rate is 4.25% and the new personal exemption amount is $3,950. And the new pension and/or retirement benefit withholding rate will also change to 4.25%, however, there is no adjustment to the monthly pension deduction amount.

Halfpricesoft.com has released the new ezPaycheck payroll software with the updated income tax tables. Current paycheck software users can download the new update package from halfpricesoft.com and finished the tax update process in just a few clicks.

Michigan State Table

http://www.halfpricesoft.com/2012/taxrate-michigan-2012.asp

Hoping to keep its small-business payroll software affordable for every size company in the continuing recession, We launched 33% off promotion on ezPaycheck.

With this offer, business owners can purchase the full version paycheck software at just $59, which is 33% off the regular price $89. Users can also get the ezPaycheck 2012 update package on Form W2 and W3, which is scheduled to release in December, for free.

EzPaycheck developing team recently improved this in-house paycheck software with the new YTD feature which makes it simple and easy to change payroll software or begin using payroll software for the first time - even for companies in the middle of their fiscal year.

Download the free DEMO of ezPaycheck payroll software at

http://www.halfpricesoft.com/payroll_software_download.asp