Payroll taxes are those taxes which are levied upon entrepreneurs who keep their employees in payroll system. It is a legal tax which is must to be paid by the owners to the state government. Since payroll taxes can be costly with increase in time. And some entrepreneur is seeking the ways how the payroll taxes can be reduced without reducing payrolls.
An introduction to Payroll taxes:
Payroll taxes as already described are the legal employee’s duty which is deducted from its income to be paid to the state government every quarter of the year. Payroll taxes includes some other taxes such as FICA taxes, Social security taxes, Medicare taxes, FUTA taxes, which are funds used to support various payment systems and funds. The percentages estimates of taxes are such as 7.65 percent each employee are marginally high. FUTA tax rate is lesser. SUTA taxes are different with respect to state, but are generally lesser by one percent.
Entrepreneur seeks ways to evade Payroll taxes without any deduction in payrolls as they have to pay wages to employees along with payroll taxes to government. There are some directions given, through which a business owner may recover from these tax’s burden. Online software known as QuickBooks can be the most suitable option for you to find the solution of your problem regarding payrolls.
What are QuickBooks?
QuickBooks are an online accounting software deals with business functions such as pay and receive bill payments, manage bills also payroll functions. They are marketed by intuit. It can be termed as a cloud service, where user pays a monthly subscription fee through which they can access the software through a secure login source via Web browser such as Chrome, Internet Explorer 10, Firefox, Safari 6.1 as well as chrome on android and safari on iOS 7. Cloud version of QuickBooks is a different product from the desktop version of QuickBooks, and they provide many features that work opposite to the desktop versions. They can be easily accessible through an iPhone and a Blackberry and Android apps as well. Intuit also provides versions of QuickBooks which are customized for several countries such as India, Canada and Australia, also there are VAT and European tax system customized for UK-version of QuickBooks. We also provide tech support services for this software. You can reach our techies by dialing our toll-free QuickBooks Support Number +1-844-378-6288.
Point of Sale in QuickBooks Support system:
This is a QuickBooks point of sale software, a sorted version of QuickBooks software which helps in inventory, sales and giving information about customers, also provides reports on business management and customer’s service.
What are the ways of cutting Payroll taxes without deducting Payrolls?
There are many ways which can help you in reducing Payroll taxes without any alteration in employee’s Payrolls; entrepreneur may visit this software where they can figure out solutions over this problem. You can also contact our QuickBooks Payroll Support Number for instant solution for your issues. Some of them are enlisted below:
Make a liable plan to Repay employee Expenses:
It’s a way to reduce payroll taxes by repaying your employee’s extra expenses for travel and entertainment purposes. To qualify this accountable plan, expenses must belong to a business, which is completely reinforced by documentation. Also, the employees are needed to return the reimbursement fund within time period of 120 days. If you are using a liable plan, the repayments are:
- Not taxable towards employee, they are not bound to pay taxes when applying such plans.
- Exemption from FUTA and FICA taxes, which can help in reducing payroll taxes to an extent.
- An accountable plan needs three requisites, first is Business connection, those expenses suffered by employees usually have this kind of connection. Second is Proper substantiation, here the employee must amply account to the firm for expenses within a sufficient time period. Amply accounting means completing expenditure’s data or reports whether written or online, along with receipts or other documentary evidence of the expenditure. Third is, Return of extra repayments which mean employees have to return excess repayments to the company within reasonable time duration.
Avert some of the wages to business directors:
Incorporated business persons may use the director’s income supply to issue incomes that are exempted from payroll taxes. Since, they are not employees; therefore you are not bound to remit charges on Director’s wages. Through this, you can also get benefited on reducing Payroll taxes somewhere.
Double your Employee’s Pay with Fringe Benefits:
If you will provide your workers fringe benefits that are exempted from payroll taxes, this can be another method which can help in reducing payroll taxes. These benefits are like dependent care funds, education assistance, group-term life insurance and funds for moving expenses. Few of these benefits are restrained to certain annual limitation so it is an advice to check the confederate guidelines before issuing them. There are some fringe benefits that are freed from FUTA and FICA taxes. These benefits are those products and services that an employee has to buy with added tax charges, which is why they are appreciated but it should not be above than a raise. Fringe benefits are distributed according to the staff on a fair basis; some of them are enlisted here:
- Accident benefits.
- Employee discounts.
- Health savings contribution.
- Moving Expenses.
- Meals and stay on business area.
- Convenience Expenses.
- Life insurances.
- Care assistance up to a set limit.
Hence, to evade obligated payroll taxes from your employee’s payrolls is possible, all you need to do is to browse for solutions over online sources available and QuickBooks software is one of those, which is very helpful and beneficial aid toward financial accounting streams and business world, that may resolve your commercial worries to a limit possible. Nowadays, entrepreneurs are so much dwelled on their busy schedules that they prefer these sort of digital help over anything else and are reducing their obstructions within reasonable time, and the these digital software are helpful as well. In spite of some misconceptions there are juridical ways to reduce payroll tax accountability as well.