Florida Employment Tax Guide. Yan Lapointe, CPA Senior Manager Suzanne Forbes, CPA Partner

Transcription

1 Florida Employment Tax Guide Yan Lapointe, CPA Senior Manager Suzanne Forbes, CPA Partner

2 Florida Unemployment Tax Issues 2011 Tax Rate Range $ $ per employee (2011 rate based on annual salary up to $7,000 per employee) 2012 Tax Rate Range $ $ per employee (1.51% to 5.4%) (2012 rate based on annual salary up to $8,000 per employee)

3 Employment not covered Employees of a church, convention or association of churches. Services performed by aliens in agricultural labor, who have entered the United States under a special work visa. Services performed by nonresident aliens, who are temporarily present in the United States as non-immigrants. Services for a school, college, or university by a student enrolled and attending classes there. Work on a fishing vessel under ten net tons. Services performed as a student nurse in a hospital or nurses' training school, a medical school intern in a hospital, or a hospital patient. Persons under age 18 delivering or distributing newspapers. Services performed for a son, daughter, or spouse; or by children under the age of 21 for their father or mother. When the employer is a partnership, an exempt relationship must exist to all partners or there is no exemption. This exemption does not apply to corporations.

4 Federal Unemployment Tax Act (FUTA) Subject to FUTA tax in 2012 on wages you pay employees if: Paid wages of $1,500 or more in any calendar quarter in 2011 or 2012, or Had one or more employees for at least some part of a day in any 20 or more different weeks in 2011 or 20 or more different weeks in 2012

5 Filing Requirements FUTA Form 940 SUTA UCT-6 FUTA and SUTA Due Dates Quarter Ending Due Date 1 st : Jan. Feb. Mar. Mar. 31 Apr nd : Apr. May June June 30 July 31 3 rd : July Aug. Sept. Sept. 30 Oct th : Oct. Nov. Dec. Dec. 31 Jan. 31 FL link

6 Unemployment-Extension.org

7 Payroll Tax Issues with FICA 2013 Social Security: 1.7% increase in monthly payments Payroll tax cut scheduled to expire 6.2% of income, up from 4.2% in 2012 Max. amount of earnings subject to Social Security taxes will be $113,700, up from $110,100 in 2012

8 Payroll Issues with Medicare 2013 Medicare Tax: Additional 0.9% tax for singles earning more than $200,000 (married earning more than $250,000) 3.8% tax on net investment income of single taxpayers with AGI above $200,000 (joint filers with AGI over $250,000)

9 Independent Contractor vs. Employee Classification Independent Contractor Operates under a business name Has own employees Maintains a separate business checking account Advertises business' services Invoices for work completed Has more than one client Has own tools and sets hours Keeps business records Employee Performs duties controlled by others Given training for work Works for only one employer

10 Independent Contractor vs. Employee Classification

11 Questions Yan Lapointe, CPA Senior Manager James Moore, CPAs Ext: 4420 Suzanne Forbes, CPA Partner James Moore, CPAs Ext: 4422

12 Required Disclosure Under Circular 230 Pursuant to the rules of professional conduct set forth in Circular 230, as promulgated by the United States Department of the Treasury, nothing contained in this communication was intended or written to be used by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer by the Internal Revenue Service, and it cannot be used by any taxpayer for such purpose. No one, without our express prior written permission, may use or refer to any tax advice in this communication in promoting, marketing, or recommending a partnership or other entity, investment plan or arrangement to any other party. For discussion purposes only. This work is intended to provide general information about the tax and other laws applicable to retirement benefits. The author, his firm or anyone forwarding or reproducing this work shall have neither liability nor responsibility to any person or entity with respect to any loss or damage caused, or alleged to be caused, directly or indirectly by the information contained in this work. This work does not represent tax, accounting, or legal advice. The individual taxpayer is advised to and should rely on their own advisors.