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May Newsletter

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Fun Fact

In 1864, a cult leader once deeded 600 acres of land to “God,” but the State of Pennsylvania took possession and sold it because the Almighty didn’t pay His taxes.

HR Topic may newsletter

New Employee Onboarding is the process of integrating a new employee with a company and its culture, as well as getting a new hire the tools and information needed to become a productive member of the team.

Onboarding new hires at an organization should be a strategic process that lasts at least one year, staffing and HR experts say, because how employers handle the first few days and months of a new employee’s experience is crucial to ensuring high retention.

Getting Started with the Onboarding Process

Finding the best candidates for positions in your organization is only part of building an effective team. The process of onboarding new employees can be one of the most critical factors in ensuring recently hired talent will be productive, contented workers.

To read the whole article, click here.

Payroll Topic

The Arizona Department of Revenue issued an alert to all employers to be vigilant in looking out for the W-2 e-mail phishing scam this tax-filing season.

The W-2 is the document that reports an employee’s annual wages and the amount of taxes withheld from his or her paycheck, as well as other confidential information.

The most common scenario involves a phishing e-mail sent to someone in a company’s human resources or payroll office that appears to be from an executive of that business. The e-mail inquiry requests employee W-2 data and, in some cases, payroll information to be e-mailed immediately.

The Department of Revenue recommends companies and their staff never respond to the e-mail to confirm the sender’s request, and that payroll or HR connect with the person whose name is on the e-mail by phone or in person.

To read the whole article, click here.

Market Update

Market Update You might be griping if you just submitted a check for a large income-tax bill, but Arizonans pay lower overall taxes than Americans generally, according to a new study.

Arizonans on average work 105 days each year to pay all combined federal and state income taxes, plus payroll, sales, property and other outlays, reports the Tax Foundation. This means Tax Freedom Day fell on April 15 this year in Arizona. For the nation overall, Tax Freedom Day will arrive eight days later, on April 23, reflecting higher tax rates and other factors elsewhere.

The Tax Freedom Day calculations represent how long it would take people in various states, and nationally, to pay all of their combined taxes, assuming taxes were paid before outlays for housing, food, transportation, healthcare and other items. The comprehensive measure includes income taxes, for individuals and corporations, along with sales and excise taxes, payroll taxes and property taxes. The combined tax bill in each area is divided by total national or state incomes.

To read the whole article, click here.

Accounting Update

Many business owners believe that just because there is a line item on the tax return for meals and entertainment deductions that just about any dinner or theatre ticket or sporting event involving a client or potential client qualifies as a valid deduction. Wrong. It isn’t that straightforward or easy.

There are rules. Essentially, the rules say: If you’re having way too much fun, it’s not a deductible expense. Here’s a primer on when entertainment expenses count as business or pleasure.

1. Get down to business. 
First, any entertaining you do must be directly related to the active conduct of your business or associated with a directly related discussion that preceded or followed the meal or entertainment. So if you take me to lunch and we don’t discuss tax planning strategies, sales projections or problems with your general ledger, and instead only talk about your 10-year-old’s blooming soccer career, then you won’t be able to write off the lunch.

This goes for party throwing, too. No matter if the goal of the soiree is to build goodwill, to deduct the cost of the party, you must conduct business before, during or after the party. That means you need to include a product demonstration, a reveal of a new product or service, a sales pitch or an educational talk related to your product or service.

2. Keep your wits about you. 
The environment must be conducive to conducting business. An overly-boozy brunch, for instance, wouldn’t qualify. The IRS once rejected a deduction of tickets to a baseball game because the volume levels at a ball park don’t allow for a comprehensive business discussion. But if the business discussion had taken place prior to the ball game or shortly afterward, it may have been allowed.

But even then, you have to be careful. Giving a sales pitch at the end of a party where liquor has been served is much like talking politics with sugar-infused 5-year-olds. As a write-off, it’s not going to fly.

To read the whole article, click here.

Employee Spotlight MAY NEWSLETTER

Andrew is a Certified Payroll Professional and focuses on client acquisition and business growth for PayTech. He has been with PayTech since June of 2015 and his favorite part of working here is telling our story to new clients and helping them see the benefits of working with a local family owned company. He can be heard almost every day telling the story about the time Rene put “checks on a plane.” Andrew is a life-long learner and makes time every day to analyze and stay current on labor and employment policies and legislation that may impact our clients.

When he is not working he loves to spend time with his eight-year-old daughter, Sophie Grace. He also loves to read and has read almost every John Grisham book. He enjoys tennis and golf, and plays tennis with his girlfriend, Naseem, at least twice per week. Andrew is also an avid baseball fan and even convinced his Grandma to like the Diamondbacks

 

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