Video instructions and help with filling out and completing Form 944 Pr Includes

Instructions and Help about Form 944 Pr Includes

In this presentation we will discuss payroll consideration and tax forms for more accounting information and accounting courses visit our website at accounting instruction dot info we will discuss payroll considerations a bit more broadly here and then focus in on some of those considerations later first has to do with the payroll frequency meaning how are we going to pay people how often are we going to pay people we're going to pay people weekly monthly bi-weekly so that's going to be one of the considerations and when we're a payroll professional we've got to be able to work with our different types of employers and say what's your payroll frequency many of these questions are going to be ones that once it's set up then once we work in a particular company we'll be the same going forward and we'll be able to get used to the routine if we work with different companies after a payroll professional then we would be working with different companies and we'd need to be able to say okay what's best for this type of company given the size of the company given their specialized needs within the company and work with them to implement the best format for different pay frequencies things like got the types of payment all we're gonna use paper checks how we're going to use direct deposits and again those could change drastically in terms of the needs of different companies and how we're gonna process payroll for different companies note that when we're working with payroll we learn a lot of different things just based on these little types of changes and little needs that needs to happen for different companies different industries and even within payroll itself as we look at these different types of needs and different types of characteristics we can become and we'll become specialists just in terms of where what type of people we are processing and working in advances are we gonna deal with advances and how are we going to deal with those advances and record advances how we're gonna deal with benefits within the payroll process we'll discuss more of these when we start to calculate payroll some of these of course becoming very relevant we're gonna have to deal with the payroll frequency will will make a lot of changes in terms of what's our tax going to look like how the withholdings are going to happen when do we to make withholdings do we want to have those advances how are we going to record advances what's going to be the policy for advances and as well as benefits within the payroll process ok then we have the tax compliance issues in terms of recording payroll and processing payroll and doing the journal entry for payroll the tax compliance and the types of tax documentation is one of the major complexities we need to keep aware of it's important to note that when we're talking about payroll we're really withholding in many cases money from the employee and therefore we have a more heightened responsibility to pay our taxes than even paying our own income taxes as the company in other words if we the company did not pay our income tax then we would be liable for not paying our income tax if we don't pay the employee portion of the payroll tax then it could be said that we in essence stole the money from the employees rather than just didn't pay our taxes so we could get kind of a double problem there if we withheld money from the employees and didn't pay it so we want to be very careful with payroll taxes we want to make sure that we're we're complying with payroll taxes it's also a type of tax that tip typically needs to be a bit more exact in the calculations meaning it income taxes net income might include some some type of estimates or more estimates worth payroll taxes you really need to bring it down to almost the penny or at least dollar of how close it's going to be so we need some more exactness in terms of our compliance so payroll forms that we'll have to do will include the form 940 form 941 these are going to be quarterly forms and then yearly forms for reporting federal income tax and that's going to include fi t federal income tax for the employee in May and that's another thing to just make sure that we keep separate when we're talking about income tax we the employers still pay income tax if we're a corporation we pay income tax if we're sole proprietor we it flows through but we still pay the income tax on our company's business the federal income tax for the payroll taxes represents the federal income tax for our employees payroll taxes vary our pain that they will then report that income on their 1040 and then we have the other taxes that are going to be federal taxes Social Security and Medicare and those to our employer taxes and employee taxes both the employer and employee pay them and then the 940 dealing with the futa tax federal unemployment tax and then we've got the 944 which is really you pretty much want to think of the 940 in the 941 as account of your default forms that you think about when thinking about payroll taxes the 944 is a nice option for smaller types of companies and it gives less of a frequency to pay meaning the 941 has to be paid quarterly you got a report quarterly and the 944 if you're a small company possibly we can limit the reporting requirements and make it a bit easier for small companies to report yearly but again the two forms you want to keep in mind the 940 ones quarterly and then the 940 we then have the w2's.