Tag: Canon Capital Payroll Services

Eight Reasons to Outsource Your Payroll

If you are working in-house as a bookkeeper or are running your own business, we know that you are already busy with the daily demands of your position. If processing your company’s payroll is among your responsibilities, we are here to bring you relief.

Here is why you should outsource your payroll:

  • It saves time.
    If your company does not have a dedicated payroll department, chances are it is a task assigned to you in addition to your current work. If you are running your own business, you would probably rather be working on growing your business instead of processing your payroll.
  • It saves money.
    Outsourcing your payroll saves money in many ways. Taking it off your plate frees you up to do the work you are meant to do. You will also lessen the risk of missing critical deadlines, which could result in penalties.
  • It provides convenience and value to you and your employees.
    From direct deposit and an online employee portal to tax filing and reporting, the efficiency of outsourcing your payroll provides value to you and your employees.

At this point, you are likely thinking, “That sounds great, but why should I outsource our payroll to you, Canon Capital?”

Why You Should Choose Canon Capital Payroll Services

  • Customization
    We fully customize your payroll to suit your company’s size and specific needs.
  • You don’t know what you don’t know.
    You have your expertise; we have ours. At Canon Capital Payroll Services, it is our responsibility to know about the updates affecting taxes and human resources that impact your payroll.
  • Responsive Service
    We can answer your questions quickly and be responsive to your unique needs, thanks to our payroll professionals and the support of our Certified Public Accounting and Technologies departments.
  • Added Value
    We provide services that are not always available with other payroll groups, such as withholding and reporting local and LST taxes.

We also offer these optional add-on services:

  • 1099 Payments
  • 1096 Annual Preparation
  • New Hire Reporting
  • FICA Tip Credit Report
  • Workers Compensation Report
  • Labor Distribution Report
  • General Ledger Report
  • Vacation/Sick Accrual Report
  • 401(k) Report
  • Check Reconciliation Report
  • Certified Payroll Report
  • Customized Reports
  • Direct Deposit Service
  • Vacation/Sick Accrual Tracking
  • Job Costing/Labor Allocation
  • Check Signature
  • Checking Stuffing
  • QuickBooks GL Interface

Canon Capital Takes the Hassle Out of Payroll

Conversion to our payroll service is simple and you will find that our comprehensive, easy-to-read reporting is thorough.

In short, outsourcing your payroll to Canon Capital Payroll Services saves you time, money, and stress.

Ready to learn more? Send a note online or call 215-723-4881 so we can begin customizing a payroll plan for your business.

Is This Holiday Gift Taxable to My Employee?

The holiday season is here, and for many business owners it is the time of year to show employees gratitude for their service with year-end bonuses or gifts.

Cash is always taxable and must be included in an employee’s W2 wages, so a gift card or gift certificate might seem like the preferred option. However, according to the IRS, even if the cash is given in the form of a gift card or certificate since it can be considered as a cash equivalent, it is still taxable:

“Cash or cash equivalent items provided by the employer are never excludable from income. An exception applies for occasional meal money or transportation fare to allow an employee to work beyond normal hours. Gift certificates that are redeemable for general merchandise or have a cash equivalent value are not de minimis benefits and are taxable.

A certificate that allows an employee to receive a specific item of personal property (i.e. a grocery store certificate for a turkey, Christmas tree, etc.) that is minimal in value, provided infrequently, and is administratively impractical to account for, may be excludable as a de minimis benefit, depending on facts and circumstances.”

Therefore, gift cards such as those issued by Visa, Amazon, Target, etc., are taxable and must be included in an employee’s W2 wages. As stated above, gift cards or certificates that can be redeemed for a specific item or service may be excluded as a “de minimis,” or fringe, benefit.

If you have a question about the gift you’re considering for your employees, we are happy to help. Call Canon Capital Payroll Services at 215-723-4881 or contact us online.

 

Team Canon Capital Represents at the Indian Creek Foundation 2019 Roll, Stroll, and Run

The weather was gorgeous on Saturday, June 15, for the 2019 Indian Creek Foundation Roll, Stroll, and Run.

Team Canon Capital was represented by Sarah Hughes, one of our CPAs; Payroll processer/tax preparer Linda Covel; Linda’s sister-in-law Mary Jane Yoder; and Linda’s daughter-in-law Courtney Covel.

Sarah placed first in the Women’s Division and second overall in the 5K portion of the event, with a time of 20:56!

We were proud to be among the sponsors for this annual event, a fundraiser that benefits Indian Creek Foundation’s mission of supporting people with intellectual and developmental disabilities by providing them with opportunities to enrich their lives and the lives of those in their communities.

(Pictured L-R: Sarah Hughes, Linda Covel, Mary Jane Yoder, Courtney Covel)

Pennsylvania Department of Revenue Issues News Electronic Filing Requirement

The Pennsylvania Department of Revenue recently changed the electronic filing requirement threshold for W-2 forms. Employers who file 10 or more W-2 forms with the department are now required to file those forms electronically.

This change is in effect for Tax Year 2018 filings. Employers should visit e-TIDES, the department’s online system for business taxes to file the Annual Withholding Reconciliation Statement (REV-1667), which had a deadline of January 31, 2019. Copies of the individual wage withholding statement (W-2) must also be filed electronically with the form REV-1667. The department will grant a waiver for the 2018 tax-filing season with regard to the electronic filing requirement, but it is encouraging employers to take advantage of this option, which is quick, easy and secure.

This change is part of a larger effort to embrace technology to serve taxpayers better and update departmental operations. The department gains many efficiencies in processing by shifting from paper to electronic records.

To this point, the department continues to receive a large number of W-2 records via fax and on compact discs. It takes significant information technology resources to transfer these records into the department’s computer systems manually. Also, if an employer submits paper W-2s, the department must use an entirely manual process to key the taxpayer’s information into its systems, slowing processing times and increasing the potential for error.

The move toward more electronic filing also helps the department increase the security of taxpayer data and safeguard against tax refund fraud. The change is also in line with other electronic filing requirements the department has implemented for other returns and informational statements.

If you have any questions regarding the electronic filing, please visit the Department’s Business Taxes e-Services Center or call 717-787-7635.

If you have additional questions where we might be of service, please call 215-723-4881 or contact us online.

Philadelphia Wage Tax Changes July 1, 2018

July 1, 2018 marks the beginning of the new fiscal year for the City of Philadelphia and with it a reduction in the Wage Tax.

The Wage Tax affects all businesses that operate within the city as well as businesses outside of the city who hire Philadelphia residents.

Any paycheck issued with a pay date after June 30, 2018 must withhold the Philadelphia City Wage Tax at these new rates:

  • 3.8809% (.038809) for Philadelphia residents
  • 3.4567% (.034567) for non-residents

If you are a Philadelphia-based business who does not collect the Wage Tax on behalf of your employees, or if you work for a business in Philadelphia and do not have the Wage Tax collected on your behalf, you – the employee – are responsible to pay an Earnings Tax directly to the City of Philadelphia. These rates will also be lower as of July 1, 2018:

  • 3.8809% (.038809) for Philadelphia residents
  • 3.4567% (.034567) for non-residents

We are happy to answer any questions you might have regarding this or any issue related to your payroll. Call 215-723-4881 or contact us online.

Team Canon Capital Participates in the Indian Creek Foundation 2018 Roll, Stroll & Run

On Saturday, June 16, 2018, Team Canon Capital joined the many participants in Indian Creek Foundation’s annual Roll, Stroll & Run, an event including opportunities to raise funds by running, walking, or cycling.

Canon Capital Payroll processer/tax preparer Linda Covel brought some family members along for the 5K walk while Canon Capital Wealth Management project coordinator, Brian Erkes, his wife, Janice, and son, Frank, ran in the timed 5K portion of the event, where they placed within the top 15 participants.

In addition to sending a team, we served as the event’s Volunteer Shirt Sponsor.

We are proud to support the efforts of Indian Creek Foundation, whose mission is “to provide opportunities for people with intellectual and developmental disabilities to live in and enrich the community throughout their lives.”

We’ll Soon be One Source, Many Services, the Right Decision — All Under One Roof at our New Harleysville Location

We are excited to inform you that later this year, we are looking forward to moving from our Souderton and Hatfield offices to combine under one roof at our newly-acquired Harleysville location.

We’ll keep you posted on our progress with the building renovations as we work to make it our own before settling in. Until then, we are happy to continue to serve you at our Souderton and Hatfield locations.

One Source. Many Services. The Right Decision. This is our motto, which we strive to embody each and every day as our four business units work to serve your Accounting, Computer Solutions, Payroll, and Wealth Management needs.

Time for a “Paycheck Check-up” – IRS Issues New W-4 Form and Updated Withholding Calculator

With the passage of the Tax Cuts and Jobs Act, you might be receiving a higher net amount of money in your paycheck. To ensure you’re having the right amount of funds withheld in order to avoid a surprise during next year’s tax season, please follow the recommended steps in this message from the IRS:

“The Tax Cuts and Jobs Act made changes to the tax law, including increasing the standard deduction, removing personal exemptions, increasing the child tax credit, limiting or discontinuing certain deductions and changing the tax rates and brackets.

If changes to withholding should be made, the Withholding Calculator gives employees the information they need to fill out a new Form W-4, Employee’s Withholding Allowance Certificate. Employees will submit the completed W-4 to their employer.

The withholding changes do not affect 2017 tax returns due this April. However, having a completed 2017 tax return can help taxpayers work with the Withholding Calculator to determine their proper withholding for 2018 and avoid issues when they file next year.

Steps to Help Taxpayers: Do a ‘Paycheck Checkup’ 

The IRS encourages employees to use the Withholding Calculator to perform a quick ‘paycheck checkup.’  An employee checking their withholding can help protect against having too little tax withheld and facing an unexpected tax bill or penalty at tax time in 2019. It can also prevent employees from having too much tax withheld; with the average refund topping $2,800, some taxpayers might prefer to have less tax withheld up front and receive more in their paychecks.

The Withholding Calculator can be used by taxpayers who want to update their withholding in response to the new law or who start a new job or have other changes in their personal circumstances in 2018.

As a first step to reflect the tax law changes, the IRS released new withholding tables in January. These tables were designed to produce the correct amount of tax withholding — avoiding under- and over-withholding of tax — for those with simple tax situations. This means that people with simple situations might not need to make any changes. Simple situations include singles and married couples with only one job, who have no dependents, and who have not claimed itemized deductions, adjustments to income or tax credits.

People with more complicated financial situations might need to revise their W-4.  With the new tax law changes, it’s especially important for these people to use the Withholding Calculator on IRS.gov to make sure they have the right amount of withholding.

Among the groups who should check their withholding are:

  • Two-income families.
  • People with two or more jobs at the same time or who only work for part of the year.
  • People with children who claim credits such as the Child Tax Credit.
  • People who itemized deductions in 2017.
  • People with high incomes and more complex tax returns.

Taxpayers with more complex situations might need to use Publication 505, Tax Withholding and Estimated Tax, expected to be available on IRS.gov in early spring, instead of the Withholding Calculator.  This includes those who owe self-employment tax, the alternative minimum tax, or tax on unearned income from dependents, and people who have capital gains and dividends.

Plan Ahead: Tips for Using the Withholding Calculator

The Withholding Calculator asks taxpayers to estimate their 2018 income and other items that affect their taxes, including the number of children claimed for the Child Tax Credit, Earned Income Tax Credit and other items.

Take a few minutes and plan ahead to make using the calculator on IRS.gov as easy as possible. Here are some tips:

  • Gather your most recent pay stub from work. Check to make sure it reflects the amount of Federal income tax that you have had withheld so far in 2018.
  • Have a completed copy of your 2017 (or possibly 2016) tax return handy. Information on that return can help you estimate income and other items for 2018.  However, note that the new tax law made significant changes to itemized deductions.
  • Keep in mind the Withholding Calculator results are only as accurate as the information entered. If your circumstances change during the year, come back to the calculator to make sure your withholding is still correct.
  • The Withholding Calculator does not request personally-identifiable information such as name, Social Security number, address or bank account numbers. The IRS does not save or record the information entered on the calculator. As always, watch out for tax scams, especially via email or phone calls and be especially alert to cybercriminals impersonating the IRS. The IRS does not send emails related to the calculator or the information entered.
  • Use the results from the Withholding Calculator to determine if you should complete a new Form W-4 and, if so, what information to put on a new Form W-4. There is no need to complete the worksheets that accompany Form W-4 if the calculator is used.
  • As a general rule, the fewer withholding allowances you enter on the Form W-4 the higher your tax withholding will be. Entering “0” or “1” on line 5 of the W-4 means more tax will be withheld. Entering a bigger number means less tax withholding, resulting in a smaller tax refund or potentially a tax bill or penalty.
  • If you complete a new Form W-4, you should submit it to your employer as soon as possible. With withholding occurring throughout the year, it’s better to take this step early on.”

If you have any questions about your specific situation, please consult with your tax advisor. If you do not currently have a tax advisor, we welcome the opportunity to serve you. Please call 215-723-4881 or contact us online.

Team Canon Capital at the Indian Valley Chamber of Commerce 2015 Business Expo

We had a terrific time earlier this week at the Indian Valley Chamber of Commerce 2015 Business Expo.

Matthew Witter, a senior investment advisor & financial planner
with our Wealth Management Group, talks with an Expo attendee.

IV2015Expo VickiBarnes LoriCanfield

Vicki Barnes, director of payroll services, and Lori Canfield, office manager, show off our team jerseys. We’re all wearing #87 to represent 1987, the year Canon Capital Management Group was established.

“Team Canon Capital” represented this year’s theme “Sporting Success…Join the Winning Team!” sharing peanuts and popcorn along with all of the services we offer to businesses and individuals in our community.