Payroll taxes issues turn miserable at times when the employer or the employees are not too sure about the laws related to them. If there any permanent changes in payroll issues, the employees should at once inform their employer on the same. The employers deduct the taxes according to the rules set. The employees receive their salaries after the tax deduction has been correctly evaluated from the gross amount. The taxable amount is then submitted. Employees and employers often confront with major penalties on issues like default or late payment of taxes.
Here are some facts about payroll taxes.
Do you know that gifts given to employees by employers to acknowledge their efforts are counted as taxable income? Yes and in fact for cash awards, taxes are deducted from them.
Even use of company vehicle for personal reasons is also charged under payroll taxes. The distances covered and any distance traveled to personal destinations are counted thoroughly and then deducted from paychecks.
Those employers or employees who fail to inform or report payroll taxes to the Government revenue offices are likely to pay huge amounts as penalty for non-payment. These are common payroll tax issues which need quick fix-ups in order to stay clean. Today payroll services offer operations to determine payroll taxes.
Pros and cons of Payroll Finance
A steady cash flow is important for the proper functioning of a business. But maintaining this steady flow is not easy, especially for small and medium sized businesses. The first thing that is affected by the lack of funds is the company payroll. This is not desirable as any late payment of salary badly affects the morale of the employees.
This is where payroll finance comes of immense help. Any person with a regular income of more than $1000 per month as an active bank account can obtain the facility of payroll finance. These are short term loans which come to immense help when there is a lack of steady fund flow. More details!
The benefits of obtaining payroll funding are:
- Obtaining payroll funding is easy, convenient and a fast procedure. Simply by providing certain personal information for the purpose of checking the authenticity of the borrowers, payroll finance can be obtained.
- If you are a company director you won’t be required to provide for security deposits for obtaining payroll funding for your company.
- Payroll funding can be used simultaneously with other traditional means of financing like factoring, invoice discounting and overdrafts.
- Obtaining payroll finance does not affect the company’s ensured financing agreements.
- A minimal interest of around 3% plus base has to be paid on the outstanding balance.
Is it possible to obtain another payroll loan without clearing the first one
However since payroll finance is such easily available, that doesn’t imply that you can obtain another payroll loan without clearing the first one. Though there is a stiff competition among the payroll funding companies they maintain a common rule, if you have obtained loan form one payroll funding company and have not still repaid it you shall not be able to obtain loan from any other payroll financing company.
Another important thing that is to be kept in mind is, if you requite payroll advance loans promptly it might not ameliorate your credit ratings, but acclivitous payroll advance loans may impact your credit ratings. So it is advisable obtain payroll finance only when there is a dire shortage of steady fund flow and only the amount which you are sure of paying it off very soon. For more details about payroll taxes, visit: www.payrollserviceaustralia.com.au .