W2 Services
Our Service Includes
- Company Payroll
- Pay wages on behalf of DIRECT DEPOSIT or by check
- Submit payroll for federal, state, and local governments and payment of payroll taxes
- Issuance of W2 and 1099 forms
We Will...
Generate company paystubs
Processing paystubs on a weekly, bi-weekly, semi-monthly, or monthly basis.
Payroll distribution
Facilitating Direct Deposit or issuing payroll checks.
Filing federal, state, and local government payroll forms and handling payroll tax deposits
(FICA, FWT, FUTA, SWT, SUTA, etc.).
W-2 issuance
Preparing and timely delivering W-2 forms to employees.
Flushing Accounting and Tax Center is well-versed in the detailed legal regulations regarding payroll, especially for various industries across all fifty states in the U.S., with a focus on restaurants and nail salons. We have been providing payroll services to employers for over 15 years. Employers in need are encouraged to contact us for assistance with payroll services.
Here are some informative points that Flushing Accounting Center offers to clients in need of payroll services
"Paystubs"
Refers to detailed records of a payroll, typically containing specific information about the wages and salaries earned by an employee in each pay period. This document is provided by the employer and outlines details such as the employee's work hours, wage rates, various deductions, taxes, insurance premiums, and other pertinent information.
Typically, a paystub includes the following information
- Employee Personal Information: Including basic details such as name, date of hire, and job position.
- Work Time Records: Documenting the actual hours worked by the employee in a specific pay period.
- Wage Rates: The employee's hourly wage or monthly salary base.
- Total Earnings: The overall income earned by the employee, calculated based on the hours worked and wage rates.
- Deductions and Withholdings: Inclusive of various taxes (such as federal income tax, state tax, social security tax, Medicare tax, etc.), contributions to pension plans, health insurance premiums, and other deductions.
Net Pay
The amount received by the employee after deducting taxes and other withholdings, representing the actual payment to the employee.
- Accumulated Information: The paystub often displays year-to-date total earnings and deductions, along with cumulative tax and social security contributions.
- Additional Information: Depending on employer policies and practices, paystubs may include other details such as vacation balances, overtime pay, bonuses, commissions, and more.
"Direct Deposit" and "Paycheck" are two different methods of payroll payment. Here is a comparison between them
Direct Deposit
Method: Direct Deposit involves transferring an employee's wages and salary directly into their designated bank account, typically done automatically on the payday.
Convenience: It is quick and convenient, eliminating the need for employees to personally cash or deposit a physical check at the bank.
Security: Provides higher security, avoiding the risk of losing or theft associated with physical checks.
Automation: Direct Deposit allows for the automation of the payroll process, reducing the time and effort required for manual check processing.
Environmental Impact: Contributes to reducing the use of paper checks, promoting environmental friendliness.
Paycheck
Method: Paycheck is a paper-based method of paying wages, where employers issue physical checks to employees, who then need to manually cash or deposit them at a bank or designated location.
Convenience: Requires employees to personally visit a bank or cashing location, making it less convenient compared to Direct Deposit.
Security: Requires careful handling to prevent loss or theft.
Manual Processing: Issuing checks involves additional manual processes, including check printing, signing, and distribution.
Record Keeping: As a physical document, employees need to retain the check for future reference in verifying wage information.
The choice between Direct Deposit and Paycheck often depends on the employer's policies, individual employee preferences, and the convenience of payment. Many employees prefer Direct Deposit for its convenience, security, and automation, while some may prefer Paycheck for the tangible document and additional control it provides. Regardless of the chosen method, it is essential to ensure the accuracy and compliance of payroll payments.
What is W-2?
In the United States, employers issue W-2 forms to employees for tax reporting purposes. The W-2 form, also known as the Wage and Tax Statement, is a crucial document summarizing an employee's income and pre-withheld taxes for a calendar year. It is a legal requirement for employers to provide W-2 forms to their employees and submit copies to the Internal Revenue Service (IRS). Here are the reasons why employers distribute W-2 forms to U.S. employees:
Income Reporting: The W-2 form provides a comprehensive record of an employee's total earnings, including regular wages, tips, and other compensation. It also includes information on various taxes withheld from the employee's wages, such as federal income tax, social security tax, and Medicare tax.
Tax Filing: Employees use the W-2 form to complete their individual income tax returns. The information on the W-2 form is necessary for accurately reporting their income and calculating their tax obligations. It helps the IRS ensure that individuals pay the correct amount of taxes based on their income.
Pre-Withheld Tax Verification: The amounts withheld for federal income tax, social security tax, and Medicare tax are reported on the W-2 form. This allows employees to verify whether the amounts withheld throughout the year are correct. If discrepancies exist, employees may need to adjust their pre-withheld taxes for the next year to avoid owing additional taxes or receiving a substantial refund.
Social Security and Medicare Benefits: The information on the W-2 form is used to calculate social security and Medicare benefits when employees retire or become disabled. It helps the Social Security Administration track an individual's work history and income, factors that determine benefit eligibility and amounts.
Tax Compliance: Providing accurate and timely W-2 forms to employees and the IRS is a legal requirement. Employers must ensure that their wage and tax withholding processes are accurate and comply with federal and state tax laws.
Record Keeping: The W-2 form, serving as a record of personal income and pre-withheld taxes, is valuable for financial planning, loan applications, and other financial activities.
For employers and employees alike, understanding the importance of the W-2 form and ensuring its accuracy is crucial. Employers typically distribute W-2 forms to employees by the end of January, allowing employees ample time to submit their income tax returns before the April deadline.