The FICA Tip Credit
The FICA Tip Credit provides relief to businesses paying employment taxes on tip income. Calculation of the credit is somewhat complex, requiring employers to determine an amount known as “creditable tips.” The creditable tips figure removes the tip income that covers the difference between the employee’s hourly wage and the minimum wage.
Separation and Divorce Tax Considerations
Taxpayers who are considering or are already in the process of ending their marriage should consider that there are plenty of financial considerations besides a simple separation of assets. Whether legally separating or divorcing, there are several tax implications to consider.
Criminals Impersonating the PA Department of Revenue
Fraudsters are impersonating the PA Department of Revenue in letters sent to Pennsylvania business owners that direct them to turn over their accounting records. The criminals are attempting to trick taxpayers into providing their sensitive financial information.
Independent Fiscal Office Releases Report on Labor Shortages
The Pennsylvania Independent Fiscal Office published a new report that examines the factors that have contributed to the state’s labor force contracting by 120,000 workers since the start of the pandemic.
IRS Backlog and Delays Continue
The most recent National Taxpayer Advocate Objectives Report to Congress revealed that the IRS had a backlog of 21.3 million unprocessed paper returns as of May 27, 2022. The report notes that the backlog is up by more than one million returns since the previous May’s reported backlog. At the IRS’s current processing rate, it is estimated that the IRS will take nearly two years to deal with the backlog.