Holiday Reminder

The upcoming Columbus Day Holiday falls on Monday, October 12, 2020.  While CBIZ HCM offices will be open this day, this is a Federal Reserve Bank Holiday, and payroll draft dates will need to be adjusted. 

Important Payroll Deadlines

As always, your CBIZ HCM team is here to help should you have questions. We appreciate your continued partnership, and we wish you and your business the best of health. Please contact your payroll services team if you have any questions.

COVID Tax Tips

The IRS is reminding taxpayers affected by COVID-19 to review their withholding status, particularly households receiving unemployment during this period.

Many taxpayers have experienced significant changes in their household income and could find the IRS Tax Withholding Estimator useful in reviewing their current tax withholding. The IRS Tax Withholding Estimator can help taxpayers determine how to have the right amount of tax withheld. It offers workers, retirees, and self-employed individuals a user-friendly, step-by-step method to help determine if they need to adjust their withholding by submitting a new Form W-4 to their employer or making additional or estimated tax payments.

Income tax withholding is generally based on the taxpayer's expected filing status and standard deduction. Adjusting paycheck withholding could help prevent penalties for underpayment or result in a decrease in withholding. 

According to the IRS, taxpayers should review their withholding early in the year, when the tax law changes, or when the taxpayer has experienced a life change. 

Life Changes

• Life Change Lifestyle - Marriage, divorce, birth or adoption of a child, home purchase, retirement, filing chapter 11 bankruptcy
• Wage income - You or your spouse start or stop working or start or stop a second job
• Taxable income not subject to withholding - Interest income, dividends, capital gains, self-employment income, IRA (including certain Roth IRA) distributions 
• Adjustments to income - IRA deduction, student loan interest deduction, alimony expense 
• Itemized deductions or tax credits - Medical expenses, taxes, interest expense, gifts to charity, dependent care expenses, education credit, child tax credit, earned income credit 

Significant Decline in Gross Receipts

Income taxes are pay-as-you-go. By law, taxpayers are required to pay most of their tax as income is received. This can be done through paycheck withholding or making quarterly estimated tax payments for income not subject to withholding.

Engaging A Remote Workforce

The COVID-19 pandemic has caused unprecedented changes for many, if not all, industries. As social distancing is encouraged and with stay-at-home or shelter-in-place orders issued, many employees are working from home. Even as restrictions lighten, many will continue to work remotely in this new normal.

For some employees, working from home is business as usual. For others, this may be the first time they’ve telecommuted. This working arrangement may seem exciting at first, but it can lose its luster over time, resulting in disengaged employees. And, when employees aren’t engaged, their productivity and motivation can suffer. Leveraging technology to assist in daily communication can help managers and teams stay in contact and productive during the pandemic.