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What is a Pay Stub?As a newly-hired employee or a newly-established self-employed individual, you might wonder what is a pay stub or what is a check stub. What does a pay stub look like? What are pay stubs used for? What information is available on a pay stub?A pay stub or check stub is a piece of document an employer gives to their employee or a s...

Becoming an employer means taking on responsibilities such as running a payroll. These are responsibilities you need to fulfill towards your employees, and one of those responsibilities is withholding certain payroll taxes, such as the State Unemployment Tax Act (SUTA).Ensuring that your business complies with government regulations every year with...

The Federal Unemployment Tax Act, or FUTA, is a policy that requires employers to pay payroll taxes helping states to provide unemployment benefits or compensation to employees whose contracts ended or terminated. Although, FUTA only applies to workers not dismissed for gross misconduct.Employers file and report FUTA taxes annually with the Interna...

When filing your tax return, you would always spot a column to figure out your adjusted gross income, or more commonly known as AGI. This is a crucial step in calculating and arriving at your taxable income and tax liability for a given tax year.Knowing how to calculate AGI from W-2 form is an essential skill every taxpayer should possess. As a non...

IRS forms W-2 and W-4 both have to do with employers and their employees. However, the difference between W-2 and W-4 forms lies in how they function and who should fill out and complete the documents.This article explains W-4 form vs W-2, distinguishing one from another. It covers their differences in terms of purpose, who completes them, when the...

What is a self-employment ledger? Why is it essential for a self-employed individual such as yourself? How could you use it to verify your income and even document your expenses?One dilemma that many self-employed individuals face is the burden of proof of income, especially when applying for loans or claiming benefits, and even paying taxes. This ...

When you look at your paystub, you might wonder what the LTD under the benefits section means. LTD stands for "Long-Term Disability." It is a type of disability insurance that protects your ability to earn an income in the event you incur an injury or severe illness.Disability insurance provides income coverage after an elimination period for condi...

Trying to decide between an S corp vs. a C corp when incorporating your business could be tricky without knowing the two business-type entities properly. If you also want to know more about a limited liability company, check our devoted article - Pros and Cons of an LLC.There is no one right solution for what is better when considering what structu...

Previously we made a thorough comparison between C corporation and S corporation. Now it's a turn of LLC.A Limited Liability Company, also known as LLC, is a much easier business structure to set up compared to corporations, such as an S and a C corporation. It provides flexibility and protection for the owners and shareholders. However, as with al...

When you consider changing the status of your corporation into an S corporation, you would need to familiarize yourself with IRS Form 2553. Becoming an S corporation allows you to enjoy tax benefits and returns and shareholder dividends.Use this guide to learn more about IRS form 2553 filing instructions on how and when to submit it. What is F...

As a small business proprietor, it is essential that you are involved in all aspects of your company, and thanks to available accounting applications and software, it is easier than ever to keep track of your business progress and growth.While accounting software has made recording and bookkeeping faster and easier for small business owners, you co...

As the deadline for the annual filing of Form W-2 comes near, all employees need to prepare their tax returns before the income tax due date. You should be aware of where your tax documents are stored and if you have received them from your employer.When filling out Form 1040 (Individual Income Tax Return Form), you need a Form W-2 (Wage and Tax St...

If you own a business or just about to start one, you may have probably realized rather quickly that there are tons of details to consider. Most small business owners do not have a background in accounting, making it overwhelming for them. However, they still have to learn its ins and outs if they want to succeed in their business.While there is a ...

Form 1099-NEC or nonemployee compensation 1099 makes a comeback in 2020 after a 38-year hiatus. Employers and business owners used Form 1099-MISC for the past few decades to report nonemployee compensation. This time around, they could now welcome the revived and revamped 1099-NEC form.What is form 1099-NEC? What is a 1099-NEC form used for? Why an...

Gross pay vs net pay is one of the most common topics that employees, self-employed individuals, and sometimes freelancers need to understand on their paystub. Learning more about them could help you better comprehend your compensation, potential tax liabilities, and buying power.What Is Gross Pay?The gross pay on paystub is the total amount of mon...

Every time you receive your check stub, you might ask yourself the questions, "What is FICA on my paystub?" "What are all the deductions listed, and are they necessary?" "What does FICA mean on my paystub?" You are not alone when asking yourself these questions. Many employees and self-employed individuals also wonder the same things.It is good to ...