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Attention Business Owners and Employees now is the time to maximize your contribution limits or claim any losses during tax prep. This is the time. Our economy is fragile going into an election year. Please take a moment to review all the IRS Rules and Regulations to make sure you are compliant.



The Small Busin…

The Small Business Jobs Act of 2010 gives small business owners an opportunity to utilize the deductions and help grow their businesses. Take the advantage of the Act today and to see if your business is eligible for deductions, please call at 878-898-0415 or email us at

Garden State Payroll works with some of the most well known restaurants in the N.J. and N.Y.C markets saving them HUGE $$$ on tax Liability!!! See attached link and call 1-877-898-0415 or email:,,id=185195,00.html

On March 18, President Obama signed the Hiring Incentives to restore Employment (HIRE) Act. The HIRE Act creates:

● a limited social security tax “holiday” for the employer share of social security tax on wages paid to a previously unemployed new hire

● a separate business tax credit of up to $1,000 if the employee is employed for at least 52 weeks.

The aim of the Act is to free up funds for employers to hire individuals who have been out of work to further stimulate the recovering economy.

At Garden State Payroll, companies never have to worry about annual audits or finance charges because we provide Pay As You Go compensation coverage.  GSP has the ability to free up cash flow through our Pay As You Go Insurance. The Insurance Premium is deducted on a payroll to payroll basis unlike traditional Workers Compensation

Wage Garnishments: Avoid Costly Penalties

 Wage Garnishment is a process where an employer withholds the earnings of an employee in order to pay his or her debt.  The debt could be something that the employee acquired due to child support, student loans or any unpaid fines.  The court notice to withhold a certain amount of money is sent to the employer, and
the employer is required to garnish those employee’s wages.

There are some rules and regulations that the employers have to follow otherwise they can be
severely penalized:

  • Employers are not allowed to discharge or release any employees because of any garnishments of wages.
  • Employers are allowed to take out up to 50% of disposable earnings for child support, bankruptcy or federal and state tax payments.  However, they can only
    withhold up to 25% for rest of the debt reasons.
  • The court notice says the time of the garnishment, so the employers can stop garnishing the wages after the time has passed.

Garnishing employee’s wages can get complicated for the employers when there is more than one garnishment to be paid.  Usually, the first garnishment order the employer receives gets paid first but there is an exception when there is a federal student loan garnishment.  Different types of garnishments have different withholding limits and employers can be severely fined for not properly adhering to the laws.

Garden State Payroll can help employers deal with the strenuous task of following the proper rules and regulations.  Along with calculating the garnishments accurately, GSP will make sure the wages are garnished at appropriate times. The employers would not have to worry about the garnishments, and they can focus on growing their businesses.

For more information about Wage Garnishments or any other payroll related tasks, contact Garden State Payroll.

Contact GSP:

Peter Johnson at Toll Free: 877-898-0415


Pay Cards

A card, that looks like a debit card, which allows you to access the money from your paycheck.  GSP can have paycheck deposited into a VISA branded card for those employess who do not have a bank account.  Just like a direct deposit, a pay card saves employers the money and inconvenience to distribute pay checks.

On September 27, 2010, the President Obama passed The Small Business Jobs Act of 2010.  The act consists of some important tax provisions that encourage investment and increase capital for a small business to drive economic recovery.  These provisions mentioned below are extended through January 1, 2012:

  • According to the act, the investors who invest their money into certain small businesses can exclude up to 100% of capital gain from selling the stock.
  • Eligible small businesses are now allowed to carry back general business credits five years instead of the previously established law for one year.
  • Those businesses which treat the cost of certain property as an expense rather than a capital expenditure will be eligible for expense deduction.
  • When calculating self-employment tax, some small business owners can deduct the cost of health insurance for themselves and their family.

The Small Business Jobs Act of 2010 gives small business owners an opportunity to utilize the deductions and help grow their businesses.  Along with numerous deductions, the act also increases the maximum amount for SBA loan programs from $2 million to $5 million.  Moreover, small business investors do not have to worry about paying taxes on up to 100% of the capital gain.

Take the advantage of the SBA 2010 today!! To know what deductions your business is eligible for, contact Garden State Payroll at 732-353-6803 or email us at

Garden State Payroll (GSP Inc.)- provides the ability to download your payroll reports and files directly into your General Ledger or Excel File. In addition, the Information from the reports can be manipulated and downloaded in different formats for special reporting needs. Also, these reports can be downloaded into Excel or PDF Files. GSP also provides Electronic Reports that are emailable and can be burned on CD Roms…

  • Direct Downloads to GL
  • Email your CPA the Payroll Reports
  • Special Reports
  • CD Rom Payroll Reports

 The question of whether you are an employee or a self-employed independent contractor is very important and may not always be easy to answer. You should understand the category you fall under, since it’ll affect how you pay your taxes.

You are an employee if

Your payer has the right to direct and control your activity. The factors of control fall into three key categories:

  1. Behavioral control
  2. Financial control, and
  3. The relationship between you and your payer.

No one single fact determines worker classification, rather all of the facts and circumstances of a relationship weigh in the correct worker classification determination.

If you are an employee, you are required to report the wages you received during the calendar year on your personal income tax return because they are taxable income. Your employer is required to report wages paid to you during the year on a Form W-2. Your employer is also required to ask you to fill out a Form W-4 and you are required to return that form to your employer. Form W-4 directs your employer on how much tax to withhold from your pay. If you are unsure how much to request be withheld on your Form W-4, check the IRS Withholding Calculator for guidance.

You are an independent contractor if

You have the right to direct and control the most important aspects of your activity. People such as contractors, subcontractors and auctioneers, who maintain an independent trade, business or profession in which they offer their services to the public, are generally independent contractors.

If you are an independent contractor, your income earned will be reported to you by the payer on a Form 1099-MISC, unless the payer pays you less than $600 in the calendar year. However, you must report all the income you earned during the year, even if your client does not issue a Form 1099-MISC for your services.

As an independent contractor you are self-employed and are generally required to attach a business return to the annual income tax return that you file and to pay estimated tax quarterly. Self-employed individuals generally have to pay self-employment tax (Social Security and Medicare tax) as well as income tax. To read more on your tax obligations or for more information on estimated tax, go to the Self-Employed Individuals Tax Center on

If your worker status is unclear

You or your payer can file Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding, with the IRS to help determine your status.

Additionally, The IRS developed Form 8919, Uncollected Social Security and Medicare Tax on Wages, to simplify the process for employees to report their share of uncollected Social Security and Medicare taxes due on their compensation when their employers have misclassified them as independent contractors.