Category: Tax


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

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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

Email:
pjohnson@gardenstatepayroll.com

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 info@gardenstatepayroll.com