Payroll Tax news
Payroll taxes, social security contributions and employer reporting obligations, including changes to withholding rules and the compliance questions raised by mobile and remote workers, collected from the sources AskColm monitors.
154 articles in the archive, showing the latest 50.
The 1099 Workflow Gap: How CPA Firms Can Standardize W-9 Collection Before January
A practical guide for CPA firms on standardizing W-9 collection ahead of the February 1, 2027 1099-NEC filing deadline. Covers a five-stage workflow, vendor data controls, and handling TIN mismatches to close common compliance gaps in the 1099 reporting process.
Tax Court Upholds 100% Penalty in Payroll Tax Case
A US Tax Court has upheld a 100% penalty against a business owner for willful failure to remit payroll taxes. The ruling confirms that responsible parties can be held personally liable for trust fund taxes when nonpayment is deemed willful.
Buying Property from an NRI Gets Easier: New PAN-Based TDS Compliance from 1 October 2026
From 1 October 2026, a new PAN-based TDS compliance system will simplify the process of buying property from a non-resident Indian seller. Historically, such transactions have involved significantly more paperwork than purchases from resident sellers.
TDS Returns Can Now Be Filed Directly on TRACES
From the second quarter of the financial year 2026-27, TDS returns can be filed directly online through the TRACES portal. The change is intended to make the filing of short TDS returns faster and simpler.
Before you scale your team: what promises can you afford to keep? | Grant Thornton
Article advises founders and growing businesses on how equity incentives and EMI schemes can be used when hiring senior talent, with a focus on avoiding costly tax mistakes during team scaling. EMI (Enterprise Management Incentive) schemes are a UK tax-advantaged…
Feds Aim To Improve Health Cost Clarity With Final Reg
The federal government has issued a final rule aimed at making healthcare pricing information easier to understand. The rule builds on disclosure requirements introduced under the first Trump administration, which agencies say produced an overwhelming volume of data that made…
Quebec Staffing Agency, Alpha et Omega Multiservices Inc., and its Director Fined Over $2.1 Million plus Jailed for Tax Fraud
A Quebec staffing agency, Alpha et Omega Multiservices Inc., and its director have been fined over $2.1 million and jailed following a tax fraud prosecution brought by the CRA and Revenu Québec. The case has implications for employer tax compliance.
2nd Circ. Forges Own Path In Limited Partner Tax Ruling
The Second Circuit has ruled to limit a self-employment tax break for limited partners who hold significant managerial roles, reaching a similar conclusion to a recent Fifth Circuit ruling. However, practitioners have identified meaningful differences between the two decisions, creating…
NY Judge Gives Tax Preparers Initial OK For $1M OT Deal
A New York federal magistrate judge has given preliminary approval to a $1.05 million class action settlement between tax preparers and a New York tax preparation company. The preparers had alleged overtime and wage violations, and the judge found no…
New Zealand Introduces Motor Vehicle FBT Reform Bill
New Zealand has introduced a reform bill targeting fringe benefit tax (FBT) rules applicable to motor vehicles. The legislation aims to modernize how employer-provided vehicles are taxed, addressing concerns that current rules do not adequately reflect actual private use patterns…
Stock options and taxation
This article explains how stock options are taxed in the Netherlands, covering wage tax, the role of the employer in administering that tax, and the implications for stock options when an employee moves abroad.
Full 5th Circ. Asked To Review Limited Partner Tax Ruling
A Texas-based business consulting firm has asked the full Fifth Circuit bench to reconsider a panel's revised ruling that restricted a tax break for limited partners. The firm argues the decision removed a clear test for determining which partnership members…
City Council Majority Warns Chicago Mayor Brandon Johnson Against Proposing Head Tax Again
A majority of Chicago City Council members have publicly opposed Mayor Brandon Johnson potentially proposing a corporate employee head tax as part of the upcoming 2027 budget.
British Airways Beats £5.8M Tax Bill For Worker Hotel Stays
A UK court has ruled that money British Airways spent on London hotel rooms for cabin crew working back-to-back shifts was not employee income and therefore not subject to nearly £5.8 million in taxes. The court found the expenditure qualified…
IRS Announces New Per Diem Rates For Business Travel
The IRS has released updated per diem rates for business travel, with new high-low rates of $329 and $230 coming into effect on 1 October 2026.
IRS Publishes Per Diem Rates for Business Travelers for 2026-2027
The IRS has published its annual per diem rates for business travellers, which taxpayers can use to substantiate expenses for lodging, meals and incidental costs when travelling away from home.
IRS raises per diem rates for business travel effective Oct. 1
The IRS has announced increased per diem rates for business travel, effective October 1, applicable to employees traveling away from home for business purposes. These updated rates, used by employers to reimburse workers for lodging, meals, and incidental expenses, affect…
IRS raises per diem rates for business travel effective Oct. 1
The IRS has announced updated per diem rates for business travel, effective October 1, impacting how employers reimburse employees for lodging, meals, and incidental expenses. These rates, used under the high-low substantiation method and for meal and incidental expense allowances,…
When talent crosses borders: navigating transfer pricing challenges amid increasing workforce mobility
Deloitte's Kevin Norton and Alison Ambrose examine how OECD guidance, remote working and increased scrutiny from tax authorities are reshaping permanent establishment and transfer pricing risks for multinational enterprises, and how those businesses should respond.
Second Circuit Affirms Tax Court’s Judgment in Soroban
The Second Circuit has upheld the Tax Court's judgment in the Soroban case, which concerns the definition of "limited partner" under section 1402(a)(13) of the tax code, known as the limited partner exception. The case is part of ongoing litigation…
Mandatory payrolling of benefits in kind and expenses – interim guidance and legislation
HMRC has published draft interim guidance and legislation to help employers prepare for mandatory real-time reporting of benefits in kind and expenses through payroll software, ahead of changes coming into effect in April 2027.
Annex 3 – additional benefits in kind fields likely to be required on Full Payment Submission returns
HMRC has published information about additional benefits in kind fields that will be required on Full Payment Submission returns.
A Tale of Two Secondments: Search for the Real Employer
Two recent Indian court rulings, from the Delhi ITAT and the Delhi High Court, reached opposite conclusions on the question of who constitutes the real employer of a seconded worker.
National Minimum Wage and employer-provided accommodation: NMW accommodation offset rules (2026-27)
This article outlines the updated National Minimum Wage accommodation offset rules for 2026-27 in the UK, relevant to employers who provide housing to workers. The accommodation offset sets the maximum daily amount employers can charge workers for lodging without it…
Soroban and Sirius: The Battle Over the Limited Partner Exception Reaches a Turning Point
The Soroban and Sirius cases represent a critical juncture in the legal battle over the limited partner exception under self-employment tax rules. The IRS has challenged whether certain limited partners in investment fund partnerships are genuinely exempt from self-employment taxes…
Delhi HC Sets Aside TDS Prosecution Against Petitioner Wrongly Shown as Company Director
The Delhi High Court has quashed a TDS prosecution against a petitioner who was incorrectly identified as a company director in tax records. The court found that initiating criminal proceedings for TDS defaults against an individual who held no actual…
Firm Partners Can't Get Employment Tax Break, 2nd Circ. Says
The Second Circuit Court of Appeals has ruled that partners at law firms and other partnerships cannot claim the employment tax exemption available to limited partners under self-employment tax rules. The court determined that active, participating partners who perform services…
Taxability of ESOP Under Income Tax Act: Exercise, Sale & Tax
Employee Stock Ownership Plans (ESOPs) carry a two-stage tax liability under India's Income Tax Act. At the exercise stage, the difference between the fair market value and the exercise price is taxed as a perquisite under salary income, with employers…
11th Circ. Asked To Overturn $184K ACA Employer Penalty
A business is asking the Eleventh Circuit to overturn an $184,000 penalty imposed under the Affordable Care Act's employer mandate provisions. The case centers on whether the IRS correctly assessed the shared responsibility payment against the employer for failing to…
Delta Air Lines, Wells Fargo, and Pivot Bio Are Embracing Trump Savings Accounts for Workers’ Kids
Major employers including Delta Air Lines, Wells Fargo, and Pivot Bio are adopting Trump Accounts—tax-advantaged savings accounts established under recent federal legislation for workers' children. These accounts, seeded with federal contributions, allow families to invest funds for long-term use. The…
South Africa: PAYE Changes for Non-Resident Employers
South Africa's tax authority has introduced changes to the Pay-As-You-Earn (PAYE) regime as it applies to non-resident employers with employees working in South Africa. The updates address withholding and remittance obligations for foreign entities that do not have a registered…
Universities UK: a £6bn lesson in bad tax policy
Universities UK has put forward a proposal regarding National Insurance contributions that highlights flawed tax policy thinking. The piece critiques the organisation's approach to employer NI, arguing it represents a £6 billion lesson in poor tax policy design. The analysis…
Higher Social Security Payroll Taxes No Longer Taboo for GOP
Republican lawmakers are increasingly open to raising Social Security payroll taxes as part of broader efforts to address the program's long-term funding shortfall, marking a significant shift from the party's traditional opposition to tax increases. This development reflects growing bipartisan…
Annex 1 — payrolling examples for different scenarios
HMRC has published draft guidance and worked examples covering the mandatory payrolling of benefits in kind (BIK) in real time, set to take effect from April 2026. Annex 1 illustrates how employers should handle payrolling across various scenarios, including mid-year…
Malaysia Public Ruling Tightens Tax Rules on Employee Secondments
Malaysia's Inland Revenue Board has issued a new Public Ruling tightening the tax treatment of employee secondments, with implications for both employers and seconded employees. The ruling clarifies the income tax obligations arising from cross-border secondment arrangements, including how employment…
Mandatory payrolling of benefits in kind from April 2027
From April 2027, employers in the UK will be required to payroll benefits in kind (BiK) rather than reporting them annually via P11D forms. This mandatory shift means the taxable value of most employee benefits must be processed through payroll…
What The Washington Post Misses About Social Security’s Progressivity
The Tax Foundation critiques a Washington Post analysis of Social Security's progressivity, arguing the piece overlooks key aspects of how Social Security taxes and benefits interact. The article examines the payroll tax structure funding Social Security and how benefit formulas…
Jaipur ITAT Allows Section 201(1) Relief Despite Manual Filing of Form 26A
The Jaipur Income Tax Appellate Tribunal has granted relief under Section 201(1) of the Income Tax Act to a taxpayer despite Form 26A being filed manually rather than through the prescribed online process. The tribunal held that the manual submission…
Social Security And Taxes: What You Pay And What You Get
This article examines the tax dimensions of Social Security in the United States, covering both the payroll taxes workers and employers pay to fund the program and the income tax obligations that may arise when receiving Social Security benefits. It…
ERC Filing Deadlines Raise Tax Adviser Liability Risk
Approaching Employee Retention Credit filing deadlines are creating heightened professional liability risks for tax advisers who assisted clients with ERC claims. With IRS scrutiny of potentially improper ERC claims intensifying and amended return deadlines looming, advisers face exposure if claims…
Outdated W-8 and W-9 forms could cost firms compliance
Outdated W-8 and W-9 tax withholding forms present significant compliance risks for financial firms. W-8 forms, used by foreign entities to certify non-US status and claim treaty benefits, and W-9 forms, used by US persons to provide taxpayer identification, have…
New Case Law Changes the VAT Treatment of Employee Benefits Funded Through Salary Deductions
New case law alters the VAT treatment of employee benefits provided through salary sacrifice or deduction arrangements. The ruling clarifies when such benefits constitute a taxable supply for VAT purposes, changing the analysis of whether input tax recovery is available…
Texas Workers Lose Bid To Halt IRS Wage Withholding Rules
Texas workers have failed in their legal bid to halt IRS wage withholding rules, with a court rejecting their challenge to the federal income tax withholding regime. The plaintiffs argued the IRS rules were unlawful, but the court dismissed their…
W-8 and W-9 best practices and what’s changing
This article covers best practices for W-8 and W-9 forms, which are critical IRS withholding and documentation forms used to establish payee tax status and eligibility for treaty benefits. The piece addresses common compliance challenges practitioners face when collecting, validating,…
IRS: Start Preparing for Transition to New Information Returns Intake System
The IRS is urging filers to begin preparing for the transition to its new Information Returns Intake System (IRIS), which will replace legacy systems for submitting information returns such as 1099s. The agency is advising tax practitioners and businesses to…
Taxing AI: can governments redistribute wealth in automated economy?
As AI and automation reshape labour markets, governments face growing pressure to rethink tax systems designed around human employment. The article examines proposals to tax AI-driven productivity gains—such as robot taxes, broader capital income levies, and corporate surcharges—to fund social…
7th Circ. Nixes IRS Bid For Rehearing Of Hyatt Perks Tax Fight
The Seventh Circuit has denied the IRS's petition for rehearing in a tax dispute involving Hyatt hotel employee perks and their taxability. The court's refusal to rehear the case leaves intact an earlier ruling against the IRS regarding the tax…
Whiplash: The 5th Circuit Rewrites the Limited-Partner Self-Employment Tax Test; Tax Pros Should Check in With Clients
The 5th Circuit Court of Appeals has issued a significant ruling rewriting the test for determining whether limited partners are subject to self-employment tax. The decision creates a new framework that may expose many limited partners—previously exempt—to self-employment tax liability,…
Fifth Circuit Reconsiders Who Counts as a Limited Partner
The Fifth Circuit Court of Appeals is reconsidering the legal definition of who qualifies as a limited partner for self-employment tax purposes. The case has significant implications for partners in limited liability companies and limited partnerships who may or may…
Balochistan govt employees to face Rs500 tax deduction
Balochistan provincial government employees in Pakistan are set to face a Rs500 tax deduction, indicating a new or revised payroll tax measure targeting civil servants in the region. The deduction represents a direct fiscal policy change affecting public sector workers'…