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The Salary Tax

Most of you have salary personnel. Most of you do not know that that the State defines salary workers as 40 hours a week. Otherwise, you will be penalized if these folks do not work a full 40 hours. Case in point is a client who has a part time bookkeeper working at 20 hours a week. When audited, the company had to cough up the workers’ compensation taxes on the other 20 hours plus 20% penalty.

The workers’ compensation regulation is simple: pay 40 hours in premiums or you will pay 520 hours in each quarter (2080 for a year) premium total. Wait, don’t forget the other penalty: Recordkeeping. This penalty is added onto the other one at $250 per quarter (or $1000 per year) “for each offense”.

Now if you did not know about this salary reporting rule, you better find out or call us at Liberty Bay Consultants, LLC in Seattle at 425.956.3677. PS There is a whole lot more to this recordkeeping reporting than you know. That is why we developed a family of compliant cloud applications for you to use to keep out of trouble: www.WKRComp.com. Take a look.

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