Workers' compensation is a system that provides benefits to both employers and employees if injury or illness occurs as a result of the job. These benefits can include medical care, lost wages, and vocational rehabilitation. Workers' compensation is designed to help injured workers get back on their feet and return to work as soon as possible.

The trend of having employees work remotely was already on the rise before the COVID-19 pandemic. However, the pandemic accelerated this trend, and now many workers prefer to work from home. As more and more employees work from home, employers need to understand the implications of this shift for payroll tax and labor regulations.

Labor costs are one of the biggest overall expenses for any business, but especially for small businesses. According to the U.S. Small Business Administration, labor costs can account for up to 50% of a company's operating expenses. Payroll taxes are a necessary expense for any business with employees which is why it is essential for your business to budget for labor costs and payroll taxes accurately.

Before you leap…

Determine the Correct Worker Classification

Think about whether it’s appropriate to hire an employee or an independent contractor. Consider how much control you

want to have over the method and means by which the work is performed. Become familiar with how federal and state

agencies define employees versus independent contractors. Choose carefully since mis-classification can result in …

Employees expect to have at least some paid holidays to look forward to, even though there are no federal holiday laws that say you have to give employees the day off for federal or state holidays. As an employer, have you figured out how you're going to handle them?

Minimize your tax bill with some smart planning that will leave more money in your pocket come April 15.