Owner & Corporate Officer Flags
We're thrilled to unveil a significant update that helps you easily identify "Owners" and "Corporate Officers" within your employee roster! This crucial update empowers payroll admins like you to designate whether an employee is an owner or officer, ensuring accurate tax calculations, reporting, and overall compliance.
Here's a peek at what's new:
- New Employee Tax Types! "Owner" and "Corporate Officer" have been added to your Employee Tax Type dropdown. You can assign these during the new hire process, when updating job info, or even when importing and reviewing job data.
- Clearer Options! We've updated the first option in the list from "W-2" to "Standard" and added sub-text to show if an employee is a W-2 or 1099 worker.
- Smart Selections! If you choose "full-time" employment status, the W-2 sub-text will appear for the Employee Tax Type dropdown. If "Independent Contractor" is selected, the Tax Type will automatically be "1099 Contractor". And don't worry, if you pick an incompatible pairing (like "full time" and "1099"), we'll suggest a more appropriate match with an in-app message!
Important to note: Identifying an employee as an owner or corporate officer doesn't automatically change tax calculations or withholdings. When selecting these tax types, you'll see a banner guiding you to use the exemption checkboxes on the owner/officer’s Pay Info tab to manage tax calculations.
What this means for you:
- Existing Customers: We won't automatically assign these roles to any current employees. You can update an employee's tax type if needed, but it's not required for existing profiles.
- New Customers: These options will be ready and waiting for you during the employee setup process!
We're always working to make your HR life easier and more compliant. We hope these new flags bring you peace of mind and even more efficiency!
As always, we love your feedback! To provide product feedback on this feature and more, head over to our product feedback page and let us know how we’re doing.