This Week in Payroll: April 08, 2022
Today's post covers:
US Payroll News about recent delays to Small Business Tax Credits
Albanian Payroll News surrounding recent tax and monthly salary changes
Netherlands Payroll News covering recent criticism around wide-spread overlooking of pseudo-self-employment by the nation's audit office
United States Payroll
IRS Backlog delays small business tax credits
Backlogs with IRS have many small businesses seeing 6-10 month delays in the processing of their ERTC - a stimulus that has been vital to helping US businesses remain open despite decreased revenue during the COVID-19 Pandemic. The IRS has been backlogged since tax filing for 2020 due to high numbers of individuals claiming stimulus credits and other special credits, and a high need to scan for fraudulent claims.
IRS Commissioner, Charles Rettig said the IRS feels confident that they will have the issues with backlog corrected by December of this year, with full certainty that 2023 will be a return to normal.
New Monthly Salary Minimums and Tax Rules expedited
New rules around taxes and Monthly minimum salaries in Albania have come into effect this month. These rules were due to come into effect this coming July - but the current state of the Albanian economy has expedited the new terms.
Additionally, the following tax rules came into effect April 1, 2022:
Salaries up to ALL 40,000 will not be taxable for income tax.
For salaries between ALL 40,001 and ALL 50,000 the income tax rate shall be 6.5% for the amount over ALL 30,000.
For salaries over ALL 50,000 the income tax rate will be 13% for the amount over ALL 30,000 up to 200,000 ALL.
For salaries over ALL 200,000 the applicable income tax rate will be 23% for the amount over ALL 200,000 and ALL 22,100.
Audit office demands action to identify instances of Pseudo-self-employment
There have been claims that companies and Freelancers are largely overlooked by tax offices when it comes to pseudo-self-employment. Attempts to improve the gap in taxes paid by freelance workers in comparison to employed persons have not become something formally enforced by the tax officials
The national audit office is not impressed and demands there needs to be some enforcement of regulations put in place to make sure that freelance and contracted persons are paying their fair share when pulling income.