Form 941 For 2012: Employer'S Quarterly Federal Tax Return: Fill & Download for Free

Payroll has long been one of the most outsourced functions in the business world. Titans have been responsible for cutting checks for businesses large and small for years.But as small and medium-sized enterprises have increasingly wrested market share from big corporations, large payroll companies have had to adopt their services to meet the needs of these smaller clients. Simultaneously, technology advances have led to viable payroll software solutions, and vendors have scrambled to meet the needs of SMBs who feel underserved by the payroll behemoths.The result? Today, SMBs have a wide spectrum of payroll options. On the one hand, you have in-house administrators who often employ payroll software to do the job. On the other, you find large, traditional payroll services—and a slew of smaller competitors vying for their piece of the outsourcing pie.Can the big players meet the specialized needs of today's small and midsize businesses? Or is bringing payroll back in-house and using specialized software the best route for SMBs? We break down both options to help you decide whether you should outsource your organization’s payroll or keep it in-house.Time and Money Spent on Internal vs. Outsourced PayrollThe National Small Business Association (NSBA) 2013 Small Business Taxation Survey asked 1,500 small business owners how they handle payroll. Forty percent of them reported outsourcing their payroll function; 60 percent reported handling it internally.As you can see, one in three small businesses report spending more than $500 per month (more than $6,000 per year) on outsourced payroll services.Among those businesses handling payroll internally, nearly one in four report spending more than six hours per month on payroll. That's at least 72 hours per year—nearly two full workweeks. If we use 2012 data from the Bureau of Labor Statistics to assume the hourly cost for internal payroll staff to be $36, these 72 hours translate into $2,592 per year. So the businesses doing it themselves are spending their own man-hours on payroll, while those who outsource believe it's worth paying someone else to do it.More Than Just Cutting ChecksTasks that typically fall to the payroll department include 401(k) and Section 125 mutual fund plans and other automatic paycheck deductions, garnishments and employee benefits. Employers are responsible for withholding federal income tax and other federal, state and local taxes from each employee’s paycheck. Payments and requisite documentation must be submitted according to strict deadlines to avoid fines and penalties. The IRS Form 941 (Employer’s Quarterly Federal Tax Return), for example, must be filed four times per year to report the tax withheld during the quarter. The end of the year requires preparing and distributing W-2s and 1099s.Payroll is is one of the biggest expenses SMBs have. It can also be your company's biggest headache if it isn't done correctly. Whoever is doing your payroll (whether a service provider or a member of your team) must understand the relevant tax laws and regulations, all of which vary considerably from state to state. It can be an administrative headache, and mistakes could mean a phone call—or worse—from the IRS.

When using "wages" to calculate the R&D tax credit, you SHOULD NOT include an employee's fully loaded payroll costs. You should only include an employee’s W2 Wages. Things that you should exclude are Employer Payroll Taxes, Benefits, Overhead per Employee, etc.More info below :)Startup R&D tax credits changed dramatically starting tax year 2016. Traditionally, these tax credits were calculated and saved up against a Corporation’s annual tax forms. For startups that aren’t yet profitable, that meant that they would only benefit from these tax credits once they became profitable in future years.The PATH (Protecting Americans from Tax Hikes) Act of 2015 has changed all of that. Regulators acknowledged that the old R&D tax credits weren’t appetizing to founders if it only promised a potential future benefit that may never be realized. And so the R&D tax credit has been revised to give more instant gratification: R&D tax credits generated in 2016 can be used to offset payroll taxes come mid-2017.In prior years I’ve sometimes told my clients that the cost of performing an R&D tax credit study would outweigh the benefit. Now that you can claim these credits almost immediately and against your payroll taxes, I highly recommend that every eligible startup engage in an R&D Tax Credit payroll offset.Why should I have my startup file for the R&D tax credit payroll offset?***IT SAVES YOU DIRECT $$$ NOW!!!***Up to $250,000 per year for up to 5 years!Am I eligible? Can any startup apply for the R&D tax credit payroll offset? What defines Research & Development?Unfortunately, not every company is eligible. You must be creating something new, and by new I mean pass the IRS’ 4 Part Test. Your R&D must be:Specific: no mindless tinkering allowed. The project must be defined.Eliminate Uncertainty: must be contributing real scientific advancement, not just proving existing knowledge.Experimental: either have a scientific method or trial and error process.Technical: the work must be grounded in the hard sciences like biology or engineering.Are there any R&D activities that don’t qualify?Research after commercial productionAdaptation of existing business componentsDuplication of existing business componentReverse EngineeringSurveys & studiesComputer software for internal useForeign researchResearch in the Social Sciences, Arts, Humanities, etc.Funded researchIs my startup eligible for the R&D tax credit payroll offset?The startup must have qualifying R&D expenses (see definition below).The startup must be new; only startups that have generated revenue for 5 years or less can claim the new tax credit. If you had receipts prior to 2012, then you’re ineligible.The startup must have less than $5 million in revenue in 2016 and each subsequent year that you claim the payroll offset.What qualifies as a R&D Expense? What goes into the calculation?Wages: but only for those people who engage in R&D activities.Subcontractors engaged in R&D: ‘nuff said.Supplies: only include direct supplies that were related to the R&D project and weren’t classified as an asset.Computer Leases/Rentals: we rarely see this…How do I claim the R&D tax credit payroll offset?First file the R&D tax credit on Form 6765 (Credit for Increasing Research Activities) which is a part of your 2016 annual corporate form 1120 (US Corporation Income Tax Return). Then claim your R&D tax credit on payroll tax form 941 (Employer’s Quarterly Federal Tax Return); you’ll need to work with your payroll processor to make this happen. We love working with Gusto, but just about every major payroll processor should be able to help.When should I file the R&D tax credit payroll offset?In early 2017, after you’ve closed out your 2016 books. Work with your CPA on an R&D tax credit study: once you’ve determined what your tax credit will be, add it to your 2016 annual corporate form 1120 and file the return. In the quarter following your 1120 filing, you can start applying those tax credits to your payroll taxes. For example, if you file your Form 1120 by March 15th, the first payroll tax offset you would receive is for Q2 2017.How much will my startup really save by implementing the startup R&D tax credit payroll offset?~10% of eligible R&D costs, up to $250,000 per year, for 5 years.Caveat: this article is intended as general guidance for startups and it doesn’t substitute the need to work with a professional. It’s also a high level overview and is in no way complete. Your company is unique; talk to your CPA.

This is in ALPHABETICAL ORDER. Full article can be found here1. Arang and the Magistrate (2012)Native Title:아랑사또전 Arang sattojeonEpisodes, Network: 20, MBCTime Period: mid 1500’sOverivew: This is a Joseon Dynasty ghost-human romanic drama. While this is a fictional story, it is based on a very old Korean folktale called “The Legend of Arang, the Virgin Ghost” which is one of the most recognizable haunted spirit tales in Korea. The tale of Arang is set during the reign of King Myeongjong (1545-1567) in the Miryang region, Gyeongsangnam-do Province 경상남도 밀양시. There are then several oral versions of the tale but the foundation of the tale is that Arang was the beautiful 19 year old daughter of the local Magistrate. She was lured out by her nanny and brutally killed by an admirer. After her death, she becomes a ghost and appears to every district magistrate. She ultimately comes back in human form and with the help of a noble man, she is finally able to rest in peace. Here’s a closer look at the legendary story of Arang, The Virgin Ghost.2. Ballad of Seo Dong (2005)Native Title: 서동요 Suhdong YoEpisodes, Network: 55, SBSTime Period: approximately 590’s to early 600’sOverview: This is based on a famous Korean legend found in the Samguk Yusa about the young King Mu of Baekju, whose personal name was Sodong. He falls in love with Princess Seonhwa of Silla. He intentionally spreads a sensational rumor about the princess and himself among the people through a song. As a result, King Jinpyeong of Silla banishes her. Read more about her in my article Badass Mamas of the Three Kingdoms Period.3. Bridal Mask (2012)Native Title:각시탈 GaksitalEpisodes, Network: 28, KBS2Time Period: 1930Overview: This drama centers on Lee Kang To who is a smart and ambitious Korean police officer employed by the Japanese colonists. Kang To is on the hunt to catch the person behind The Bridal Mask. The Bridal Mask appears as a Zorro-like figure who protects the Korean people from the Japanese colonists’ oppression and abuse of power. While this is a completely fictional story, it is a very interesting look at the real social dynamics which existed during one of the darkest periods in Korean history.[1][2]4. Empress Ki (2014)Native Title: 기황후 Ki HwanghuEpisodes, Network: 51, MBCTime Period: 1300’sOverview: There was a real empress in China known as Empress Qi who was from Goryeo. She was married to Toghon Temür, the Khan of the Yuan Dynasty (Mongols). This drama sparked a huge controversy because there was no such king as Wang Yoo of Goryeo. He was a completely fictional character because the real king of Goryeo at that time, King Chunghye 충혜왕 was a psychopath and is considered to be one of the worst kings in Korean history. With that being said, Empress Ki, the drama, was SOOOO good! I LOVED IT!!5. Faith (2012)Native Title: 신의 Shin EuiEpisodes, Network: 24, SBSTime Period: mid 1300’sOverview: This is a fictional time travel love story between the real life historical Goryeo warrior, Choi Young and a fictional female doctor from 2012. I personally thought the time travel thing would be way over the top and take away from the story, but it didn’t. Minus the time travel to 2012, the story takes place in 1351, when the 31st King of Goryeo, King Gongmin 공민왕 begins his reign.6. Jang Ok Jung, Live In Love (2013)Native Title: 장옥정, 사랑에 살다 Jang Ok Jung, Sarange SaldaEpisodes, Network: 24, SBSTime Period: late 1600’sOverview: This drama is based on the book written by Choi Jungmi. It is a complete reinterpretation of one of Korea’s best known royal concubines of the Joseon Dynasty, Lady Jang Hee Bin, known for her ruthless scheming and lust for power. Her personal name was Jang Ok Jung (1659 -1701) and she was the Royal Noble Concort (concubine of the 1st rank) of King Sukjong (r. 1674 – 1720). The drama has Jang Ok Jung as the daughter of a slave who becomes one of Joseon’s top fashion designers. This drama left me sobbing like a baby! Even though it’s been awhile since I’ve seen it, I’m still moved just thinking about it. At a later date I will write a more in depth article about the historical elements of this drama.7. JeJoongwon (2010)Native Title:제중원Episodes, Network: 36, SBSTime Period: 1884 – approx 1915Overview: For whatever reason, this didn’t become a popular as some of the other sageuks. What makes this historical drama unique from the others we’ve all seen is because in the course of this drama, you can see the transformation of Korea and the influences of the West; where the clothing goes from Hanboks to Yangboks (Western Suits). This drama moved me so much that I wrote a 2 part article. JeJoongwon Part 1, JeJoongwon Part 28. Jumong (2006)Native Title:주몽Episodes, Network: 82, MBCTime Period: 108 BC – 19 BCOverview: This story is about Jumong and how he became the founder of Goguryeo in 37 BC. Goguryeo was one of the ancient Three Kingdoms of Korea which lasted for over 700 years. For those interested in Korean history, this drama comes first in chronological order of Korean history. This drama was a global sensation and a ratings blockbuster all over the world and universally on any “must watch” list. Read more on my Jumong page.9. The King’s Daughter, Su Baek Hyang (2014)Native Title:제왕의 딸, 수백향 Jewangui Dal, Su Baek HyangEpisodes, Network: 108, MBC (35 minutes)Time Period: late 400’s to early 500’sOverview: This drama is unusual in the sense that it is only 35 minutes long rather than the standard hour. It was also originally slated as a 100 episodes, but due to the huge popularity, the writers added an additional 8 episodes. This drama had it all – romance, action, suspense, comedy – there’s something for everyone. The title character, Su Baek-hyang, was born as the love child between the daughter of a traitor and the man who would be crowned as King Muryeong, the 25th king of Baekje. She is unable to receive her title of princess due to her greedy and ambitious younger sister. For a closer look, visit my Su Baek Hyang page.10. Moon Lovers: Scarlet Heart Ryeo (2016)Native Title: Hangul: 달의 연인 – 보보경심 려 dal-ae yeon-in – bobo kyung shim ryeoEpisodes, Network: 20, SBSTime Period: 941Overview: Although there were a lot of new sageuks during 2015 and 2016, this was the best drama I have seen in the past couple of years! This drama is about a modern Korean woman who is transported back to the early part of Goryeo dynasty during the reign of King Taejo, the founder of Goryeo. She finds herself thrown in the middle of power struggle between King Taejo’s many sons. While other time travel dramas take place mostly in the modern era, about 90% of this drama takes place during Goryeo. One of the central characters of the drama is Wang So, the 4th Prince and future King Gwangjong of Goryeo. You can read more about King Gwangjong on this site.11. Queen Seon Duk (2009)Native Title: 선덕여왕 (善德女王) Seondeok YeowangEpisodes, Network: 62, MBCTime Period: early 600’sOverview: Highly fictionalized interpretation of the real life Deokman, who eventually becomes Queen Seon Duk, the first female queen of the Silla Dynasty, one of the three ancient kingdoms of Korea. She reigned from 632 – 647. While the story itself is a fictionalized interpretation, many of the people and leading characters were real. This is the drama that started it all for me! Read more about her in my Badass Mammas of The Three Kingdoms Period Page.Honorable Mention:Because there are so many great Korean Historical Dramas out there, I feel these dramas also deserve to be at least on an honorable mention list. Again, these too are in alphabetical order.12. Ja Myung Go (2009)Native Title:왕녀 자명고 Wahnyu Ja-myung-goEpisodes, Network: 39 SBSTime Period: approx 30 ADOverview: This drama is loosely based on a 2000 year old Korean folk tale about the dashing and charming Prince Hodong of Gorguryeo and the Princess of Nakrang Kingdom. This story was documented in the 1000 year old text, Samguk Sagi. This tale is about nations, war, love, betrayal, and death. More about the legend can be found on the Legend of Prince Hodong and Princess Nangnang page.13. The Fugitive of Joseon(aka: Heaven’s Order / aka: Mandate of Heaven)Native Title: 천명 (天命)Episodes, Network: 20, KBSTime Period: 1540’sOverview: “The Fugitive of Joseon” (천명). It is also called “Mandate of Heaven,” which is more closer to the Korean title. Set during the end of of King JungJong’s (중종왕) reign (506–1544) through the beginning of King Injong’s (인종왕) reign. This drama tells the story of a royal physician desperate to cure his ailing daughter. He becomes a fugitive when he gets entangled in an assassination plot to poison the crown prince. He fights to save both his daughter’s life and his own. This drama kept me at the edge of my seat. The addiction factor was huge for this drama, I was able to bang this one within only a week!14. Hwang Jin Yi (2006)Native Title:황진이 (黃眞伊) Hwang jiniEpisodes, Network: 24, KBS2Time Period: early to mid 1500’sOverview: This story is about the life of Joseon-era dancer, musician and poet, Hwang Jin Yi. She sought perfection in her art, despite hardships facing women due to their lowly social status. For those wanting to learn more about this amazing woman, please visit my page on Hwang Jin Yi. If you love Korean traditional dresses, hanboks, this drama has one of the best displays of hanboks of any drama.15. Moon Embracing the Sun (2012)Native Title: 해를 품은 달 Haereul Poomeun DalEpisodes, Network: 20, MBCTime Period: JoseonOverview: This is a completely fictional story about a secret love between Lee Hwon, the king of Joseon, and Wol, a female shaman. This drama became an international sensation and ratings blockbuster.16. The Three Musketeers (2014)Native Title:삼총사 Sam Chong SaEpisodes, Network: 12, TvNTime Period: 1620’sOverview: With only 12 episodes, The Three Musketeers is on the short side when it comes to historical dramas. This is a fusion K-Historical drama that follows the Crown Prince Sohyeon (소현세자) his warriors Heo Seung-Po and An Min-Seo and a guy named Park Dal-Hyang who is preparing for his military examination. The main story takes place 4 years into the reign of King Injo (r. 1623–1649). This was originally intended to be 4 seasons long, but due to ratings, it only lasted one season. The show aired on TvN, which is a paid cable network, so I’m not sure if that also affected ratings. It’s too bad, because it was very entertaining. If you are looking for a good light-hearted sageuk, I would recommend this one.17. The Princess’ Man (2011)Native Title:공주의 남자 Gongjooeui NamjaEpisodes, Network: 24, KBS2Time Period: mid 1400’sOverview: It’s a Joseon dynasty version of “Romeo and Juliet.” A tragic love story between the daughter of Prince Suyang and son of Kim Jong Seo. They fall in love instantly but later they find out that their parents are sworn enemies.Footnotes[1] Best Dramas: Remembering The March 1st Movement[2] Best Dramas: Remembering The March 1st Movement