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Compensation & Benefits

Regs clarify ‘risk’ for taxing noncash compensation

05/05/2014
Under tax code Section 83, you don’t tax employees who receive company stock, stock options or other property that is subject to a substantial risk of forfeiture until the risk lapses and the property vests. Final regulations issued in February, which closely follow proposed regs, clarify what counts as a substantial risk of forfeiture.

Is the government moving to address restrictions on employee discussion of wages?

05/01/2014
Q. We heard that the president recently took action on whether employees are permitted to discuss compensation. Are there any new requirements on employers with regard to these kinds of conversations?

Supreme Court rules severance payments taxable

05/01/2014

The U.S. Supreme Court has resolved a split among circuit courts with a late-March ruling that employer severance payments to employees are FICA-taxable as wages. Employers must, therefore, remit their portion of Federal Insurance Contri­­bu­­tions Act (FICA) withholding taxes for those payments.

Never link absences to employee’s disabled relative

05/01/2014
Here’s an easy way to avoid unnecessary litigation: If you are disciplining an employee for missing too much work, don’t tie absences to a disabled relative’s condition. If you do, you may end up losing an association discrimination case.

Don’t try to recoup overpayments in FLSA suit

05/01/2014
Some employers end up overpaying for time worked when, for example, employees continue to draw a paycheck while home on some sort of leave. But if you happen to face an FLSA lawsuit over unpaid overtime, don’t expect the court to let you credit those overpayments when it’s time to compensate unpaid overtime hours.

In Philly, ‘Pete’s Tax’ refund to employees: $8.5 million

04/30/2014
The Philadelphia-based Chickie’s and Pete’s sports bar and restaurant chain has agreed to settle charges it stole tips from employees and failed to pay the federal minimum wage.

Can part-timers be salaried workers?

04/30/2014
Q. Can we pay any of our part-time employees as salaried employees?

For termination day, how much do we pay?

04/30/2014
Q. Our pay period is Sunday through Saturday. A salaried employee is being laid off on Monday. Should she be paid hourly for time worked during that final pay week?  Does that include the unauthorized time she informed her supervisor she worked on Sunday?

May 2014: Employer’s Business Tax Calendar

04/30/2014
This is your monthly guide to critical payroll due dates.

Flex funds can cover summer camp

04/29/2014
Employees who send their kids to day camp can reap a double bonus—their kids will be entertained, and they can defray some or all of those expenses through the company’s dependent care assistance plan, up to the $5,000 annual limit. For kids who aren’t nature lovers, expenses incurred for specialty camps, such as computer camps, count too.