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Compensation & Benefits

S corps lose again on reasonable FICA-taxable pay

02/03/2014
In Watson v. U.S., an appellate court ruled that the IRS can recharacterize FICA-free distributions from S corps to their owners as FICA-taxable compensation, and allowed the IRS to set the parameters for determining that reasonable FICA-taxable salary. And so far it’s nailed S corps and their owners 100% of the time. Two recent cases illustrate.

How to keep staff happy & healthy: Free food!

01/31/2014
Feeding employees is a fast-growing perk that can benefit staff and employer alike. Organizations of all sizes find that even occasional meals or simple snacks can reap many benefits. If you’re considering offering meals as an employee benefit, follow these guidelines.

Final regs clarify the 0.9% additional Medicare tax

01/29/2014
You’ve been withholding and reporting the 0.9% additional Medicare tax for a year now. Good news: With the exception of clarifying the procedure you use to request relief from paying any additional tax if employees paid the tax with their 1040 forms, final regulations make no changes to the proposed regs.

Pay up promptly when offering severance

01/28/2014
Sometimes, it’s clear from the moment that you decide to terminate an em­­ployee that she will sue. If that’s the case, a small severance payment may prevent litigation. But if you offer to settle, make sure you follow through promptly.

ACA individual mandate could cost employers more

01/28/2014
Many employers anticipate spending more on health benefits this year as employees who previously declined insurance sign up in order to comply with the Affordable Care Act’s individual mandate.

Is time that an employee spends on-call compensable?

01/28/2014
Q: An employee carries a company-issued smartphone so he can respond to emergencies over the weekend. He can usually resolve an issue with a phone call. How should we pay him—for the time he’s responding to an emergency or for all the time he has the phone?

2014 standard mileage rate decreases .5¢, to 56¢ per mile

01/27/2014
Reflecting a drop in gas prices, the IRS’ standard mileage rate—which you may use to reimburse employees who drive their own cars on business—drops to 56¢ a mile for 2014, down from 56.5¢.

Wellness Programs

01/27/2014

HR Law 101: Since the 1980s, many employers have adopted the holistic approach to their employees’ well-being. They’ve begun sponsoring activities that encourage workers to improve their health. They see the payoff in higher productivity and lower health care costs …

FLSA: Overtime and Base-Rate Pay

01/25/2014

HR Law 101: Employers must pay overtime to nonexempt employees who work more than 40 hours in a single workweek. The overtime rate is one and a half times an employee’s hourly rate. If an employee earns a fixed hourly rate with no other compensation, computing the base rate is easy. But in many cases, it’s not so simple …

Does workers’ comp cover injuries an employee suffers at a work-related social event?

01/24/2014
Q. Is an employee who injures himself at a ­company-sponsored picnic eligible for workers’ ­compensation?