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Compensation & Benefits

401(k) plans will open to more long-term part-timers

10/25/2023
Both SECURE 1.0 and SECURE 2.0 revise the conditions under which long-term part-time employees must be allowed to participate in your 401(k) plan. SECURE 1.0’s amendments are effective with the 2024 plan year, which means these employees will soon be eligible to participate in your plan. You need to count these employees’ service hours and reach out to them now.

In the Payroll Mailbag: November ’23

10/25/2023
Same employee, new SSN: Is this OK? … Are gift baskets taxable?

Negligent employer liable for 2 years of back pay, not 3

10/25/2023
The Fair Labor Standards Act has two measures of liability: Pay two years of back pay if your failure to pay minimum wages or overtime wasn’t willful, or three years if it was. A mistaken failure to pay overtime due to negligence isn’t the same thing as willfully failing to pay employees, so an employer’s liability for back pay was limited to two years, a federal appeals court explained.

ERC fraud pushes IRS to halt Form 941-X processing

10/25/2023
The IRS has a moratorium through at least the end of the year on processing all 941-X forms on which the ERC is claimed, and a processing delay of 180 days for forms already in the pipeline as of Sept. 14, the day the moratorium began. The IRS has also taken other steps to stanch ERC fraud.

Avoid tax trap built into holiday gift cards for employees

10/23/2023
In today’s inflationary economy, employees will probably be thrilled to receive gift cards redeemable for merchandise or—even better!—gasoline. Who wouldn’t like 25 or 50 extra bucks during the holidays? However, employees’ excitement may dim when they realize the value of those gift cards counts as taxable income. That’s because giving gift cards to employees is the plastic equivalent of giving them cash—and cash is always taxable.

Benefits: Employers target health-care costs, mental health as they look toward 2024

10/23/2023
More than six out of 10 employers responding to a new Willis Towers Watson survey agree about their primary concerns as they anticipate managing health benefits in 2024.

Brace for higher health-care costs in 2024

10/23/2023
What accounts for the predicted increases? One factor may be Food and Drug Administration approval of several blockbuster drugs officially meant to treat diabetes but used off-label to help patients lose weight.

IRS releases details on how to withdraw ERC claims

10/19/2023
The IRS has kept its promise to provide relief to employers that filed Forms 941-X to claim the pandemic-era employee retention credit for which they aren’t eligible. The guidance is aimed at employers with claims pending as of Sept. 14, the day the IRS imposed a moratorium on processing Forms 941-X on which the credit is claimed, but who haven’t yet received their ERCs.

To pay or not? Rest periods versus meal periods

10/19/2023
Do you know the difference between a rest period and a meal period? It’s an important distinction because one does not count as working time, while the other does.

Court shoots down one objection to the new OT rule

10/19/2023
Robert owns 14 fast-food restaurants in Texas, all employing managers classified as exempt. That means he must pay them a salary that meets the minimum salary level set when the Department of Labor last updated the overtime rules: $684 per week.