Payroll

Managing termination pay: Beware trouble ahead

08/21/2013

What goes into a final paycheck, and when that check must be given to a terminating employee, is strictly a state issue. Here are the final-pay rules.

401(k) excess deferral project reveals payroll errors

08/19/2013

The results of the IRS’ 401(k) Excess Deferral Project are in, and they reveal a high failure rate for pretax contribution amounts that were reported on employees’ Forms W-2. The finding: 75% of employers needed to correct their W-2s.

Final IRS regs help combat growing problem of EIN theft

08/15/2013

Employer Identification Number theft is the poor stepchild to Social Security number theft—but it’s a growing problem. If it happens to you, EIN theft will cost time and money as you unravel the complications with the IRS. Final regulations begin to take aim at the problem.

ACA’s employer mandate postponed one year, until 2015

08/14/2013

The IRS has postponed until 2015 the Affordable Care Act’s mandate for large employers to provide health insurance to full-time employees or pay a free-rider penalty. Not postponed: The Oct. 1, 2013, opening of the individual exchanges and the small business exchanges, or SHOPs. Also not postponed: W-2 reporting of employees’ health benefits. Crucial: You also need to provide the exchange notices to all employees by Oct. 1

State-by-State Chart on Final-Pay Laws

08/14/2013

This chart summarizes the states’ final-pay laws. States without laws have been omitted.

How can we avoid W-2 glitches?

08/12/2013

Question: On last year’s W-2s, Accuwage flagged a Social Security number (SSN) beginning with a nine. We called the Social Security Administration (SSA) and were advised to enter nine zeros for this SSN. We later learned that the SSN was an Individual Taxpayer Identification Number (ITIN). Should we have reported the nine zeros or the ITIN, even though the W-2 instructions say not to accept an ITIN from an employee?

What’s next after child support withholding obligation is fulfilled?

08/09/2013

Question: An employee said he fulfilled his child support obligation. The state faxed us corroborating information, but not on the federal Income Withholding Order (IWO), so withholding continues. Must states use the IWO to inform employers to stop withholding?

What are the rules for compensating nonexempts for overnight travel?

08/07/2013

Q. Several of our employees will be required to travel to another state for a seminar. What’s the rule for compensating nonexempt employees who take overnight business trips?

What’s the right way to record work shifts?

08/01/2013

Q: How do we record this work shift: Our workweek begins and ends at midnight on Sunday. An employee works eight hours Monday-Friday, 9:00 a.m. to 5:00 p.m., for 40 hours, and then works an additional shift from 6:00 p.m. Saturday to 3:00 a.m. on Sunday?

August 2013: Employer’s business tax calendar

07/26/2013

NOTE: Saturdays, Sundays and legal holidays as observed in the District of Columbia are taken into account to determine due dates. Under the federal deposit rules, you’re allowed a deposit shortfall of the greater of $100 or 2% of your tax liability.