Payroll

May 2013: Employer’s business tax calendar

04/24/2013

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. Semiweekly and monthly deposits are for the deposits of FICA and withheld income taxes due on wages paid during the time periods indicated.

$1 million: The cost of not having enough time clocks

04/24/2013

Do your employees have to wait in line to punch their time clock? Heads up: Long lines of workers punching in and out has cost a California employer more than $1 million.

Workers ignoring our time clock rules: Can we dock their pay?

04/23/2013

Q. Many of our 60 employees fail to correctly clock in or out and it’s creating major payroll issues. I’ve met with employees who are chronic time-clock abusers and placed warnings in their files. Can we dock an employee for failing to clock in or out?

Check no longer in the mail: The case for direct deposit, paycards

04/22/2013

Most employees ditched paper checks in favor of direct deposit decades ago. So your job is done, right? Wrong. Some employees remain wary of direct deposit. How can you eliminate those pesky paper checks once and for all?

Beware payroll ‘phishing’ schemes

04/19/2013

Federal law enforcement authorities urge employers that outsource payroll operations to be on the alert for phony emails from third-party providers.

Better late than never: Refunds of ‘excess’ transit benefits

04/19/2013

Tax season just came to a close for most taxpayers. Exception: A late-season update to the IRS’ website informs employees who had more than $125 a month withheld for qualified mass transit benefits during 2012 on how to claim a refund for their excess income and FICA taxes.

2013 State Direct Deposit/Paycard Laws

04/11/2013

State laws usually require that employees voluntarily participate in direct deposit or paycard programs. States may also allow paycard vendors to charge employees fees, beginning with the second transaction. Here’s a chart that summarizes the states’ direct deposit/paycard rules.

Withholding on bonuses: Who chooses the method

04/11/2013

Q: An employee who’s in line for a quarterly bonus has presented Payroll with a form that requires us to treat the bonus as regular wages and withhold accordingly. It’s our policy to use the 25% flat withholding method on all supplemental pay. We’ve never seen a form like this before. Must we honor it?

Phishers use third-party providers as bait

04/09/2013

Employers that outsource their payrolls to third-party payroll providers have reported receiving phony emails referring to “Password Change Notification” or “First Notice—Digital Certificate Expiration.” It’s a scam.

Setting limits on voluntary withholding

04/04/2013

Q. A contractor would like us to voluntarily withhold her federal income taxes. Accounts Payable isn’t equipped to do this, so it’s fallen to Payroll. Having her complete a W-4 form seems inappropriate, since she’s not an employee. Can we honor her request?