Payroll

Records trump ‘knowledge’ of co-workers’ hours

04/03/2013

Here’s some good news: If you have complete and accurate time records, an employee’s claims that he just “knows” what hours others work isn’t going to be enough to keep a lawsuit moving.

IRS stresses enforcement at APA’s Washington summit

04/01/2013

Enforcement. That was the word from John Tuzynski, the IRS’ chief of employment tax policy, when he spoke at the American Payroll Association’s mid-year Capital summit, held in Washington, D.C., March 10-14.

The price of having too few time clocks: $1 million

03/29/2013

Long lines of employees punching in and out has cost a California employer more than $1 million in fines. The problem: Quetico Manufacturing had only three time clocks to handle 865 workers. The delays cheated employees out of overtime pay.

Responsible persons’ lifeline: Express installment agreements

03/28/2013

Undeposited payroll taxes can pile up so quickly that the IRS has a name for them—pyramiding. It also has a very effective solution: personally charging a company’s responsible persons with 100% of the undeposited taxes. Relief: an express installment agreement.

IRS loosens criteria for VCSP eligibility

03/26/2013

The IRS has made several permanent and temporary changes to its Voluntary Classification Settlement Program. Under VCSP, you can voluntarily reclassify independent contractors as employees for future tax periods on favorable tax terms. You’ll be liable for just over 10% of the wages paid to those reclassified workers for the past year; no penalties or interest will be due.

April 2013: Employer’s business tax calendar

03/24/2013

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.

In Chino, having too few time clocks costs $1 million

03/20/2013

The California Division of Labor Standards Enforcement has slapped citations worth more than $1 million on a warehouse company in Chino, alleging that 865 employees were cheated out of overtime pay they had earned, and didn’t get required 30-minute meal breaks.

It might as well be spring!

03/20/2013

Weather-wise, it’s hard to say exactly when spring arrives. What’s not subject to debate is the fact that your first-quarter 941 form is due shortly. Here’s help.

Health benefit safe harbors put Payroll in the driver’s seat

03/18/2013

The Affordable Care Act requires employers of 50 or more full-time employees to offer them affordable health benefits—or pay free-rider penalties. Benefits are affordable if employees’ contributions don’t exceed 9.5% of their household income and employers pay at least 60%. The IRS has created three optional affordability safe harbors.

Can we refund employee’s pretax contribution for transit pass?

03/14/2013

Q: An employee had pretax deductions made from her pay for mass transit passes. She terminated in the middle of January with a balance in her account, which she now wants refunded. Can we do this? If we can, how do we tax the refund?