Payroll

1 employee, 2 employers and health benefits: How many W-2s?

11/23/2012

Question: How do we report an employee’s health benefits if he transferred between two divisions of the same company, and each division has its own Employer Identification Number? Must each division report separately, or can we combine this information and report it on one W-2?

Holiday bonuses: When it’s OK to pass the buck

11/19/2012

Commercials for holiday gifts have been running on TV since at least Halloween. So naturally, employees are making their lists and checking them twice. Perhaps they’re counting on a holiday bonus to pay for it all. If holiday bonuses are in your future, be sure to cover these bases.

IRS faces tough choices for 2013 withholding tables

11/16/2012

Next year is shaping up to be complicated for the IRS. The question: Should the IRS issue the withholding tables based on what the law says is supposed to happen on Jan. 1—the expiration of most income tax rates—or keep the rates the same, and assume that Congress will come to some agreement about the rate structure?

Cause for Thanksgiving: You control Payroll destiny

11/15/2012

As you’re feasting on your Thanksgiving dinner this year, don’t let year-end responsibilities eat you up. You can ease year-end Payroll concerns by ticking off some key tasks now.

New York loosens limits on payroll deductions

11/11/2012

The New York General Assembly has amended Section 193 of the New York Labor Law to allow employers to make payroll deductions for a wider variety of items. The amendment lets employers deduct the cost of an array of employee benefits previously barred by the state code.

State-by-State Chart on 2012 W-2 Mag Media/E-Filing Requirements

11/09/2012

States have their own W-2 e-filing thresholds and specifications. Note: To date, some states haven’t released their W-2 e-filing information. In addition, states can change their e-filing requirements at any time. To get the full story, contact your state tax department.

Court shoots down S corp’s low salary/high dividend ploy

11/09/2012

An S corp couldn’t get away with paying its sole shareholder-employee $24,000 a year in FICA-taxable salary, while also paying him large FICA-free dividends. According to a recent federal appeals court ruling, such an arrangement isn’t reasonable.

IRS asks court to rehear U.S. v. Quality Stores

11/06/2012

The IRS has asked the 6th Circuit Court of Appeals to rehear U.S. v. Quality Stores, Inc., a case that addresses the question of whether severance pay is FICA taxable.

Holiday pay, work and hiring: The key rules you must follow

11/02/2012

The Fair Labor Standards Act and the IRS can throw kinks into your holiday plans. Watch out for these lumps of coal: four rules on holiday pay, two rules for holiday work, requirements for holiday hiring.

How should we report excess group-term life insurance for bankrupt company?

11/01/2012

Question: One of our affiliated companies filed for bankruptcy protection. As a result, the company’s assets were frozen and everyone was let go. Unfortunately, Payroll didn’t impute the excess group-term life insurance into employees’ income. Must we still report the excess group-term life as income on employees’ W-2s?