Payroll

Honest! You don’t have to sweat a tax audit anymore

08/29/2012

Ignoring the IRS won’t make a tax audit go away, advises a senior policy analyst at the IRS. In fact, the opposite is true—ignoring a notification of a payroll audit means that you give up your chance to tell your side of the story and set the record straight.

Payroll records: Know exempt, nonexempt timekeeping requirements

08/28/2012

Employers subject to the Fair Labor Standards Act must keep records for both nonexempt and exempt employees. The regulations don’t say which types of record-keeping or timekeeping methods you should use, but they do specify the necessary data you need to maintain on all employees. Here’s the guidance you need to stay in compliance.

Balance due on your 2011 Form 940? Maybe not

08/27/2012

Credit-reduction states are listed on Schedule A of the 2011 Form 940. If you do business in one of those 20 states, and you receive a balance-due notice from the IRS, don’t despair.

Prepare now for the ‘fiscal cliff’ that looms Jan. 1

08/27/2012

Unless Congress acts soon, the end of this year will see the expiration of an unprecedented number of tax provisions. That could cause havoc with your Payroll operations, as the IRS will be forced to delay issuing the 2013 tax tables and, critically, the 2013 withholding tables.

Reminder: Give employees summary of benefits/coverage

08/21/2012

Now that the Supreme Court has upheld the legality of the Affordable Care Act, your first responsibility under the law is to ensure that for open enrollment periods beginning Sept. 23 employees receive a summary of benefits and coverage (SBC) and a glossary that defines basic health benefit terms.

Can we charge a fee for paper paychecks?

08/20/2012

Q. We require direct deposit of employee paychecks. We have one employee who hasn’t set up an account despite frequent requests. We have to mail his check from headquarters, sometimes via courier. Can we charge him a fee?

Fired sales rep did not return our iPad! Can we deduct its value from his last check?

08/13/2012

Q. We recently fired a veteran sales representative on short notice. He still has a new iPad that we purchased to help make sales presentations. We have repeatedly asked him to return the iPad, but he is ignoring our requests. Can we now just deduct the cost from his last paycheck?

To B or not to B: Tips for handling B Notices

08/06/2012

It’s no secret that a large contributor to the tax gap—the difference between the taxes that are paid and the taxes that are owed—are independent contractors who don’t have taxes withheld from their payments. B Notices, properly called CP 2100/2100A notices, which require payers to backup withhold, are a key tax collection tool.

Clear the decks now for year-end Payroll processes

08/03/2012

As the hot, sticky air of summer clears out, now is the time for you and your employees to do some clearing out of your own. The payoff: A smoother year-end Payroll process.

Should we withhold child support from payments to contractor?

08/02/2012

Question: Our company contracts with an employee who quit and started his own business. We know he had a child support withholding order in place and that the order remains in effect. Must we continue to withhold child support?