Payroll

April showers and Form 941: Wow, it must be spring!

04/03/2012

April is the cruelest month not because it rains buckets, but because it’s time to file your first-quarter Form 941, Employer’s Quarterly Federal Tax Return. Here’s help for Payroll:

CPA’s claim crashes, owes body shop’s payroll taxes

04/02/2012

A federal trial court has ruled that an auto body shop’s inside CPA/controller was personally responsible for 100% of its unpaid payroll taxes. It was enough, the court said, that the CPA had some authority over the company’s finances; exclusive authority wasn’t necessary.

2012 State Direct Deposit/Paycard Laws

04/01/2012

State laws usually require that employee participation in direct deposit or paycard programs must be voluntary. States may also allow paycard vendors to charge employees fees, beginning with the second transaction. This chart summarizes the states’ direct deposit/paycard rules. “Mandatory” means that a state allows you to make e-payment a condition of employment, if you choose. States that don’t have laws aren’t included. In all cases, contact your state labor department for the full story.

Form 941-M filers off the hook, but other sanctions may apply

04/01/2012

The IRS has retired Form 941-M, which is filed monthly by employers with serious payroll compliance problems. Also retired are the special deposit rules, which required deposits to be made into a special trust fund account within two banking days of payday.

Rocky Mount company faces huge pay lawsuit in California

03/23/2012

Rocky Mount-based Premier Warehousing Ventures is being sued over pay practices at its former facility in Jurupa Valley, Calif. Premier no longer operates the facility, but current and former employees have filed a lawsuit alleging wage-and-hour violations dating back to 2003.

Court shows the door to tax-protesting employee

03/19/2012

A federal appeals court has ruled that an employee-tax protester can’t sue his employer and individual employees for withholding taxes. The court also rejected the employee’s Title VII claim that he was unlawfully terminated for complaining about the withholding.

Online options for child-support withholding

03/15/2012

To speed the processing of child support withholding orders, the federal Office of Child Support Enforcement is encouraging employers to sign up for its electronic Income Withholding Order, or e-IWO. Currently, 23 states use e-IWOs.

Federal agencies offer potpourri of new benefits rules

03/15/2012

Here are digests of recent benefits rulings that will affect your Payroll operations: 1. Payroll off the hook for CLASS Act withholding. 2. Compliance with summary of benefits and coverage rules postponed. 3. HRA reporting under the Medicare-as-secondary-payer rule.

What if we can’t set up direct deposit fast enough to deliver final paycheck in time?

03/14/2012

Q. A recently terminated employee demanded immediate payment of his wages and asked us to directly deposit the check into his bank account. I know that Minnesota law requires us to pay the wages through the employee’s last day of employment within 24 hours of his demand. While this employee was normally paid through direct deposit, we cannot coordinate a direct deposit within 24 hours. Can we just send the employee a check by mail?

State laws on vacation pay after termination

03/13/2012

Whether accrued vacation pay is due to an employee upon termination is determined by state law. This chart summarizes state vacation pay laws. Some states have no laws on this issue, which means that company policy should prevail.