Payroll

We didn’t withhold! How do we fix it?

02/19/2012

Q. A new employee was mistakenly paid through Accounts Payable for January, so no federal or state taxes were withheld from his pay. It’s still early in the year, so we’d like to take out the taxes that should have been withheld from later wage payments. But we don’t want to leave him with no net pay. According to our calculations, it should take us two months to withhold the additional taxes. Is this OK?

Can Native Americans refuse to provide an SSN?

02/09/2012

Q. A new hire is refusing to provide his Social Security number because he does not want taxes withheld from his paycheck. He argues that since he is Native American, the U.S. government is not entitled to tax him. Is he required to provide this information? Can we withdraw our employment offer if he continues to refuse?

SSN verification service responses now gender-free

02/07/2012

This isn’t good news for employees named Chris, Pat or Robin. The Social Security Administration has announced that it has removed the verification of gender from its Social Security Number Verification Services (SSNVS).

Forget a late or early spring–February is W-2 time

02/02/2012

Darn that groundhog! If it knew what payroll administrators know about looming W-2 deadlines, it would never come out of its den. Paper W-2s are due to the Social Security Administration by the end of the month; e-filed forms are due by April 2.

Heads up! Employment law in the news means employee chatter

01/31/2012

There’s plenty of employment law news making its way into the mainstream media. That means the workplace will be buzzing with employee chatter about working conditions, pay and unions. Prepare now for how to react.

Social Security rate stays at 4.2%–likely through ’12

01/31/2012

In December, a last-minute congressional vote allowed the year-long 4.2% employee Social Security tax rate to remain at least through Feb. 29. But if congressional negotiations break down, be aware that the rate could jump back to 6.2%.

Start your engines! Mileage rate at 55.5 cents a mile

01/30/2012

The standard mileage rate, which employers may use to reimburse employees who drive their own cars on business, remains 55.5 cents a mile for 2012. You can also use the standard mileage rate to value employees’ personal use of moderately priced company cars.

IRS tells how to make bonuses tax deductible for employers

01/25/2012

The IRS has clarified that employers can take a current-year tax deduction for a fixed amount of bonuses that will be paid to employees during the following year, even though the amount that each employee will receive, and even the identity of employees, aren’t known until after the tax year ends.

ACH fraud is Payroll’s newest headache

01/17/2012

You couldn’t have direct deposit or online banking without the Automated Clearing House (ACH) network. Unfortunately, online banking through the ACH network has generated a new cyber crime—ACH fraud. Payroll, which uses the ACH network for direct deposits and other transactions, is particularly vulnerable.

Help employees handle their federal income taxes

01/12/2012

Comp and benefits pros have three ways to make tax time easier on employees this spring. Work with your colleagues in payroll and accounting to publicize these conveniences—and protect workers from fraud.