Payroll

Understand your state law on pay cards, direct deposit

06/01/2011

More employers are offering to let workers collect their pay on reloadable, prepaid bank cards. But make sure you know your state law: Most states prohibit employers from mandating that workers receive pay electronically.

Is it OK for supervisors and employees to use different methods for recording work hours?

05/27/2011

Q. Our nonsupervisory, hourly employees punch in using a time clock. Our supervisors write timecards. Is this dual method acceptable or could it lead to legal trouble?

Levies and garnishments: Tough questions

05/26/2011

Question: An employee who has child support withheld from his pay declared bankruptcy. We received a bankruptcy order that requires us to withhold $330 monthly. However, the Consumer Credit Protection Act says not more than 50% of an employee’s disposable pay can be withheld for child support. The bankruptcy trustee said that the 50% limit doesn’t apply, but this seems wrong to us. Who’s correct?

Beyond withholding: Payroll’s many compliance duties

05/25/2011

It’s not just about withholding, depositing and reporting anymore. Today, payroll’s responsibilities vary greatly, so we asked subscribers how much more they do:

Same-sex marriage & payroll: What happens now?

05/18/2011

The Defense of Marriage Act (DOMA) prohibits the extension of federal marriage benefits to same-sex couples who marry under state law. Some federal courts have ruled DOMA unconstitutional, and the Department of Justice says that it will no longer defend the law. But the IRS says it’s still enforcing DOMA as it applies to the tax laws that cover married couples.

E-pay progress: Make the move to pay cards

05/16/2011

Is your direct deposit campaign a little long in the tooth? Now may be the best time to update your compensation system by adding pay cards to the mix. But before you call your payroll provider or bank to set up a pay card option, understand that there are legal and practical pitfalls you must avoid.

IRS issues W-2 health benefit reporting guidance

05/16/2011

The health care reform law requires you to report the value of employees’ health benefits on their W-2 forms. The IRS waived mandatory reporting for 2011, pending future guidance. Now the guidance has been released. It requires employers filing 250 or more W-2s to report beginning with 2012 W-2s that are filed in 2013.

Settling employee lawsuit? Withholding taxes usually OK

05/13/2011

Here’s something you may not have considered when agreeing to settle a nuisance case for a few thousand dollars. Most of the time, you will need to withhold federal and other taxes. Because of a relatively recent change at the IRS, unless payment is for a physical injury, the proceeds are fully taxable.

IRS ramps up HIRE correspondence audits

05/11/2011

You knew it was going to happen. With so much revenue at stake, the IRS has begun correspondence audits of employers that claimed the 6.2% Social Security credit against wages paid to new hires under the 2010 Hiring Incentives to Restore Employment (HIRE) Act.

2011 state laws governing direct deposit and pay cards

05/10/2011

Most states prohibit employers from mandating that employees receive their pay electronically—whether through direct deposit or pay cards. Many states also forbid employers and banks from charging a fee if employees decide to cash out all their pay with one transaction. Here’s a brief summary of state laws affecting direct deposit and pay cards.