Payroll

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.

N.Y. offers tools for Wage Theft Prevention Act compliance

05/04/2011

The New York State Department of Labor has issued notification templates New York employers can use to comply with the state’s new Wage Theft Prevention Act. The law, which went into effect April 9, requires employers to provide every employee with a statement detailing the following information:

Withholding taxes from arbitration award lands employer in court

05/02/2011

A federal trial court has directed an employer that appropriately withheld payroll taxes from an arbitration award to pay back the amount withheld to the employee. An employer must obey an arbitration award to the letter, the court ruled.

Electronic pay: There’s an app for that

04/29/2011

Is your direct deposit or paycard campaign a little long in the tooth? Now may be the best time to update it to encompass new communications media, such as smartphone apps. Leverage the technology for smartphone banking apps to sell direct deposit or payments via payroll debit paycards. You can go one step further and pair electronic pay with paperless deposit statements.

2011 state laws regulating direct deposit and pay cards

04/28/2011

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 cash out all their pay with one transaction. Here’s a brief summary of state laws affecting direct deposit and pay cards.

How do the new Illinois Equal Pay Act rules affect my record-keeping obligations?

04/14/2011

Q. I’ve heard that there are new Illinois Equal Pay Act regulations I have to follow. Does this affect my record-keeping?