Payroll

Contractor or employee? New IRS audits turn up heat on worker misclassification

11/16/2009

If your organization uses independent contractors, watch out: Starting in February, the IRS will begin intensive audits of 6,000 randomly selected employers. One of the key targets: Determining whether employers are improperly misclassifying workers as independent contractors to save on taxes and legal risks.

The New York State Labor law amendments you need to know

11/09/2009

Despite a summer of political circus distractions in Albany, the New York Legislature continued to crank out laws that further regulate New York employers. Here are some recent changes to New York State laws that you need to take into consideration.

How should we treat payroll for a newlywed who hasn’t officially changed her name?

10/30/2009

Q. One of our employees recently got married. She’s informally going by her new last name, but she hasn’t changed her name on her Social Security card and doesn’t plan to. We submit all payroll information using her maiden name. Do we face any liability?

When figuring time worked, you must round in employee’s favor

10/27/2009

The New Jersey Department of Labor and Workforce Development (NJDOL) has changed its enforcement policy regarding the rounding of employees’ time for wage payment purposes. A recent letter from Theodore Easton, chief of enforcement for the NJDOL, confirmed that if a New Jersey employer rounds off any increment of time an employee has worked, it must now be done in the employee’s favor.

Time on your side: Learn FLSA ’rounding rule’

10/20/2009

The FLSA allows employers to round off an hourly employee’s arrival or departure time to the nearest five minutes, tenth of an hour or quarter of an hour. But your rounding practices can’t always favor the employer. Rounding must be neutral or it must favor the employee. That means if you round down, you must also round up. You have several ways to make rounding fair:

Your compensation & benefits questions answered

10/20/2009

Here’s a roundup of timely questions posed by readers of HR Specialist’s Compensation & Benefits newsletter. You’ll find answers on such hot topics as health insurance opt-out bonuses, differing pay structures for similar work, unemployment benefits for furloughed workers and paying for travel time.

Bonuses advanced and then rescinded: Does that threaten MFLSA exempt status?

10/15/2009

Q. Our bonus plan states that employees eligible to receive bonus pay will receive bonus advances with each paycheck based on year-to-date performance results. Last year, we were on track to meet the maximum bonus throughout most of the year, but the last few months of the year were slow and we didn’t meet our target goal. As a result, we deducted certain amounts from the last few paychecks of salaried employees. Do these deductions threaten the exempt status of the salaried employees?

Do you round off employee hours? Be sure to round both up and down

10/05/2009

Employers that round off the time on employees’ time sheets must do so in a way that doesn’t cheat hourly employees out of pay in the long run. That means that if you round down, you must also round up. Otherwise, your time records won’t reflect all hours worked, leading to potential violations of overtime and other wage-and-hour laws.

What’s the required timing for final paychecks?

10/02/2009

Q. What are the deadlines for paying employees who are terminated or resign from employment?

Is it OK to withhold money from employees’ final paychecks to ensure we’re reimbursed?