Payroll

A worker is asking us for a loan: How can we set up a legal repayment plan?

12/09/2009

Q. An employee wants to borrow $2,000 from the company to cover a family emergency, and we’re willing to make the loan. How should we structure the loan and repayment terms so we can deduct a certain amount from the employee’s bimonthly paycheck? We also want to be able to deduct the balance of the loan from the employee’s final paycheck in the event he is terminated before completely repaying the loan.

IRS to audit 6,000 firms to test employment tax compliance

12/03/2009

Starting in February 2010, the IRS will begin to audit 6,000 randomly selected employers to give the agency a snapshot of employment tax compliance in the United States. The audits will stretch across all industries and company sizes, and will focus on employment tax issues ranging from payroll taxes to independent contractor status to executive compensation.

What can we do? We accidentally overpaid an employee who was out on workers’ comp leave

12/01/2009

Q. While one of our employees was on workers’ compensation leave, she received disability payments. Due to a clerical error, we failed to take her off the payroll during that time, and she continued to receive her regular paychecks while on leave. The employee now refuses to sign an agreement to return the money on a payment schedule we were willing to set up. As a result, we would like to dock her pay for the overpayments. Are we allowed to do so?

Outsourcing payroll? Be sure someone can explain the math

11/20/2009

These days, with employers having to do more with less, lots of companies outsource some functions that take a lot of time. If a vendor handles your payroll, make sure someone on the inside understands exactly how the outside provider calculates tricky things like overtime pay.

Just desserts after five-year free lunch

11/18/2009

For Anthony Armatys, a job with communications company Avaya was the best job he never took. The Illinois man has pleaded guilty to theft by deception after he failed to report that Avaya, based in Basking Ridge, had deposited $469,000 worth of pay into his checking account, despite the fact that he never put in a day’s work for the company.

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: