Payroll

Must we mail former employee’s last paycheck?

04/02/2009

Q. We have terminated an employee who has moved out of state and requested we mail his last check to him. Do we have to mail it? If so, when?

To do this week: Confirm new tax withhholding, begin using new I-9s

03/31/2009

HR pros have two important items to add to their to-do lists this week:

Ensure that this week’s payroll reflects more generous federal income tax withholding levels mandated by the economic stimulus law enacted in February.
Start using the new Form I-9 on Friday, April 3.

If we supplement unemployment comp benefits, must we pay FICA/FUTA on it?

03/30/2009

Q. If we have a Supplemental Unemployment Pay Plan to supplement unemployment benefits, do the company and the employee have to pay FICA and FUTA taxes on the supplemental pay?

Congress weighs taxing employee health benefits

03/26/2009

The value of health insurance isn’t counted as income on paychecks. But that could change under an increasingly popular proposal being pushed hard by the key tax-writer on Capitol Hill, Sen. Max Baucus (D-Mont.), chairman of the Senate Finance Committee.

Switching payroll vendors? Have a Plan B

03/24/2009

Here’s a cautionary tale to consider if you’re planning to upgrade your time card to a high-tech electronic system.

Can we deduct hourly FMLA leave for exempt staff?

03/24/2009

Q. We have an exempt administrative employee who is on intermittent FMLA leave. She’s unable to work on Fridays for two or three hours due to a serious health condition. By policy, she must use any accrued sick leave when she is out sick, typically in whole-day increments. Can we charge her sick time in hourly intervals because she is utilizing FMLA intermittent leave even if we charge her in larger blocks when she is just plain sick?

IRS challenging med student classification in court

03/18/2009

If you work for an educational institution whose students provide services while learning, prepare to change your payroll systems. Depending how a court rules, you may have to end the practice of paying student stipends as a way of avoiding collection and payment of Social Security and other payroll taxes.

Handling Unemployment Claims the Legal Way

03/04/2009

Under the Federal Unemployment Tax Act (FUTA) and state laws, employers are obligated to pay payroll taxes to provide unemployment compensation to employees who lose their jobs. FUTA sets the federal tax rate, while the state tax rate varies by state. By understanding how the system works, you may be able to cut your state […]

HR and the American Recovery and Reinvestment Act of 2009

03/03/2009

Tucked into the massive American Recovery and Reinvestment Act of 2009 are several provisions affecting HR. But because most require federal agencies to write new implementation rules, predicting how they will play out day-to-day will be like trying to hit a moving target. Bookmark this page to stay up to date on compliance guidance as the government releases it.

Will I get into trouble for withholding final paychecks from soon-to-be-former employees?

02/26/2009

Q. We’re closing our doors and firing all of our employees. As president, I am considering not paying my employees their final paychecks, even though they have earned that pay. Is this a risk?