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Payroll

Returning company property

06/01/2007

Q. Our employee handbook states: “If you do not return a piece of property, we will withhold from your final paycheck the cost of replacing that piece of property.” One of our employees recently quit on the spot. The employee was given a termination letter that cited the employee handbook section on unreturned property. He admitted he could not find his handbook—even accused management of having it. My boss wants to almost double the actual replacement cost of the item and call it “staff time spent getting the item.” Can we do this?

Detailed wage records can prevent back-Pay complaints

05/01/2007

Zablocki Industries, which operates Aunt Heddy’s Bakery in Brooklyn, has agreed to pay $25,687 in back wages and interest to six employees to settle a U.S. Labor Department lawsuit …

Direct deposit requires employee’s written consent

05/01/2007

Q. We have been told by our accounting office that the company could save a great deal of money if it could get away from the payroll practice of providing employees with checks, and instead go to a direct-deposit arrangement. We have both a non-union work force and a small group in a union. Can we go ahead and implement such a change, or negotiate a change with the union?—M.B.

Pay back for training costs

05/01/2007

Q. Training in our field is pretty specialized and expensive. We don’t mind investing in our employees, but want to make sure that we get the benefit of the training. We have a requirement that newly trained employees must continue to work for us for at least six months following their training, or they are required to pay back the company. Our problem is how to make sure they pay it. Can we deduct it from their last paycheck?—D.B.

A genuine child-Support court order?

05/01/2007

Q. In this morning’s mail I received a letter from some group I have never heard of, asking for payroll information on an employee. The letter said, “This information is necessary to enforce court-ordered child support.” It does not say that it is a subpoena or a garnishment, and there is no court order or any kind of a waiver from the employee. I have already tossed it in the trash, but I don’t want to do something wrong. Do I need to dig it out?—S.W.

Clarifying the partial-Day deduction rule

04/01/2007

Q. I have a question about the partial-day deduction rule. I don’t understand how we can deduct from salaried employees’ paid-leave bank when they are gone for an hour or two during the day since we don’t pay them anything extra when they work 50 hours in a week. For example, if an employee works 10-hour days on a regular basis, is it OK to charge her vacation time when she leaves an hour or two early? —J.H., Minnesota

Preserve records or face jury’s wrath on overtime pay

04/01/2007

If you get wind of a possible lawsuit over unpaid overtime, make sure all your payroll records remain intact and available. Don’t crank up the shredder. If you dispose of related documents, the penalties under Ohio law can be especially harsh …

Alert low-Income workers to overlooked tax credits

04/01/2007

Some of your organization’s employees may be eligible for a larger tax refund without knowing it. You can do them a huge favor (and earn some good will) by introducing them to those tax savings …

If you handle insurance enrollment, be alert to liability for lost, late paperwork

04/01/2007

When employers assume substantial benefit-administration duties, they may be liable when the proper paperwork doesn’t get to where it should. Because federal law imposes a fiduciary obligation on benefit administrators, employers may be sued when they assume the administrator’s role …

Unemployment Taxes: Don’t Try This Illegal Texas Two-Step

04/01/2007

The Texas Workforce Commission (TWC) recently announced that the agency has recovered nearly $1.8 million in unpaid unemployment insurance taxes from employers …