Payroll

Swapping benefits for pay: Is it legal?

06/12/2015

Q. Is it acceptable for a company to negotiate with employees (on a case-by-case basis) to provide higher salary in exchange for the employee not taking certain benefits that the company pays 100% for (such as life insurance, AD&D, STD and LTD)? — Ed, Virginia

The things we do for love: Help newlyweds keep pay in order

06/11/2015

June brides who take their husbands’ names and newly married couples who hyphenate their names must get new Social Security cards reflecting their new names. Reminder: Don’t change your payroll records until newlyweds show you their new Social Security cards.

Special analysis: Take steps against identity theft

06/08/2015

What do banks, health insurers, major retail chains and movie studios have in common? Massive cyberattacks that have led to stolen identifying information, including employees’ sensitive personal data. You can thwart any identity thief by taking some simple steps and modifying some procedures.

You’re in the Army now! How to pay military employees

06/07/2015

Employees who are in the National Guard and Reserves usually serve their two weeks during the summer. Here’s what you need to know.

Watch the clock when hiring teens this summer

05/30/2015

If you’re planning on hiring teenagers this summer, remember that the Fair Labor Standards Act has strict rules regarding the jobs and hours teens may work.

June 2015: Employer’s business tax calendar

05/29/2015

Here’s your monthly guide to critical payroll due dates.

IRS firms up consent rules for FICA refunds

05/27/2015

The IRS has issued a final revenue procedure that covers how to obtain employees’ consent before you refund overwithheld FICA taxes to them.

Court: Employee’s beef is with the IRS, not her employer

05/24/2015

A federal trial court has ruled that an employee who sued her employer, alleging that the employer’s share of FICA and FUTA were wrongfully withheld from her pay, had to instead file a refund claim with the IRS for those amounts. If the refund claim is denied, she can sue the IRS for her money, the court concluded.

Can an employee opt out of withholding on a bonus?

05/23/2015

Q: It’s likely that later this year, one employee will receive a bonus that will boost his supplemental pay to more than $1 million. In anticipation of that, his accountant has informed us that we don’t need to withhold federal income taxes at the 39.6% rate; the employee will pay the tax on his 2015 Form 1040, instead. Is that right—it sounds fishy to us?

What do we do when an employee pays back a signing bonus?

05/22/2015

Q: A new employee received a signing bonus last November, which he had to repay if he left the company within two years. He did leave, and now we don’t know what to do. Do we need to amend his 2014 W-2 form? What documentation must we collect from him?