Payroll

On-premises fringes: Is there such a thing as a free lunch?

12/24/2014

The IRS has begun to examine the tax treatment of employer-provided free meals, such as those famously provided by Silicon Valley tech firms like Google.

How do we enter a gross-up on a W-2?

12/23/2014

Q: The company offers stock to employees, which becomes taxable at a later date. Employees who terminate during the year are still eligible for the stock, but, since there are no longer wages from which we can withhold, we gross up the FICA taxes. On their W-2s, we make entries in Boxes 1, 3, 4, 5 and 6. Management is questioning why, if we’re only paying the FICA taxes, all of those boxes are increased. Now we’re not so sure if we’ve been doing this right. Who’s correct?

2015 tax rates: It always pays to plan ahead

12/19/2014

Employees can take a lot of the guesswork out of their 2015 income tax liability by ensuring that their W-4s are accurate. Here are the 2015 standard deduction amounts.

Three-year checkup: OCSE revises IWO & instructions

12/17/2014

Every three years, the federal Office of Child Support Enforcement revises the standard Income Withholding Order. All child support withholding orders must be issued on IWOs. The OCSE recently updated the form and instructions.

Do first names count for Social Security purposes?

12/15/2014

Q: An employee’s Social Security card lists her first name as “Michelle.” She says this is a mistake, and her name is really spelled “Mechelle.” When I told her that she needed to get a replacement Social Security card, she said that the Social Security Administration told her that she would need to first have her name changed in court before a replacement card could be issued. This sounds fishy to us. Does the SSA care about first names?

$36,500 excise tax per employee! What’s that all about?

12/12/2014

The IRS made quite a splash when it concluded in an Affordable Care Act FAQ that all employers, regardless of size, that didn’t have a group health plan, and that instead reimbursed employees for their costs to buy health insurance either on or off the individual health exchange, would be liable for $36,500 in self-assessed excise taxes. We’ve taken some time to sort this all out.

Worksheet for 2014 Forms W-3/941

12/10/2014

Use this worksheet to reconcile your four quarterly 941s and W-2s, so the amounts you report to the SSA and the IRS match.

W-2s this year: What a difference a day makes

12/09/2014

You have an extra weekend to ensure that employees’ W-2s are correct. Since Jan. 31 is a Saturday, employees must receive their W-2s by Monday, Feb. 2, 2015. The IRS must receive your fourth-quarter Form 941, and annual Forms 940, 944 and 945 by that date, too. Here’s what you need to do now.

SSNVS monkey wrench: No more SSN printouts

12/09/2014

A best practice is to verify all employees’ names/Social Security numbers by using the Social Security Administration’s Social Security Number Verification Service.

How should we pay nonexempt telecommuter?

12/08/2014

Q. I recently allowed one of my hourly employees to telecommute full time. What actions must I take to ensure proper payment of her wages?