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Payroll

Play-or-pay regs offer relief to new & growing employers

06/24/2014

Under the employer play-or-pay provisions of the ACA, employers of at least 50 full-time employees must offer them affordable group health benefits that provide minimum value and cover a menu of benefits or pay free-rider penalties. This can put new employers and employers on the cusp of employing 50 full-time employees in a bind, since any growth in their payrolls may put them unexpectedly in the cross hairs. The final ACA play-or-pay regulations provide relief to these employers.

OK to spread tax due on noncash award?

06/20/2014
Q: An employee will receive a noncash award worth $24,000. The federal income taxes owed will exceed the employee’s paycheck. Can the taxes be spread out over multiple pay periods?

Are business owners exempt from payroll taxes?

06/17/2014

Q: We process payroll for several companies. A new client says that company owners are exempt from all payroll taxes. Is there some law out there that we don’t know about?

Hot Payroll fun this summer

06/16/2014
Performing general Payroll maintenance tasks is essential for your day-to-day operations. It’s also the key to a successful year end. Get started now!

W-2 or 1099 for former employee still receiving pay?

06/13/2014
Q: We have an agreement with a former employee to continue to pay him quarterly bonuses for clients he referred to us. Can we issue him a Form 1099-MISC or are the payments considered wages, which must be reported on a Form W-2?

What’s a valid W-4 form?

06/06/2014
Q: A recently divorced employee refiled her Form W-4 to claim fewer withholding allowances. She included her name and address, but only the last four digits of her Social Security number (SSN). Payroll requested that she complete another form with her full SSN, but she balked, saying that wasn’t necessary, since the W-4 is an internal form only. Is this a valid form?

Bitcoins’ teething pains are your toothache, too

06/03/2014
The IRS has concluded that for tax purposes, Bitcoins and other virtual currencies are property, not currency or legal tender. Upshot: You may choose to pay employees in Bitcoins, but you must peg your Bitcoins to U.S. dollars. And all the usual withholding, depositing (in U.S. dollars) and reporting rules apply, as well.

SUV cost rises for standard mileage valuation method

06/03/2014
Employers that use the standard mileage rate (56 cents a mile in 2014) to value employees’ personal use of company vehicles are restricted to supplying vehicles of modest value. For company cars first made available to employees in 2014 and that qualify for the standard mileage rate valuation method, the fair-market value remains $16,000.

IRS juggling many payroll projects

06/03/2014
The IRS has been busy since the U.S. Supreme Court ruled earlier this year in United States v. Quality Stores that severance pay is FICA taxable. In May, IRS Acting Chief of Employment Tax Dan Lauer addressed the American Payroll Association’s 32nd Annual Congress in Minneapolis, bringing participants up to speed with the goings on at the IRS.

June 2014: Employer’s business tax calendar

05/30/2014
This is your monthly guide to critical payroll due dates.