Payroll

Can we pay opportunity wages to a rehired employee?

04/18/2014

Q: Last March, we hired a staff member’s college freshman daughter for several weeks and we paid her the $4.25 an hour opportunity wage. We’d like to hire her again for the summer. Can we continue to pay her $4.25 an hour?

Reimburse employees for expenses, or risk legal trouble

04/17/2014

If employees aren’t properly reimbursed for business-related expenses they incur while performing their jobs, their pay may fall below minimum wage. And if that’s the case, they can quit and sue. The claim? Constructive discharge.

How do we pay someone who gets sick after using all his paid leave?

04/11/2014

Q: An employee exhausted all of his vacation and sick days, before he got sick again. He worked for only five days of our 15-day semimonthly pay period. Should he be paid for the entire pay period, or should he be docked for the days he didn’t work during that pay period?

2014 State Direct Deposit/Paycard Laws

04/11/2014

State laws usually require that employees voluntarily participate in direct deposit or paycard programs. This chart summarizes the states’ direct deposit/paycard rules.

Supreme Court rules that severance pay is FICA-taxable

04/08/2014

In a unanimous decision, the U.S. Supreme Court on March 25 reversed the 6th Circuit Court of Appeals, ruling that an employer’s severance pay plans were FICA-taxable. As a result, the IRS isn’t on the hook to pay up to $1 billion in FICA refunds to various employers and their employees who were let go over the past several years.

ACA play-or-pay regs dole out breaks to all employers

04/07/2014

Under final Affordable Care Act regulations issued in February, for the 2015 plan year only, large employers with at least 100 employees during 2014 must either offer 70% of full-time employees and their nonspouse dependents affordable health insurance that provides minimum value or pay a free-rider penalty. Beginning with the 2016 plan year, offers of coverage must be made to 95% of full-time employees and their nonspouse dependents.

Fast track settlement opens to small employers

04/04/2014

Fast track settlement, which up until now has been available only to businesses with more than $10 million in assets, has made its way down the line to businesses in the IRS’ Small Business/Self-Employed division. That’s good news, considering penalties and interest continue to mount while your case remains open.

Ambiguities cut against employers in vacation pay cases

04/03/2014

Most states allow employers to determine whether they will pay terminating employees for their accrued, unused vacation time. But be warned: Any ambiguity in your company’s vacation pay policy or how that policy is executed will most likely be resolved in employees’ favor.

Supreme Court: Severance is FICA-taxable

04/01/2014

The U.S. Supreme Court on March 25 unanimously ruled that severance pay is subject to withholding of FICA taxes, which employers and employees pay to fund Social Security and Medicare.

Final business: 5 steps to take when an employee dies