Payroll

Regs clarify ‘risk’ for taxing noncash compensation

05/05/2014

Under tax code Section 83, you don’t tax employees who receive company stock, stock options or other property that is subject to a substantial risk of forfeiture until the risk lapses and the property vests. Final regulations issued in February, which closely follow proposed regs, clarify what counts as a substantial risk of forfeiture.

Supreme Court rules severance payments taxable

05/01/2014

The U.S. Supreme Court has resolved a split among circuit courts with a late-March ruling that employer severance payments to employees are FICA-taxable as wages. Employers must, therefore, remit their portion of Federal Insurance Contributions Act (FICA) withholding taxes for those payments.

May 2014: Employer’s Business Tax Calendar

04/30/2014

This is your monthly guide to critical payroll due dates.

Flex funds can cover summer camp

04/29/2014

Employees who send their kids to day camp can reap a double bonus—their kids will be entertained, and they can defray some or all of those expenses through the company’s dependent care assistance plan, up to the $5,000 annual limit. For kids who aren’t nature lovers, expenses incurred for specialty camps, such as computer camps, count too.

Overlook these health plan failures at your peril

04/24/2014

If you focus strictly on the ACA health care reform law’s free-rider penalties for not providing full-time employees with health insurance, or not providing insurance that’s affordable and offers minimum value, you’re missing the bigger picture.

San Diego newspaper delivery drivers awarded $5M

04/23/2014

Workers who delivered the San Diego Union-Tribune will split a $5 million judgment against the paper’s former owner. A state judge ruled that about 1,200 carriers who worked for the paper from 2005 to 2007 were employees, not independent contractors.

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