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Compensation & Benefits

New IRS ruling differentiates between tips, service charges

11/28/2012
Regardless of what you call it, tips are amounts customers willingly determine and leave of their own accord; service charges are added to the bill. According to a new IRS revenue ruling, service charges are immediately taxable as wages; tips are taxable when employees report them to you.

You can do it! How to build a better W-2

11/27/2012
This year, completing W-2 forms will be even more challenging for employers that must report employees’ health benefits. Here’s the scoop on what you need to know to get W-2s right the first time.

1 employee, 2 employers and health benefits: How many W-2s?

11/23/2012

Question: How do we report an employee’s health benefits if he transferred between two divisions of the same company, and each division has its own Employer Identification Number? Must each division report separately, or can we combine this information and report it on one W-2?

Employees can contribute $500 more to 401(k)s next year

11/21/2012

The IRS has announced that the amount employees can defer on a pretax basis into 401(k) accounts goes up to $17,500 in 2013.

Holiday bonuses: When it’s OK to pass the buck

11/19/2012
Commercials for holiday gifts have been running on TV since at least Halloween. So naturally, em­­ployees are making their lists and checking them twice. Perhaps they’re counting on a holiday bonus to pay for it all. If holiday bonuses are in your future, be sure to cover these bases.

How much leave notice does CFRA require?

11/16/2012

Q. An employee just notified HR he would like to take immediate leave under the California Family Rights Act. Can we require more notice?

Should we be paying overtime to employee who receives after-hours phone calls?

11/16/2012

Q. One of our office managers regularly receives after-hours calls from our landlord about building management issues. Are we required to pay her overtime compensation for the resulting hours she works over eight in one day or over 40 in one week?

Courts: Truckers’ breaks covered by federal–not California–law

11/16/2012
In a significant decision for transportation companies operating in California, a federal district court judge recently dismissed several class-action claims brought by truck drivers who alleged meal and rest break violations under California law.

IRS faces tough choices for 2013 withholding tables

11/16/2012
Next year is shaping up to be complicated for the IRS. The question: Should the IRS issue the withholding tables based on what the law says is supposed to happen on Jan. 1—the expiration of most income tax rates—or keep the rates the same, and assume that Congress will come to some agreement about the rate structure?

What break time rules do we need to follow?

11/15/2012

Q. We are changing our break policy. What breaks are required and can I require employees to take an unpaid meal break?