Payroll

Responsible persons’ lifeline: Express installment agreements

03/28/2013

Undeposited payroll taxes can pile up so quickly that the IRS has a name for them—pyramiding. It also has a very effective solution: personally charging a company’s responsible persons with 100% of the undeposited taxes. Relief: an express installment agreement.

IRS loosens criteria for VCSP eligibility

03/26/2013

The IRS has made several permanent and temporary changes to its Voluntary Classification Settlement Program. Under VCSP, you can voluntarily reclassify independent contractors as employees for future tax periods on favorable tax terms. You’ll be liable for just over 10% of the wages paid to those reclassified workers for the past year; no penalties or interest will be due.

April 2013: Employer’s business tax calendar

03/24/2013

NOTE: Saturdays, Sundays and legal holidays as observed in the District of Columbia are taken into account to determine due dates. Under the federal deposit rules, you’re allowed a deposit shortfall of the greater of $100 or 2% of your tax liability.

In Chino, having too few time clocks costs $1 million

03/20/2013

The California Division of Labor Standards Enforcement has slapped citations worth more than $1 million on a warehouse company in Chino, alleging that 865 employees were cheated out of overtime pay they had earned, and didn’t get required 30-minute meal breaks.

It might as well be spring!

03/20/2013

Weather-wise, it’s hard to say exactly when spring arrives. What’s not subject to debate is the fact that your first-quarter 941 form is due shortly. Here’s help.

Health benefit safe harbors put Payroll in the driver’s seat

03/18/2013

The Affordable Care Act requires employers of 50 or more full-time employees to offer them affordable health benefits—or pay free-rider penalties. Benefits are affordable if employees’ contributions don’t exceed 9.5% of their household income and employers pay at least 60%. The IRS has created three optional affordability safe harbors.

Can we refund employee’s pretax contribution for transit pass?

03/14/2013

Q: An employee had pretax deductions made from her pay for mass transit passes. She terminated in the middle of January with a balance in her account, which she now wants refunded. Can we do this? If we can, how do we tax the refund?

Payroll NRP continues, S corp NRP waits in the wings

03/08/2013

The next 2,000 Forms 941 to audit as part of the IRS’ National Research Project (NRP) have been selected and all audits are open, said Faris Fink, commissioner of the IRS’ Small Business/Self-Employed Division. Fink said the Payroll NRP has shown high rates of compliance, but problems have become evident—notably, problems involving company cars.

6th Circuit turns down IRS’ bid to rehear key SUB pay case

03/06/2013

The 6th Circuit Court of Appeals has denied the IRS’ request to rehear its decision in U.S. v. Quality Stores, Inc. Having run the gamut at the appellate level, it’s likely that the IRS will appeal to the U.S. Supreme Court. A petition to the Supreme Court is due April 4.

‘March Madness’ payroll style: W-2c forms bounce into view

03/05/2013

While everyone else is watching college basketball’s “March Madness,” paper W-2 filers will be at their desks sorting through those forms for errors and preparing to file W-2c forms. W-2 e-filers have until April 1 to file their original W-2s with the SSA, but even this extra time won’t be enough to avoid the W-2c hook if errors are discovered after filing.