Payroll

New York loosens limits on payroll deductions

11/11/2012

The New York General Assembly has amended Section 193 of the New York Labor Law to allow employers to make payroll deductions for a wider variety of items. The amendment lets employers deduct the cost of an array of employee benefits previously barred by the state code.

State-by-State Chart on 2012 W-2 Mag Media/E-Filing Requirements

11/09/2012

States have their own W-2 e-filing thresholds and specifications. Note: To date, some states haven’t released their W-2 e-filing information. In addition, states can change their e-filing requirements at any time. To get the full story, contact your state tax department.

Court shoots down S corp’s low salary/high dividend ploy

11/09/2012

An S corp couldn’t get away with paying its sole shareholder-employee $24,000 a year in FICA-taxable salary, while also paying him large FICA-free dividends. According to a recent federal appeals court ruling, such an arrangement isn’t reasonable.

IRS asks court to rehear U.S. v. Quality Stores

11/06/2012

The IRS has asked the 6th Circuit Court of Appeals to rehear U.S. v. Quality Stores, Inc., a case that addresses the question of whether severance pay is FICA taxable.

Holiday pay, work and hiring: The key rules you must follow

11/02/2012

The Fair Labor Standards Act and the IRS can throw kinks into your holiday plans. Watch out for these lumps of coal: four rules on holiday pay, two rules for holiday work, requirements for holiday hiring.

How should we report excess group-term life insurance for bankrupt company?

11/01/2012

Question: One of our affiliated companies filed for bankruptcy protection. As a result, the company’s assets were frozen and everyone was let go. Unfortunately, Payroll didn’t impute the excess group-term life insurance into employees’ income. Must we still report the excess group-term life as income on employees’ W-2s?

Feeling haunted: Don’t be scared by year-end Payroll

10/31/2012

Who needs Halloween when year-end seems to come up like a witch riding on a broomstick—all at once. Take a few minutes to stir things up now and your Payroll cauldron won’t bubble over in December.

Safe harbor protects employers from free-rider penalties

10/30/2012

Under the health care reform law, employers of 50 or more full-time employees during the preceding year will pay free-rider penalties if they don’t offer full-time employees (i.e., those who work at least 30 hours a week) affordable health benefits. How you determine full-time status is the subject of new IRS guidance.

Fall back: Standard time starts Nov. 4

10/29/2012

Don’t forget to turn your clocks back one hour, to standard time, at 2 a.m., Sunday, Nov. 4. Employees working the graveyard shift will actually work nine hours and will need to be paid for nine hours’ work.

What are the rules on timely pay?

10/27/2012

Q. Is it true that according to federal law, employees must be paid within two weeks of completing their work, no matter the excuse (computer glitch, etc.)?