Payroll

IRS OKs safe harbors for 401(k) plan rollovers

01/20/2015

401(k) plans have long been able to accept direct rollovers from other plans or IRAs. Dilemma: You weren’t always certain that new employees could roll over their account balances in the first place. To solve this conundrum, the IRS has designed two streamlined rollover safe harbors.

How to report a canceled loan?

01/16/2015

Question: An employee left our company in 2012. While he worked here, he had taken out a loan from the company and he signed a promissory note. The problem is that the company was sold in 2013, with the outstanding loan on the books. Our new employer just canceled the loan. How do we report this canceled loan? On a W-2, since the loan arose in the course of employment? Or on a 1099-MISC form, since he’s no longer an employee?

Leave-based donations allowed for Ebola charities

01/15/2015

The Obama administration has classified the Ebola epidemic in the West African countries of Guinea, Liberia and Sierra Leone as a public health emergency. As a result, through 2015, and retroactive to 2014, employers with leave-based donation programs may allow employees to donate their unused vacation days, sick days or personal days.

All-states chart: What to do with unclaimed paychecks

01/14/2015

This chart summarizes states’ unclaimed property laws. Most states require you to report on an employee-by-employee basis, if unclaimed wages exceed a certain threshold, usually $50. Unclaimed wages under the threshold may be reported in the aggregate. To get the full story on your state’s law, consult your state treasurer’s website.

Employer owes $2.6 million on employees’ parking benefits

01/12/2015

As if you didn’t have enough on your plate, you now need to worry about state sales tax. One tax court has slammed an employer with $2.6 million in unpaid sales taxes on the value of parking employees paid for with pretax deductions.

Regs allow reimbursement of local lodging expenses

01/08/2015

Under final tax regulations, employees who aren’t traveling away from home overnight, but who stay overnight at a local hotel, may have their substantiated lodging expenses reimbursed as a tax-free working condition fringe benefit, provided you have a bona fide reason to require them to stay overnight at the hotel.

Proposed rules cover changes in measurement periods/methods

01/04/2015

The ACA allows you to use the look-back/stability measurement method to determine whether employees are full-time employees. You set the length of your periods, provided they’re equal and aren’t longer than 12 months. Although it’s clear that you can’t restart the measurement clock when employees transfer, it’s less clear how you apply the periods once a transfer occurs. The IRS has proposed rules that clarify how differing periods apply to transfers.

Fair Labor Standards Act: Overview

01/03/2015

HR Law 101: The Fair Labor Standards Act (FLSA) covers the federal minimum wage, rules on overtime pay and child labor regulations. Since the U.S. Department of Labor recently overhauled the overtime rules, it’s critical to make sure you’re properly classifying workers as exempt or nonexempt …

FLSA: Calculating Hours Worked

01/02/2015

HR Law 101: To ensure you’re in compliance with the FLSA, it’s important to understand the definition of “hours of work.” Any hour when an employee’s on duty is considered time worked. The only period usually excluded: when an employee uses the time for personal reasons …

Must we file a new Form W-2 to correct a newlywed’s name?

01/01/2015

Q: An employee worked for us during 2013, left the company last year, got married and changed her name. So her 2013 W-2 form was issued in her maiden name. She now wants us to reissue her a new W-2 in her married name. Do we have to do this?