Yes, you read that correctly. Delaware is attempting to collect $1,388,573.97 from a Tennessee company that failed to escheat one $147 unclaimed paycheck to it. The company is asking a federal court to throw out the results of Delaware’s unclaimed property audit, and with it, that whopping bill.
Despite the steep drop in gas prices at the pump, the IRS’ standard mileage rate, which you may use to reimburse employees who drive their own cars on business, increases to 57.5¢ a mile for 2015, from 56¢ a mile.
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.
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?
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.
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.
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.
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.
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?
Here’s your monthly guide to critical payroll due dates. This time around, you can also download our full, free Payroll Checklist to guide you through the entire year.