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Payroll Legal Alert
The IRS, through its Questionable Employment Tax Practices initiative, is successfully working with states on worker misclassification issues. However, one agency with which the IRS doesn’t work well is the DOL’s Wage and Hour Division, according to a GAO report.
You must backup withhold on payments made to independent contractors if they don’t certify their Taxpayer Identification Numbers to you prior to payment. Contractors may make those certifications by providing you with Form W-9, which you must keep for three years. Caution: You may want to retain these forms for longer than three years. Here’s why:
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The 0.2% “temporary” FUTA surtax, which has been in effect since 1976, expired at the end of June. So far, Congress hasn’t introduced legislation to extend it. But if the surtax is re-enacted retroactively?
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Most states have laws that require employers to provide workers with regular statements about their compensation. To help you prevent pay-stub violations, this downloadable PDF chart cites the pay-statement laws for all states that have such laws. Plus, it explains whether pay stubs can be provided to employees electronically …
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Question: My company provides group-term life insurance with a value of more than $50,000 to some retirees. I know I have to report the uncollected employee FICA taxes on their W-2s in Box 12 with Codes M and N. Do we have to pay the employer share of these taxes? If so, when are they due? Also, how are the amounts reported on Form 941?
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Before any employee begins telecommuting, there are payroll issues you need to resolve: keeping time for nonexempts, how and when to pay, and reimbursement for business expenses.
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If you mail a tax-related document on the date it’s due, you’ll be considered to have timely filed it, according to the tax code’s timely-mailing-is-timely-filing rule. The same is true if the document isn’t delivered because the post office mangled it during processing.
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A worker who was fired after admitting to his employer that he filed Form SS-8 with the IRS to determine his status as an independent contractor or employee can continue his lawsuit for unpaid overtime, a federal trial court has ruled.
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Q: An employee has taken a second job with our company on a part-time basis. Would our reimbursement of his travel expenses from his first job to our workplace be a tax-free reimbursement, or a taxable commuting expense?
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Round out your summer schedule by making time to perform these general payroll maintenance chores and early year-end tasks:
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