The DOL will shortly survey workers on their understanding of their status and whether they know that independent contractors aren’t eligible for overtime, benefits, etc. A crackdown on employers that misclassify workers is probably not very far behind.
Anita Bartels, senior program analyst for employment tax policy at the IRS, spoke about the IRS’ latest initiatives to attendees at the American Payroll Association’s 31st Annual Congress, held this year in Grapevine, Texas.
Q: We purchased some technology from another company and the deal included the transfer of some employees. Since we didn’t buy the entire company, can Payroll carry over their FICA and FUTA wages?
Question: What are the tax guidelines for executive bonuses payments? I need to calculate the withholding on them manually.
Under the Affordable Care Act, open enrollment for the individual health exchanges, or HEXs, begins Oct. 1, 2013. The outlook for the Small Business Health Options Program, or SHOPs, through which small employers may buy health insurance is a bit more complicated. Here’s where things stand.
Under the IRS’ Voluntary Classification Settlement Program, 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 and no penalties or interest will be due. Recently updated FAQs shed more light on this program.
Under the Affordable Care Act, individuals will be able to buy health insurance policies through individual health exchanges (HEXs). States may create their own HEXs, and may create SHOPs (Small Business Health Options Program). This chart summarizes the states’ current positions on HEXs, SHOPs and whether they will expand their Medicaid rolls.
Employees who are exempt from the FLSA need only be paid a proportionate amount of their full, weekly salary for their first and last weeks of work if they begin or terminate employment work midweek. A federal trial court has ruled that employers have a great deal of discretion when figuring this proportionate amount.
You can’t hire a third party, like a payroll service bureau, to handle your payroll unless you sign Form 8655, Reporting Agent Authorization. Along with that form, the reporting agent may also ask you to sign Form 8821, Tax Information Authorization. Caution: Don’t sign forms blindly.
Q: Does the authorization that appears in Part 4 of Form 941 apply only to the specific form being filed, or to all returns filed during the tax year? We want to determine if this section must be completed on each return, even if none of the information changes.