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.
Seven states are on the 2014 FUTA credit reduction hit list. Employers will have their maximum FUTA credit reduced on their 2014 Form 940 because their states haven’t repaid loans they took out to shore up their state unemployment trust funds.
Q: The company offers stock to employees, which becomes taxable at a later date. Employees who terminate during the year are still eligible for the stock, but, since there are no longer wages from which we can withhold, we gross up the FICA taxes. On their W-2s, we make entries in Boxes 1, 3, 4, 5 and 6. Management is questioning why, if we’re only paying the FICA taxes, all of those boxes are increased. Now we’re not so sure if we’ve been doing this right. Who’s correct?
Employees can take a lot of the guesswork out of their 2015 income tax liability by ensuring that their W-4s are accurate. Here are the 2015 standard deduction amounts.
Q: An employee’s Social Security card lists her first name as “Michelle.” She says this is a mistake, and her name is really spelled “Mechelle.” When I told her that she needed to get a replacement Social Security card, she said that the Social Security Administration told her that she would need to first have her name changed in court before a replacement card could be issued. This sounds fishy to us. Does the SSA care about first names?