Question: We owe wages to a former employee who died this year. To whom do we make the check payable? What about filing a W-2?
It’s not exactly WikiLeaks, but Payroll administrators who are distressed over other employees’ alleged violations of the tax code can work with the IRS’ Whistleblower Office to expose tax law violators. Final regulations set some of the ground rules for cooperating with the IRS in whistle-blower investigations.
A federal appeals court has upheld the conviction and 21-month prison sentence of an employee who filed W-4 forms on which he falsely claimed an exemption from income tax withholding. The ruling raises the ante for tax protesters who commit W-4 fraud.
If you’ve filed Form 941-X or another amended return, and you must make a tax payment for an old calendar quarter, you may use the IRS’ Electronic Federal Tax Payment System (EFTPS).
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:
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?
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 …
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?
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.