Wage-and-hour investigations have become more complex, according to Corey Walton, a community outreach and resource planning specialist with the U.S. Department of Labor’s Wage & Hour Division. His best advice: Stay in touch with your investigator.
Procrastinators beware: Aug. 1 is rapidly approaching. That’s when penalties more than triple, from $30 to $100 per form, up to $1.5 million, for these W-2 indiscretions: failing to file 2013 W-2s in the first place or filing incorrect 2013 W-2s that you haven’t yet corrected.
The IRS has been busy since the U.S. Supreme Court ruled earlier this year in United States v. Quality Stores that severance pay is FICA taxable. In May, IRS Acting Chief of Employment Tax Dan Lauer addressed the American Payroll Association’s 32nd Annual Congress in Minneapolis, bringing participants up to speed with the goings on at the IRS.
This is your monthly guide to critical payroll due dates.
Q: What’s the employer’s liability if, due to a mistake in entering the number of withholding allowances from an employee’s W-4 form into the payroll system, less than the requested amount was withheld?
Sharing employee information among company departments, and even with outside vendors, usually makes life easier for you and your employees. However, in response to an inquiry, the DOJ concluded that an employer that sought to share employees’ Form I-9 or E-Verify information with a paycard vendor may be violating the immigration laws.
Under the employer play-or-pay provisions of the ACA, employers of at least 50 full-time employees must offer them affordable group health benefits that provide minimum value and cover a menu of benefits or pay free-rider penalties. This can put new employers and employers on the cusp of employing 50 full-time employees in a bind, since any growth in their payrolls may put them unexpectedly in the cross hairs. The final ACA play-or-pay regulations provide relief to these employers.
Q: An employee will receive a noncash award worth $24,000. The federal income taxes owed will exceed the employee’s paycheck. Can the taxes be spread out over multiple pay periods?
The IRS has concluded that for tax purposes, Bitcoins and other virtual currencies are property, not currency or legal tender. Upshot: You may choose to pay employees in Bitcoins, but you must peg your Bitcoins to U.S. dollars. And all the usual withholding, depositing (in U.S. dollars) and reporting rules apply, as well.
Q: We process payroll for several companies. A new client says that company owners are exempt from all payroll taxes. Is there some law out there that we don’t know about?