If you focus strictly on the ACA health care reform law’s free-rider penalties for not providing full-time employees with health insurance, or not providing insurance that’s affordable and offers minimum value, you’re missing the bigger picture.
For Payroll, time-off complications make summer about as special as that first sunburn. It doesn’t have to be that way. Here are some no- or low-cost solutions that can take the sting out of summer.
Q: Last March, we hired a staff member’s college freshman daughter for several weeks and we paid her the $4.25 an hour opportunity wage. We’d like to hire her again for the summer. Can we continue to pay her $4.25 an hour?
Q: An employee exhausted all of his vacation and sick days, before he got sick again. He worked for only five days of our 15-day semimonthly pay period. Should he be paid for the entire pay period, or should he be docked for the days he didn’t work during that pay period?
In a unanimous decision, the U.S. Supreme Court on March 25 reversed the 6th Circuit Court of Appeals, ruling that an employer’s severance pay plans were FICA-taxable. As a result, the IRS isn’t on the hook to pay up to $1 billion in FICA refunds to various employers and their employees who were let go over the past several years.
State laws usually require that employees voluntarily participate in direct deposit or paycard programs. This chart summarizes the states’ direct deposit/paycard rules.
Being summer savvy means planning how to handle summer hires, their paperwork and their questions. Instead of seeing red, use this checklist to bring order to the summer hiring process.
Under final Affordable Care Act regulations issued in February, for the 2015 plan year only, large employers with at least 100 employees during 2014 must either offer 70% of full-time employees and their nonspouse dependents affordable health insurance that provides minimum value or pay a free-rider penalty. Beginning with the 2016 plan year, offers of coverage must be made to 95% of full-time employees and their nonspouse dependents.
Fast track settlement, which up until now has been available only to businesses with more than $10 million in assets, has made its way down the line to businesses in the IRS’ Small Business/Self-Employed division. That’s good news, considering penalties and interest continue to mount while your case remains open.
Most states allow employers to determine whether they will pay terminating employees for their accrued, unused vacation time. But be warned: Any ambiguity in your company’s vacation pay policy or how that policy is executed will most likely be resolved in employees’ favor.