Ineffective payroll management and shoddy payroll systems can result in personal liability (including JAIL TIME) for non-compliance.
Business Management Daily helps our readers with information on payroll processing and tips on timesheets that will help you to implement payroll programs that pay off.
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.
Performing general Payroll maintenance tasks is essential for your day-to-day operations. It’s also the key to a successful year end. Get started now!
Q: We have an agreement with a former employee to continue to pay him quarterly bonuses for clients he referred to us. Can we issue him a Form 1099-MISC or are the payments considered wages, which must be reported on a Form W-2?
This is your monthly guide to critical payroll due dates.
Under final ACA regulations, insured employers with at least 50 full-time employees, including full-time equivalent employees, must file information returns with the IRS to report offers of health insurance made to full-time employees and provide statements to those employees. Key: Small self-insured employers must also report, even though they’re excluded from the play-or-pay provisions.
The biggest paycard problem for employees is the numerous fees paycard issuers pile on to access the funds loaded onto the card, for statements, etc. The biggest trap for employers is mandating paycard use.
Q: Our company president’s teenage son has been hired to do what the president calls incidental work around our office this summer. He’s signed a “Professional Services Agreement,” which specifies that he will be paid $10 an hour. Payroll has been told not to put him on the payroll because he’s an independent contractor. We think he should be put on the payroll. Who’s correct?
Under tax code Section 83, you don’t tax employees who receive company stock, stock options or other property that is subject to a substantial risk of forfeiture until the risk lapses and the property vests. Final regulations issued in February, which closely follow proposed regs, clarify what counts as a substantial risk of forfeiture.