Payroll Management

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.

• NOTE: Saturdays, Sundays and legal holidays as observed in the District of Columbia are taken into account to determine due dates. Under the federal deposit rules, you’re allowed a deposit shortfall of the greater of $100 or 2% of your tax liability. Semiweekly and monthly deposits are for the deposits of FICA and withheld [...]
Employees looking for a place to park their youngsters during the summer should consider day camp, including speciality camps. Tax break: Parents may defray day camp expenses through the company’s dependent care assistance program, up to the $5,000 annual limit.
As you gear up for employees’ summer vacation requests, remember that the FLSA has a lot to say about working hours, calculating overtime when employees take a day off during the week, and uniform policies. Here’s help navigating these choppy waters.

Employees' pay and taxable fringe benefits are subject to federal income tax withholding, FICA withholding and state income tax withholding. Employers pay a matching share of FICA taxes; only employers pay federal unemployment taxes, or FUTA. 

Question: Included in our new employee handbook is a standard payroll deduction agreement, which employees must sign and return to Payroll. There’s a clause in the agreement that says employees’ consent to payroll deductions includes, but isn’t limited to, miscellaneous deductions—faxes, phone calls and so forth. HR has told employees that if they don’t sign the agreement, then no deductions can be made. What does Payroll tell employees?
Q. Some of our Illinois employees have taken out payday loans and now expect the Payroll department to set up a payroll deduction to repay the loans ... We’d like to discourage this behavior by charging these employees a fee for servicing these loans. Can we?
All new hires must provide the Payroll department with Forms W-4. The amount of employees' federal income tax withholding, and, often, state income tax withholding, is determined by entries on this form. Forms must be signed under penalties of perjury. The IRS updates this form every year.
Clean breaks are always the best. You don’t want any pay problems lingering after an employee terminates. What you must pay a terminating employee, in addition to any final wages, is determined under state law. And mistakes can be expensive. Two recent cases illustrate.
Federal taxes withheld from employees' pay, the employer's share of FICA, and the employer's FUTA payment must be timely deposited, by cash, check or electronically with an authorized federal depositary institution.  Income and FICA taxes are deposited on a monthly or semiweekly schedule, depending on a look-back rule ...
A federal appeals court has ruled that an employee whose wages were subject to a federal tax levy can’t sue his employer for violations of his Fourth and Fifth Amendment rights or for theft of money under state law.