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.

The IRS has clarified that em­­ployers can take a current-year tax deduc­­tion for a fixed amount of bonuses that will be paid to employees during the following year, even though the amount that each employee will re­­ceive, and even the identity of employees, aren’t known until after the tax year ends.
Employers that use the standard mileage rate to value employees’ personal use of company vehicles are restricted to supplying them with vehicles of modest value. For 2012, the value of company cars that qualify for the standard mileage valuation method is $15,900.
If em­­ployees attend a business convention in Europe, you can’t reimburse their business expenses on a tax-free basis unless they demonstrate that the convention’s location satisfies heightened standards of reasonableness. But employees who attend business conventions in North America need only establish the familiar elements of the accountable plan rules for their reimbursements to be tax-free ...
Beginning with 2012 W-2 forms, you must report the value of employees’ health benefits (Box 12, with Code DD). Reporting on Form W-3 isn’t ­necessary. Good news: Under new IRS guidance, W-2 reporting is excused in more instances.
The earlier employers fix errors on 2011 W-2s, the less likely it is they’ll be penalized by the IRS. E-filers have until the April 2 to file original W-2s, but even those few extra weeks may not be enough to get off the W-2c hook for mistakes that come to your attention after e-filing.
Under the Affordable Care Act health care reform law, doctors and nurses whose student loans are forgiven under state programs that reward those who work in underserved areas don’t have income in the amount of the debt that’s forgiven.
Whether accrued vacation pay is due to an employee upon termination is determined by state law. This chart summarizes state vacation pay laws. Some states have no laws on this issue, which means that company policy should prevail.

Employees call Payroll every year saying they’ve lost their W-2s. Dealing with such requests can become a time-consuming headache, especially for larger organizations. Here are some tips for managing the reissued W-2 process.

Daylight saving time begins at 2 a.m., March 11. Graveyard-shift workers, therefore, will work only seven hours that day. If you pay those employees for a standard eight-hour shift, don’t include the extra hour’s pay when calculating their regular rates to determine overtime.
You may have seen the TV ads: An announcer says that if you need money and you have a job, up to $5,000 can be transferred into your bank account. The lender isn’t a payday lender, the ad continues. The FTC begs to differ. It has sued these lenders, claiming that they are, indeed, payday lenders, who didn’t go to court before they began issuing garnishment orders to borrowers’ employers.