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.

Under the de minimis deposit safe harbor rule, employers that accumulate less than $2,500 in payroll taxes during the current calendar quarter can pay those taxes with their Form 941, rather than deposit them. Final regulations allow quarterly filers to use the safe harbor rule if their accumulated taxes for the current or preceding quarter are less than $2,500.
Final medical loss ratio (MLR) regulations, which took effect Jan. 1, 2012, require group health in­­surers to spend between 80 and 85 cents of every pre­­mium dollar on medical care and health care quality improvement. Insurers that fall short must make rebates to participants, beginning Aug. 1, 2012.
This isn’t good news for employees named Chris, Pat or Robin. The Social Security Administration has announced that it has removed the verification of gender from its Social Security Number Verification Services (SSNVS).
Under the IRS’ Voluntary Classification Settlement Program (VCSP), you may change workers’ status from independent contractors to employees for future years. One major concern with VCSP has been potential liability for reclassified workers under the FLSA or state wage payment laws.

The standard mileage rate, which employers may use to reimburse employees who drive their own cars on business, remains 55.5 cents a mile for 2012. You can also use the standard mileage rate to value employees’ personal use of moderately priced company cars.

Comp and benefits pros have three ways to make tax time easier on employees this spring. Work with your colleagues in payroll and accounting to publicize these conveniences—and protect workers from fraud.
Darn that groundhog! If it knew what payroll administrators know about looming W-2 deadlines, it would never come out of its den. Paper W-2s are due to the Social Security Administration by the end of the month; e-filed forms are due by April 2.
You couldn’t have direct deposit or online banking without the Automated Clearing House (ACH) network. Unfortunately, online banking through the ACH network has generated a new cyber crime—ACH fraud. Payroll, which uses the ACH network for direct deposits and other transactions, is particularly vulnerable.

Businesses must stay abreast of an alphabet soup of federal laws—ADA, ADEA, FMLA and so forth—each with its own requirements. Further complicating matters, most states have their own laws that override the federal requirements. To comply, you first must know which laws apply to your business, based on the number of people you employ ...

Q. We would like to institute a rule subjecting em­­ployees to discipline for clocking in late. Are we permitted to do this even though we round our employees’ time to the nearest quarter-hour?