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.
Question: My company provides group-term life insurance with a value of more than $50,000 to some retirees. I know I have to report the uncollected employee FICA taxes on their W-2s in Box 12 with Codes M and N. Do we have to pay the employer share of these taxes? If so, when are they due? Also, how are the amounts reported on Form 941?
Remember Wal-Mart's $640 million wage-and-hour mistake? That was all because of the federal Fair Labor Standards Act (FLSA). The FLSA seems straightforward, but small compliance errors can add up to big penalties. Here are the basics you need to know to stay out of court:
Before any employee begins telecommuting, there are payroll issues you need to resolve: keeping time for nonexempts, how and when to pay, and reimbursement for business expenses.
If you mail a tax-related document on the date it’s due, you’ll be considered to have timely filed it, according to the tax code’s timely-mailing-is-timely-filing rule. The same is true if the document isn’t delivered because the post office mangled it during processing.
Q. Are there specific rules on when I must pay my employees?
Q. We pay most of our employees’ wages and salaries via direct deposit. Last week, two checks for the same pay period were deposited into an employee’s account. Can we legally have the bank withdraw the extra funds from the employee’s account?
Q: An employee has taken a second job with our company on a part-time basis. Would our reimbursement of his travel expenses from his first job to our workplace be a tax-free reimbursement, or a taxable commuting expense?
Round out your summer schedule by making time to perform these general payroll maintenance chores and early year-end tasks:
Question: The cost of health insurance premiums paid by an employer on behalf of 2% S corp shareholders is reported in Box 1 of their W-2s. Must we withhold federal income taxes on this amount, or can we report it without withholding taxes?
With summer heat setting in, you may be tempted to run through the sprinklers. But before you slip off your sandals, consider tackling these general payroll maintenance tasks. Getting things in order now also makes for a smoother year-end process.