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.
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.
Under the IRS’ Voluntary Classification Settlement Program (VCSP), you may change workers’ status from independent contractors to employees for future tax periods on favorable tax terms, without incurring penalties or interest. Now, however, new questions have arisen. Unfortunately, there are no easy answers.
The IRS keeps track of your company’s tax liabilities as separate modules in its Business Master File. If, say, your corporate income tax module is short, the IRS can offset that shortfall with an overdeposit from your payroll module. Worse: The IRS can make these offsets without telling you.
To speed the processing of child support withholding orders, the federal Office of Child Support Enforcement is encouraging employers to sign up for its electronic Income Withholding Order, or e-IWO. Currently, 23 states use e-IWOs.
Final IRS regulations exclude from taxpayers’ gross income damage awards for personal physical injuries or illness received from a lawsuit or in settlement of legal claims. The regs delete the requirement that to qualify for the tax exclusion, damages must be based on a tort or tort-type right.
Time clocks, time cards and time sheets are basic necessities for payroll purposes, workplace recordkeeping, Family and Medical Leave Act (FMLA) tracking, etc. But legal disputes under the Fair Labor Standards Act (FLSA) can arise over whether managers are allowed to alter time sheets; whether exempts may have their employment status altered by having to fill out time cards; and methods to prevent employees from falsifying their time records.
Q. Employees who don’t use all of their paid time off (PTO) lose it at the end of the company’s fiscal year. Management wants to amend this policy to give employees the option of selling back their unused PTO days to the company at their current pay rates or rolling over the PTO days into the next year. Before Payroll gives its final OK to this plan, we’d like to know if we’re missing anything.