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.
After weeks of wrangling, the House of Representatives and the Senate on Dec. 23, 2011 agreed to extend a 2 percentage point payroll tax cut for two months to buy time for talks on a full-year renewal. President Obama immediately signed the bill into law. The vote removes employer uncertainly about how to handle payroll withholding starting Jan. 1, 2012.
Question: An employee signed up for a cafeteria plan health flexible spending account (FSA). Last February, she had back surgery, which meant that she was reimbursed for the full amount of her annual election. She quit before the balance of her elective deferral could be withheld from her pay. Must we report the amount paid out to her from the FSA, but not yet deducted from her pay, on her W-2?
W-2s can give you aggravation, sleepless nights, you name it. Here are the critical due dates, as well as six common W-2 errors and easy tips to avoid them:
As part of an economic stimulus effort, the withholding rate in 2011 for the employee’s share of the Social Security tax was reduced from the usual 6.2% to 4.2%. Will Congress agree to extend the 4.2% rate through 2012?
Employers that have a noncompensatory business purpose for providing cell phones or related equipment—that includes smartphones and personal digital assistants—to employees may treat their business use as a tax-free working condition fringe benefit and their personal use as a tax-free de minimis fringe benefit.
States, which need to repay the federal loans they took out to pay regular unemployment benefits, are slapping tax surcharges on experience-rated employers. But if you’re willing to budget just a little bit more to pay so-called voluntary contributions, you may actually come out ahead.
If dealing with year-end 2011 hasn’t caused enough anxiety, lurking just around the corner is W-2 reporting of employees’ health benefits. If you’ll be filing at least 250 W-2s for 2012 and don’t have a self-insured plan that’s not subject to COBRA, you’re on the hook for health care reporting, beginning next year.
Q. How do I set up a simple time sheet in Excel?
Regulations have restored the FICA/FUTA exemptions for employing family members and members of religious orders in LLCs and other disregarded entities that didn’t elect to be treated as corporations for federal payroll tax purposes. The regs became effective Nov. 1, 2011, but you may apply them to wages paid beginning Jan. 1, 2009.
Winter isn’t a challenging season just because of the lousy weather. It’s tough on payroll staff, who must ensure that the company’s pay policies jibe with the Fair Labor Standards Act when employees leave early, arrive late or just stay home because of snow. Here are the rules for nonexempts and exempts.