Monthly Archives: March 2018

Do gift cards count as income? New tax act says….

    When it comes to employee achievement awards in the form of gift cards and cash, you’ve been right all along: These awards count as income and are taxable.   So say the Tax Cuts and Jobs Act, which finally puts this rule in writing to settle the issue.   Guidelines for awards   [...]

March 29th, 2018|Recordkeeping|

2018 Form W-4 is finally here: Important updates, next steps

    IRS definition of ‘first date of employment’   The wait is finally over! The IRS has just issued its new Form W-4 in response to the changes made by the Tax Cuts and Jobs Act.   Here’s a rundown of what Payroll needs to know.   Changes to boxes   For starters, you [...]

March 29th, 2018|New hire, W-4s|

IRS releases latest guidance on W-4s: Vital info for Payroll

    Handling new hires, employees claiming ‘exempt’   With 2018 already underway, and last year’s Form W-4 still in use, Payroll pros need clear-cut answers from the IRS about how to handle new hires and employees who claim they’re exempt from withholding.   So it’s a relief that the IRS has issued Notice 2018-14, [...]

March 29th, 2018|Uncategorized|

New, clearer guidance from DOL on paying interns: Keys to compliance

Courts reject old six-part test in favor of different standard   It just became a little easier to figure out how interns should be paid, thanks to several recent court decisions.   After the latest case, Benjamin et al. v. B & H Education, the Dept. of Labor (DOL) revamped its test to determine whether [...]

March 22nd, 2018|Recordkeeping|

IRS: Tax reform won’t impact retirement plan limits

The Tax Cuts and Jobs Act has changed many things for Payroll. But the IRS recently announced there’s at least one thing staying the same.   That’s the Tax Year 2018 dollar contribution limits for employee retirement plans.   Because the new legislation didn’t change any of the existing provisions that allow the Treasury Department [...]

March 22nd, 2018|Social Security Limits|

Employer must install new timekeeping system after FLSA claims

    Business will also pay 118K in wages, damages to 21 workers   As long as employees’ pay and time records are complete and accurate, employers can pick and use their own timekeeping methods.   But some employers are learning that if they fail to keep accurate records, the Dept. of Labor (DOL) may [...]

March 1st, 2018|Fair Labor Standards Act (FLSA), Timekeeping|

FLSA penalties increasing, what you need to know

  As if there weren’t already enough reasons to make sure workers are paid accurately, here’s another: Penalties are rising for violations of the Fair Labor Standards Act (FLSA)   Repeated or willful violations of FLSA will now cost companies $1964, compared to $1,925 in 2017.   Important details   The new penalty amount applies [...]

March 1st, 2018|Fair Labor Standards Act (FLSA)|