GAO makes recommendations to IRS for Rooting out issues The IRS has been emphasizing the importance of preventing identity theft and fraud for quite some time now, particularly when it comes to Form W-2. As a way to prevent fraud, the IRS has made it a priority to verify the info reported on [...]
Dian Ponto, payroll manager, Resort Asset Management LLC, Ludlow, VT writes: We dealt with an influx of seasonal workers every year, which made payroll extremely hectic. Between entering their info into our system and making sure they were paid on time, it was tough to juggle it all. Plus, with [...]
Year-end may seem far away right now, but get ready: The IRS has just released the 2018 Form W-2. Although there aren’t any big changes to the form just yet, there are some developments you should watch for, mostly dealing with the verification code in Box 9. Authenticating returns As [...]
How companies know if they’re eligible, what to track & more More companies are offering workers paid medical and family leave. Thanks to the Tax Cuts and Jobs Act, this could earn them a tax credit in the next two years. The amount of the credit ranges from 12.5% if employees [...]
What’s included in Opinion Letter 2018-14 The Department of Labor (DOL) hasn’t always been clear about when you’re able to make deductions from exempt employees’ pay if they’re absent from work. But now that the DOL has issued Opinion Letter FLSA 2018-14 on that topic, you have the guidance you need [...]
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 [...]
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 [...]
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, [...]
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 [...]
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 [...]
