IRS releases 2020 contribution limits for FSAs and other popular perks New Maximum pretax amounts for payroll deductions In 2020, salary contribution limits are rising for several popular benefits that employers offer their workers. The IRS recently announced the cost-of-living adjustments to these limits in Revenue Procedure 2019-44. Getting up to speed For 2020, employees [...]
IRS releases latest draft of Pub. 15-T: Details for Payroll on withholding New tables and instructions for calculating workers’ taxes The IRS’ second draft of Publication 15-T, Federal Income Tax Withholding Methods, gives you an inside look at what you’ll need to do to calculate employees’ tax withholding next year using each version of Form [...]
The scammers have a new tactic. People are now ignoring their phone calls, which is good. We've all been told that the IRS will only contact us by letter. So now they are sending out SCAM LETTERS! If you receive one of these BEWARE & TAKE IT TO YOUR LOCAL POLICE STATION!
You are required to get each employee's name and Social Security Number (SSN) and to enter them on Form W-2. (This requirement also applies to resident and nonresident alien employees.) You should ask your employee to show you his or her social security card. The employee may show the card if it is available. You [...]
Employment law enforcement: How Payroll’s being impacted by changes Federal, State and Local Updates to Laws Affecting Companies If you’re concerned that the latest regs from the Dept. of Labor (DOL) will have a significant impact on your responsibilities and your company’s bottom line, you aren’t alone. Many Payroll pros are in the same boat, [...]
New bill expands retirement option: Key takeaways There may be more employees eligible to participate in your 401(k) plan – and they may be able to contribute higher amounts – if a new bill becomes law. Under the Setting Every Community UP for Retirement Enhancement (SECURE) Act of 2019, employers would have more options when [...]
Uniforms cause $16K minimum wage violation: Avoid deduction trouble Restaurant breaks the law with its repayment policy Employers often provide workers with uniforms, but if they’re paid for through pay deductions, it’s important to make sure employees still receive the minimum wage. Otherwise, it’s only a matter of time before the Dept. of Labor (DOL) [...]
Medical exams and drug test: Not paying workers cost company $200K Repeat offender didn’t track compensable time correctly Many employers require employees to have physical exams, drug tests or other procedures before reporting to work. This time is typically compensable, especially if tests are done during normal work hours. Companies that don’t reimburse workers for [...]
Time to start reporting EEOC pay data! Next steps for Payroll You’ll need earnings from Box 1 of Forms W-2 Summer might normally be a quieter season in Payroll. But not this year, due to new reporting responsibilities. In preparation for Component 2 of the EEO-1 Report, the EEOC online portal was ready to accept [...]
New option for offering workers tax-free benefits A new final rule from the Trump administration will give employers more options for providing nontaxable health benefits to their employees. The rule allows employees to use funds from a new individual coverage health reimbursement arrangement (HRA) to purchase third-party healthcare coverage. HRA advantages Allowing employers to use [...]
