Not exactly. An employee’s “regular rate of pay” is the amount used to calculate their overtime rate for a given time period. You might think of it as an average, of sorts. An employee’s regular rate is determined by adding up the amount paid for their work, as well as earnings from non-discretionary bonuses (such as those tied to performance or retention), then dividing that amount by the total hours worked. For example, let’s say Anna earns $10/hour for inside sales work and $15/hour for bookkeeping work. This week, she worked 24 hours in inside sales and 20 hours as a bookkeeper. She also received $50 in commissions that are attributable to this workweek. H
If you itemize deductions, avoid tax surprises with a “Paycheck Checkup” People who’ve itemized deductions on past tax returns should do a “paycheck checkup” using the updated IRS Withholding Calculator. This is especially important due to tax law changes from the Tax Cuts and Jobs Act, such as: • A cap on deductions for state and local taxes. • Limits to the deduction for home mortgage interest in certain cases. • Eliminated deductions for employee business expenses, tax preparation fees and investment expenses. See IRS.gov/taxreform for more information.
The rules around tip pooling have been mired in litigation since 2011, when regulations came into effect that forbid tip pooling between employees who customarily receive tips and those who do not. The recently passed federal budget bill has created clarity by amending the Fair Labor Standards Act (FLSA) and eliminating that rule for employers who do not take a tip credit. Since the rule has been eliminated entirely, court decisions interpreting it—such as Oregon Restaurant and Lodging Association, et al v. the U.S. Department of Labor—are irrelevant. The amended portion of the FLSA, while allowing for tip pooling between front and back of house employees if no tip credit is taken, cl
Professional Payroll Companies Break Down Tax Primer For Your Business For small business owners, managing payroll can feel like a full-time responsibility, particularly when it comes to coordinating all your corporate tax requirements. The best way to stay on top of your payroll obligations is to team with experienced payroll companies. These consulting companies partner with their clients to break down the general tax primer and ensure they remain compliant at all times. Tax Primer 101: Get The Basics Consulting with qualified payroll companies to breakdown tax regulations deliver a wealth of information. Your chosen vendor will provide details for you in three specific categories:
Can Your Payroll Service Provider Handle Your ACA Reporting? The Affordable Care Act marks a host of health insurance reforms and mandates with specific requirements on business owners. The current laws have distinctive requirements based on size of your organization. Some of the employment mandates pertain to: Self-employed individuals Less than 25 employees Less than 50 employees More than 50 employees Oftentimes, business owners falling into these specific employment categories find the best way to ensure ACA compliance means hiring a third party payroll processing services firm. However, once they begin their search they quickly realize that not all payroll processing s
Did you know that each state has their own rules on when an employees final paycheck is due? Here in Wisconsin, if an employee quits, it is due to them on their next scheduled pay day. If an employee is fired, it is also the next scheduled payday, or if the termination is the result of a merger, relocation, cessation, or liquidation of the business, final pay is due within 24 hours. It is definitely not an exciting read, but here is a link to the details on the Wisconsin State Legislature website. If you have questions on other states, please don't hesitate to ask us.
There are very limited circumstances under which an employer is allowed to take a deduction from an exempt employee’s salary, and employers who take a deduction when they shouldn’t risk the employee’s classification. This means an employee who had been classified as exempt could claim that the employer was treating them like an hourly employee by taking the prohibited deduction. The employee could then sue for back pay for all overtime they had worked without additional compensation. Deductions are not allowed for the following: Any partial day absence, for any reason, whether 15 minutes or 7.75 hours. If the employee does any work at all they must be paid for the entire workda
Last spring, the IRS issued a warning about an emerging phishing email scheme that targets HR and payroll departments. The scammer purports to be a company executive and requests personal information about employees – often in the form of W-2s or payroll records. The IRS gave examples of what the emails might say: Kindly send me the individual W-2 (PDF) and earnings summary of all W-2 of our company staff for a quick review. Can you send me the updated list of employees with full details (name, SSN, date of birth, home address, salary)? I want you to send me copies of employees’ W-2 wage and tax statements for 2016. I need them in PDF file type; you can send it as an attachmen
Avoid These Potential Costly Payroll Mistakes With Your Start-Up by using Online Payroll Services As a new business owner you will constantly find yourself straddling a multitude of functions and responsibilities. While it may make sense to continue managing various tasks, it's also critical (for the health of your fledgling venture) to look for various duties to outsource. One common function that many entrepreneurs find makes sense to outsource? Payroll. Using professional online payroll services can make a significant impact on a wide range of operations within your business. In fact, business owners who choose not to utilize online payroll services often find themselves facing a myriad
Ready To Use Payroll Processing Services? Know How To Prep For Setup Partnering with a new payroll processing service yields a long list of benefits for businesses of every size. Automating your payroll reduces manual errors, offers integration with other key systems, and ensures your business stays compliant with local and federal tax regulations. Despite the impressive return on investment, starting the process can (understandably) cause some rookie jitters. Many entrepreneurs find themselves worrying about what information they will need as well as what type of documentation they will have to present during their organization's setup. Some business owners avoid using payroll processin