The Internal Revenue Code (IRC) stipulates that all compensation received by an employee from an employer, regardless of the form it takes, constitutes wages subject to federal income and employment taxes. Compensation may be excluded from wages and exempt from taxation only where the IRC provides a specific exclusion. Please see the below link to IRS Publication 15-B for clarification of these guidelines. IRS Employer's Tax Guide to Fringe Benefits

Q1: In the past, as an employer, I was required to submit all Forms W-4 that claimed complete exemption from withholding (when $200 or more in weekly wages were regularly expected) or claimed more than 10 allowances. What Forms W-4 do I now have to submit to the IRS? A1: Employers are no longer required to routinely submit Forms W-4 to the IRS.  However, in certain circumstances, the IRS may direct you to submit copies of Forms W-4 for certain employees in order to ensure that the employees have adequate withholding. You are now required to submit the Forms W-4 [...]

We are rapidly approaching the end of another quarter. The last day of processing for this quarter will be Thursday, June 30, 2011. If you have any adjustments that need to be included in this quarter, please submit them to your Account Manager later than 1:00pm on the 30th.  Adjustments may include manual checks written by you, or any checks you may have voided. For our Clients who have “APPLIED FOR” State and Unemployment ID numbers, please send them in as soon as you receive them. We will discontinue processing for this quarter at 1:00pm on the 30th. If you [...]

Charlotte Observer, June 9, 2011 President Barack Obama's advisers have discussed seeking a temporary cut in the payroll taxes businesses pay on wages amid economic reports suggesting the recovery is slowing, according to people familiar with the matter. The idea, in preliminary stages of discussion, is among several being debated in the administration with the aim of boosting hiring, the sources said. who spoke on the condition of anonymity to discuss internal deliberations. The unemployment rate in May rose to 9.1 percent, the highest level this year. The idea of a cut in the employer contribution to payroll taxes also [...]

The IRS has published a request for comments to assist in development of guidance und IRC §4980H, which was added to the Internal Revenue Code by the Patient Protection and Affordable Care Act (Affordable Care Act; Pub. L. No. 111-148). Comments are requested on a number of possible rules, definitions, and approaches for interpreting and applying §4980H – including potential definitions of “employer,” “employee,” and “hours of service”; a possible method for determining wheter an empl;oyer is an applicable large employer; and possible rules that could be used to determine and employee’s full-time status for purposes of calculating and employer’s [...]

One of the most frequently asked questions we come across is when and how to pay overtime. There are many misconceptions on when overtime is required to be paid to an employee. Please read the following information from the U.S. Department of Labor for a clear understanding of when and how you should pay your employee overtime: Wage and Hour Division (WHD) Overtime Pay Overview The federal overtime provisions are contained in the Fair Labor Standards Act (FLSA). Unless exempt, employees covered by the Act must receive overtime pay for hours worked over 40 in a workweek at a rate [...]

Business Expenses Business expenses are the cost of carrying on a trade or business. These expenses are usually deductible if the business is operated to make a profit. What Can I Deduct? To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary. It is important to separate business expenses from the following expenses: The expenses used [...]

EMPLOYERS: Effective June 1, 2011, Florida's revised minimum wage will be $7.31 per hour for all hours worked in Florida. Employers must pay their employees a wage not less than the amount of the hourly state minimum wage for all hours worked in Florida. The definitions of “employer,” “employee,” and “wage” for state purposes are the same as those established under the federal Fair Labor Standards Act (FLSA). For “tipped employees” meeting eligibility requirements for the tip credit under FLSA, employers must pay a direct hourly wage of $4.29 as of June 1, 2011.

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