Students are Not Automatically Exempt from Federal Withholding

It is commonly thought that if you are a student, then you are exempt from federal income tax withholding. This is not necessarily the case. High School and College students must meet the same criteria as all other U.S. Citizens to be considered exempt from federal income tax withholding.  Regardless if you are a student or not, you are not exempt from federal income tax withholding if: Your annual income is greater than $950 including over $300 of unearned income such as ... Read more

DirectPay Payroll Services is looking for Motivated Sales Representatives!

We are looking for Sales people in the Charlotte area. Please send resume via email to Our objective is to provide full service payroll and tax filing services for small to medium size businesses in and around the Southeast. What makes our company an industry leader in the Charlotte area is our focus on excellence and our passion for impeccable customer service. Our sales team is the face of our company and needs to demonstrate these traits. Ideally, our candidate will ... Read more

“Voluntary” Employee training: Paid or Unpaid?

Well, just calling it voluntary ain't gonna cut it if you want to get out of paying for employee training.  If you are offering additional off-duty training to your hourly employees, you'll need to adhere to some FLSA guidelines. If the training is being touted as voluntary, but your employees get the impression that they will be adversely affected by not attending, this will not suffice. Listed below are some indications that will clear up some contrived "voluntary" training is truly mandatory ... Read more

W-4 Requirements for Employers

All employers should have their employees complete Form W-4, Employee's Withholding Allowance Certificate in order to know the correct amount of income tax to withhold from employees' wages. New employees should be asked to submit a signed Form W-4 when they begin work, and the form should be effective starting with the first wage payment. Any employee exemptions need to be indicated on their form W-4 and kept on file.  If a new employee does not submit a completed Form W-4, ... Read more

FBI Warns of ‘Smishing’

The next evolution of phishing, called smishing, uses SMS texts in an attempt to get victims to reveal personal information about themselves. The criminals, often targeting particular regions or area codes and sometimes using stolen customer phone numbers from banks or credit unions, will send messages such as "There is a problem with your account" or "To avoid being charged for .... Service, reply 'STOP' to this message." What should you do if you suspect you are a victim of smishing? Do not ... Read more

Are Employee Pay Stubs Required?

Actually, the Fair Labor Standards Act (FLSA) does not require employers to issue pay statements to their employees. However, FLSA does mandate that employers keep accurate records of hours worked and wages paid to employees. Although the FLSA does not require Employer's to issue pay stubs, your individual state may required pay stubs be issued. Furthermore, your state may have very specific stipulations as to what must be listed on pay stubs. For instance Alabama has no provisions while South Carolina requires ... Read more

Attention Florida Employers: SUI Wage Base Decrease

On Friday, March 23, the State of Florida released that it signed into law a reduction to the UI wage limit effective retroactively to 1/1/12. The reduced wage limit is now $8,000, down from the prior limit of $8,500. DirectPay is in the process of updating our system to accommodate the amendment.   What is an Unemployment Taxable Wage Base? As an employer, you are required to pay "x" amount of taxes for the first "x" amount of employee wages. This applies to FICA, State ... Read more

1st Quarter Reporting

As quarter one 2012 comes to a close, we would like to remind our clients to report any first quarter adjustments by 1pm on Friday.   Some items to be mindful of: Please make sure you have submitted your 2012 State Unemployment rate If we do not have your State or SUI account number, please fax or email a copy to us before Friday. If you voided any pay checks, please let us know before 1pm on Friday Please confirm that we have social security numbers for ... Read more

Are you correctly compensating your employees for overtime?

Believe it or not, when and how to pay overtime is a commonly asked question. Not a day goes by where we are not asked "When should I pay overtime, over 80 hours in two weeks?" Actually, the standard is over 40 hours in one week. However, some states pay overtime if an employee works more than 8 hours in one day. The Fair Labor Standards Act (FLSA) mandates overtime pay to be at least 1.5 times an employee's regular rate of ... Read more

Tax Scam targets Senior Citizens, Working Families, College Tax Credit and Church Members

As in scams past, the most recent IRS Tax scam circulating brings promises of refunds to individuals of lower income, and most without a tax filing requirement. The fraudulent scheme claims the ability to acquire for their victims, frequently senior citizens, a false stimulus payment or non existent tax refund basing their claims on the American Opportunity Tax Credit. The perpetrators will claim eligibility of a College Tax Credit even if it has been decades since the victim has attended school. Likewise, ... Read more
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