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 Unemployment (SUI) and Federal Unemployment (FUTA). However, for purposes of understanding SUI wage base, we will [...]

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 all of your employees Please report any manual checks written from your business [...]

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 pay after 40 hours of the workweek, not to be confused with the pay period. Example 1: In [...]

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, low income families, church congregations, and seniors are being lured with deceiving promises of free money. Another variation [...]

Let's face it, our employees are the heart of our business. I know mine are. Without them, our clients don't get the best service possible and your business does not function to capacity. So shouldn't you make it a point to show them how much they are appreciated? Here's a few ways to show your appreciation and keep the morale up! Praise: Take notice of your employee's hard work. Employee's want to be be recognized for their achievements. When you praise your employees accomplishments it motivates them to continue to excel. When possible, publicly show respect and appreciation. Employee recognition [...]

Starting on January 1, 2013 the amount eligible for contribution to your FSA account will be considerably lower than in the past.  A mere of $2,500.00 as opposed to no maximum contribution limit in previous years. However, many employers set a limit under $5,000.00. HSAs are facing fewer changes due to the Health Care Reform Bill, but the penalty for using funds for non-medical expenses before the age of 65 has doubled from 10% to 20%. The HSA minimum deductible will rise to $2,500 for family and $1,250.00 for individual coverage in 2013. Maximum HSA contributions for 2013 will be [...]