Advice

2021 inflation adjustments

October 27, 2020

This page presents the 401(k) COLA amount and other pension adjustments and the qualified transportation fringe benefits amount (crucial for your corporate deduction disallowance for providing employees with QTFs).
If you’re mailing Form 940 to the IRS without including a payment, be sure to check the last four digits of the ZIP Code.
If you want to waste money, stand in the middle of the street and set some on fire. That’s what happens when ineligible employees collect unemployment benefits. However, there are steps you can take to prevent unwanted benefits charges to your account.
Many companies are experiencing financial hardship. But it takes a lot more than run-of-the-mill financial hardship to claim a reasonable cause defense for not depositing payroll taxes. It takes, according to a federal trial court, an existential threat to the business.
This is the first year you’ll be reporting payments of at least $600 to independent contractors on Form 1099-NEC, Nonemployee Compensation. The new form is fine, but it doesn’t eliminate all of your 1099 headaches.
Don’t forget to turn your clocks back one hour to standard time at 2:00 a.m., Sunday, Nov. 1.
The price for not paying employees minimum wages or overtime is usually double what you owe them. A new field assistance bulletin from the Department of Labor, however, pulls back on levying liquidated damages as the condition of wrapping up an investigation.
Departing employees may take their 401(k) account balances with them when they leave, but you must first provide them with a notice of their eligible rollover options. The IRS has updated the model safe-harbor notices you can use for this purpose.
The problem with processing payroll when employees are working from home is employees: Their home computers aren’t as secure as their work computers and their typical, normal questions take up way too much of your time. Technology can be your friend, here.
Employees are suing their employer, which bit for the scam, for unauthorized disclosure of their personal identifying information. A court is letting their case proceed.