Advice

If misclassified workers pay their income and self-employment taxes, you’re off the hook for the income taxes you didn’t withhold and likewise for both the employer and employee portions of FICA (but penalties may still apply).
When you withhold taxes from employees’ pay, you’re administering the tax code. The U.S. Supreme Court has now given you some breathing room. It ruled that you can’t be criminally liable for obstructing the due administration of the tax code unless you’re aware of, or can reasonably foresee, a pending proceeding, such as an audit.
As employees’ thoughts turn toward summer vacation, put two items on your agenda: ensuring that the summer vacation schedule runs smoothly and that employees aren’t overpaid during weeks they take a day or two off.
Payroll managers whose companies take on summer hires know the feeling. Questions about W-4s and I-9s from new members of the taxpaying community are just the beginning. Use this checklist to bring order to the summer hiring process.
The deductibility of costs incurred for company events, such as a Christmas party, is covered under tax code Sections 274(e)(1) and (e)(4), which the Tax Cuts and Jobs Act didn’t touch.
Verification of employment requests are not difficult to process, but you do need a formal system for responding to them.
Some employers will soon be able to avoid the hefty penalties and double damages that usually result when the government discovers violations of the Fair Labor Standards Act.

The IRS is a prodigious publisher. Here are digests of documents sent between IRS offices.

Before spring fever sets in for real, why not clean up your payroll records? Careful: Be judicious in your culling; the IRS requires you to keep payroll records for at least four years after employees’ 1040s are due.

As if being liable for retaliating against an employee for filing discrimination charges wasn’t bad enough, a federal appeals court has ruled that an employer must also compensate the discriminated-against employee for the extra taxes that are due on a lump-sum back pay award by grossing it up.