Advice

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Before any employee begins telecommuting, there are payroll issues you need to resolve: keeping time for nonexempts, how and when to pay, and reimbursement for business expenses.
With summer heat setting in, you may be tempted to run through the sprinklers. But before you slip off your sandals, consider tackling these general payroll maintenance tasks. Getting things in order now also makes for a smoother year-end process.
Question: My company provides group-term life insurance with a value of more than $50,000 to some retirees. I know I have to report the uncollected employee FICA taxes on their W-2s in Box 12 with Codes M and N. Do we have to pay the employer share of these taxes? If so, when are they due? Also, how are the amounts reported on Form 941?
Q: An employee has taken a second job with our company on a part-time basis. Would our reimbursement of his travel expenses from his first job to our workplace be a tax-free reimbursement, or a taxable commuting expense?
A worker who was fired after admitting to his employer that he filed Form SS-8 with the IRS to determine his status as an independent contractor or employee can continue his lawsuit for unpaid overtime, a federal trial court has ruled.
The U.S. Supreme Court has ruled that federal immigration law doesn’t pre-empt an Arizona law, The Legal Arizona Workers Act. Therefore, Arizona employers that knowingly or intentionally hire illegal immigrants may have their licenses to do business in the state revoked or suspended.
Round out your summer schedule by making time to perform these general payroll maintenance chores and early year-end tasks:

You must backup withhold on payments made to independent contractors if they don’t certify their Taxpayer Identification Numbers to you prior to payment. Contractors may make those certifications by providing you with Form W-9, which you must keep for three years. Caution: You may want to retain these forms for longer than three years. Here’s why:

If you mail a tax-related document on the date it’s due, you’ll be considered to have timely filed it, according to the tax code’s timely-mailing-is-timely-filing rule. The same is true if the document isn’t delivered because the post office mangled it during processing.