Advice

If you’ve filed Form 941-X or another amended return, and you must make a tax payment for an old calendar quarter, you may use the IRS’ Electronic Federal Tax Payment System (EFTPS).
Big changes are coming to the year-end independent contractor reporting process.
Question: We owe wages to a former employee who died this year. To whom do we make the check payable? What about filing a W-2?
Employers that have a noncompensatory business purpose for providing cell phones or related equipment—that includes smartphones and personal digital assistants—to employees may treat their business use as a tax-free working condition fringe benefit and their personal use as a tax-free de mini­mis fringe benefit.
The time to confirm employees’ Social Security numbers is when they’re hired, not when you’re slapped with a lawsuit for unpaid overtime and minimum wage violations. A federal trial court has ruled that an employer was out of bounds in requesting this information.
The IRS, through its Questionable Employment Tax Practices initiative, is successfully working with states on worker misclassification issues. However, one agency with which the IRS doesn’t work well is the DOL’s Wage and Hour Division, according to a GAO report.

Most states have laws that require employers to provide workers with regular statements about their compensation. To help you prevent pay-stub violations, this downloadable PDF chart cites the pay-statement laws for all states that have such laws. Plus, it explains whether pay stubs can be provided to employees electronically …

Question: A rehired employee will soon be receiving his first paycheck. He had a child support withholding order when he terminated. Should I withhold for that order or wait for a new order?
Question: If an employee provides an I-9 document that’s subject to photo matching in E-Verify, can an employer ask or require the employee to provide a copy of the document to use during the E-Verify process?

SSNs or ITINs on W-2s?

August 10, 2011

Question: What should employers do if the only ID number they have for an employee is an Individual Taxpayer Identification Number (ITIN), and not a Social Security Number (SSN)?