Payroll Today

You are certainly aware that you must file your paper and electronic W-2s by Jan. 31, 2017. Accounts Payable, not so much. But the Jan. 31, 2017, deadline also applies to paper and electronic Forms 1099-MISC on which nonemployee compensation is reported in Box 7. So, be a hero. Get up from your desk and take a walk to your AP department.

Not taking a summer vacation this year is the IRS. It just released draft Affordable Care Act information reporting forms—Forms 1095-C, 1094-C and 1095-B—for 2016. The good news: Not much has changed on the forms. The IRS, however, has not yet released draft instructions.

Be a Payroll hero

July 12, 2016

The fireworks are over. The kids are in summer camp. Now is the perfect time to help employees tune up their income tax withholding for the remainder of the year. Reach out to employees now and they will thank you next April when they file their 1040s.

Midnight, June 30 was the deadline for applicable large employers filing 250 or more health care information returns, Forms 1095-C, to file electronically through the IRS’ AIR system. If you didn’t file on time, according to the IRS, you can still file. Here’s the scoop.

While your attention is turned firmly to those new salary level regulations, you might as well review your nonexempt pay policies in general. Warning: If your pay policies fall short, you will also likely have to pay liquidated, or double, damages, in addition to paying nonexempts their back wages and overtime. Worse: Liquidated damages are the rule, rather than the exception.

In last week’s blog, I discussed using the fluctuating workweek method for employees who will be losing their exempt status once those new salary level regulations kick in Dec. 1. What about employees who will lose their status, but who don’t work much overtime? Well, there are options, here, too.

When the Department of Labor released its new salary level regulations, which more than double the salary employees must earn to maintain their exempt status under the Fair Labor Standards Act, it also floated the idea of using the fluctuating workweek method to mitigate the financial hit for employers that reclassify employees as nonexempt. The fluctuating workweek is a legitimate option, but there are traps along the way.
For employees who are worried about what to do with their kids over the summer, one option is to park them in day camp. And there are tax breaks for parents, which should make the cost go down as easy as that can of now half-melted frozen Hi-C.

Over the years, my dentist and I have come to a pleasant entente—we chat cordially, I don’t ever see any of those medieval instruments he uses and I get almost as much sedation as I want. For his part, he gets a much more relaxed patient who is not likely to bite him. Everyone wins! So the last time I was there, it surprised me that he had a shadow—a college student who wants to become a dentist. My dentist’s shadow was not an intern; she sat quietly and performed no productive work. But many interns do, and that brings up the Fair Labor Standards Act (FLSA), which sets the rules for paying (or not paying) interns.

Last week, the Department of Labor released its final regulations raising by more than 100% the amount employees must earn each week to be considered exempt under the Fair Labor Standards Act. Included in the regulations is a new provision that allows you to partially satisfy the salary amount by including up to 10% of nondiscretionary bonuses and other incentive payments, such as commissions, in exempts’ salary. But that begs the question of just what counts as a nondiscretionary bonus.