California Payroll Report articles from September 2006

California Payroll Report archives from September 2006

Rules for public employers' "pick-up" contributions clarified.
September 21, 2006... The tax code includes a special rule that allows state and local government employers with qualified defined benefit plans to "pick up" (i.e., pay) employee contributions and exclude them from the employees' gross income. When certain...

HRA payment to beneficiary turns all reimbursements taxable.(health reimbursement arrangements)(Legislation)
September 21, 2006... When health reimbursement arrangements (HRAs) were introduced a few years ago, they had two big selling points: Employee contributions through salary reductions were actually prohibited, and there was no use-it-or-lose-it provision (a fatal...

How to get the training you need when time and money are tight.
September 21, 2006... Your job is complex and there's so much to learn--but your small company has a commensurately small training budget. Plus, you're so busy running Payroll and attending to the myriad other tasks on your plate you can't imagine how you'd even...

Final Regs show supplemental wage withholding rules in action.
September 21, 2006... In your last issue, we reported that the IRS had issued final regulations (T.D. 9276) on supplemental wage withholding. As we noted then, there was a great deal of controversy and commentary over the proposed regulations (see your June 7,...

Ohio tax tables available.(Payroll News and Views)
September 21, 2006... In our August 7th issue, we reported that Ohio Governor Bob Taft had directed the state's tax department to revise the state personal income tax withholding tables to accelerate the 21% income tax cut that was being phased in from 2005 to...

Check-cashers shortchanged.(Payroll News and Views)(Q.C. Financial Inc. charges for not paying employee benefits)(Brief article)
September 21, 2006... Usually, when a payday loan company makes the news, it's because of exorbitant fees charged for cashing workers' paychecks or granting advances or loans with the worker's next paycheck as collateral. But somewhat ironically, the Department of...

Tax credits for wages paid.(Payroll News and Views)
September 21, 2006... For tax years beginning on or after January 1, 2007, Illinois employers will be able to take a credit against state corporate and personal income taxes for wages paid to qualified veterans and ex-offenders. Under PA 94-1067, employers may be...

Minimum wage hike.(Payroll News and Views)
September 21, 2006... Despite a gubernatorial "thumbs-down," Massachusetts will have a new minimum wage next year. The state Legislature voted unanimously to override the governor's veto of HB 4781. So, effective January 1, 2007, the state minimum wage will...

Paycards permitted.(Payroll News and Views)(Brief article)
September 21, 2006... Thanks to amendments to the state's Administrative Code, Michigan employers may use payroll debit cards to pay their employees. Of course, certain restrictions will apply: Employers must give employees written notice of the terms and...

Colorado crackdown.(Payroll News and Views)
September 21, 2006... In your April 21st issue, we reported on the Administration's controversial new Basic Pilot program addressing worker identity and employment eligibility verification. Now Colorado has new laws holding employers more accountable for hiring...

Special accounting rule can benefit employees, employers, and payroll managers.
September 21, 2006... The IRS gives you the freedom to choose the "payment" schedule of noncash fringe benefits (e.g., personal use of a company car). You can treat the value of the benefits as paid within a pay period or paid on another basis, such as monthly,...

And the winner is ... the IRS.
September 21, 2006... The presenters at the Emmy Awards earlier this month might have found a little something extra in those fantabulous gift baskets they received as a "token" thank-you for their time: a Form 1099. The IRS started a new outreach campaign aimed...

SSA offers online SSN verification.(Social Security Administration)(Social Security Numbers )(Brief article)
September 21, 2006... One of the most effective ways to eliminate problems with your W-2 runs is to verify employees' names with the Social Security numbers you have on file. And making name/SSN verification a regular part of your payroll procedures can eliminate...

Final supplemental wage withholding regs issued.
September 7, 2006... It took a bit longer than promised, but the IRS has issued final regulations on supplemental wage withholding [T.D. 9276, 71 Fed. Reg. 42049]. Certain provisions of the January 2005 proposed regulations were controversial, and triggered...

Comprehensive pension reform law includes payroll provisions.
September 7, 2006... On August 17, 2006, President Bush signed the Pension Protection Act of 2006 (H.R. 4), which Senate leaders describe as "the most sweeping overhaul to U.S. pension laws in more than 30 years." Veteran payroll managers may remember similar...

School's in session: time to brush up on student payroll rules.
September 7, 2006... As the back-to-school advertising blitz winds down, and students of all ages get back into their study routines, it's time for payroll managers to review the special rules for working students. Reduced hours. There are restrictions on the...

FMLA leave option expires after 12 months.
September 7, 2006... The Family and Medical Leave Act (FMLA) entitles eligible employees of covered employers to take up to 12 workweeks of unpaid, job-protected leave each year for specified family and medical reasons. Employees who take FMLA leave are ensured...

Employers can deduct processing fees from employees' charged tips.
September 7, 2006... There's good news for employers of tipped employees. A potential class action suit has been stopped in its tracks by the U.S. District Court for the Northern District of Illinois. The federal court, citing a Sixth Circuit U.S. Court of...

State wage hike.(Payroll News and Views)
September 7, 2006... State wage hike. Another state, weary of waiting for federal action, has taken a preemptive strike at the minimum wage. Effective January 1, 2007, the minimum wage for North Carolina will be $6.15 an hour (an increase of $1). "While we wait...

Living wage update.(Payroll News and Views)(Brief article)
September 7, 2006... Living wage update. Longtime readers may recall past coverage of the growing momentum of the "living wage" initiative. More and more cities are passing special ordinances that require employers to pay wages above federal and state minimum...

Bad news for "big boxes.".(Payroll News and Views)(Wage price policy)(Brief article)
September 7, 2006... Bad news for "big boxes." The city council of Chicago (Illinois) has passed a controversial ordinance that living wage proponents applaud as "groundbreaking" and retailers associations describe as "un-Constitutional." The new law requires...

Issue resolution.(Payroll News and Views)(Brief article)
September 7, 2006... Issue resolution. The Issue Management Resolution System (IMRS) is one arm of the IRS's outreach program to help identify and resolve significant local and national stakeholder issues. IMRS is also designed to identify nationwide trends in...

Competition or concession?(Payroll News and Views)
September 7, 2006... Competition or concession? With more than 1.3 million employees in the U.S., Wal-Mart Stores Inc. is the nation's largest employer. That alone would make a raise in starting pay at a third of the chain's stores newsworthy. But the...

Cross-train and streamline for top efficiency.
September 7, 2006... Your department has just been downsized--and as if that wasn't enough, you've been placed in charge of additional functions. Is your situation impossible? Not at all, says Rosemarie Fraumeni, CPP, Getronics North America Operations...

GSA announces CONUS per diem rates for 2007.
September 7, 2006... The General Services Administration (GSA) has announced its per diem rates for expense reimbursements for business travel within the continental U.S. (the CONUS rates). The new rates will be effective for the GSA's 2007 fiscal year, which...