Compensation & Benefits

How should we report excess group-term life insurance for bankrupt company?

11/01/2012

Question: One of our affiliated companies filed for bankruptcy protection. As a result, the company’s assets were frozen and everyone was let go. Unfortunately, Payroll didn’t impute the excess group-term life insurance into employees’ income. Must we still report the excess group-term life as income on employees’ W-2s?

The deadline for 401(k) plan fee disclosures is this month

11/01/2012

New rules require 401(k) plan service providers to disclose fees to plan administrators, who must, in turn, relay this information to employees. The disclosures are due to employees by Nov. 14.

Feeling haunted: Don’t be scared by year-end Payroll

10/31/2012

Who needs Halloween when year-end seems to come up like a witch riding on a broomstick—all at once. Take a few minutes to stir things up now and your Payroll cauldron won’t bubble over in December.

Safe harbor protects employers from free-rider penalties

10/30/2012

Under the health care reform law, employers of 50 or more full-time employees during the preceding year will pay free-rider penalties if they don’t offer full-time employees (i.e., those who work at least 30 hours a week) affordable health benefits. How you determine full-time status is the subject of new IRS guidance.

Cleveland financial firm pushes employees to live healthier

10/29/2012

Execs at Cleveland-based KeyBank figure there’s something to be said for keeping the same medical administrator on staff for more than a decade. In fact, they call it part of their “commitment to wellness.” The organization’s aim: to drive down medical costs by helping employees improve their health and become more involved in their own well-being.

Fall back: Standard time starts Nov. 4

10/29/2012

Don’t forget to turn your clocks back one hour, to standard time, at 2 a.m., Sunday, Nov. 4. Employees working the graveyard shift will actually work nine hours and will need to be paid for nine hours’ work.

What are the rules on timely pay?

10/27/2012

Q. Is it true that according to federal law, employees must be paid within two weeks of completing their work, no matter the excuse (computer glitch, etc.)?

OK to take your time probing misconduct–that won’t affect unemployment claim

10/27/2012

Good news for employers that hold off on firing an employee for an act that would otherwise be willful misconduct, making the employee ineligible for unemployment compensation benefits. As long as you can explain why you delayed actually terminating the employee, she won’t receive unemployment benefits.

Severance pay: Is it FICA taxable or not?

10/26/2012

A federal appeals court has ruled that a bankrupt company’s severance payments qualified as FICA-free supplemental unemployment benefits—also known as SUB pay. Therefore, the court concluded, the company’s $1 million FICA refund claim was proper.

Be prepared for questions about taxes due on some benefits

10/24/2012

It’s easy for benefits professionals to fall in love with nontraditional benefits—perks other than leave, health insurance and retirement benefits—because they’re generally cheap and build loads of employee good will. However, many so-called lifestyle benefits are taxable—much to the chagrin of employees.