Payroll

Fiscal Cliff Watch: IRS OKs using 2012 withholding rate for now

12/21/2012

Employers should continue to use 2012 withholding tables and personal exemption amounts until further notice.

Jan. 31 end-game in sight

12/20/2012

Mark your calendar. By Jan. 31, employees must have their W-2s, and the IRS must have the fourth-quarter 941 form, and annual 940, 944 and 945 forms. Here’s what you must do now.

2013 standard mileage rate increases 1¢, to 56.5¢ per mile

12/19/2012

The standard mileage rate, which you may use to reimburse employees who drive their own cars on business, increases one penny to 56.5 cents a mile for 2013. You can also use the standard mileage rate to value employees’ personal use of moderately priced company cars.

Health plans audited for health care reform compliance

12/18/2012

The health care reform law doesn’t fully kick in for another year. But that hasn’t stopped DOL auditors from scrutinizing group health plans for provisions already in effect, such as the grandfathering rules and children staying on parents’ plan until they turn age 26.

IRS announces disaster relief for Hurricane Sandy victims

12/17/2012

In the wake of Hurricane Sandy, the IRS has issued a package of payroll, 401(k) and individual tax relief measures. This relief applies to individuals and businesses located in the disaster area, and to those whose tax records are located in the disaster area.

Tax levies: Large print giveth, small print taketh away

12/14/2012

The aftermath of the Great Recession may very well be read in an increase in the number of tax levies on wages, as employees scrimped on their taxes to pay for other things. The IRS isn’t sympathetic, and that’s bad news for already overworked Payroll departments.

Fiscal Cliff Watch: The clock is ticking, and still no withholding tables

12/12/2012

Negotiations to resolve the “fiscal cliff”—a package of tax increases and spending cuts—that will kick in on Jan. 1, 2013, are taking place at an excruciatingly slow pace. Unfortunately, key payroll issues are caught up in the fracas. Until the impasse is resolved, Payroll can’t begin implementing plans for 2013 operations.

IRS retires old-fashioned letter-forwarding program

12/06/2012

If you’ve ever been unable to locate former employees who were owed 401(k) plan assets or final paychecks, you’ve probably used the IRS’ letter-forwarding program to try to contact them. No longer.

Higher Medicare taxes in 2013 means payroll headaches now

12/03/2012

Single employees earning more than $200,000 and joint filers earning more than $250,000 will pay an additional 0.9% in Medicare taxes in 2013. To avoid the additional tax, employees may take some extraordinary steps regarding their noncash compensation before the end of this month. That means additional payroll headaches for you.

Is there a formula for grossing up benefits for same-sex partners?

12/02/2012

Q: The company grosses up the fair market value of health benefits provided to employees’ same-sex domestic partners. One employee already had family coverage for his children before he enrolled his partner. How is the gross up calculated, if the cost of coverage doesn’t increase because the plan charges employees a flat amount for family coverage, regardless of the number of individuals covered?