When conducting my webinars on the FLSA requirements one area always seems confusing to attendees and that is the eight types of payments that can be excluded when calculating regular rate of pay. The one found most often to be confusing to my attendees and maybe to you as well is the one that is for bona fide overtime premiums. Bill Pokorny has done an excellent blog post on this subject that I know you will find helpful on this topic. Please take the time to check it out if you offer this type of payment or to improve your general payroll knowledge.
I get a lot of questions on whether or not a payroll professional should get certified and if they should then which certification should they try for first. Should they go right into the CPP exam? Or start off with the FPC and work up to the CPP? Many payroll professionals are even confused as to which certification they could qualify for. In their blog, Payroll News, Symmetry Software has done a very nice and quick comparison of the two certifications offered by the APA. If you are looking to certify but aren’t sure which test to try for, take time to check out the blog today.
A recent article from RIA told of the following problem:
Mike McGuire from IRS Modernized e-File (MeF) told listeners to the May 4 payroll industry telephone conference call that the IRS has been rejecting “tens of thousands” of 2017 first quarter electronically-filed Forms 941, Schedule B (Report of Tax Liability for Semiweekly Schedule Depositors) because the total tax liability on Schedule B does not agree with the total tax liability on Form 941, line 12 (Total taxes after adjustments and credits). Prior to the 2017 tax year, the total tax liability on Schedule B had to agree with Form 941, line 10 (Total taxes after adjustments), or the IRS would reject it. However, the IRS revised some of the line numbers on Form 941, beginning with the 2017 tax year, to take into account that “qualified small businesses” may now elect to claim a portion of their research credit as a payroll tax credit against their employer FICA tax liability, rather than against their income tax liability. Beginning with the 2017 tax year, the total tax liability on Schedule B must agree with Form 941, line 12 (Total taxes after adjustments and credits) rather than line 10. Some electronic filers have not adjusted their programs to take this change into account. Rejected returns have to be resubmitted to the IRS.
Make sure your system has made this change.
Find out about these types of changes fast and easy by subscribing to Payroll 24/7.
I just completed my registration for the American Payroll Association’s 2017 Virtual Congress & Expo. This is a free event for APA members which is held every year. This is the 8th year for the event and the 6th one I will be attending. This is the online companion to the Annual Congress. But for me it is the only one I can usually attend. I love attending the live, real world congress. I get to meet up with associates, network and gain valuable knowledge. However, my schedule just doesn’t permit me to take the time off to attend most years. But virtual congress is different. I can attend in the morning, take time to do one of my webinars and be back in the afternoon. I still get to network with old friends and make new ones using the networking lounge’s chat boards. I get to see all who are attending and can even contact attendees directly to say hello. The webinars are always educational. This year we are looking at such subjects as:
- State Unemployment Rates: How Did They Arrive at Our Rate?
- Is this Taxable?
- Global Payroll
- Calculations Your High School Teacher Never Taught You
I am really looking forward to these webinars. Virtual congress is the next best thing if your work schedule or budget just won’t let you attend Congress. So I hope to “see you there”. By the way did I mention that you can earn up to 15 RCHs for attending the webinars. And if you register but can’t attend everything, after the virtual congress concludes, the webinars are then open as on-demand webinars until August. This is great for me. I can catch up on the ones I had to miss due to work or that were scheduled at the same time as another topic I wanted to check out.
For more info check out the APA website.
The Social Security Administration announced in their blog today that California drivers can now replace their Social Security cards online. SSA’s online application makes getting a replacement card super easy and California joins the growing list of 16 other states and the District of Columbia where your employees can use this service. Other states include Arizona, Florida, Idaho, Iowa, Kentucky, Maryland, Michigan, Mississippi, Nebraska, New Mexico, North Dakota, Pennsylvania, South Dakota, Texas, Washington, and Wisconsin. As long as your employees have a California driver’s license or a state issued identification card they can request replacement Social Security cards online through the My Social Security portal. Check out SSA’s blog today for more information.
It is now the season for the requests for duplicate copies of the Form W-2 to begin, if they haven’t already. It amazes me how many people seem to “lose, misplace or never get” their Form W-2. No matter how hard I work to remind them to check your address at the end of the year, watch your mail box, or better yet, get an electronic copy you can’t “lose” I still get requests every year for duplicates. So how should payroll handled duplicate requests? Should you have your own form? Is there a required time frame for reissuing? Can I charge a fee? These are just some of the questions we discuss in our February white paper. We hope you find it interesting and informative.
On today’s blog I wrote about contacting your Senator to encourage them to vote for the Tax Simplification Bill. I am getting some questions on how to you contact them. Here is the link.
You can only write to the Senators that are from your own state. But it sure will help with getting attention for the bill.
Payroll needs to be pro-active when bills are pending that affect our profession so please contact your Senators today!
Also, if your company has a number of multistate employees and this is a big issue with the company itself, perhaps the company could write a letter or contact the Senators. Businesses backing this bill will be helpful to get it passed.
The battle to stop the new overtime rules from taking effect has begun in earnest. 21 states, including Arizona, Kansas, Oklahoma, Nevada, Texas and Utah, and the U.S. Chamber of Commerce have filed a lawsuit in Texas challenging the Department of Labor’s (DOL) final overtime rules under the Tenth Amendment of the U.S. Constitution and the Administrative Procedures Act. Nevada Attorney General Adam Paul Laxalt led the coalition of states filing the suit. According to the suit the final rule contradicts the statutory text of the exemption, as well as Congressional intent. The suit also raises the specter of the federal executive depleting state budgets in an effort to impose its policy will on the states.
However the DOL has responded by issuing the following statement by Secretary Tom Perez: “We are confident in the legality of all aspects of our final overtime rule. It is the result of a comprehensive, inclusive rule-making process. Despite the sound legal and policy footing on which the rule is constructed, the same interests that have stood in the way of middle-class Americans getting paid when they work extra are continuing their obstructionist tactics. Partisan lawsuits filed today by 21 states and the U.S. Chamber of Commerce seek to prevent the Obama administration from making sure a long day’s work is rewarded with fair pay. The overtime rule is designed to restore the intent of the Fair Labor Standards Act, the crown jewel of worker protections in the United States. The crown jewel has lost its luster over the years: in 1975, 62 percent of full time salaried workers had overtime protections based on their pay; today, just 7 percent have those protections – meaning that too few people are getting the overtime that the Fair Labor Standards Act intended. I look forward to vigorously defending our efforts to give more hardworking people a meaningful chance to get by.”
Let’s see where the battle takes us by December 1!
ATTENTION BLOG FOLLOWERS!: To reward my blog followers I am offering a special discount on a year’s subscription to The Payroll Pause. Only $99 per year (rate lasts as long as you keep your subscription current). That is a $50 savings! But act fast as this discount is just for the fall and will expire on October 15th. Use coupon code X36AK67F3 when checking out to receive the discount.