Let the Podcasts Begin

Recently I was asked to do my first podcast ever.  Outgrowth a Slice of Pro Beauty Podcast, a group that caters to beauty salon owners and workers, asked me to come on the podcast to discuss the payroll pitfalls when working in or running a salon.  The discuss is in two parts and covers misclassifying workers and the resulting legal ramifications in addition to a whole range of payroll areas that can cause compliance problems. Though generally geared to the beauty salon business, my discussion would be useful to anyone who needs to worry about compliance issues.

I hope you find it useful and informative.

 

 

Be sure to register for our first payroll lecture/webinar of the year.  The topic is the 2021 Form 941 and is being held on Wednesday, March 24th starting at 10:00 am Pacific.  Click here for more details and to register.  Use coupon code CJYFRQA6 at check out to receive a 10% discount as a Payroll 24/7 BLOG FOLLOWER.  The webinar is pending approval by the APA for 1.5 RCHs.

 

What the IRS Thinks You Need to Know About Repayment of Deferred Payroll Taxes

The IRS published in its e-News for Tax Professionals on March 13th the following guidance on repaying of the employee 2020 deferred social security taxes in 2021.  This update includes the provisions of the American Rescue Plan Act signed by President Biden.

The Coronavirus, Aid, Relief and Economic Security Act allowed employers to defer payment of the employer’s share of Social Security tax. IRS Notice 2020-65 allowed employers to defer withholding and payment of the employee’s Social Security taxes on certain wages paid in calendar year 2020. Employers must pay back these deferred taxes by their applicable dates.

The employee deferral applied to people with less than $4,000 in wages every two weeks, or an equivalent amount for other pay periods. It was optional for most employers, but it was mandatory for federal employees and military service members. Repayment of the employee’s portion of the deferral started Jan. 1, 2021, and will continue through Dec. 31, 2021. Payments made by Jan 3, 2022, will be timely because Dec. 31, 2021, is a holiday. The employer should send repayments to the IRS as they collect them. If the employer does not repay the deferred portion on time, penalties and interest will apply to any unpaid balance.

Employers can make the deferral payments through the Electronic Federal Tax Payment System (EFTPS) or by credit or debit card, money order or with a check. These payments must be separate from other tax payments to ensure they are applied to the deferred payroll tax balance. IRS systems won’t recognize the payment if it is with other tax payments or sent as a deposit. EFTPS will soon have a new option to select deferral payment. The employer selects deferral payment and then changes the date to the applicable tax period for the payment. Employers can visit  EFTPS.gov, or call 800-555-4477 or 800-733-4829 for details.

If the employee no longer works for the organization, the employer is responsible for repayment of the entire deferred amount. The employer must collect the employee’s portion using their own recovery methods.

Join us on March 24, 2021 at 10:00 am Pacific for this information-packed webinar

Be sure to register for our first payroll lecture/webinar of the year.  The topic is the 2021 Form 941 and is being held on Wednesday, March 24th starting at 10:00 am Pacific.  Click here for more details and to register.  Use coupon code CJYFRQA6 at check out to receive a 10% discount as a Payroll 24/7 BLOG FOLLOWER.  The webinar is pending approval by the APA for 1.5 RCHs.

 

2021 Payroll Lecture Series Has Begun

I have schedule my first payroll lecture webinar to kick off the 2021 series.  My first topic is the 2021 Form 941.  The lecture will be held on Wednesday March 24, 2021 starting at 10:00 am Pacific time.  The lecture covers:

  • What’s New for 2021
  • Families First Act: Extension of existing credits into 2021 for Paid Sick Leave and Paid Family Leave
  • CARES Act: Status of  deferring employer’s and employee’s social Security
  • IRS Form 7200: Purpose for the form and how it applies to you in 2021
  • Line by line review of the latest Revised Form 941

Register on my website.  Use coupon code CJYFRQA6 at check out to receive a 10% as one of my blog followers.

The webinar has been submitted to the APA for approval for 1.5 RCHs.

Join us on March 24, 2021 at 10:00 am Pacific for this information-packed webinar

DOL: Change of Administrations…Change of Opinions

The U.S. Department of Labor announced plans on March 11, 2021 to rescind two final rules that would significantly weaken protections afforded to American workers under the Fair Labor Standards Act.

The first Notice of Proposed Rulemaking proposes the withdrawal of the Independent Contractor Final Rule issued by the department on issued on Jan. 7, 2021, for several reasons. They include the following:

  • The rule adopted a new “economic reality” test to determine whether a worker is an employee or an independent contractor under the FLSA.
  • Courts and the department have not used the new economic reality test, and FLSA text or longstanding case law does not support the test.
  • The rule would narrow or minimize other factors considered by courts traditionally; making the economic test less likely to establish that a worker is an employee under the FLSA.

Among its provisions, the FLSA requires covered employers to pay employees at least the federal minimum wage for every hour worked and overtime premium pay of at least one and one-half times their regular rate of pay for every hour worked over 40 in a workweek. An independent contractor has no FLSA protections.

The second Notice of Proposed Rulemaking seeks to rescind a current regulation on joint employer relationships under the Fair Labor Standards Act, published in the Federal Register and which took effect on March 16, 2020. In February 2020, 17 states and the District of Columbia filed a lawsuit in the U.S. District Court for the Southern District of New York against the department, arguing that the Joint Employer Rule violated the Administrative Procedure Act. The court vacated the majority of the Joint Employer Rule on Sept. 8, 2020, stating that the rule was contrary to the FLSA and was “arbitrary and capricious” due to its failure to explain why the department had deviated from all prior guidance or consider the effect of the rule on workers.

The department invites comments from the public on both proposed rules at www.regulations.gov. The comment periods end on April 12, 2021.

Anyone who submits a comment (including duplicate comments) should understand and expect that the comment, including any personal information provided, will become a matter of public record. The division will post comments without change at www.regulations.gov and include any personal information provided. The division posts comments gathered and submitted by a third-party organization as a group, using a single document ID number at the site.

More information about the proposed rules is available at https://www.dol.gov/agencies/whd/flsa/2021-independent-contractor and at https://www.dol.gov/agencies/whd/flsa/2020-joint-employment.

 

Register for my first lecture of 2021.  I am starting with the 2021 Form 941 on Wednesday, March 24th at 10:00 am Pacific.  Use coupon code CJYFRQA6 at checkout to receive a 10% discount.

SUI Update

As of today the following states have released or announced their SUI wage bases for 2021.

 

State Wage Base State Wage Base State Wage Base State Wage Base
AK $43,600 KS $14,000 NM $27,000 WI $14,000
AL $8,000 KY $11,100 NV $33,400 WV $12,000
AR $10,000 LA $7,700 NY $11,800 WY $27,300
AZ $7,000 MA OH $9,000
CA $7,000 MD $8,500 OK $24,000
CO $13,600 ME OR $43,800
CT $15,000 MI PA $10,000
DC $9,000 MN RI $24,600/

$26,100

DE $16,500 MO $11,000 SC $14,000
FL $7,000 MS SD $15,000
GA $9,500 MT $35,300 TN
HI $47,400 NC $26,000 TX $9,000
IA $32,400 ND $38,500 UT $38,900
ID $43,000 NE $9,000/24,000 VA $8,000
IL $12,960 NH VT $14,100
IN $9,500 NJ $36,200 WA $56,500

SUI Wage Bases for 2021

It’s that time of year again where we ring out the old year and ring in the new. To ensure that we have our calculations for our state unemployment insurance correct, payroll needs the wage bases for all states where they currently have employees located. The chart below lists the SUI wage bases that have been released so far. I will be updating this blog new wage bases come in.

Fraud Alert!

It is becoming big business to take a purchased recording of a previously offered webinar and then pass it off as a live event and accept registrations. The more popular and accomplished the speaker the more often this occurs.  I have now been elected to this club of speakers whose webinars are being fraudulently presented.  To combat this I have set up a fraud alert page on my website listing those companies who are offering a webinar by me that I recorded for another company and passing it off as their own.  As I find these webinars I will blast out the names as well as add them on my website.  This, I hope, will prevent any of my social media followers from being ripped off.

So far the following companies have been listed as fraudulent:

  • Compliance World (website spelled ccomplainceworld.com)
  • Seminargrasp
  • Yatharthguru
  • Webaudiotrainers

Today I am adding 24x7conference.com.  They are advertising a year end webinar presented by me on November 17, 2020.  I have no such webinar scheduled on that date for any of my vendors.

If you are unsure of a webinar please email me to confirm before registering.

 

IRS Advises on Filing new Form 941-X

The latest version of Form 941-X and its instructions are now in the draft stage. Although scheduled to be finalized in late September the IRS has issued some advice concerning using the form. This advice appeared in the e-news for Payroll Professionals issued on August 25 and states:

The newest version of the Form 941-X (to allow for corrections to the new lines added to the Quarter 2 Form 941) is expected in late September. In the meantime, for 2020:

  1. If adjusting Quarter 1 or earlier, you may use the existing Form 941-X.
  2. If adjusting Quarter 2 (or later) and not making any increase or decrease to the employer share of social security tax or to any of the new COVID-related lines that were added to the Quarter 2 Form 941, the IRS strongly recommends not using the existing Form 941-X, but rather waiting for the new Form 941-X revision to be released.
  3. If adjusting Quarter 2 (or later) and making any increase or decrease to the employer share of social security tax, or to any of the new COVID-related lines, do not use the existing Form 941-X; instead, wait for the new Form 941-X revision.
  4. Please do not send a Form 941 with “Amended” (or similar notation) written on the form.

If you have already done either of 3-4 above, wait for correspondence to find out if the IRS was able to process the tax return or had to reject it. Given the backlog of paper forms and correspondence due to COVID-19, the IRS is unable to estimate when correspondence will go out.