Webinar on Corona Virus and Payroll Issues

Don’t Miss Out! Register today for my special webinar/lecture on the Corona virus and the payroll related effects on Friday, April 10, 2020 from 10:00 am Pacific to 11:30 am Pacific. This 90-minute webinar  discusses the quickly changing regulations…federal and state…that the payroll department and payroll professionals must comply with as governments and businesses respond to the COVID-19 pandemic. Topics include:

Federal Regulations:
·         Families First Act
·         Cares Act
·         All New Pertinent Regulations Passed and Signed by the Webinar Date

State Updates On:
·         Tax Filing
·         Unemployment Insurance
·         Paid Sick Leave

Garnishment Updates:
·         Student Loans
·         Creditor Garnishments
·         Child Support
·         Federal Tax Levies

 

The price for this information packed webinar is $149.  As usual, our blog followers will receive a 10% discount by using coupon code CJYFRQA6 at checkout.

Register Today for Our Next Lecture and Receive a 10% Discount

Our next lecture Payroll Lecture Series 102: Multistate Employees: Taxes & Wage Hour Law & Garnishments…Oh My! will be held on Monday, March 30, 2020 from 10 am Pacific to Noon Pacific. This webinar/lecture will cover the difficult areas for compliance when processing payroll for employees who live in one state and work in another or who work in two or more states.  This lecture includes:

  • How to determine state withholding liability
  • Who is a resident
  • How reciprocal agreements affect taxation of wages
  • Resident and nonresident taxation policies
  • The four factor test for state unemployment insurance
  • Income and unemployment taxation of Fringe benefits
  • What wage and hour laws must be followed
  • How to handle income and unemployment insurance taxation for employees working in multiple states
  • How working in multiple states could affect withholding for garnishments
  • Withholding requirements when an employee is in a state temporarily
  • Which states require the use of their own Withholding Allowance Certificate, which states allow either theirs or the Form W-4, and which states don’t have a form
  • Reporting wages for multistate employees on Form W-2

We are an APA approved provider for 2020. This lecture has been submitted to the APA for 2.0 RCHs.  As with all my lectures, my subscribers will receive a 10% discount by using the coupon code EFVMPZC9 at checkout.  But you must register before March 25, 2020 to receive the discount.

Our Next Webinar/Lecture…Multistate Employees

Our next lecture Payroll Lecture Series 102: Multistate Employees: Taxes & Wage Hour Law & Garnishments…Oh My! will be held on Monday, March 30, 2020 from 10 am Pacific to Noon Pacific. This webinar/lecture will cover the difficult areas for compliance when processing payroll for employees who live in one state and work in another or who work in two or more states.  This lecture includes:

  • How to determine state withholding liability
  • Who is a resident
  • How reciprocal agreements affect taxation of wages
  • Resident and nonresident taxation policies
  • The four factor test for state unemployment insurance
  • Income and unemployment taxation of Fringe benefits
  • What wage and hour laws must be followed
  • How to handle income and unemployment insurance taxation for employees working in multiple states
  • How working in multiple states could affect withholding for garnishments
  • Withholding requirements when an employee is in a state temporarily
  • Which states require the use of their own Withholding Allowance Certificate, which states allow either theirs or the Form W-4, and which states don’t have a form
  • Reporting wages for multistate employees on Form W-2

We are an APA approved provider for 2020. This lecture has been submitted to the APA for 2.0 RCHs.  As with all my lectures, my subscribers will receive a 10% discount by using the coupon code EFVMPZC9 at checkout.  But you must register before March 25, 2020 to receive the discount.

Wage and Hour Laws–They are Here, There and Everywhere Part 4

In my first blog in this series, October 23, 2019, I started discussing the complexities of compliance with wage and hour laws.  Which apply…federal or state?  What areas are covered?  When these questions do arise, where do you find the answers? Can a payroll professional simply check the Fair Labor Standards Act (FLSA) to find the answer with a quick verification of any state requirement? Or is the state the main source to go to first with the FLSA as the fall back? The answer is not simple.  In this blog series I will be discussing 23 areas where payroll professionals need to ensure compliance by researching wage and hour laws. In Part 2, I covered the first six areas. In Part 3 I discussed the next four areas.  This time I am reviewing the next set of four areas that may require research to ensure compliance: which includes posting requirements, frequency of payments, methods of payments, and termination requirements.

11. Posting Requirements
Many states have posting requirements in addition to the ones required by the FLSA.  The state may have its own minimum wage poster.  It may require a payday notice or copies of the wage and hour laws be posted or given directly to the employee. State with payday notice regulations include California, Montana, Minnesota, Texas, Tennessee and New York For those states who have them, including California, Connecticut, Colorado, Massachusetts, New Jersey, and New York, wage orders are usually required to be posted as well.

 

 

12. Frequency of Payments
Federal laws do not specify when an employee must be paid, only that they must. However, most states have a requirement that not only must employees be paid but that they must be within a certain frequency, such as semi-monthly or weekly.  Arizona requires that the employer designate two or more days in each month to pay employees and the days cannot be more than 16 days apart.  New York bases its requirements on whether the employee is a manual worker, a clerical worker or other type of worker. Most states require either biweekly or semimonthly paydays.  These include California, Illinois and New Mexico. Other states permit monthly payrolls including Alaska, Delaware and Washington. Be sure when researching to also check into the amount of time permitted between closing the payroll (collecting the timesheets) and paying the employees.  States do have requirements on what can be called “payroll processing time” or “lag time”.

13. Method of Payment
There is no requirement under the FLSA as to the method to pay an employee. Almost all the states do address this issue. The common requirement is the employee be paid by U.S. currency or check.  The federal government does regulate the paying of employees via direct deposit under the Electronic Funds Transfer Act. The Act was recently updated to include the newest method of payment of employees—payroll debit cards. The states are updating their regulations for payroll debit cards.  The payroll professional must determine if the state allows this form of payment if it intends to begin a pay card payment program and what restrictions may be in place.  These restrictions include limiting fees and voluntary participation.

14. Termination Requirements

Again the FLSA is silent when it comes to requirements on paying an employee who terminates.  States that address this issue vary greatly. For some states it can even depend on whether or not the employee quit or was discharged.  For example, if an employee is discharge Colorado requires that the employee be paid immediately.  But if the employee quits the check is due on the next regular payday. As to whether or not vacation pay must be included with the final paycheck will be discussed in the next segment of this blog.

 

In Part 5 I will be covering the next four areas that may require research including vacation pay requirements, compensatory time off, reporting time or show up pay and call back pay.

Ring in the New Year with The Payroll Advisor

Each year payroll professionals attend year end webinars or live events to get the latest news on how to close out the old year and begin the new one.  This year I am offering something a little different than “year end”.   My next lecture will focus on just the new year.  So I am calling it “Ringing in the New Year–2020”.  In this 90-minute lecture I will cover all the latest for 2020.  This includes:

  • Completely new and revamped 2020 Form W-4
  • New DOL exempt rules
  • Minimum wage increases on the state level
  • New and upcoming sick leave and/or paid leave programs going into effect
  • 2020 Form W-2
  • 2020 Form 941
  • 2020 Form 1099-NEC

This different approach allows me to concentrate on the upcoming year and saves your time by not having to review information you may already know or will receive from other sources.

Our price for this information packed lecture is only $149. Click here to register.  Subscribers to Payroll 24/7 will receive a 20% discount if they register by Tuesday, December 3, 2019.  Not a subscriber to Payroll 24/7?  Try us out with your registration. If you register prior to Tuesday, December 3, 2019 you will receive a free 60-day subscription to this valuable payroll news service.

This lecture has been submitted to APA for 1.5 RCH credits.

Our First Payroll Lecture is Here

I am offering my first payroll lecture of the year next week on June 18th.  The subject will be travel pay. The lecture is two hours from 10:00 am to Noon Pacific time.  It is approved by the APA for 2 RCHs.  The nominal charge for the webinar is $99.  You can register under our Shop on our website. 

Learning Objectives:

  • Understand the FLSA requirements for paying an employee who travels
  • Comprehend the best practices for tracking and paying for travel pay
  • Understand the IRS requirements for taxing travel pay reimbursements including per diems and accountable plans.

With Higher Minimum Wages Can Come Higher Penalties

As my Payroll 24/7 subscribers found out today, Illinois is increasing its minimum wage to $15.00 per hour by the 2025.  But the bill, Senate Bill 1, also increases the penalties for failure to follow

the new requirements.  One of blogs that I follow, Wage & Hour Insights has an excellent post on this very issue.  I urge you to take a moment to read Bill Pokorny’s blog on the new Illinois minimum wage violations penalties, Stiff New Employer Penalties Included in Illinois $15 Minimum Wage Law. It is an excellent source on the new requirements.

Election Day a National Holiday?

Well it’s almost over, the 2018 election. Still having a few counts here and there with a runoff election still to come. But all in all, the 2018 election has come and gone. The only thing that remains, as it does after every election cycle here in the United States, is the discussion of making election day a national holiday. But what exactly does a “national holiday” mean here in the United States?

It appears to me that most people who discuss having election day designated as a national holiday don’t understand how holidays work here in this country. The United States does not have national holidays. It’s that simple. Yes, we have days that are designated as a holiday on the federal level. But these days are not official holidays for all employees in the country. They are, rather, the days that federal employees are given off with pay. I have stated this before, in other blogs, but will state once again. The United States is the only country that does not mandate that employees receive days off with pay in honor of national holidays. When I say other countries, I am speaking of course of industrialized countries. But this list of industrialized countries includes Chad, Peru, Slovenia and Sudan. So, we are not only talking about major European countries such as Germany or France. But if we were just looking at European countries let’s take Germany as an example. Germany has one national public holiday which is their German Unity Day, with the remaining 9 to 13 holidays being regulated by what they call their states even though some of them are held nationwide. Now this is in addition to 20 days of vacation as well as additional dates that the employer may give as a public holiday. Yet despite this they have a very strong economy. Yet here in the United States is not mandated for all employees to have the nation’s birthday, July 4th, off with pay.

Therefore, when local, regional, statewide, and national elected officials talk of having our election day as a national holiday it means nothing to the average worker if it were simply to be added to the holidays we already have. Yes, many employees may get Christmas off with pay, or Fourth of July off with pay, but not all employees are required to be given the day off with pay. It all depends on the company’s or employer’s policy. According to the Bureau of Labor Statistics workers in private industry in the United States receive an average of eight paid holidays per year based on the latest statistics in 2017. Workers in the manufacturing and information industries are more likely to receive paid holidays (97%). But workers in the leisure or hospitality industry only receive paid holidays 37% of the time. Not all workers receive the same holidays or the same number of holidays. For example, again the Bureau of Labor Statistics states that workers in manufacturing and financial activities receive an average of nine paid holidays per year while workers in leisure and hospitality receive an average of six paid holidays per year. For clarification, there are 10 annual federal holidays with Inauguration Day occurring only once every four years for a total of 11 days.

Before you start the discussion of employees who would not be able to have a day off due to their type of work such as first responders, hospitals and even restaurants, other countries have already addressed this issue quite easily.  It is usual for the employee who must work on a “mandated holiday” to have another day off with pay. So, if on a Monday holiday, I would have to work as a police officer, I might get Tuesday or Wednesday off with pay in addition to my normal days off.

My question to all the elected officials and others who advocate a national day off to vote is this:  Where would this national election day fall? Would it establish our first and only mandated national holiday? Or would it just simply be added to the calendar as another day to shop, BBQ or sleep in, if and only if, my employer decided to give me the day off with pay?

CA Adopts ABC Test for Independent Contractors

On Monday, April 30, the California Supreme Court issued a landmark [Dynamex Operations West v. Superior Ct., Cal. Sup. Ct., Dkt. No. S222732, 4/30/18] decision basically stating that the “ABC Test” is to be used when determining whether a worker is an employee or independent contractor for purposes of California wage orders. Previous to this latest decision the court case of S.G. Borello & Sons, Inc. v. Department of Industrial Relations, Cal. Sup. Ct., 769 P.2d 399, 3/23/89) was used to determine employee status. In that case the principal test of an employment relationship was whether the person to whom services were rendered has the right to control the manner and means of accomplishing the result desired. Under Dynamex, the Court embraced a standard that presumes all workers are employees instead of contractors and places the burden on classifying an independent contractor under the ABC test.

For a detailed analysis of this case and how you might have to adjust your hiring decisions, I will refer you to the Labor & Employment Law Blog posted by Timothy Kim for the law firm of Sheppard Mullin.

ALEC Wins Another State Over!

The American Legislative Exchange Council, or as it is commonly known ALEC, according to their website, is “America’s largest nonpartisan, voluntary membership organization of state legislatures dedicated to the principles of limited government”.  It’s current legislative agenda is to try to stop increases in the minimum wage and the mandatory sick leave movement as it sees it as having a negative effect on workers.  But in order to keep the minimum wage low or as ALEC describes it; “Maximizing the freedom of businesses and employees to negotiate their own wages” they not only have to convince state legislatures not to raise the minimum wage or provide mandated sick leave, but have to convince all local governments as well.  This is a tough job as there are thousands of local entities such as cities and counties that could decide to raise the minimum wage or enforce mandatory sick leave.  So ALEC takes the approach to tackle this from the head down by convincing state legislatures that they need to pass laws that prohibit any local entity from passing any type of minimum wage or benefit increase that does not equal the state level.  At this task they are making headway.  The latest state to buy into ALEC and bar local governments from passing a minimum wage or benefits ordinance is Wisconsin.

New legislation, A748,  prohibits counties, cities, and towns from enacting ordinances that: (1) establish or mandate local hour and overtime requirements, including scheduling employee work hours or shifts; and (2) require employers to provide employment benefits, including a retirement, pension, profit sharing, insurance, or leave benefit. The legislation does allow prospective employers to solicit salary information from previous employers and preempts counties, cities, and towns from prohibiting such solicitation.  The bill is effective as of March 30, 2018.