Blog
Minimum Wage to Increase July 24, 2008
The federal minimum wage is set to increase from $5.85 per hour to $6.55 per hour for work performed after July 23, 2008. Under current law, an additional increase to $7.25 per hour is scheduled for...
IRS Clarifies Withholding on Supplemental Wages
In Revenue Ruling 2008-29, the IRS clarified the amount of federal income tax to be withheld on certain supplemental wages. Situations covered include sales commissions, draws, signing bonuses,...
IRS Issues Guidance on Health Savings Accounts
The IRS recently issued Notice 2008-59 on Health Savings Accounts (HSA), which are available to taxpayers enrolled in a High Deductible Health Plan. Qualified contributions to an HSA are not subject...
Question of the Week: Do I Need to Pay Overtime for Holiday Hours?
This week’s question comes from Felix, a payroll manager: I have an employee who worked 34 hours last week. Since we pay eight hours for Independence Day even though we don’t work, do I need to pay...
Wage & Hour Violations Cost Wal-Mart $6.5 Million
Wal-Mart Inc. was ordered to pay more than $6.5 million in compensatory damages to current and former employees who worked in Minnesota. In Nancy Braun, et al. v. Wal-Mart, Inc., et al., No....
Tip of the Week: Don’t Rekey Your Payroll
Did you know that you can import your payroll data directly into QuickBooks®, Peachtree®, or other accounting software? Save time and avoid data entry errors through our streamlined payroll import....
IRS Says Teachers Should Not Be Covered by 409A
The IRS recently released Notice 2008-62 which states that teachers who receive pay over a 12-month period will generally not be subject to §409A. Technically, teachers who only work for 9 or 10...
Court Upholds Penalties on Joe Pesci’s Company for Timely Paid Payroll Taxes
The US District Court for the Southern District of New York has upheld payroll tax penalties on a company owned by actor Joe Pesci even though the taxes were timely paid. The IRS assessed the...
Massachusetts Disallows 401(k) Deductions for Some Taxpayers
The Massachusetts Department of Revenue (DOR) has clarified its position on the deductibility of 401(k) contributions. In Income Tax Directive 08-3, effective for 2008 and later years, the DOR...
IRS Increases Mileage Rate to 58.5 Cents per Mile
The standard mileage rates for the use of automobiles beginning July 1, 2008 will be 58.5 cents per mile for business miles driven and 27 cents per mile driven for medical or moving purposes, the...
