The US Department of Labor recently issued Administrator signed Opinion Letter FLSA2008-8. Although Opinion Letters only apply to the exact set of facts and circumstances presented in each case, they are a valuable aid in understanding current interpretations of the...
Prevailing Wage Must Be Used for Overtime Calculation Rules Massachusetts Supreme Judicial Court
In Mullally, et al. v. Waste Management of Massachusetts, Inc., SJC-10181 (Mass. 11/6/2008), the Supreme Judicial Court of the Commonwealth of Massachusetts (SJC) ruled that the defendant (Waste Management) violated Massachusetts law by “calculating overtime wages...
Court Rules Day Care Facility Board President Responsible for Unpaid Payroll Tax Liability
The US Court of Appeals for the 7th Circuit ruled recently in Jefferson v. US, 06-4082 (7th Cir. 10/8/2008) that the IRS rightfully imposed an Internal Revenue Code of 1986 (IRC) §6672 penalty against a former president of the board of directors of a tax-exempt day...
Question of the Week: Why Didn’t My FICA Tax Deduction Stop?
This week’s question comes from Becca, a sales rep: I read before that the wage base for 2008 was $102,000. I made over $90,000 at my first job and have earned more than $30,000 at my new job. Why didn’t my FICA tax deduction stop? Answer: The wage base generally must...
Unemployment Insurance Weekly Claims Report Update for November 22, 2008
According to the US Department of Labor, in the week ended November 22, the advance figure for seasonally adjusted initial claims was 529,000, a decrease of 14,000 from the previous week’s revised figure of 543,000. The 4-week moving average was 518,000, an increase...
Tip of the Week: Find Out What You Need to Know About At-Will Employment
Do you know what you need to know about at-will employment? Does it release you from any and all employment obligations and liabilities? What are the three exceptions to at-will employment? How can you find out what should be included in the offer letter, the employee...
IRS Decreases 2009 Mileage Rate to 55 Cents per Mile
The standard mileage rates for the use of automobiles beginning January 1, 2009 will be 55 cents per mile for business miles driven and 24 cents per mile driven for medical or moving purposes, the Internal Revenue Service announced yesterday in IR-2008-131. The new...
IRS Issues Fact Sheet on S Corporation Officer Compensation
The Internal Revenue Service (IRS) recently issued Fact Sheet FS-2008-25, which discusses S corporation officer compensation. Corporate officers, whether in S corporations or C corporations, are generally considered employees of the corporation. Officers who perform...
Firm Assessed Over $10 Million in Back Wages and Wage and Hour Penalties
David Neil, Commissioner of the Iowa Division of Labor Services (DLS), announced recently that the DLS has assessed fines of $9,988,200 and back wages of approximately $265,000 against Agriprocessors, Inc. The violations allegedly occurred during the period from...
Santa Barbara, Los Angeles, Orange, Riverside, and San Bernardino County Employers May Request 60-Day Extension
According to the California Employment Development Department (EDD), employers in the counties of Santa Barbara, Los Angeles, Orange, Riverside, and San Bernardino directly affected by the damage resulting from the fire may request up to a 60-day extension of time...
Question of the Week: Why Did My FICA Tax Deduction Stop?
This week’s question comes from Matt, a sales rep: Every week there’s a deduction for FICA on my paycheck. Two weeks ago, the deduction was lower than usual and last week there was no deduction at all. Why did my FICA tax deduction stop? Answer: The FICA (Federal...
Unemployment Insurance Weekly Claims Report Update for November 15, 2008
According to the US Department of Labor, in the week ended November 15, the advance figure for seasonally adjusted initial claims was 542,000, an increase of 27,000 from the previous week's revised figure of 515,000. The 4-week moving average was 506,500, an increase...
Tip of the Week: Understand Employer Responsibilities When Considering a Layoff
As employers consider layoffs as one alternative during these tough economic times, the HR Pros at MyHRSupportCenter have chosen this month to review some of the laws which employers must comply with when planning and implementing layoffs. This month’s featured...
US Department of Labor Issues Opinion Letter on Substitute Teachers and the Professional Exemption
The US Department of Labor (DOL) recently issued Administrator signed Opinion Letter FLSA2008-7. Although Opinion Letters only apply to the exact set of facts and circumstances presented in each case, they are a valuable aid in understanding current interpretations of...
US Department of Labor Issues Opinion Letter on Overtime, On-call Hours
The US Department of Labor recently issued Administrator signed Opinion Letter FLSA2008-6. Although Opinion Letters only apply to the exact set of facts and circumstances presented in each case, they are a valuable aid in understanding current interpretations of the...
Delivery Men for New York Restaurants Awarded $4.6 Million
Thirty-six delivery men for various Vietnamese restaurants in New York City were awarded more than $4.6 million in back pay and damages in a recent case Ke, et al. v. Saigon Grill, Inc., et al., SDNY, 07cv2329 MHD, 10/21/2008. The court found that the defendants’...
Washington Minimum Wage to Increase January 1, 2009
The Washington Department of Labor and Industries announced recently that pursuant to Revised Code of Washington §49.46.020, the minimum wage for the state of Washington will increase to $8.55 per hour effective January 1, 2009. The law requires an adjustment to the...
Question of the Week: Is There Anything I Can Do About a Late Payment Notice I Received?
This week’s question comes from Larry, a business owner. I own a business in Indiana. I was late making a federal tax deposit due to the storms. Is there anything I can do? Answer: On September 12, 2008, the federal government declared Clark, Crawford, Dearborn,...
Unemployment Insurance Weekly Claims Report Update for November 8, 2008
According to the US Department of Labor, in the week ending November 8, the advance figure for seasonally adjusted initial claims was 516,000, an increase of 32,000 from the previous week's revised figure of 484,000. The 4-week moving average was 491,000, an increase...
Tip of the Week: Save Time and Money with Vision Payroll’s CPA Reporting Service
Does your CPA call at year-end looking for copies of quarterly payroll reports? Don’t waste time finding them, copying them, and mailing them. Sign up now to have Vision Payroll send copies of reports to your CPA each quarter. Your CPA will appreciate always having...
FUTA Surtax Extended Again
The Federal Unemployment Tax Act (FUTA) is imposed by §3301 of the Internal Revenue Code of 1986 (IRC). The statutory rate of 6.2% was set to revert at the end of 2008 to the original rate of 6.0%. Under §404 of the Emergency Economic Stabilization Act (Public Law...
Thanksgiving Day Holiday May Require Change in Processing Schedule
Thursday, November 27, 2008 will be Thanksgiving Day, a federal holiday. The offices of Vision Payroll will close Thanksgiving Eve, November 26 at 3 pm and re-open Friday November 28. Most banks will also be closed in observance of the holiday. Payrolls dated November...
Massachusetts McDonald’s Franchise Cited for Child Labor Law Violations
The office of Massachusetts Attorney General Martha Coakley has cited a Whitinsville, Massachusetts McDonald’s franchise for child labor law violations. After receiving complaints, auditors found that 16 and 17-year olds were working between the hours of midnight and...
Unemployment Rate Rose to 6.5 Percent in October
Nonfarm payroll employment fell by 240,000 in October, and the unemployment rate rose from 6.1% to 6.5%, the Bureau of Labor Statistics of the U.S. Department of Labor reported recently. October’s drop in payroll employment followed declines of 127,000 in August and...
Question of the Week: Can I Reimburse Employees Who Bicycle to Work?
This week’s question comes from Luna, a business owner: I have employees who bicycle to work; can I reimburse them for their costs? Answer: §132(f) of the Internal Revenue Code has been amended by §211 of the Emergency Economic Stabilization Act (Public Law 110-343 or...
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