This week’s question is from Randy, an HR Manager. We are reviewing our payroll processing schedule for 2011. What is the holiday schedule for 2011? Answer: There are two types of holidays: those on which payrolls are processed and those on which payrolls are not...
This week’s question comes from Meg, an HR manager. We have a third shift that works from 11 pm to 7 am the following day. Some of the workers will work this Saturday night into Sunday. How many hours do we need to pay for work on the third shift this Saturday night?...
This week’s question comes from Cristina, a company president. We’re doing some planning for next year. What are the 2011 Highly Compensated Employee Limits? IRS Releases 2011 Highly Compensated Employee Limits in IR-2010-108 In IR-2010-108, the Internal Revenue...
This week’s question comes from Anne, a company president. We just received a Notice of Change in Filing Frequency from the Massachusetts Department of Revenue (DOR). What is a Notice of Change in Filing Frequency? Answer: In Massachusetts, employers are required to...
This week’s question comes from Andrea, an HR director. We hired an employee who qualified for the HIRE Act Incentives, including payroll tax forgiveness. We had to lay him off temporarily and don’t know if he still qualifies under his previous layoff or if he needs...
This week’s question comes from Kevin, a business owner. We’ve been charged an employer surcharge in South Dakota for the first three quarters of 2010. What is the status of the South Dakota employer surcharge for Q4 2010? Answer: An employer surcharge is not in...
This week’s question comes from Tyler, a sales manager. We provide all our sales reps cell phones for business and personal use. In the past, the sales reps had to pay income tax on their personal-use portion of the cell phones. Now I hear they don’t have to pay on...
This week’s question comes from Katy, an HR administrator. We know we need to capture the cost of health coverage and report it on Form W-2, starting in 2011. How do we determine the cost of health insurance to report on Form W-2? Answer: Employers are required to use...
This week’s question comes from Terry, a small business owner in New York City. My net pay is the same every week, but last week’s net pay changed. Upon further review, the difference is because the withholding tax for New York City increased from the week before. Why...
This week’s question comes from Eric, an HR manager. I know there are changes to flexible spending arrangements (FSAs) because of health care reform. How does health care reform affect reimbursements for over-the-counter medicines in FSAs? Answer: The Patient...
This week’s question comes from Ben, a business owner. We received an e-mail from EFTPS stating that my federal tax payment had been rejected. Is there a problem with my EFTPS payment? Answer: On August 20, 2010, the Internal Revenue Service (IRS) issued a Problem...
This week’s question comes from Sylvia, a payroll manager. I thought I heard that the social security wage base would remain the same in 2011 as it was in 2010, but I can’t find anything official. Has the 2011 social security wage base been announced? Answer: Although...
This week’s question comes from Bonnie, a business owner. We tested our multi-state employees for unemployment purposes based on Localization of Services, Base of Operations, and Place of Direction or Control. For some employees we were able to determine the...
This week’s question comes from Kenneth, an HR Director. We tested our multi-state employees for unemployment purposes based on Localization of Services and Base of Operations. For some employees we were able to determine the appropriate state, but for some we...
This week’s question comes from Angela, an office manager. We tested our multi-state employees for unemployment purposes based on Localization of Services. For some employees we were able to determine the appropriate state, but for some we weren’t. Now we need to test...
This week’s question comes from Matthew, a business owner. I read that we need to cover employees for unemployment purposes based on “Localization of Services”. What is Localization of Services? Answer: The general rule for employees who work in more than one state is...
This week’s question comes from Julia, a business-owner. We have employees who work in more than one state. I understand how to determine which state’s income tax to withhold, but I don’t know what to do about unemployment tax. Where do I pay unemployment tax for...
This week’s question comes from Cliff, a sole proprietor. I am forming a corporation and will be converting from a sole proprietorship to a corporation. Do I need a separate EIN for my corporation? Answer: The new corporation is a distinct entity from the sole...
This week’s question comes from Aaron, a business owner. We have several employees who work in Massachusetts, but live in neighboring states. Do I need to withhold state tax on wages paid to non-residents? Answer: Massachusetts requires employers to withhold state tax...
This week’s question comes from Nikki, an LLC member. I am a member in an LLC. My neighbor is a member and receives a paycheck, but I’ve been told that I can’t receive a paycheck. Can an LLC member receive a paycheck from the LLC? Answer: For federal tax purposes, an...
This week’s question comes from Beverly, a small-business owner. We pay health insurance costs for our employees. I heard there was a change in reporting health insurance costs under the new law. Are health insurance costs required to be reported on Form W-2? Answer:...
This week’s question comes from Paul, a business owner. I have an ex-employee who qualifies for payroll tax forgiveness under the HIRE Act. We haven’t been able to get the signed Form W-11 yet. What is the deadline for obtaining Form W-11? Under the HIRE Act, for...
This week’s question comes from Lynn, a business owner. I recently hired my spouse to work in my sole proprietorship. My spouse qualifies using Form W-11, but I’m not sure if my spouse is considered my relative. Can my spouse’s wages qualify for payroll tax...
This week’s question comes from Mike, a small-business owner. We have hired some employees whose native language is Spanish. They are better able to understand forms in Spanish than they are in English. We need them to complete Form W-11 in order to claim payroll tax...
This week’s question comes from Mark, a business owner. We read that the minimum wage in Nevada will increase on July 1, 2010. We know that we must pay weekly and daily overtime if the employee’s hourly wage is below a certain rate. What are the new daily overtime...
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