Employers are generally required to withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee. Alternatively, employers are not generally required to withhold or pay any taxes on payments to independent contractors. Moreover, according...
Deductions made from wages for items such as cash or merchandise shortages, required uniforms, and tools of the trade are illegal if they reduce the wages of employees below minimum wage or reduce the amount of due overtime pay. Required Deductions Employers are required to make...
Question: We are considering closing the office the day before an upcoming holiday, giving employees an unpaid day off. How would this work for our exempt employees? Answer: The Fair Labor Standards Act generally requires that exempt employees—employees who are exempt from the law’s overtime requirement—be paid...
Question: We have an employee claiming they shouldn't be classified as exempt from overtime. If it turns out they're right, what are the penalties for misclassification? Answer: The cost of misclassification can be steep and will depend on several factors, such as how many employees are misclassified,...
Question: What is the difference between a discretionary bonus and a nondiscretionary bonus? Answer: A discretionary bonus, as its name implies, is a bonus awarded at the sole discretion of the employer and is awarded without employee expectation. In other words, there’s no promise or agreement...
Question: A new employee told coworkers that she received a signing bonus. Now they’re upset, saying they’ve been here longer and haven’t gotten anything extra. What should I do about this situation? Answer: First, don’t reprimand the new employee who shared her salary information. Discussing pay...
Question: An employee hasn't shown up to work the last few shifts and isn't responding to messages. Can we make a policy that employees who quit without notice won't get their final check? Answer: No, federal law requires you to pay employees for all hours they have worked....
On Tuesday, July 4, we will celebrate Independence Day (“the Fourth of July”) to commemorate the adoption of the Declaration of Independence and formation of our great nation. In the midst of the fireworks and festivities, Payroll Partners would like to remind you that since...
In the recently released Rev. Proc. 2023-23, the IRS has made annual inflation adjustments to HSA limits: For calendar year 2024, a "high deductible health plan" is defined as a health plan with an annual deductible that is not less than $1,600 for self-only coverage...
Question: How do we handle pay for an employee out on military leave? Answer: Employees on military leave are due the same rights and benefits (when not determined by seniority) as nonmilitary employees who take any comparable form of leave. Comparable is not well defined, but...