2015. * Payroll * The process used by an organization to pay its employees accurately and on time.

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Presentation transcript:

2015

* Payroll * The process used by an organization to pay its employees accurately and on time

* Complexity * Monitor and implement federal, state, and local tax laws * FPC Testing is based on Federal Law * Communication * Paychecks, paycards, vouchers – must be timely, accurate, and easily understood – must be clear and concise * Technology * Software, equipment, and web-based applications can automate and enhance the process of payroll, timekeeping, and record storage * Accuracy * Required for tax filing, management reports, and paychecks

* We hired someone … * What’s next?

* Employees… * Need to provide SSN and W-4 * Nonexempt ees subject to FLSA standards * Taxes withheld and paid by the employer * Receive a W-2 * Independent Contractors… * Need to provide an ITIN and W-9 * Taxes paid by themselves * Receive a 1099-MISC * Temporary/Leased Employees * Agency and company have a contractual agreement * Workers are employees of the AGENCY but subject to company policy * AGENCY bears the burden of paying, withholding, reporting, and administering taxes and benefits for these workers

* The IRS imposes fines and penalties when employees are mistakenly classified as independent contractors. Treat the worker as an employee to avoid non-compliance and penalties and… * Seek public ruling information * Request private ruling from the IRS

* My new hire is an employee. * What’s the next step?

* Immigration Reform and Control Act of 1986 * I-9 Employment Eligibility Verification * Required to prove identity and right to work * Employers can face stiff penalties for knowingly hiring workers not eligible for employment: from $375 to $16,000, or if repeat offender, criminal charges

* Form W-4 * Federal Employee Withholding Allowance Certificate * Employee completes W-4 during hire process * Employer can request SS card to verify SSN * SSNVS Social Security Number Verification System

* Upon Hire Date: * Employee completes Section 1 * By first day of work * Employer reviews and completes Section 2 * Within 3 days of employee’s first day of work * Retention of I-9 * 3 years from date of hire OR 1 year after termination, whichever is later

 W4 – Federal Employee Withholding Allowance Certificate  Requested when hired and for life changes  Default is Single with 0 exemptions  Alterations, flat dollar amounts, and percentages are invalid  Exempt status – filed annually, earns less than tax exemption  No need to send to IRS unless notified  Retain for 4 years from last 1040 filing or 1 year from termination The “W” Forms

 W4P - Withholding Certificate for Pension or Annuity Payments  Default is Married with 3 exemptions  Additional amount is allowed

 W4S - Request for Federal Income Tax Withholding from Sick Pay  Third party wage payment for illness or injury that is non-job related  Minimum withholding is $20/week  Must be adjusted to net at least $10  Many states require tax withholding