Posts by Heather_McNichols:
Launched as an initiative to recognize those who work in the payroll industry while helping to educate all American workers about the make-up of their paychecks, National Payroll Week takes place every year during the week of Labor Day. Presented by the American Payroll Association, this year (2016), National Payroll Week is slated for Sept. 5-9.
Here at Rea, we love a good celebration! So, here are four great articles that provide some insight payroll professionals might find useful.
- Don’t Get Tripped Up By Payroll – Managing your entity’s payroll isn’t always as easy as simply rewarding your employee an agreed upon compensation for a hard day’s work. And because salaries and related benefits are usually the largest expenditures of most governmental entities, it’s absolutely imperative that your payroll amounts are calculated correctly. Avoid making costly mistakes and make sure you have the proper checks and balances in place to ensure that you are properly calculating payroll every time.
- New DOL Rule Shakes Up Exemption Threshold –The Department of Labor (DOL) announced its publication of a final rule to update the regulations governing the exemption of certain classes of employees from minimum wage and overtime pay protections of the Fair Labor Standards Act (FLSA). The final rule, which goes into effect Dec. 1, provides for an updated salary and compensation threshold for executive, administrative and professional (EAP) employees to be considered exempt as well as provides an amendment to the salary basis test to allow employers to utilize nondiscretionary bonuses and incentive payments to satisfy up to 10 percent of the new standard salary level.
- Payroll, HR Departments Targeted By Cyber Criminals – Over the last few years, the threat of refund fraud and identity theft has become a very real concern, and criminals have proven that they will go to great lengths to get the information they need to complete their scams. This recent phishing scam is no exception.
- Dangers of Paying Under the Table – It’s not a surprise to many people that some workers are paid “under the table.” It’s a common practice in industries using temporary workers, such as construction, repair and other trades. Keep reading to learn more why paying under the table is a no-no.
Do you need a hand in managing your company’s payroll responsibilities? Email Rea & Associates, to find out how working with a team of expert payroll professionals can enhance your business.
Ready or not, all Ohio municipalities will be welcoming a slew of new provisions designed to bring about a unified system of income tax reporting. House Bill 5 was signed into law by Gov. Kasich on Dec. 19, 2014. The bill, which was championed by the Ohio Society of CPAs and supporters, helped streamline several key measures that help establish meaningful municipal tax reform. Per the legislation, many key provisions are scheduled to take effect at the first of the year. Here are four facts about the changes that you need to become familiar with:
For more insight into why these changes were necessary, read: Tackling Ohio’s Tough Municipal Tax Issues
1. Due dates have changed.
Municipalities will have to adhere to new withholding due dates with regard to their monthly filing and payment requirements. They are due on the 15th following the month they were withheld. Due dates for quarterly filing and payments will be on the 15th day of the month following the end of the quarter.
2. New withholding thresholds.
If you withheld more than $2,399 in municipal taxes during the last calendar year or more than $200 during one or more months during the recent quarter, you will now be required to file your withholdings monthly.
3. A defining moment for temporary work sites.
An employer is not required to withhold municipal income tax on qualifying wages for the performance of personal services in a municipal corporation that imposes such a tax if the employee performed such services in the municipality on 20 or fewer days in a calendar year, unless one of the following conditions apply:
- The employee’s principal place of work is located in the municipal corporation.
- The individual is a professional entertainer or professional athlete, the promoter of a professional entertainment or sports event, or an employee of such a promoter.
- The employee performed services at one or more “Presumed Worksite Locations.”
- The employee is a resident of the municipal corporation and has requested that the employer withhold tax from the employee’s qualifying wages.
If an employer does not withhold for those first 20 days, they have to withhold the principal place of work’s municipal income tax. Because it’s impossible to be in two places at once (a rule that is just as true in accounting as it is in the metaphysical world) special guidelines are needed for those employees who work in more than municipality on a given calendar day. If an employee works in multiple municipalities in a single workday, for example, the municipality that they worked in the most number of hours would be the one that would be counted for that day. The rules that govern this provision are very detailed. Click here to read more. Once the employee exceeds the 20 day threshold, taxes must be withheld for that municipality. Retroactive withholding, however, is NOT required.
4. New rules for small businesses.
If your business earned less than $500 thousand over the preceding taxable year, the government considers your establishment to be a small employer, which means that the withholding process is just a little different. Small businesses must withhold municipal income tax on all employees’ qualifying wages and remit that that tax only to the municipal corporation in which the employer’s fixed location is located – regardless of the number of calendar days worked throughout the year. Further clarification can be found here. Federal government, state government, state agency or municipalities, political subdivision or any entity treated as a government for financial accounting and reporting are excluded from the small business rule.
Additional information can be found here. In the meantime, if you want to learn more about the upcoming changes and how you can remain compliant with these new provisions; email Rea & Associates and ask to speak with one of our tax experts.