In September, 2013, Beth Ann Pettyjohn, of Englewood, CO, was sentenced to 28 months in prison and 3 years of supervised release and was ordered to pay $4,669,532 in restitution to the IRS, as well as a $25,000 fine. The vice-president of Overhead Door Co. of Denver stopped paying taxes withheld from employee’s checks, as well as the employer match portion.
By now, employers should be well aware of how the ACA law affects their benefits packages. Compliance with the large-employer assessable payment provisions requires extensive and, for many employers, new systems of accounting and reporting.
The new ACA laws have a surprising effect on S-Corporation shareholders who have been reimbursing themselves for health insurance. Prior to 2014, if an S-Corporation shareholder had an individual health plan, the IRS required that the amount reimbursed to the shareholder be added to income in Box 1, not subject to FICA/Medicare tax, and reported in Box 14 on the W-2. This reporting method secured the shareholder’s ability to take the self-employed health insurance deduction on the individual income tax return.
Leaving HR on the sidelines is a dangerous choice in small business. More than just managing payroll and benefits, you must be ready for complex industry-related regulations. Ignorance is not an excuse for compliance to government regulations. As your partner, we ensure proper navigation of a landmine-filled HR arena.
Managing payroll isn’t just about writing paychecks and calculating withholdings. An employer’s payroll responsibilities often also include:
Rounding: Converting a 60 minute hour to hundredths is not always easy. Especially when you are looking at typically 4 times a day per employee(clock in, out for lunch, back from lunch, clock out). You already know that employees will most likely round in their favor if they are submitting their time themselves.
Use a payroll service. Statistically, companies that use a good payroll provider to pull taxes from their account with each payroll, and then pay the tax for them, will have their Colorado Unemployment rates reduced by an average of roughly 10%.
An important part of acquiring and maintaining your company’s human capital is a proactive human resources solution.
Your payroll service provider affects everyone at your company. Employees and employers alike depend on timeliness, consistency and accuracy.
Tracking your employees’ location, movement, speed and direction is a must for many industries such as construction, transportation, distribution, telecommunications, etc.