Vision Payroll

The Internal Revenue Service (IRS) today launched a new program that will enable many employers to resolve past worker classification issues and achieve certainty under the tax law at a low cost by voluntarily reclassifying their workers.

Minimal Payment Will Clear Up Prior Liabilities

This new program will allow employers the opportunity to get into compliance by making a minimal payment covering past payroll tax obligations rather than waiting for an IRS audit.

Part of the “Fresh Start” Initiative

This is part of a larger “Fresh Start” initiative at the IRS to help taxpayers and businesses address their tax responsibilities.

Settlement Program Provides relief and Certainty

“This settlement program provides certainty and relief to employers in an important area,” said IRS Commissioner Doug Shulman. “This is part of a wider effort to help taxpayers and businesses to help give them a fresh start with their tax obligations.”

VCSP Designed to Increase Tax Compliance

The new Voluntary Classification Settlement Program (VCSP) is designed to increase tax compliance and reduce burden for employers by providing greater certainty for employers, workers and the government. Under the program, eligible employers can obtain substantial relief from federal payroll taxes they may have owed for the past, if they prospectively treat workers as employees. The VCSP is available to many businesses, tax-exempt organizations and government entities that currently erroneously treat their workers or a class or group of workers as nonemployees or independent contractors, and now want to correctly treat these workers as employees.

Eligibility Criteria for the Program

To be eligible, an applicant must:

• Consistently have treated the workers in the past as nonemployees,
• Have filed all required Forms 1099 for the workers for the previous three years,
• Not currently be under audit by the IRS, the Department of Labor or a state agency concerning the classification of these workers.

File Form 8952 to Apply for the Program

Interested employers can apply for the program by filing Form 8952, Application for Voluntary Classification Settlement Program, at least 60 days before they want to begin treating the workers as employees.

Payment Due upon Acceptance

Employers accepted into the program will pay an amount effectively equaling just over one percent of the wages paid to the reclassified workers for the past year. No interest or penalties will be due, and the employers will not be audited on payroll taxes related to these workers for prior years. Participating employers will, for the first three years under the program, be subject to a special six-year statute of limitations, rather than the usual three years that generally applies to payroll taxes.

Contact Vision Payroll Today

Contact Vision Payroll for further information on the VCSP.

Due to the damage caused by Tropical Storm Lee in Pennsylvania beginning on September 3, 2011, President Barack Obama declared the following counties a federal disaster area: Adams, Bradford, Columbia, Cumberland, Dauphin, Lancaster, Lebanon, Luzerne, Lycoming, Montour, Northumberland, Perry, Schuylkill, Snyder, Sullivan, Susquehanna, Union, Wyoming, and York. Individuals who reside or have a business in these counties may qualify for tax relief.

Declaration Leads to Extension of Payroll Tax and Other Deadlines

Therefore, the Internal Revenue Service (IRS) announced recently that it will waive failure to deposit penalties for employment and excise taxes due after September 2, 2011 and before September 20, 2011 as long as the deposits were made by September 19, 2011. In addition, affected taxpayers have until October 31, 2011 to file most tax returns.

Vision Payroll Is Here to Help Affected Taxpayers with Payroll Tax Issues

Contact Vision Payroll if you were affected by Tropical Storm Lee and need further information on the relief provided by the IRS.

Due to the damage caused by Tropical Storm Lee in New York beginning on September 7, 2011, President Barack Obama declared the following counties a federal disaster area: Broome, Chenango, Delaware, Otsego and Tioga. Individuals who reside or have a business in these counties may qualify for tax relief.

Declaration Leads to Extension of Payroll Tax and Other Deadlines

Therefore, the Internal Revenue Service (IRS) announced recently that it will waive failure to deposit penalties for employment and excise taxes due after September 6, 2011 and before September 23, 2011 as long as the deposits are made by September 22, 2011. In addition, affected taxpayers have until October 31, 2011 to file most tax returns.

Vision Payroll Is Here to Help Affected Taxpayers with Payroll Tax Issues

Contact Vision Payroll if you were affected by Tropical Storm Lee and need further information on the relief provided by the IRS.

Due to the damage caused by wildfires in Texas beginning on August 30, 2011, President Barack Obama declared the following counties a federal disaster area: Bastrop, Colorado, Gregg, Grimes, Houston, Leon, Montgomery, Travis, Walker, Waller, and Williamson. Individuals who reside or have a business in these counties may qualify for tax relief.

Declaration Leads to Extension of Payroll Tax and Other Deadlines

Therefore, the Internal Revenue Service (IRS) announced recently that it will waive failure to deposit penalties for employment and excise taxes due after August 29, 2011 and before September 15, 2011 as long as the deposits were made by September 14, 2011. In addition, affected taxpayers have until October 31, 2011 to file most tax returns.

Vision Payroll Is Here to Help Affected Taxpayers with Payroll Tax Issues

Contact Vision Payroll if you were affected by Texas wildfires and need further information on the relief provided by the IRS.

Due to the damage caused by Hurricane Irene in Pennsylvania beginning on August 26, 2011, President Barack Obama declared the following counties a federal disaster area: Bucks, Chester, Delaware, Lehigh, Luzerne, Monroe, Montgomery, Northampton, Philadelphia, Sullivan, and Wyoming. Individuals who reside or have a business in these counties may qualify for tax relief.

Declaration Leads to Extension of Payroll Tax and Other Deadlines

Therefore, the Internal Revenue Service (IRS) announced recently that it will waive failure to deposit penalties for employment and excise taxes due after August 25, 2011 and before September 13, 2011 as long as the deposits were made by September 12, 2011. In addition, affected taxpayers have until October 31, 2011 to file most tax returns.

Vision Payroll Is Here to Help Affected Taxpayers with Payroll Tax Issues

Contact Vision Payroll if you were affected by Hurricane Irene and need further information on the relief provided by the IRS.

This week’s question comes from Carl, a company owner.

Carl asks…

I heard there is a new poster about union rights. Our workplace is nonunion. If we don’t have employees who are union members, do we need to post the employee rights notice posting?

Answer: Employers with and without union workforces are required to post the notice because NLRA rights apply to union and non-union workplaces.

Posting Requirement to Begin November 14

As of November 14, 2011, most private sector employers are required to post a notice advising employees of their rights under the National Labor Relations Act (NLRA). The 11-by-17-inch notice should be posted in a conspicuous place, where other notifications of workplace rights and employer rules and policies are posted.

Failing to Post May Be Considered an Unfair Labor Practice

The National Labor Relations Board (NLRB) does not audit workplaces or initiate enforcement actions on its own. A failure to post the Notice would need to be brought to the NLRB’s attention in the form of an unfair labor practice charge by employees, unions, or other persons. In most cases, the NLRB expects that employers who fail to post the Notice were unaware of the rule and will comply when requested by a NLRB agent. In such cases, the unfair labor practice case will typically be closed without further action. The NLRB also may extend the 6-month statute of limitations for filing a charge involving other unfair labor practice allegations against the employer.

If an employer knowingly and willfully fails to post the Notice, that failure may be considered evidence of unlawful motive in an unfair labor practice case involving other alleged violations of the NLRA.

Be Protected Against Claims of Unfair Labor Practices

Join the Vision Payroll Poster Program today and receive a guarantee worth up to $25,000* against any government fine for a posting violation. You’ll receive a new version of our space-saving, full-color laminated posters as laws change. No hassle, no uncertainty, no research. Let Vision Payroll keep track of the changes and make sure you stay in compliance. Sign up TODAY!

*Our Poster Subscription Programs guarantee that you will have the most up to date State and Federal Labor Law posters. During the duration of your subscription, if you receive a posting violation while properly displaying the most current version of our posters, Elite Business Ventures will pay any fine imposed by a government agency, with the maximum amount of $25,000 due to improper content.

According to the US Department of Labor, in the week ending September 10, the advance figure for seasonally adjusted initial claims was 428,000, an increase of 11,000 from the previous week’s revised figure of 417,000. The 4-week moving average was 419,500, an increase of 4,000 from the previous week’s revised average of 415,500.

Advance Seasonally Adjusted Insured Unemployment Rate Remains Unchanged

The advance seasonally adjusted insured unemployment rate was 3.0% for the week ending September 3, unchanged from the prior week’s unrevised rate.

Advance Seasonally Adjusted Insured Unemployment Decreases

The advance number for seasonally adjusted insured unemployment during the week ending September 3 was 3,726,000, a decrease of 12,000 from the preceding week’s revised level of 3,738,000. The 4-week moving average was 3,741,000, an increase of 1,250 from the preceding week’s revised average of 3,739,750.

As previously described, the US Department of Labor (DOL) has launched its “DOL-Timesheet” smartphone application designed specifically to allow employees to track their daily hours worked. The app marks another step in the DOL’s strategic “Plan/Prevent/Protect” initiative of increased workplace compliance enforcement efforts. This app serves as a reminder to employers to make sure that their systems and processes accurately account for employees’ hours worked.

As more and more employees become familiar with, and start to utilize,  the DOL’s timesheet app, they may become more likely to file wage and hour grievances with the DOL. For employers, an important protection against employee grievance filings is making sure that your business satifies its obligations under the federal Fair Labor Standards Act (FLSA).

Challenges

• Discrepancies between employer’s and employee’s records
• Employee manipulation of records for more pay
• Absence of employer records used as a basis for wage claims

Immediate Actions to Take

• Require employees and their supervisors to verify (with signatures) the accuracy of time records
• Review/update relevant employee handbook policies
• Make sure timekeeping systems are accurate and consistent
• Regularly audit the company’s time records

Learn More About the DOL Free Smartphone App for Your Employees

To get more details about the DOL free smartphone App for your employees, be sure to read the featured article by the HR pros at MyHRSupportCenter, The US DOL’s Free Smartphone App…Made for Your Employees, Part II. If you’re not yet signed up or would like a free trial of MyHRSupportCenter, contact Vision Payroll today.

Due to the damage caused by Hurricane Irene in Vermont beginning on August 29, 2011, President Barack Obama declared the following counties a federal disaster area: Addison, Bennington, Caledonia, Chittenden, Orange, Rutland, Washington, Windham and Windsor. Individuals who reside or have a business in these counties may qualify for tax relief.

Declaration Leads to Extension of Payroll Tax and Other Deadlines

Therefore, the Internal Revenue Service (IRS) announced recently that it will waive failure to deposit penalties for employment and excise taxes due after August 28, 2011 and before September 134 2011 as long as the deposits are made by September 13, 2011. In addition, affected taxpayers have until October 31, 2011 to file most tax returns. 

Vision Payroll Is Here to Help Affected Taxpayers with Payroll Tax Issues

Contact Vision Payroll if you were affected by Hurricane Irene and need further information on the relief provided by the IRS.

Due to the damage caused by Tropical Storm Irene in New Hampshire beginning on August 27, 2011, President Barack Obama declared the following counties a federal disaster area: Carroll and Grafton. Individuals who reside or have a business in these counties may qualify for tax relief.

Declaration Leads to Extension of Payroll Tax and Other Deadlines

Therefore, the Internal Revenue Service (IRS) announced recently that it will waive failure to deposit penalties for employment and excise taxes due after August 26, 2011 and before September 13, 2011 as long as the deposits are made by September 12, 2011. In addition, affected taxpayers have until October 31, 2011 to file most tax returns.

Vision Payroll Is Here to Help Affected Taxpayers with Payroll Tax Issues

Contact Vision Payroll if you were affected by Tropical Storm Irene and need further information on the relief provided by the IRS.