Vision Payroll

Substantial enforcement developments from government agencies focusing on worker classification compliance are putting employers on notice. Learn about the issues affecting businesses nationwide and the key steps to take immediately.

Five Questions About Worker Misclassifications

1. What is the impact of the Employee Misclassification Prevention Act (EMPA)?
2. What plans does the Internal Revenue Service (IRS) have to audit certain industries?
3. What are the fines for misclassification of workers or recordkeeping violations?
4. What type of classification testing can be used to ensure proper employee classification?
5. What are five tips that can be used to help classify workers properly?

Learn How to Avoid Worker Misclassifications

To learn the answers to these questions and much more, be sure to listen to Worker Misclassifications and How to Avoid Them in this month’s HRCast, a recording provided by our team of HR Pros and available exclusively on MyHRSupportCenter.

MyHRSupportCenter Provides Alerts, Best Practices, and HR Tools Every Day

Visit MyHRSupportCenter regularly, not only for our HRCasts, but also to get late-breaking compliance alerts, best practices to implement, and HR tools to use every day. If you haven’t yet signed up and would like a free trial of MyHRSupportCenter, contact Vision Payroll today.

In IR-2011-017, the Internal Revenue Service (IRS) announced that interest rates for the second quarter of 2011 would increase from the first quarter. The rates are as follows:

• Four (4) percent for overpayments [three (3) percent in the case of a corporation];
• Four (4) percent for underpayments;
• Six (6) percent for large corporate underpayments; and
• One and one-half (1.5) percent for the portion of a corporate overpayment exceeding $10,000.

Revenue Ruling 2011-5 Contains Official Rate Announcement

The IRS will publish the rates in Revenue Ruling 2011-5. Contact Vision Payroll if you have any questions on the second quarter rates.

Effective February 17, 2011, Vision Payroll will partner with RSA, the Security Division of EMC, to bring multi-factor authentication to its Online Employer portal.

Authenticated Device Will Be Required to Sign-on

In addition to a username and password, users will now also be required to confirm an authentication image and phrase in order to sign-on.

Enrollment Is a Four-Step Process

Users will be required to complete a four-step enrollment process the first time signing on after multi-factor authentication is implemented. The four required steps are:

1. Select a personal image and message.
2. Select and answer secret questions.
3. Review account information.
4. Review enrollment data and submit.

Contact Vision Payroll for Assistance

Contact Vision Payroll if you need assistance with multi-factor authentication.

The 2011 Form W-4, Employee’s Withholding Allowance Certificate was released last month. The Spanish equivalent, 2011 Formulario W-4(SP), Certificado de Exención de la Retención del Empleado, is now available.

February 16, 2011 Is Filing Deadline

Employees claiming exempt status must file 2011 Form W-4 or 2011 Formulario W-4(SP) with their employer by February 16, 2011 to continue to claim exempt status. Prior-year forms will no longer be valid as of that date. If an employee has not filed a 2011 form by February 16, 2011, the employer must start withholding income tax with the next paycheck.

Contact Vision Payroll for Further Information

Contact Vision Payroll if you have any further questions on 2011 Formulario W-4(SP).

Employers may unknowingly trigger risks of labor violation penalties and fines by improperly classifying individuals as independent contractors. By doing so, employers may also be denying workers certain employee benefits (e.g., overtime and the federal Family Medical Leave Act). In fact, a 2007 Cornell University study had estimated the average unemployment insurance taxable wages (from 2002-2005) that were left underreported due to employers misclassifying workers as independent contractors was $4.28 billion for the state of New York alone.

Classify Employees and Independent Contractors Correctly

Employers need to take the following steps to respond proactively to recent changes:

• Become aware of developments and efforts relating to the “Worker Classification Initiative,”
• Know the various types of tests such as the 20-factor test used by the Internal Revenue Service (IRS) to distinguish between employees and independent contractors, and
• Take certain immediate actions in light of increased enforcement by the US Department of Labor.

Find Out More About Conducting Your Contractor Classification Check-ups Now

For more information, be sure to read the featured article by the HR pros at MyHRSupportCenter, Time to Conduct Your Contractor Classification Check-ups. If you’re not yet signed up or would like a free trial of MyHRSupportCenter, contact Vision Payroll today.

The Internal Revenue Service (IRS) has released an updated version of Publication 15-A, Employer’s Supplemental Tax Guide (Supplement to Publication 15 (Circular E), Employer’s Tax Guide) for use in 2011. Publication 15-A contains information on the following areas:

1. Who Are Employees?
2. Employee or Independent Contractor?
3. Employees of Exempt Organizations
4. Religious Exemptions and Special Rules for Ministers
5. Wages and Other Compensation
6. Sick Pay Reporting
7. Special Rules for Paying Taxes
8. Pensions and Annuities
9. Alternative Methods for Figuring Withholding
10. Tables for Withholding on Distributions of Indian Gaming Profits to Tribal Members

Additional Information provided in Publication 15-A

In addition, Publication 15-A provides information on What’s New, Reminders, and Useful Items.

Contact Vision Payroll Today

Contact Vision Payroll if you have any questions on Publication 15-A.

Employers, especially small and mid-sized companies, need to stay in compliance to flourish in the New Year. By knowing the business-critical HR practices that can help, employers can take the big first step toward staying in compliance.

Five Hot Areas Employers Must Address Now

1. Proof of Compliance
2. Misclassification of Workers
3. Recordkeeping Requirements
4. Health Care Reform
5. Workplace Technology

Learn the Best HR Practices for 2011 Now

To learn more about each of these areas, be sure to listen to Best HR Practices for 2011 in this month’s HRCast, a recording provided by our team of HR Pros and available exclusively on MyHRSupportCenter.

MyHRSupportCenter Provides Alerts, Best Practices, and HR Tools Every Day

Visit MyHRSupportCenter regularly, not only for our HRCasts, but also to get late-breaking compliance alerts, best practices to implement, and HR tools to use every day. If you haven’t yet signed up and would like a free trial of MyHRSupportCenter, contact Vision Payroll today.

Every business should consider providing or updating their company employee handbooks to reflect current trends that are highly relevant in today’s workplace. The perception that employee handbooks are bland stacks of standard policies lead some employers to become static in routines and forget to employ creative and strategic policies that can provide important benefits to the company. Consider, at least, the following five policy areas recognized as major areas of focus for 2011:

1. Employee Classifications
2. Health and Safety
3. Social media
4. Telecommuting
5. Benefits

Find Out More About Refacing Your Employee Handbook Policies Now

For more information, be sure to read the featured article by the HR pros at MyHRSupportCenter, Top 5 Employee Handbook Policies to Reface. If you’re not yet signed up or would like a free trial of MyHRSupportCenter, contact Vision Payroll today.

The Internal Revenue Service (IRS) has released the 2011 Form W-4, Employee’s Withholding Allowance Certificate. Form W-4 is used by employers to calculate the amount of federal tax to be withheld from an employee’s paycheck.

Employees Claiming Exempt Status Must File a New Form W-4

Employees who have provided a Form W-4 claiming exemption from federal income tax withholding must file a new 2011 Form W-4 by February 16, 2011 in order to continue their exemption from federal income tax withholding. Employers must start withholding on February 16, 2011 if employees have not provided a 2011 Form W-4 claiming exemption.

Employees Changing from Exempt to Non-Exempt Should Also File Form W-4

Even employees who are no longer claiming exemption should file a 2011 Form W-4 so that employers may calculate the proper amount of withholding. If an employee has not provided a 2011 Form W-4 by February 16, 2011, the employer should withhold based on a previously filed Form W-4 not claiming exemption, if available or using single, zero allowances, if not.

Spanish Language Form Is not Yet Available

Spanish-speaking employees may complete Formulario W-4(SP), Certificado de Exención de la Retención del Empleado. This form is generally released in April of the applicable year. Further information will be available when the form is released.

Pre-Printed Forms W-4 Are Available from Vision Payroll

Upon request, Vision Payroll can provide employers with pre-printed 2011 Forms W-4 for all active employees. Vision Payroll will not automatically change any employee’s claimed withholding allowances. Employers should update the allowances claimed by logging in to their company file or providing Vision Payroll with the updated information.

Over the past years, numerous economic changes have reshaped the business landscape. In turn, companies must look more closely at their current talent, their needed talent, and how to motivate the right talent towards satisfying their business goals.

Three Questions to Help Strategically Connect Your Talent Needs To Your Business Goals

1. What is talent management?
2. What are the talent management guidelines that companies should follow?
3. How can non-traditional HR tools and approaches be used to streamline the process?

Get Help Strategically Connecting Your Talent Needs To Your Business Goals Now

To obtain answers to these questions and more, be sure to listen to Strategically Connecting Your Talent Needs To Your Business Goals in this month’s HRCast, a recording provided by our team of HR Pros and available exclusively on MyHRSupportCenter.

MyHRSupportCenter Provides Alerts, Best Practices, and HR Tools Every Day

Visit MyHRSupportCenter regularly, not only for our HRCasts, but also to get late-breaking compliance alerts, best practices to implement, and HR tools to use every day. If you haven’t yet signed up and would like a free trial of MyHRSupportCenter, contact Vision Payroll today.