Vision Payroll

Starting a new business can be an exciting and challenging time. Writing a business plan, picking a name, deciding how to finance, choosing a location, hiring your employees, and many more decisions can be stressful for entrepreneurs. If you’re starting a new business, the Internal Revenue Service (IRS), in IRS Summertime Tax Tip 2010-05, lists the following six tax tips:

1. First, you must decide what type of business entity you are going to establish. The type of business entity will determine which tax form you have to file. The most common types of business are the sole proprietorship, partnership, corporation and S corporation.
2. The type of business you operate determines what taxes you must pay and how you pay them. The four general types of business taxes are income tax, self-employment tax, employment tax and excise tax.
3. An Employer Identification Number is used to identify a business entity. Generally, businesses need an EIN. Visit IRS.gov for more information about whether you will need an EIN. You can also apply for an EIN online at IRS.gov.
4. Good records will help you ensure successful operation of your new business. You may choose any recordkeeping system suited to your business that clearly shows your income and expenses. Except in a few cases, the law does not require any special kind of records. However, the business you are in affects the type of records you need to keep for federal tax purposes.
5. Every business taxpayer must figure taxable income on an annual accounting period called a tax year. The calendar year and the fiscal year are the most common tax years used.
6. Each taxpayer must also use a consistent accounting method, which is a set of rules for determining when to report income and expenses. The most commonly used accounting methods are the cash method and an accrual method. Under the cash method, you generally report income in the tax year you receive it and deduct expenses in the tax year you pay them. Under an accrual method, you generally report income in the tax year you earn it and deduct expenses in the tax year you incur them.

Vision Payroll works with clients as diverse as brand new start-ups and billion dollar companies. If you’re starting a new business, contact us today for all your payroll and human resources needs.

While many employers have implemented English-only workplace policies, employers need to apply their rules appropriately in ways that avoid unfair discrimination claims.

Tennessee has enacted a new state law authorizing employers to impose an English-only workplace policy as long as it’s justified by a legitimate business purpose. The statute says that such a policy is not discriminatory under Tennessee law. Federal courts and the US Equal Employment Opportunity Commission (EEOC) have found such policies to be unlawfully discriminatory on the federal level. There are some situations in which the EEOC has said that business necessity justifies an English-only policy.

To learn more about these situations, which businesses are impacted, and steps employers should take before implementing an English-only policy, be sure to listen to English Language in the Workplace in this month’s HRCast, a recording provided by our team of HR Pros and available exclusively on MyHRSupportCenter.

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.

The Internal Revenue Service (IRS) recently released Information Letter 2010-0146, which answers “several questions about the tax consequences of certain employer-provided transportation benefits.” Among the issues the IRS addressed are the ability to perform, and the repercussions of, rollovers of unused benefits on smartcards, limits on the amounts of rollovers or accumulations, the definition of a commuter, the requirement to use transit passes only for commuting and only by employees, as well as several other guideline questions. Vision Payroll recommends that employers providing such benefits review their plans and procedures with their attorney to ensure compliance with the latest guidance.

Continuing to face a slow economy, many small businesses have tightened their budgets while many students (as well as individuals considering new careers) may look towards internships to gain experience for little or no pay. The US Department of Labor (DOL), however, has been increasing its wage and hour enforcement efforts and is expected to do more so this summer. Last April, the DOL issued new regulations to remind employers of the difference between interns and employees (who are unlawfully not being paid). Simply put, employers cannot avoid the requirements of federal law by simply labeling employees as “interns” or “trainees” to minimize costs.

Do you know the six criteria the DOL has set to discourage employers from taking advantage of inappropriately classifying interns? What are the questions to ask about your internship program to help ensure you have a valid and properly classified internship position? What are the three key factors to keep in mind when considering an internship program at your company?

For answers to these questions and much more, be sure to read the featured article by the HR pros at MyHRSupportCenter, DOL Eyeing Employers’ Internship Programs. If you’re not yet signed up or would like a free trial of MyHRSupportCenter, contact Vision Payroll today.

On June 6, 2010, overheated computer equipment activated a sprinkler system that flooded four floors in the Georgia Department of Revenue (DOR) headquarters. As a result, the online system was disabled and ground floor customer service was shut down. According to Commissioner Bart L. Graham:

We’ve started the backup generator that was installed last year in anticipation of an unanticipated event such as this. The reason we started it today was due to the need to remediate water from the building first. We intend to keep the public fully updated as we gradually restore operations. Our expectation is that normal service to our customers will be restored gradually. DOR headquarters staff is available to receive and process applications for liquor licenses, process tax payments from walk-in customers, and expedite all inquiries in a timely manner. We appreciate the public’s patience and understanding as we attempt to restore normal computer functionality over the next few days.

The DOR also stated that, “Tax payments for online e-file/e-pay can be mailed to the [DOR] or delivered to any DOR Regional Office. Taxpayers who make a diligent effort to pay timely will not be assessed a penalty.”

Contact Vision Payroll if you need further information.

Many businesses consider having an intern due to budgetary concerns in hiring an employee. However, an intern is not free labor. An internship must be a learning experience for the benefit of the intern and not the employer.

• Are interns entitled to benefits under federal law such as minimum wage, overtime pay, and a workplace free from discrimination?
• How does an employer determine if a legitimate employee relationship exists?
• What resources does the Department of Labor (DOL) provide to help employers make these determinations?

Get answers to these questions by listening to Employees vs. Interns in this month’s HRCast, a recording provided by our team of HR Pros and available exclusively on MyHRSupportCenter. You’ll also learn the six key criteria the DOL uses to help determine if an intern must be paid.

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.

The Internal Revenue Service (IRS) recently released an information sheet attached to 2009 Form 8846, Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips. The note on the information sheet relates to employers that have claimed payroll tax forgiveness under the Hiring Incentives to Restore Employment Act of 2010 (HIRE Act).

According to the note, employers should do the following (all line references are to Form 8846):

If any tipped employee’s wages are exempt from social security taxes, check the box on line 4 and attach a separate computation showing the amount of tips subject to only the Medicare tax rate of 1.45%. Subtract these tips from the line 3 tips, and multiply the difference by .0765. Then, multiply the tips subject only to the Medicare tax by .0145. Enter the sum of these amounts on line 4.

Contact Vision Payroll if you have any further questions on the revision to Form 8846.

As one of the health care reform provisions of the Patient Protection and Affordable Care Act (PPACA), a tax credit is available to help offset the employer health care cost of offering employee benefits. On May 17, 2010, the Internal Revenue Service (IRS) provided new detailed guidance especially helpful for small businesses. With this information, small employers could determine their tax credit qualification and the estimated credit amount.

Do you understand the tax credit qualification process? Do you know the three steps in the determination process? Are you aware of the employer considerations for the credit?

For detailed information on these processes, employer considerations and much more, be sure to read the featured article by the HR pros at MyHRSupportCenter, New IRS Guidance on the New Health Care Tax Credit. If you’re not yet signed up or would like a free trial of MyHRSupportCenter, contact Vision Payroll today.

In 2010, the US Occupational Safety and Health Administration (OSHA) has increased its budget, the size of its enforcement team, and the number of its enforcement actions, which all point to a big warning for businesses to make sure a proper safety and health program is in place to prevent workplace injuries and illnesses.

• Is your company on OSHA’s hit list?
• What is the impact of OSHA’s Site-Specific Targeting (SST) program?
• How has the level of enforcement changed under the Obama administration?

Get answers to these questions by listening to Responding to OSHA Recent Ramp-up in 3 Steps in this month’s HRCast, a recording provided by our team of HR Pros and available exclusively on MyHRSupportCenter. You’ll also learn three steps you can take right now to prepare for an OSHA inspection.

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’re not yet signed up or would like a free trial of MyHRSupportCenter, contact Vision Payroll today.

In IR-2010-065, the Internal Revenue Service (IRS) announced that interest rates for the third quarter of 2010 would remain unchanged from the second 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.

The IRS will publish the rates in Revenue Ruling 2010-14. Contact Vision Payroll if you have any questions on the third quarter rates.