Many times when we talk to clients or potential clients, they ask us about the ability to upload data into our system without contact from us and we do not allow that to happen. Here’s why. We recently had a client that had made a clerical error on their side to deduct an expense form the drivers instead of reimbursing the drivers for it. If it had been uploaded and processed that way there would be some angry drivers. Because we were able to see it first and contact the client, everyone was paid what they were supposed to be paid.
Our thought is that our clients are paying for a service, not just blind software rental and tax filing. I am sure our client form the situation above is glad they don’t upload data to us.
Recently, a payroll service failed to pay the payroll taxes for its clients and as usual it gets ugly. This link has the details of that incident and all the mess that has been caused. This might make some wonder, how can I trust my payroll service to pay my taxes? After all, the taxpayer (you) is ultimately responsible to the IRS and state or states even if you paid the payroll service and they vanished with your money.
Here are a few ways to protect yourself from being the victim of a payroll service that acts poorly.
First, know your EFTPS password. Your payroll service is paying electronically if you have $2500 in quarterly liability and nearly all you do so the client should be able to see the payments electronically shortly after the payment is posted on www.eftps.gov. Many states have this ability as well. Do not wait until you get a letter from the IRS to find out that your tax payments are not being made! That is months too late.
Second, make sure your payroll service is bonded and insured. Seems easy but many are not. The bond may not make you whole as the payroll service may have many clients and the combined tax liability will be in excess of the bond, but it helps.
Finally, if you are starting to wonder, ask for a payment schedule from your payroll service and call the state or IRS to verify if you can’t see it online. It’s the old adage by Benjamin Frnaklin “An ounce of prevention is worth a pound of cure”.
I hope you never have to deal with any of this but it pays to be vigilant on these things. “Trust but verify”
From our HR friends…
Late last week the Equal Employment Opportunity Commission (EEOC) announced a proposed change to the annual Employer Information Report, or EEO-1, which would require that employers with more than 100 employees report pay data in addition to the information they currently provide on race, ethnicity, sex, and job category. The proposed rule was published in the Federal Register on February 1. The comment period is now open, and will close on April 1, 2016. If the proposed revision is adopted, private employers and federal contractors with over 100 employees would be required to submit data on employees’ W-2 earnings and hours worked. Federal contractors with 50-99 employees would continue to report on race, ethnicity, and sex by job category, but would not report earnings data; private employers with fewer than 100 employees would continue to be exempt from EEO-1 reporting.
What does this mean to OTR Trucking companies that don’t track hours? We’ll look into it as it develops and keep you posted.
The IRS has announced the annual dollar limit on contributions for health care flexible spending accounts (FSAs), health savings accounts (HSAs), and 401(k) accounts based on cost of living adjustments (COLAs). These limits are reviewed annually by the IRS. For the most part, the limits will not increase for 2016.
Health Care Flexible Spending Accounts (FSA): The maximum allowed amount that an employee can contribute to an employer-sponsored health care FSA will remain at $2,550 in 2016.
Health Savings Accounts (HSA): The maximum allowed contribution amount for individuals to a Health Savings Account will remain at $3,350. However, the limit for contributions for a family will increase in 2016, going from $6,650 to $6,750, an increase of $100.
401(k) Accounts: As before, employees will be able to contribute up to $18,000 for the year to their 401(k) account. Employers that offer FSA, HSA and 401(k) accounts should ensure that they have communicated any increases to their employees if the employer decides to adopt the higher limits for 2016. Any increases may also require changes and revisions to existing written employer communications and to open enrollment materials.
The IRS issued Notice 2015-63 recently and the good news is that per diem for over the road truck drivers is going up! As of October 1, the new rate is $63.00 per day up from $59.00. Paying per diem can help you attract and retain drivers and can save you money. Call us at 616-608-1800 and we can tell you how per diem saves you money, up to $1500.00 per driver per year.