Overview: HR managers need to understand the complex issues and requirements involved in payroll tax law compliance in order to effectively oversee payroll processing and ultimately avoid costly penalties. This involves managing the following tasks, among many others:
Trends: The following are some important issues currently impacting payroll:
Author: Rena Pirsos, JD, Legal Editor
The State of New York Industrial Board of Appeals has issued a decision invalidating final paycard regulations. In addition, a resolution has been introduced in the US House of Representatives challenging forthcoming federal paycard regulations.
Updated to include expanded unclaimed wages requirements, effective February 2, 2017.
The IRS has issued a warning to HR and payroll professionals about an email scam that falsely uses the name of an actual corporate officer within their own organization to request employees' Forms W-2 containing their personal identifying information, including names, Social Security numbers (SSNs) and income information.
Some states that require employers to withhold income taxes from employees' wages tie their definitions of "wages" to the federal Internal Revenue Code (IRC). However, many states update their IRC references to a specific date every year or so, while others roll their references into the current version of the IRC. Even with IRC conformity, some states have important exceptions. This Quick Reference chart summarizes each state's IRC conformity reference.
The IRS has issued Notice 2017-09, under which an employer or payer that makes a single mathematical error on a Form W-2 or 1099 is automatically relieved from penalties under the safe harbor for de minimis errors on information returns.
Updated to include the Uniform Wage Garnishment Act.
HR and legal considerations for employers regarding payroll.