Overview: A growing employer trend over the past several years has been to integrate payroll within the HR department. So, now more than ever, HR managers need to understand all 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 just a few of the important issues that will have an impact on payroll in 2015!
Author: Rena Pirsos, JD, Legal Editor
In-depth review of the spectrum of Massachusetts employment law requirements HR must follow with respect to depositing and reporting withheld taxes.
In-depth review of the spectrum of Arizona employment law requirements HR must follow in respect to unemployment insurance tax (FUTA/SUTA).
Most employers pay state unemployment insurance contributions based on the wages they pay to their employees, up to an annual state taxable wage base. Five states also have disability insurance systems with employer and/or employee contributions tied to a taxable wage base. This chart provides employers with each state's current unemployment and disability insurance (if applicable) taxable wage base.
The federal Office of Child Support Enforcement issued updated information in 2015 regarding the process of lump-sum payment reporting and the states that now use the electronic income withholding order (e-IWO).
The US Department of Labor has identified three FUTA-credit reduction states for 2015. Employers in these states lose the full FUTA credit and will owe a greater amount of the tax when they file their 2015 Form 940.
This chart lists the Federal Unemployment Tax Act (FUTA) credit-reduction states for the current year, along with each state's respective credit-reduction amount and net FUTA rate. Employers paying wages subject to FUTA tax in the listed states will owe a greater amount of the tax when they file their fourth quarter Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return.
The How To details the steps an employer should follow to effectively manage child support withholding orders and payments.
This section helps HR and payroll professionals comply with federal laws governing voluntary and involuntary wage deductions, such as wage assignments, garnishment and child support orders, and tax levies.
XpertHR has added a new chart to the Quick Reference tool covering pay statement and pay rate notification requirements by state.
The Taxation of Employee Compensation section of the Employment Law Manual has been updated to reflect several fourth-quarter 2015 developments.
HR and legal considerations for employers regarding payroll.