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
The IRS has launched an Early Interaction Initiative, aimed at helping employers understand and meet their payroll tax responsibilities. The initiative may help reduce employment tax delinquencies, along with interest and penalties, which may accrue as a result of an employer missing required payments.
On June 26, 2015, the Supreme Court ruled in Obergefell v. Hodges that the Constitution requires all 50 states and the District of Columbia to license same-sex marriages and to recognize such marriages that are lawfully licensed and performed out of state.
The General Services Administration (GSA) has announced the per diem rates that apply to the lower 48 Continental United States (CONUS) for the federal government's fiscal year (FY) 2016, which begins October 1, 2015. Any employer may use these rates to reimburse an employee who travels away from home overnight, in lieu of reimbursing his or her actual expenses.
This section reviews tax deposit schedules, the Electronic Federal Tax Payment System (EFTPS) and other electronic filing requirements, potential penalties for noncompliance, and important tax forms (e.g., 941, W-2, W-3, 1099).
The IRS has issued a set of final, temporary and proposed regulations that remove the automatic extension of time to file information returns on the W-2, Wage and Tax Statement, series of forms (except Form W-2G, Certain Gambling Winnings). The temporary regulations allow only a single 30-day nonautomatic extension of time to file Forms W-2. Comments are requested on the proposed rules.
To help combat the growing problem of identity theft in the US, the IRS has issued guidance on the taxability of identity protection services provided by an employer at no cost to employees whose personal information may have been compromised in a data breach. The IRS is also requesting comments from employers on other related issues.
HR and legal considerations for employers regarding payroll.