At the end of every year, most businesses go through the process of filling out a Form W-2 for each employee, which can make for a very stressful time. The pressure of knowing that even the smallest of mistakes can result in costly consequences can make business owners uneasy.
Employee classifications are based on job duties and responsibilities. The classifications impact compensation, benefits and work hours; they are also used by employers to maintain compliance with labor laws.
On-call employees are required by their employers to be available for work even during the employees' time off.
Whether you must provide on-call pay for these employees depends on a few factors. But if you're not paying for these hours, you may be violating the Fair Labor Standards Act rules for hours worked and overtime. And that's a recipe for hefty fines.
If you know in advance what common errors employers make with W-2s, maybe you can avoid those mistakes next year. Know also that the data needed for state W-2 reporting may be more difficult to gather from far-flung employees, but states are cracking down on employers who haven’t withheld.
Minimum wage and overtime requirements are established by federal law, under the Fair Labor Standards Act (FLSA). That said, the FLSA has evolved over the years, and what was true at the time of its passage in 1938 differs from what currently stands today.
Pay stubs can be referred to as pay or wage statements and may be considered the decoder ring of payroll. Pay statements summarize employees’ gross pay, taxes and deductions, and net pay. They can be in printed format or made available electronically.
By nature, nonprofits operate with the selfless assistance of volunteers. However, what if we told you that nonprofits also have paid employees who rely on regularly scheduled paydays?
Many businesses, their accountants and advisers have been wondering what's happening with the employee retention credit, a refundable tax credit for businesses and tax-exempt organizations that had employees and were affected by the COVID-19 pandemic. In recent weeks, the IRS has been focusing on weeding out companies that applied but were not eligible.