Returning Value Blog

Payroll is a mission-critical function — one that must be done even amid disasters or emergencies, such as:

We often hear our clients or other government contractors use "subcontractor" and "independent consultant" interchangeably; however, they are not synonymous. Sometimes we hear independent consultants being referred to as "1099s," which is a misnomer because 1099s will be issued to both unless the subcontractor is an S or C Corporation. An individual may be working for a company as an independent consultant but based on Department of Labor Fair Labor Standards Act (FLSA) guidelines; they may actually be determined to be an employee. It is vital to differentiate and classify the worker correctly, or there may be fines and penalties.

As COVID-19 vaccines become available, employers may require vaccines before employees return to the worksite if the employer believes that failure to be vaccinated constitutes a direct threat to other employees. With the virus still rampant, it's easily transmitted.

If your small business is planning for payroll next year, be aware that the "Social Security wage base" is increasing.

If your remote employees live in the state where your business is located, you must follow federal employment laws plus your state's employment rules. But if your remote employees live in a different state from where you conduct business, you must comply with federal employment laws plus the labor laws for each state in which your employees reside. This applies to all areas of employment, including hiring, performance management, payroll, and employee benefits.

The pandemic has thrown businesses into a never-before-seen scenario that has upended how they operate. Many businesses that were thriving before the pandemic now find themselves having to make difficult decisions, including whether to furlough or lay off employees. This task is not as simple as cutting payroll. Other factors must be considered. For example, furloughed employees are treated differently than laid-off employees when it comes to employee benefits.

The IRS has provided guidance to employers regarding the recent presidential action to allow employers to defer the withholding, deposit, and payment of certain payroll tax obligations.

Local income taxes are imposed by local governments, such as cities, counties, or school districts. They are used to fund various locally provided services, such as schools, parks, social services, law enforcement, transportation, and community-improvement programs.  

The pandemic has affected both employers and employees, and everyone is trying to figure out how to work under new situations and new rules. The Fair Labor Standards Act, the Family and Medical Leave Act, and the Families First Coronavirus Response Act are all governing workplace rights and responsibilities, and the new DOL guidance will help everyone understand them.

Until recently, employers in only a handful of industries had to provide significant reporting on COVID-19 transmission in the workplace. But as of May 26, new Occupational Safety and Health Administration guidelines require a much wider range of employers to determine whether employees caught the coronavirus at work or while performing work-related activities. If so, managers must record the illness on OSHA Form 300.