News, Hints and Tips

The IRS has announced an increase to the Affordable Care Act (ACA) affordability percentage for plan years beginning in 2027. The percentage will rise from 9.96% in 2026 to 10.22% in 2027. Under the ACA’s employer mandate, applicable large employers generally must offer full-time employees health coverage that meets certain affordability and minimum value requirements. […]

Workers’ compensation premiums are often based in part on payroll, which is why a pay-as-you-go approach can make sense for some businesses. Through Payroll Systems’ partnership with E-COMP, eligible businesses can integrate workers’ compensation with their payroll process. Instead of relying only on annual payroll estimates, premium payments are based on actual payroll information from […]

The IRS and Treasury Department have issued new guidance designed to make it easier for individuals and employers to contribute to Trump Accounts while reducing concerns about gift tax reporting. The guidance provides a safe harbor for certain individual contributions and clarifies how employers can contribute to employees’ or their dependents’ Trump Accounts. What does this mean […]

When operating with a lean team, payroll issues can affect everything from compliance responsibilities to employee experience. Many issues can begin as simple oversights, such as incorrect paid time off entries, missed sick days or incomplete records, and become more complicated when businesses are also managing state-specific regulations, deadlines and multistate tax obligations. Having clear processes […]

The distinction between employees and independent contractors is not merely a technicality; it affects whether a business must withhold taxes, pay payroll taxes and provide benefits. Misclassification can lead to back taxes, fines and liability under federal and state law. Why classification matters Independent contractors — often referred to as freelancers or gig workers — […]

Employers who reimburse employees for business travel should be aware of an important change that took effect July 1, 2026. The Internal Revenue Service has increased the standard mileage rate for business use of a personal vehicle from 72.5 cents per mile to 76 cents per mile for transportation expenses paid or incurred between July 1 and […]

PayrollOrg® (PAYO) has created a sample employee communication tool to help payroll professionals guide staff through upcoming income tax withholding changes tied to Public Law 119-21, known as the One, Big, Beautiful Bill Act (OBBBA). Beginning with the 2026 tax year, employees who wish to account for new OBBBA-related deductions in their income tax withholding […]

We are pleased to announce a new service offering available through Payroll Systems. We have partnered with isolved Benefit Services to provide setup and administration of cafeteria Section 125 Premium Only Plans (POP plans). A Section 125 cafeteria plan is a written employer-sponsored plan that allows employees to pay for certain qualified benefits on a […]

The Internal Revenue Service has announced a new, streamlined way for taxpayers to extend the period of time for the IRS and the IRS Independent Office of Appeals to review a taxpayer’s response to a disallowance of an Employee Retention Credit (ERC) claim to avoid refund litigation. When an ERC claim is disallowed by the […]

Classifying employees as exempt or nonexempt is not merely a formality; it affects workers’ rights and employer obligations. Misclassifying employees can expose you to back wages, penalties and enforcement actions. Understanding the applicable rules is essential. Under the Fair Labor Standards Act, the following definitions apply: Exempt employees Are generally not entitled to overtime pay […]