News, Hints and Tips

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 […]

The federal Employer Credit for Paid Family and Medical Leave under Section 45S is now a permanent part of the tax code. The credit was created to encourage businesses to provide paid family and medical leave benefits to employees who need time away from work for personal or family-related reasons. Under the credit, eligible employers […]

An HSA is a type of savings account that you can open if you are covered by a high-deductible health insurance plan. In 2026, that means an insurance plan with a deductible of at least $1,700 for an individual or at least $3,400 for a family. You can’t open an HSA if you are enrolled […]

On February 27, 2026, the U.S. Department of Labor (DOL) issued a proposed rule under the Fair Labor Standards Act (FLSA) that would revise how worker classification is determined for employees versus independent contractors. The proposal would rescind the 2024 rule and return to a framework more similar to the 2021 rule, with certain modifications. […]

Effective January 1, 2026, Social Security and Supplemental Security Income (SSI) benefits increased by 2.8% based on the cost-of-living adjustment (COLA). Key figures for 2026:  Maximum Social Security benefit at full retirement age: $4,152 per month (up from $4,018 in 2025) Estimated average monthly benefits:  All retired workers: $2,071 Aged couple: $3,208 Disabled worker: $1,630 Social Security taxes and earnings:  […]