News, Hints and Tips

The Department of Labor announced in April 2024 that it would increase the salary threshold required to exempt a salaried bona fide executive, administrative or professional employee from federal overtime pay requirements. According to a DOL release, “Effective July 1, 2024, the salary threshold will increase to the equivalent of an annual salary of $43,888 […]

The Secure 2.0 Act allows for features in employer retirement plans to encourage their use. The changes are designed to encourage employees to contribute to 401(k) or 403(b) plans, allowing you to offer small financial incentives to employees. If employers use a little financial motivation, it’s considered part of employees’ income and is subject to […]

Employers generally must withhold income tax from employees’ wages. To figure out how much tax to withhold, you need to use the employee’s Form W-4, the appropriate method and the appropriate withholding table described in Publication 15-T, Federal Income Tax Withholding Methods. You’ll deposit your withholdings based on your business and the amount you withhold. File […]

The IRS is stepping up its efforts to manage the Employee Retention Credit (ERC) program, focusing on accelerating valid payments and cracking down on improper claims. This initiative comes as the agency deals with a surge in ERC claims, many of which have been flagged as potentially fraudulent. Accelerating Payments and Ensuring Compliance In a […]

Simple payroll errors are avoidable, but if you don’t pay attention, you could end up facing consequences that cost thousands of dollars in compliance penalties. Not only that but you might have to deal with unwanted attention on both you and your payroll department. To mitigate the risks and minimize unfavorable outcomes, pay attention to […]

The IRS has recently intensified its focus on the Employee Retention Credit (ERC), identifying five new warning signs of incorrect claims. These red flags are based on common errors that IRS compliance teams have observed. Businesses with pending or previously approved ERC claims should review their filings carefully. The Five Newly Announced Signs for an […]

It’s not uncommon for business owners to fail to pay themselves. This usually happens as a result of business owners pouring as much of their cash flow as possible back into their businesses. However, paying yourself can be beneficial, and understanding why receiving a salary as the owner of the business should be a priority […]

Join JRBT Shareholder and Payroll Systems Director of Operations, Vicki Stalnaker, CPA, CPP, as she discusses the latest Employee Retention Credit updates for August 2024. In this video, Vicki covers the recent IRS announcements, including new warning signs of incorrect claims, the reopening of the Voluntary Disclosure Program and important details about the Second Retention […]

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. The most common classifications are exempt and nonexempt. Exempt employees are typically salaried workers who (a) are paid the same amount each week regardless of hours […]

Overview of Educational Assistance Programs Under a section 127 educational assistance program, certain educational assistance benefits can be excluded from your gross income. You do not have to pay tax on the benefits, up to $5,250 per calendar year. Employers should not include these benefits in the wages, tips and other compensation in Box 1 […]