Payroll deductions should include state income tax and payroll insurance deductions As a Professional Employee Organization, our clients ask us to handle their payroll responsibilities including two of the most talked about deductions: their state income tax and payroll insurance deductions. The state income tax is part of the statutory payroll tax deductions. As required by law, statutory Payroll Tax Deductions are payroll taxes that must be withheld from your employees paycheck. You must hand these withholdings over to the multitude of tax agencies on all levels of government. Local tax withholdings (city, county, or school district taxes, state disability or unemployment insurance). State income tax withholding Federal income tax withholding Social Security tax withholding Medicare tax withholding The payroll insurance deductions are part of the Voluntary Payroll Deductions Voluntary deductions pay for various benefits which the employee has chosen to parti ...

What else do they look for during a Department of Labor (DOL) gov. compliance audit? During a DOL gov. compliance audit, the investigator covers many areas of your business. The primary focus is on your pay records.   DOL investigators also usually review the employer's adherence to federal child-labor laws, which prescribe the number of hours and times of day-night youths may work, as well as the jobs they may perform. Click here for a link to the DOL’s FAQ on child labor laws   DOL investigators will also perform at least a cursory analysis of the employer's compliance with the Family and Medical Leave Act and will make sure mandatory posters are displayed. See DOL's Web site for poster information. Click here for a link to the DOL’s FMLA information page Modern Business Associates helps our clients deal with DOL gov. compliance audit issues. As a Professional Employee Organization, our clients rely on us to help them ef ...

Why national unemployment levels mean legal hassles for you. As a business owner, you should understand that a significant level of unemployment is the largest predictor of an increase in employee lawsuits relative. Understandably, employers face difficult questions and concerns during a weakened economy What is the process for an employee’s layoff? Which employment laws are relevant? How can I avoid an employee lawsuit? How do I combat lowered employee morale? A downsizing employer is expected to navigate a complex legal and human resources minefield, and must get its answers right the first time. Employers will increasingly seek legal guidance to minimize risk when answering these critical questions and dealing with laws. You may need compliance assistance (or a shoulder to cry on) during an isolated layoff, You should develop a strategic reduction-in-force plan while consulting your legal resources. In this way, you can avoid looming legal hassles that are ...

Employer Payroll Taxes – How to stay out of trouble Many growing companies have questions like, “How do employer payroll taxes work?” At Modern Business Associates, many of our small clients come onboard with our payroll processing to let us handle their entire payroll processing burden, which includes payroll taxes. Our systems are set up to ensure your business does not get into trouble by missing withholdings or taking the wrong amounts. As background, you should know that employer payroll taxes are the state and federal taxes that you, as an employer, are required to withhold and/or to pay on behalf of your employees. After having each new employee complete their IRS form W-4, we’ll use this information to calculate the amount of federal income tax to withhold from the employee’s wages. Most all of the states have income tax structures that are based on the federal blueprint, so you will use the same W-4 to calculate the amount of state income tax to withhold as well.   You ar ...

Benefits of Performance Appraisals include Compliance Protection A performance appraisal system, when properly managed, provides you with a means of measuring, maintaining, and improving your employee’s job performances. Through the job performance appraisal program, your company can: Validate hiring decisions Recognize employees' job performance strengths and weaknesses Identify employees who are ready for promotion or greater responsibilities Assess training needs From a compliance perspective, you should be able to rely on performance appraisals to justify the full range of personnel decisions, including discipline and termination actions. For example, if a performance appraisal reflects poor job performance by the employee and this employee is later terminated, the you can point to the performance appraisal to show the employee was not performing to standards. If, however, an employee with overall weak performance is given a good or even average appraisal, and ...