Pay equity is both required by law and a sound business practice. However, providing equitable compensation to employees who perform the same or similar jobs, while accounting for differences in experience and tenure, isn’t easy. That’s why every company should at least consider undertaking a pay equity audit to assess its compensation philosophy and approach. […]
The Federal Unemployment Tax Act (FUTA) mandates each state’s taxable wage base must at least equal the FUTA base of $7,000 per employee. States use different formulas to determine their taxable wage base; some adopt the FUTA wage base as law while others use a percentage of the state’s average annual wage. Then there are […]
With recent labor shortages and inflation on the rise, business owners are being forced to reevaluate their compensation planning. As it stands, employers struggle with attracting and enticing new hires, as well as structuring salary increases to keep current employees satisfied. A recent report by Payscale, a pay data firm, unveiled key insight from management-level […]
The concept of a “ghost employee” is one that all business owners and HR professionals should be aware of. This fraudulent activity occurs when an employee is added (or kept) to your payroll, even if they are not an employee or have left the company. Ghost employees could be as innocent as individuals who have […]
Recently, a bill was introduced by the House Ways and Means Committee and the Ways and Means Oversight Subcommittee, intending to eliminate tax refund delays for individuals who received the Earned Income Tax Credit (EITC) and filed their taxes early. Often, these delays also impact Child Tax Credits (CTCs) claimed by EITC recipients. DM Payroll […]
It’s a common problem every year. Employers discover that when their 401(k) plans must make required minimum distributions, the addresses on file for some distributees have become invalid. The U.S. Department of Labor (DOL) and the Internal Revenue Service (IRS) have both offered guidance about dealing with participants and beneficiaries who are unresponsive or cannot […]
Recently, the Internal Revenue Service (IRS) unveiled the 2022 Form W-4 (Employee’s Withholding Certificate). Fortunately for employers, the form is very similar to its 2021 counterpart, with only a few minor updates. DM Payroll Solutions outlines the changes to this year’s Form W-4 to ensure you have all the answers for your employees. Small Change […]
In Tax Tip 2021-103, the Internal Revenue Service (IRS) recently reminded employers to undertake a thorough selection process when choosing a payroll services provider. Proceeding carefully is critical to both lessening the likelihood of fraud and ensuring that your compliance obligations are met. When deciding on a payroll service provider, employers should clearly understand their payroll […]
The end of the year is quickly approaching, so it’s imperative to start preparing for your year-end payroll reporting as soon as possible. As you’re probably familiar, the year-end payroll process can be overwhelming for a business owner, with the need to accurately calculate taxes, wages and deductions for all your employees in a short […]
In Notice 2021-61, the Internal Revenue Service (IRS) recently announced 2022 cost-of-living adjustments to dollar limits and thresholds for qualified retirement plans. Here are some highlights: Elective deferrals. The annual limit on elective deferrals (employee contributions) will increase from $19,500 to $20,500 for 401(k), 403(b) and 457 plans, as well as for Salary Reduction Simplified […]
