Payroll Tip-What’s Your Responsibility for Unclaimed Paychecks?

Payroll Tips
Unclaimed or returned paychecks are a real hassle; just ask any bookkeeper, especially one in the construction industry.  They mess up your bank reconciliations because they are always outstanding; and seriously, what are you supposed to do with them other than throw them in a desk drawer and hope you remember where you put them! Can the company keep the money? Can you just void the checks and be done with it? As a bookkeeper or business owner do you know what your responsibilities are for handling unclaimed or returned paychecks? The answer is pretty simple -- NO, you cannot keep an uncashed or unclaimed paycheck; believe it or not, you MUST turn them over to the state where that person last worked.  Oh, it gets even better; you can…
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Payroll Tip-Employee Gifts, What’s Taxable and What’s Not?

Payroll Tips
Employee gifts or awards, are often given in recognition for a job well done, however, some gifts are considered taxable and must be included in payroll.  Keep the following in mind as you start a new payroll year. Gifts, prizes, and awards for production, attendance, efficiency or other on-the-job achievements must be included when calculating overtime pay. If the prize or award is a merchandise bonus, you must use the fair market value of the item - NOT the cost; to compute overtime pay. If your company throws a holiday party - perhaps a Christmas party, for employees and their families; the company can deduct 100% of the cost at the end of the year on your tax return.  The cost of the party is not taxable to employees or…
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Payroll Tip – Time off for School Activities and “Small Necessities”

Payroll Tips
Many states require you to give employees time off to attend school functions, take family members to the doctor, and even to volunteer to be organ, bone marrow, and blood donors. Find out what these laws cover. You are probably familiar with your obligations under federal law to grant employees time off for family, medical, or pregnancy-related leaves or military service. (These leaves are covered under the Family and Medical Leave Act, the Americans with Disabilities Act, the Pregnancy Discrimination Act, and the Uniformed Services Employment and Reemployment Rights Act.) (Download free Short-Term Absences model policy including HR best practices and legal background.) But are you aware that many states have passed “small necessities” laws that also require you to grant employees time off on a short-term basis for a…
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QuickBooks Payroll Tips – Getting Ready for W-2 Processing

Payroll Tips
A QuickBooks Payroll Subscription makes processing W-2's pretty much a piece of cake at year end; however, there are still some things that you need to do to properly prepare for W-2 processing. It's not too early to start thinking about year end payroll activities, below are some year-end payroll tips to help you out. By December 1, 2010: Ask employees to verify their name and SSN BEFORE you issue your W-2's. Remind employees that if there is a change in their filing status due to marriage, divorce or dependents (birth, adoption, child turning 21),  they may want to file a new W-4 for 2010. When a name is changed, continue to use the old name until the employee presents you with an updated social security card or the SSA…
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