The IRS has very strict rules about how a business should handle employee reimbursements.
If you make the payment under an accountable plan
, deduct it in the category of the expense paid. If you make the payment under a non-accountable plan
, deduct it as wages and include it in the employee’s Form W-2.
Avoiding paying unnecessary taxes on employee reimbursements involves keeping detailed and accurate records separating out how much your business spends on different types of expenses. Continue reading
In the past couple of years there has been an increase in the number of Federal and/or State payroll wage audits resulting in the repayment of back wages, in all industries – not just construction, plus fines and penalties. In May and June of 2013 U. S. Department of Labor audits have resulted in the payment of $5,750,693.00 in back wages throughout the United States.
Are your payroll records accurate and up-to-date? They need to be - because inaccurate payroll records can cost emBeployers BIG bucks!
See this article for information on what you need to keep and how long you need to keep your payroll records. Continue reading
Customizing reports in QuickBooks is often a huge source of frustration for users. Here's a great example of just how frustrating it can be. This question was submitted by a reader of our blog.
This question involves wanting to create a report for one specific employee, on all jobs worked, over a specific time frame. Continue reading
Big changes to the employee record, including convenient left navigation and the ability to actually see more items in the payroll info section - which means less mouse clicks and scrolling for you!
However, these changes also mean that you need to size QuickBooks differently on your monitor in order to be able to see everything. We'll show you side-by-side comparisons of each section of the employee record.
What do you think of these changes? Continue reading
Billing employee time on customer invoices is something that many business need to do - not just contractors who perform Time & Materials Billing. Making sure that you bill all of the time your employee(s) have spent working on specific jobs or tasks for customers is crucial and depends data that you've entered in QuickBooks. Here's a question from a reader. Continue reading
Federal Prevailing Wage requirements, through the U. S. Department of Labor, indicate that working foreman or supervisors that regularly spend more than 20% of their time performing actual construction work on the project are considered to be covered and, therefore, required to be reported on the certified payroll report. Continue reading
Entering payroll for normal employee work hours and drive time and passing only the work hours through to client invoices is not only important but confusing. The following question was submitted by a reader who pays from the start of the first job till the end of the last job of the day (not including lunch break). I have my employees fill out a time tracker sheet each day that shows the time started at the first job till the end, drive time in between jobs, so on and so forth. I enter this into QuickBooks but I can't figure out where to enter in drive time to pay the girls their hourly wage on payroll but to not invoice anyone for drive time. Continue reading
The certified payroll report that your company submits to a general contractor, project owner, or contract administrator should contain information about your W-2 employees, the ones that work directly for you, are paid via payroll checks issued by your company and who you provide a W-2 for wages earned at the end of the year. When you enter into a formal contract for a portion of the prevailing wage/government funded construction project with a subcontractor, the subcontractor will submit a certified payroll report from his company to yours, listing their employees, the work classifications they fell under, hours worked on the project, wages, taxes, deductions, etc. Continue reading
Displaying employee social security numbers and addresses on certified payroll reports, which are ultimately public documents, causes privacy and identity theft concerns for many employers and employees - not to mention confusion over reporting requirements. Read this question submitted by a blog reader and our response. Continue reading
The Wage Decision provides you with the minimum amounts (base rate and fringe rate) that you must pay your employees when they work on a Prevailing Wage job - but confusion often happens when you actually pay your employees more than what the Wage Decision requires Continue reading
A payroll tip that discusses the hazards of having one payroll wage item in the QuickBooks Employee Record multiple times - with each entry having a different rate of pay. Continue reading
A payroll tip for handling one employee with two different wage rates and union benefit packages on a single paycheck in QuickBooks. Continue reading
How often you have to pay your employees is determined by each State, these requirements seldom take into consideration certified payroll reporting requirements. Continue reading
Free checklists for keeping track of bookkeeping/accounting tasks and the information needed when you hire a new employee. Helps you meet important deadlines. Continue reading
Whether you are a contractor, a bookkeeper working for contractor, or certified QuickBooks ProAdvisor you need to make a commitment to yourself, to your employees, to your business, and to your clients to obtain the training necessary to perform daily tasks quickly and efficiently Continue reading