We Have Moved!

As you have been aware I have had a severe problem with my server for my website.  But I was able to move the website to Intuit for Small Businesses.  I am rebuilding the site slowly but surely.  But one good thing has come out of this hectic move.  I am now able to have my blog connected to my website.

My old server kept promising me the ability to do a blog but never came through.  Now I don't have to have my blog on blogspot while my website is elsewhere.  So this is our last post for this site.  You can reach my new blog through my website at www.thepayrolladvisor.com and click on blog.

This move also allows my readers access to the latest payroll news without having to go to another website. 

Thank you for your readership and I hope you follow me to our new location.  I will leave the RSS feed for the DOL and this blog up for a couple of months to allow time for everyone to find us.

2012 Budget a Big One for Payroll Items

The proposed budget for 2012 has a great number of payroll related items.  This one really needs watching carefully.

1.  President Obama is proposing to increase the FUTA taxable wage base.  It has been $7,000 for as long as I can remember.  His proposed amount is $15,000.  This would also affect any states, such as California, that use the current federal wage base.  States are still free to set their own wage bases but can not go below $15,000 if this passes.

2. The FUTA surcharge of 0.2% which has been renewed since the early 1990's would be made permanent.  Which actually makes it alot easier in the long run.

3.  The FUTA rate will be lowered from 0.8% to 0.38%.  This is after the permanent extension of the surcharge takes effect.

4.  The IRS will finally be allowed to issue guidance on the proper classification of workers. This would be very helpful to know how they are looking at the regulations instead of being "neutral".

5. The lower penalties for misclassification of workers would be retained.  But smaller employers would get more relief from the penalties if they filed the proper 1099's and agreed to reclassify the worker for the future.

6. Independent contractors who receive at least $600 per year would be able to request withholding from their payments. They say this is for the convenience of the service provider but I think its to try and get more taxes paid up front.

7. E-verify is going to be enhanced.  I think this one is to help get the bill passed as it deals with the "concern" of the conservatives about immigration and illegal workers.

8.  Reporting wages to Social Security will be increased from the current annual requirement to quarterly.  It is kind of like when we use to report wages quarterly with our Form 941s.  It appears they want to go back to that again.

This budget process needs to be carefully watched this time around.  These proposals will create more work in payroll especially if the extra reporting is passed.  We will keep you informed as the budget process progresses.

Payroll Website Back on Track

Well good news for a change.  I was able to transfer my domain name from the vendor that was holding it hostage for spamming when I didn't even send out the e-mail in question.  And I didn't have to pay them anything.  I signed up with a new vendor--Intuit for small businesses.

 That's the good news.  The bad news is that they do not accept the programming  of my old website.  So after $1800 spend and six months invested I have to start over from scratch and rebuild the website. So I am!

I don't see any sense in dwelling on the past so as we in payroll often have to do--just get it done.  My web address is the same--www.thepayrolladvisor.com.

Right now the site is under construction so I am able to get the daily news on but little else for at least a couple of weeks.  But at least my readers will have access to payroll information again.

I actually plan on building a better website since I am not restricted by what the programmer can comprehend on how payroll works! Trust me that was difficult to translate at times.  We will have daily news of course from the IRS, states, DOL etc.  But also we will be able to set up our blog directly off the website rather than using blogspot.  So look for changes there as well.

Visit us if you get a chance over the next several weeks.  I think you will find the website useful and informative.

Now back to programming...

Taxing Nonresident Aliens

The IRS is reminding us in Notice 2011-12 that taxing the wages of nonresident aliens has returned to the old method.  The extra steps used in 2010 because of the change to the tax tables because of the Recover Act no longer applies.

 Basic info can be found in the Circular E.  The main information can be found in Notice 2011-12 on the IRS website and it will appear in the Internal Revenue Bulletin 2011-8 which is dated Feb. 22, 2011.

You now add the amount listed on the chart for 2011 to the employee's wages and then use the percentage tables or wage bracket tables as usual. Make sure to deduct the amount added from the chart before computing any other taxes such as social security or Medicare.  The amount is not wages, is not income to the employee and does not appear on the Form W-2.  The additional amount is simply an adjustment to the tax chart.

I'm Tagged as a Spammer but Not Those Who Sell Drugs!

I cannot believe what happened to me this morning.  My guy who runs my server notified me that my website was taken offline for spamming!  Now you will have to see how ridiculous this is when I tell you that I have not sent out a mass e-mail in over a month.  I use Constant Contact which allows anyone to opt out of my list and does not allow me to add them back in even if they want to.  So how did I get labeled a spammer??

Simple.  My name and website were listed on an advertising e-mail sent out by Thompson Publishing to advertise an upcoming webinar in which I was the speaker.  Someone took my name and website off of the advertisement and reported me instead.  So although I am totally innocent, I am the one who has to suffer with my website being shut down because somebody decides to complain about something I had no control over...  and people complain about government taking away things.  I don't even get to defend myself.

The server people won't even listen to my side they just shut me down.  So now I know what I should do.  So for all those people who send Russian women wanting to sleep with me e-mails, and performance enhancing drugs for my husband please contact me and let me know how you keep from being labeled a spammer.  I will play by your rules instead.


So please be patient while I am trying to get my website back up.  I will be posting again on Monday for some year-end tips.

Happy New Year Changes

I hope everyone had a great new year celebration.  And as they say with the new year comes new challenges and changes.  This is especially true for me.  I am in the midst of relocating my offices to better serve my clients.  Expansion is great but also nerve-wracking with all the logistics of what to move when so you can keep the business flowing!  But when it is all over I will have a wonderful new office in which to work.

So blogging for the new year will begin next week.

Of course keep checking out our website for the latest information on the new year changes such as wage bases and rates.  And check out our facebook page for the latest updates as well.

Now might be a good time to follow us on Twitter.  You never know what lies around the corner in a new year.

Happy Holidays

I just wanted to wish all my readers a very Merry Christmas and a wonderful New Year.  Enjoy it while you can because Year-End starts on January 2nd.

I will be blogging almost daily in January. I will be using that time to post Year-End reminders and helpful hints to assist in making your Year-End goes as smoothly as possible.

Enjoy your holidays and I will see you in January

Veteran's Day

I want to take a moment today to thank all the veterans for their service.  My family has a long history with serving in the military.  My Grandfather served in WWI in the Army and is actually buried in Rosecrans Cemetery down in San Diego.  My Father, Harold Frank Jaster served for 28 years in the Marine Corps.  WWII( winner of the Silver Star), Korea, and 3 times to Vietnam.  He went once for his own tour, once to keep each of my brothers from going.  His ashes were spread at sea.  His last wish.  He wanted to make a Navy ship work at least for one day.  You Navy personnel and Marines will understand that sentence just fine.

My Mother served as a woman Marine during WWII and she and my father were married right before she was discharged.  Their wedding picture (is on my Facebook page) is in their uniforms. 

My oldest brother served in the Army and was the clerk for the Fife and Drum Corp in Arlington.  So he is a Vietnam Era vet.

My husband served in the Air Force for four years.  He is also a Vietnam Era vet. That's how we met.  I was on base at Nellis here in Las Vegas back in my young, good looking days and we bumped into each other.  That was 37 years ago.

When my father remarried he married another woman Marine.  This time an officer and a future lawyer.  We did lament where we went wrong but accepted her none the less. She ended up a Colonel in JAG.  And no it is nothing like the TV show according to her.

Did I ever serve?  No.  I wanted to but back then the only job for women was a clerk.  And until they invented computer key boards I could not type.  So I was a daughter and a wife of a service person.  Which in itself is a  tough life and they deserve  respect as well.

So thanks to all our veterans for serving so unselfishly then and now.  May you be protected from harm and your mission successful.  We are thinking of you today. 

And to give this a payroll slant--all I can say is you do not get paid enough for the job you do keeping this country safe! 

Update for November

Well this has certainly been an interesting time since last I blogged on October 13th.  I do apologize for not coming more to the site but you will understand when I explain what has been happening. I have always said that payroll is a constantly changing profession and field.  And boy have I experienced it in the past few weeks.

I have been working under the same writing contract for 17 years.  First it was ProPub out of New Jersey.  This was my first publisher.  The man who owned it contracted with me to write a payroll manual that could be updated twice a year.  But because of the contract I was extremely limited with whom I could write with until either ProPub or I decided to no longer do the manual.  But things changed.

ProPub didn't decide not to do the manual--they were sold to a company called IOMA in 2000.  So now my publisher was IOMA.  Same contract, same rules still could only write for them.  But I did profit from this change.  Even though I couldn't write books for other publishers IOMA kept me very busy.  Not only was I the author of the Complete Guide to Federal and State Payroll Compliance but also the editor for the Payroll Manager's Report (PMR) and  a contributing writer for the Payroll Practitioner's Monthly(PPM).  And every time IOMA needed a report for payroll I was there go-to guy. And they also published my Garnishment Guide on the side.  Plus they were a great client for my webinars.  Booking sometimes 20 a year. Not a bad relationship for me.

But things change, IOMA was sold to BNA a couple of years ago.  No changes really happened in terms of my services for them but they were definitely in the wind.  Then in February of this year things change--IOMA was out and BNA was in.

This one wasn't so good for me.  In June they announced they were no longer publishing my version of the Complete Guide.  They were bringing it "in house".  And now for my not being able to blog for a while.  I got a notice from the bankruptcy court that the corporation that owned IOMA had declared bankruptcy.  That explains all the sudden changes but I knew it also spelled the end of my relationship with them.  I had guessed it would be on October 31st.  I missed it by 2 days.

On November 2, the attorneys for BNA sent me an e-mail terminating all my services.  No more editor for PMR, no more articles for PPM, no more webinars.  Yes things change and sometimes they don't seem like they are for the better.  But this one just might be.

Because I am no longer under their contract for the book and the content of the book reverts back to me I am now free to do exactly what I want in terms of writing payroll manuals, books and articles.  And also what I say and do on this blog. 

So look for some really interesting blogs from this point forward.  As to my books and manuals I will be cranking those out.  Currently I am in the process of completing my first new one in years.  It will be for Nevada payroll professionals and businesses.  Look for it at the end of January.

The next book will be for my payroll professionals in California.  And of course I will be updating my garnishment guide for 2011.    All the while I will be maintaining the most up-to-date and extensive payroll website for payroll professionals.  All the latest news and information, newsletters, bulletins, research facilities and of course advice from me--the Payroll Advisor!

The Times They Are a Changin'

A Busy September but Productive

Well I am back.  It has been a very hectic September.  My website is coming along nicely.  We are building up the Payroll Resource Collection and should have it all built by the end of the year.  So for now we are offering free access to this valuable collection until December 31st.  Just sign up on our website.

Not only have I been busy but so has Congress, the IRS and even some of the states. Let's review what has happened so far.

1. Good news for company cell phone users.  The Small Business Jobs Bil of 2010 signed by President Obama on September 27th.  The bill removes cell phones from the definition of Listed Property in the Internal Revenue Code.  It is effective for tax years after December 31, 2009.  This means that the heightened substantiation  requirements do not apply to cell phones. 

2.  Bad news in the same bill for employers who are late or who fail to provide informational returns.  The penalties have been increased.  First Tier goes from $15 to $30 and the calendar year maximum increases from $75,000 to $250,000.  A complete recap of the penalties are on my website.

3. IRS is putting off mandatory reporting on Form W-2 for health insurance and making it optional for 2011.  This is to allow businesses--read that payroll departments--time to adjust systems to allow for the new requirement.  Read the entire news report on our website under IRS News.

4.  States are beginning to announce new minimum wages for 2011.  Missouri will remain unchanged for 2011.  Montana is going up to $7.35.  Ohio is going up to $7.40 for non-tipped employees and $3.70 for tipped if tips including. Oregon is going to $8.50.

5. States are beginning to announce tax changes as well.  Oklahoma is requiring all SUI reports to be filed electronically in 2011. Iowa tax tables will remain the same in 2011.

So now we begin the year end hectic rush of news for payroll.  I will keep you updated on the blog. If you need to receive news of new minimum wages etc as it breaks sign up for our news bulletin.  We send out an e-mail blast as each news item is announced by the source.   See my website for details and to sign up.

Payroll Benchmarking --Best Practice

I have been finishing up my latest project this week.  The benchmarking report for my publisher.  It is a lot of work but really an enjoyable venture.  It is very interesting to see all of the statistics on the costs etc associated with payroll just laid out to review at my leisure.  When I was first working full time in payroll I would have killed to see some of these numbers.  But back in those days no one had heard of benchmarking. So I had to guess how well I was doing.  There was nothing to compare it to.

But it wasn't really necessary to benchmark back in those days either.  Since we only paid by check or cash, had only a few fringe benefits--no 401(k) or cafeteria plans, and very few garnishments what was there to benchmark.  All anyone cared about is that I got the payroll out on time.  Compliance wasn't even an issue with the company--just me!  Just get it out on time, don't make too many mistakes or tick any of the employees off and they were satisfied.

But times certainly have changed.  Now they want you to get it out on time, don't make too many mistakes, don't tick off any employees, keep in compliance (still not as strict as it should be), and on top of all that--keep the costs down.

So today I guess my suggestion for a best practice is to check out how well you are doing.  Think about adding benchmarking to your project list next year.  You will find places to save costs, improve functions and processes and maybe even impress the bosses.  Who knows, might even surprise yourself at how well you are doing.

How many out there are benchmarking already?  Let us know what you have found.

New Forms are Everywhere These Days

It amazes me sometimes how the world of  payroll goes in cycles.  For years we use the same old forms--941, DE 6 and DE 7 in California, etc.  Then suddenly everyone is bored or something and new forms start popping up.  Remember when the 941 had nonpayroll related stuff on it?  They broke that out with the 945.  Then smaller employers got the 944.  Then the 941 stayed the same for quite a while year in and year out the same lines with the same things until last year.  Then we got 2 forms in the same year last year and then again this year and it will be changing again next year.

Well now CA is doing the same.  They are changing quarterly returns starting in January of 2011.  Gone is the lovely DE 6 and the equally as lovely DE 7.  Now we will have the DE 9 and the continuation DE 9C. Note: For more details on what each form does see our website under State News.  It just seems that as soon as you get complacent knowing all the forms you have to submit along comes a new one.

Oh well, at least it gives me something to write about anyway.

IRS Proposes Paperless in 2011 and I agree

The IRS issued a news bulletin last week that it is proposing that all deposits for taxes be done by electronic funds transfer or EFT.  The IRS has long had a reliable system in place for making deposits via EFT and I for one think it is about high time they went paperless.  There is no reason to keep paying clerks etc to handle paper when it can be done quickly and cleanly with far less "human error" on the side of the IRS.  Most of the country is use to using electronic methods for deposits or withdrawals or information.  Those that aren't can catch up with the rest of us, which they should anyway.

So to the IRS I say bravo!  Go 100% paperless deposits in 2011 and move the government into the 21st century with the rest of us.

What do you think?

Just a quick note, I will not have a blog for tomorrow or Thursday.  I have a family medical procedure to attend to and will return on Monday.

Our New Website is Up and Running at Last!

Our new website at www.thepayrolladvisor.com is up and running at full strength now.  Please check it out when you can.  We have put the latest news on the home page with links to the stories for your convenience.  The news will be updated as items come across my desk.  If you hear of a news story but don't see it on our home page let me know at payrolladvisor@cox.net and we will research the item.

We will be covering the latest news from the IRS, Department of Labor, Social Security Administration and all 50 states.  So whether it is the new tax amnesty program in Kansas, going paperless at the IRS in 2011 or giving the IRS a comment on the Form W-11 you will find it in our "Latest Updates" section.

To save time be sure to sign up for our free news bulletin.  We issue the news bulletin whenever a story breaks so you don't get dozens of e-mails a day with some trivial story and 10 columns of advertisement.  We issue the news bulletin when we have information to send. So you may get one on Tuesday but not again until the following Monday.  We want to make sure you have the latest news but not be bothered otherwise. You have a payroll to get out and we know that. So sign up now at www.thepayrolladvisor.com and tell all your friends.

The IRS is Asking for Comments---Are You Giving Them?

In my news bulletin for my subscribers and on my Facebook page today I covered the announcement by the IRS that they are seeking comments on the Form W-11.  The Form W-11, Hiring Incentives to Restore Employment (HIRE) Act Employee Affidavit was created to be used as a template for employers who must collect affidavits from qualifying employees.  It was for the convenience of the employer only and the form is not submitted.  So the IRS wants to know how the form is working. This type of request for comments is very common for the IRS and payroll is not taking full advantage of the opportunity to be heard.

Payroll professionals need to take the time to respond to these comment requests.  Even if you like the form and can only write a few lines.  The more the IRS hears from individual payroll professionals the more credibility we will have with them and that upgrades our profession. Generally, most of the time the IRS will hear from attorneys or similar agents of employers, or organizations such as the APA.  But what we really should be doing is not relying on the American Payroll Association to give "their" opinion on what payroll likes but give our own opinion.

Our opinions are valuable and they need to be heard.  But they can't be heard unless we take the time to submit them.   So let the IRS know how you feel about Form W-11.  Send your comments by October 12th to:  Gerald Shields, Internal Revenue Service, Room 6129, 1111 Constitution Avenue, NW., Washington, DC 20224.

I will be posting my comments that I send to the IRS on this subject in a couple of weeks.  Post yours here as well so we can all read them and get inspired to send ours in.

EIC In Advance is Now History

Or at least will be on December 31st.  I actually never was very fond of having to do this anyway.  It seemed like a lot of work for very little money for my employee.  And honestly, I don't know too many people in payroll that actually have employees using it anymore, at least legitimately. But it seems that a lot of employers and employees like to use it for fraud so they decided to do away with it.  What ever the reason this is one duty I am glad payroll is not going to have to do anymore as of Jan 1. 

I put the full story on my Facebook discussion page so you can read about it there.

Got to fly today, put in the paypal buttons on the website today so it should be up and running by week's end.

Draft Forms on Tap

I get alot of questions about where I find material.  I usually say when you spend as many hours out on the internet as I do you just run into things.  But one site I have made a career in the last 15 years or so of studying is http://www.irs.gov/.  I used this back when it was a bulletin board and we were requesting pubs in DOS.  So I have over the years covered my fair share of the site, especially the parts that relate to payroll.  But branching out is always a good thing and so I have done with the IRS site.  Which brings me back around to answering questions. I am constantly asked how I know what a new form is going to look like when it has not been released for the general use by the IRS.  I answer simply, I look at the draft the IRS puts out for opinions as they are required to do by statutes.

And since draft forms are an area where payroll professionals like to keep ahead of the game knowing what a new form will look like prior to it landing on your desk to complete is the best of policies.  And this is where the draft forms section comes in handy. 

The IRS puts all forms that it is going to release out on this section and lets everyone and anyone look at them.  Right now if you went out there you could see the 2011 Form W-4, the latest version in 2010 of the Form 941X and so on.   And with as much changes as forms are getting lately advance copies are nice.

Once the form gets to the draft stage it is usually set in stone for major changes.  You can access this area by going to the IRS website...www.irs.gov and clicking on Tax Professionals on the top tool line. Then go down the left side under Tax Professional Topics and see "More Topics" as it is on the second page of topics.  Click on this. Then scroll down the topics listed in the center of the page until you get to Draft Tax Forms Picklist.  That is where all the forms are. You can review by  revision date or by posted date.

Checking out this area of the IRS website is a good practice to get into especially as year end approaches.

 

Working on the Blog and Website

I am working on the design of the blog today to bring it more in line with our new website as to logo etc.  No real news today in the payroll world.  So a good day to work on the designs.

Thanks for stopping by.  I should be posting again tomorrow.

Website is THISSSSS Close!

My fellow payroll professionals:  Sorry I missed the blog yesterday.  Was under the weather.  But back at it today.  Just want to give an update on my website.  It is now up so you can view it.  We are doing the final finishes on it and I should be able to announce it this week. 

I will be posting news stories daily or as they come in. I will also be offering an update service so you get the payroll news right to your e-mail inbox.  So check us out and sign up when you see the announcement right here on our blog. 

You can also follow us on facebook by searching for payroll advisor.  We are on twitter as payadvisor.  I am also now on LinkedIn. 

Our website is at www.thepayrolladvisor.com

Yours in payroll...

The Politics of Independent Contractors

As you know I live in Nevada.  There is an article in the Las Vegas Sun today about independent contractors and political campaigns.  In part it reads: Senate Majority Leader Harry Reid’s campaign has accused his Republican rival, Sharron Angle, of attempting to skirt tax law by paying her staff as independent contractors instead of employees subject to payroll taxes. Since she filed to run, Angle has paid her staff as consultants and as such has made no payments to the Internal Revenue Service. Although not uncommon for political candidates, the practice could raise legal issues with the IRS if she doesn’t carefully follow the rules dictating when a worker can be classified as an independent contractor.

What I found most fascinating were the comments made about the story.  For example one commenter wrote:

So, what's the point?? My wife has worked as an independent contractor for years. It's not illegal. By putting this article in the paper, Harry Reid shows his ignorance of how many small businesses and individual workers handle their taxes.

As a matter of fact, it's a common practice and more convenient for some people to either hire independent contractors or to work as independent contractors.There's absolutely nothing wrong here. This is a non-story.

But whether someone is an independent contractor or an employee is not a matter of "convenience" or "common practice" it is suppose to be a matter of IRS regulations.  Right now the GAO is guesstimating that over 30 million workers are misclassified.  States are passing legislation right and left to make it more "costly" to misclassify workers and millions of dollars are lost in revenue for SUI etc due to this type of misclassification.

My question here is three-fold.  First, If our political candidates don't think enough of our tax laws to follow them when they are not holding an elected office can they still create, and vote on legislation that will help keep the country moving in the right direction which ever direction that may be?

Second, why is it that no one seems to understand the basic rules of independent contractors?

And third, should people who deliberately break tax laws for their own financial gain (remember she doesn't have to pay FICA or SUI or FUTA so the campaign saves thousands of dollars which can be spent on ads and such) be given a chance to run our country?  I include all those who hold appointed offices as well.  Like paying for Nanny taxes or back income taxes.

Let us know what you think.