Payroll News Archive
Read articles on payroll software; if you're looking for info on payroll check software, payroll tax, online payroll or payroll processing in general, you've come to the right place. The payroll software experts at Optimum Solutions have plenty of helpful tips and information to assist you in all your payroll needs. Check back often for guest posts by other payroll experts, payroll news and all things payroll services.
Feel free to email our payroll software experts at info@optimum-solutions.com and your question may be featured on our HRIS blog.
Payroll News Articles
Is Your Payroll Software Minimum Wage Compliant?
May 12 2011
How do you know which minimum wage rate to use when you pay employees that work in multiple states? Your payroll software program should be in compliance with the Department of Labor (DOL), which states, “Where the Federal and state law have different minimum wage rates, the higher standard applies”…
The Direct Deposit Handbook
May 11 2011
May is the month that NACHA recognizes businesses should celebrate and campaign to get your organization to be 100% direct deposit. It can be tricky getting past all the employees’ fears and excuses, but there are resources to help you with this. Remember that all versions of Optimum Solutions payroll…
Social Security Number Randomization in 2011
April 13 2011
Since 1936, SSA has assigned 9-digit numbers used to track earnings and pay benefits.
These numbers have consisted of an area number that corresponds to the state corresponding to the zip code in the applicant’s mailing address. This method of assignment presents two concerns:
- this method imposes limits on the…
2011 Form 941 Released
March 24 2011
The IRS has released the Employer’s Quarterly Federal Income Tax return for 2011, along with the Schedule R, Allocation Schedule for Aggregate Form 941 Filers. Form 941 can be found on the IRS website.
At this time, the new instructions have not been released, but here’s…
Prepare Now for 2011 Year End
February 23 2011
Hopefully year-end is over or winding down for most of you.
Did you keep a list of what worked well and what did not during your year-end process? If not, it should be fresh on your mind. Start planning your 2011 year-end now and be sure that you remember…
Federal Tax Levy Exemption Tables - 2011
January 26 2011
The IRS has released the 2011 Federal Tax Levy Exemption Tables as of January 19 (found in the updated IRS Publication 1494).
Download the Federal Tax Levy Exemption Tables for 2011 here (from irs.gov).
Use the updated tables to determine the amount of take home pay an employee…
Five Ways to Get More from Your Payroll HR Software
January 26 2011
Face it – your Payroll/HR software is a big investment.
There’s no question that a software based solution will result in significant ROI, but after you laid out all that money and spent all those hours learning the system, what can you do to keep getting new returns on…
How to Calculate Taxable Wages
January 20 2011
Have you ever wondered what makes up taxable wages? If so, you’re not alone. Hopefully this post will help clarify what to consider when calculating taxable gross.
For the example listed below, we will be calculating the taxable gross for Federal income tax (keep in mind that taxable gross varies…
State EITC Notice Requirements - Advanced EITC Elimination
December 20 2010
With the elimination of the Advanced Earned Income Tax Credit (EITC), states are announcing how employers are to proceed with notifying employees about the advance payment in those states. In the past employers were required to notify all employee’s who qualified for this tax reduction at the end of each…
Eliminating Federal Tax Deposits on Payroll : What Does This Mean for Employers?
December 20 2010
Effective January 1, 2011, the Financial Management Service discontinues the process of paper Federal Tax Deposit Coupons, along with a check deposited at your bank.
Now you ask, what does this mean to Employers?
First, all employers will be required to submit the federal tax deposit via the…
SSA to Make Changes to SSNs in 2011
August 2 2010
When I left high school and went to college (many decades ago), one of the few things I was well prepared for was college Spanish. I breezed through my Spanish I course, and confidently went by the professor’s office once grades were posted. Knowing I would see an A, I…
Payroll - Federal Tax Research Made Simple
May 21 2010
Are you familiar with the Internal Revenue Service (IRS) website? How many hours do you as a Payroll or Human Resource Professional spend searching for the information you need. Researching Federal, State and Local government agencies websites to locate what you need to do your job accurately can be long…
Payroll Software – 401k and Roth IRA Contributions
May 17 2010
Does your company offer both a pretax 401k deferral and an after tax Roth IRA deferral to your employees? This can be difficult to handle with the separate taxability’s and the fact that the federal contribution limit for each year (eg. 2010 is $16,500) must be allocated between the two…
Payroll Software Implementation and What to Keep in Mind
May 15 2010
You bought a new payroll software system, now what? One of the best pieces of advice a person can adhere to is to keep an open mind. When a company changes payroll and HR software packages, things are going to change in that package that you did or didn’t have…
Methods of Overtime Calculations using Payroll Software
April 15 2010
There are 3 common methods for overtime setup and calculation in payroll software processing.
- Overtime at Time and a half
- Overtime automatically calculated by the payroll software system
- FLSA Overtime calculation for multiple rates of pay
Overtime at Time and a half calculation is accomplished by setting up…
Why Not Pay Hourly and Salaried Employees on the Same Pay Cycle?
April 12 2010
Having both biweekly hourly and semimonthly salaried pay cycles to process can create additional work for the payroll processing department. For discussion we will use these assumptions; hourly employees need to have overtime computed on over 40 hours worked per week and salaried employees are all exempt from overtime.
…
Hire Act of 2010
March 31 2010
President Obama signed the Hire Act on March 18, 2010 to provide incentives for restoring Employment. This Act has two parts:
Part 1 – The tax Holiday which runs from March 19, 2010 – December 31, 2010 to relieve the employer’s share of Social Security tax on wages for…
Payroll/HR Software Implementation Strategies
March 29 2010
You’ve determined that you need a new payroll software solution. You are out-sourcing your payroll software, human resources software and time and attendance software and are not satisfied with the service that you are getting as well as the lack of control over your payroll software program. So, the solution…
Making Work Pay Tax Credit (ARRA)
March 19 2010
The Making Work Pay provision of the American Recovery and Reinvestment Act (ARRA) provides a refundable tax credit of up to $400 for working individuals and up to $800 for married taxpayers filing joint returns. The credit is being distributed through reduced withholding. The federal tax tables were reduced for…
COBRA Subsidy & the IRS Form 941
March 18 2010
So, you’ve heard that there have been changes to your 941 form, but just what are those changes exactly? Well, here’s a brief rundown.
The American Recovery and Reinvestment Act of 2009 (the Recovery Act, P.L. 111-5) offers a 65% COBRA premium subsidy for up to 9 months to workers…
Paying Payroll Taxes with Payroll Software
February 23 2010
As with most HR, and payroll systems these days, there are two ways to do things: the “old fashioned” manual way and the new online way which offers a variety of methods. This principle is also the same for paying your payroll taxes.
Option one: the old fashioned way to…
New OSHA Compliance Requirements
February 2 2010
As of February 1st employers must post a summary of the previous year totals of job-related injuries and illnesses. Only the summary (OSHA Form 300A) is required. Employers should list the total number of incidents occurring in 2009 that were logged on the 300 form. Employers must also post the…