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  • 2% shareholder health insurance

    What Is 2% Shareholder Health Insurance?

    posted by Rachel Gray
    Newest Article
  • A Breakdown of the Colorado Occupational Privilege Taxes

    posted by Kaylee Riley
    Recent Article
  • What Is 2% Shareholder Health Insurance?

    Do you own an S corporation and offer health insurance to employees? If so, you need to know how 2% shareholder health insurance works for S corporations.  

    A Breakdown of the Colorado Occupational Privilege Taxes

    A handful of cities in Colorado have a local tax called an occupational privilege tax. Both employees and employers owe it.

    If you’re an employer in Colorado, it’s important to know if you owe the occupational privilege tax and what your city requirements are.

    FLSA Provisions for Recovering Back Pay

    Employees might be entitled to back pay based on several federal and state laws.

    The Fair Labor Standards Act (FLSA) is a federal law that entitles employees to a minimum wage and overtime wages. When employers don’t give employees at least the minimum wage and overtime wages when required, employees might be able to receive FLSA back pay for the wages they missed out on. However, there is an FLSA statute of limitations, or deadline, on an employee’s ability to claim those wages.

    What is back pay?

    Before getting to the FLSA statute of limitations on back pay, let’s make sure the definition of back pay is clear.

    Back pay is wages you failed to pay an employee in the past and still owe. Specifically, back pay is the difference between what you paid and what you should have paid.

    Employee back pay can include unpaid:

    You might owe an employee back pay because you accidentally paid the wrong wages. Or, you might owe back pay because you willfully violated wage laws.

    FLSA provisions for recovering back pay

    The FLSA allows four methods for recovering back pay.

    1. The Wage and Hour Division of the U.S. Department of Labor supervises the payment of back wages.
    2. The U.S. Secretary of Labor can bring a lawsuit forward for back wages and liquidated damages.
    3. An employee can file a private lawsuit for back pay, liquidated damages, attorney’s fees, and court costs.
    4. The U.S. Secretary of Labor can get an injunction to restrain any person from violating the FLSA, including unlawful practices that could result in back pay.

    An employee can not bring forward a lawsuit under the FLSA if they were already paid back wages under the supervision of the Wage and Hour Division. Also, an employee cannot file a lawsuit if the Secretary of Labor has already filed a suit to recover the wages.

    FLSA statute of limitations on back pay

    The FLSA has a statute of limitation to recover back pay. This means an employee must file their suit within a certain amount of time after the wage violation. After the back pay statute of limitations, the employee can no longer claim their back wages.

    Generally, there is a two-year statute of limitations after the wage violation occurs. If your business had ongoing wage violations, an employee can recover wages for the two years prior to filing the claim. The employee cannot receive back wages for violations that go back further than the statute of limitations.

    If you willfully violate the FLSA, there is a three-year statute of limitations.

    Statute of limitations example

    Vince began working at ACME Corp on April 1, 2014. His job requires him to work occasional overtime. Even though Vince receives a salary, he is a nonexempt employee. This means ACME Corp must pay him overtime wages for his extra work. However, ACME Corp never pays Vince overtime wages.

    On November 1, 2017, Vince files a claim to attempt to get back wages for his FLSA unpaid wages for overtime. At this point, Vince has worked at ACME Corp for a little over three and a half years.

    Because of the FLSA statute of limitations, Vince cannot receive back wages for his entire duration of employment at ACME Corp. He can only collect back wages for overtime pay he was owed in the two years prior to his claim. He can get back pay for wages owed between November 1, 2015, and November 1, 2017.

    If ACME Corp willfully violated the FLSA overtime laws, then the three-year back wages statute of limitations would apply. Vince could receive back wages for owed overtime pay between November 1, 2014, and November 1, 2017.

    FLSA statute of limitations on back pay example timeline graphic

    Use Patriot’s payroll software to help you accurately calculate employee wages. You enter the employee’s pay rate, hours worked, and deduction information, and the software will do the rest. Get a free trial today.

    This article is updated from its original publication date of 5/1/2012.

    This is not intended as legal advice; for more information, please click here.

    What Is Compensation?

    You give your employees a regular paycheck. But, you might also give other wages to your employees. Do those other wages count as compensation? What is compensation?

    Do I Need to File Form 8027?

    In some industries, employees earn the bulk of their wages from tip income rather than hourly or salary pay. If you own a food or beverage establishment, your employees likely earn tips. Like regular pay, you still need to withhold taxes on tip income. And, you need to report tip earnings on Form 8027.

    State Income Taxes for Out of State Employees

    Each state’s income taxes are different. Some states have low taxes, some have high taxes, and some states don’t have income taxes at all.

    State income taxes get even more complicated when you have an employee who lives and works in different states, works from home in a state where your business isn’t located, or travels for work. Knowing how much tax to withhold and where to pay it can get confusing.

    Don’t let confusion deter you from hiring out of state employees. You can learn the basics of how to handle payroll taxes for out-of-state employees. And, you can use a payroll software with multi-location functionality to make sure all payroll calculations and deposits are correct.

    Updates to the Income Tax Withholding Tables and What You Need to Know

    When you have employees, you need to stay on top of changing employment tax rates. Rates impact the amount of money you withhold from employee wages. To reflect recent legislation, there are new 2018 income tax withholding tables you need to know about.

    Below, you will first find information about how withholding tables work. Then, you can learn about the new 2018 tables, when you must implement them by, and more.

    What Is Form 8655?

    When signing up for payroll services that include tax filing, you’ll be asked to fill out Form 8655. The company won’t be able to file or deposit your taxes until you submit the form.

    So, what is IRS Form 8655 used for? Find out below.

    Small Business Attendance Policy

    Employees streamline business operations, but what happens when they frequently skip work or show up late? Those streamlined business operations will start to become inefficient. To encourage attendance and monitor employees, you need a small business attendance policy.

    According to the Bureau of Labor Statistics (BLS), the total absence rate for all full-time positions is 2.9%. The rate is the ratio of workers with absences to total wage and salary employment. That means that an average of 2.9% of the workforce is absent on workdays. Absences can be defined as missing work as a result of illnesses, injuries, child care, or other personal obligations. To reduce absenteeism in the workplace, implement and enforce an attendance policy.

    What Is Commission?

    Typically, employers provide hourly or salary wages to workers. However, some business owners pay commission to employees. What is commission?  

    What Is 2% Shareholder Health Insurance?

    Do you own an S corporation and offer health insurance to employees? If so, you need to know how 2% shareholder health insurance works for S corporations.  

    A Breakdown of the Colorado Occupational Privilege Taxes

    A handful of cities in Colorado have a local tax called an occupational privilege tax. Both employees and employers owe it.

    If you’re an employer in Colorado, it’s important to know if you owe the occupational privilege tax and what your city requirements are.

    FLSA Provisions for Recovering Back Pay

    Employees might be entitled to back pay based on several federal and state laws.

    The Fair Labor Standards Act (FLSA) is a federal law that entitles employees to a minimum wage and overtime wages. When employers don’t give employees at least the minimum wage and overtime wages when required, employees might be able to receive FLSA back pay for the wages they missed out on. However, there is an FLSA statute of limitations, or deadline, on an employee’s ability to claim those wages.

    What is back pay?

    Before getting to the FLSA statute of limitations on back pay, let’s make sure the definition of back pay is clear.

    Back pay is wages you failed to pay an employee in the past and still owe. Specifically, back pay is the difference between what you paid and what you should have paid.

    Employee back pay can include unpaid:

    You might owe an employee back pay because you accidentally paid the wrong wages. Or, you might owe back pay because you willfully violated wage laws.

    FLSA provisions for recovering back pay

    The FLSA allows four methods for recovering back pay.

    1. The Wage and Hour Division of the U.S. Department of Labor supervises the payment of back wages.
    2. The U.S. Secretary of Labor can bring a lawsuit forward for back wages and liquidated damages.
    3. An employee can file a private lawsuit for back pay, liquidated damages, attorney’s fees, and court costs.
    4. The U.S. Secretary of Labor can get an injunction to restrain any person from violating the FLSA, including unlawful practices that could result in back pay.

    An employee can not bring forward a lawsuit under the FLSA if they were already paid back wages under the supervision of the Wage and Hour Division. Also, an employee cannot file a lawsuit if the Secretary of Labor has already filed a suit to recover the wages.

    FLSA statute of limitations on back pay

    The FLSA has a statute of limitation to recover back pay. This means an employee must file their suit within a certain amount of time after the wage violation. After the back pay statute of limitations, the employee can no longer claim their back wages.

    Generally, there is a two-year statute of limitations after the wage violation occurs. If your business had ongoing wage violations, an employee can recover wages for the two years prior to filing the claim. The employee cannot receive back wages for violations that go back further than the statute of limitations.

    If you willfully violate the FLSA, there is a three-year statute of limitations.

    Statute of limitations example

    Vince began working at ACME Corp on April 1, 2014. His job requires him to work occasional overtime. Even though Vince receives a salary, he is a nonexempt employee. This means ACME Corp must pay him overtime wages for his extra work. However, ACME Corp never pays Vince overtime wages.

    On November 1, 2017, Vince files a claim to attempt to get back wages for his FLSA unpaid wages for overtime. At this point, Vince has worked at ACME Corp for a little over three and a half years.

    Because of the FLSA statute of limitations, Vince cannot receive back wages for his entire duration of employment at ACME Corp. He can only collect back wages for overtime pay he was owed in the two years prior to his claim. He can get back pay for wages owed between November 1, 2015, and November 1, 2017.

    If ACME Corp willfully violated the FLSA overtime laws, then the three-year back wages statute of limitations would apply. Vince could receive back wages for owed overtime pay between November 1, 2014, and November 1, 2017.

    FLSA statute of limitations on back pay example timeline graphic

    Use Patriot’s payroll software to help you accurately calculate employee wages. You enter the employee’s pay rate, hours worked, and deduction information, and the software will do the rest. Get a free trial today.

    This article is updated from its original publication date of 5/1/2012.

    This is not intended as legal advice; for more information, please click here.

    What Is Compensation?

    You give your employees a regular paycheck. But, you might also give other wages to your employees. Do those other wages count as compensation? What is compensation?

    Do I Need to File Form 8027?

    In some industries, employees earn the bulk of their wages from tip income rather than hourly or salary pay. If you own a food or beverage establishment, your employees likely earn tips. Like regular pay, you still need to withhold taxes on tip income. And, you need to report tip earnings on Form 8027.

    State Income Taxes for Out of State Employees

    Each state’s income taxes are different. Some states have low taxes, some have high taxes, and some states don’t have income taxes at all.

    State income taxes get even more complicated when you have an employee who lives and works in different states, works from home in a state where your business isn’t located, or travels for work. Knowing how much tax to withhold and where to pay it can get confusing.

    Don’t let confusion deter you from hiring out of state employees. You can learn the basics of how to handle payroll taxes for out-of-state employees. And, you can use a payroll software with multi-location functionality to make sure all payroll calculations and deposits are correct.

    Updates to the Income Tax Withholding Tables and What You Need to Know

    When you have employees, you need to stay on top of changing employment tax rates. Rates impact the amount of money you withhold from employee wages. To reflect recent legislation, there are new 2018 income tax withholding tables you need to know about.

    Below, you will first find information about how withholding tables work. Then, you can learn about the new 2018 tables, when you must implement them by, and more.

    What Is Form 8655?

    When signing up for payroll services that include tax filing, you’ll be asked to fill out Form 8655. The company won’t be able to file or deposit your taxes until you submit the form.

    So, what is IRS Form 8655 used for? Find out below.

    Small Business Attendance Policy

    Employees streamline business operations, but what happens when they frequently skip work or show up late? Those streamlined business operations will start to become inefficient. To encourage attendance and monitor employees, you need a small business attendance policy.

    According to the Bureau of Labor Statistics (BLS), the total absence rate for all full-time positions is 2.9%. The rate is the ratio of workers with absences to total wage and salary employment. That means that an average of 2.9% of the workforce is absent on workdays. Absences can be defined as missing work as a result of illnesses, injuries, child care, or other personal obligations. To reduce absenteeism in the workplace, implement and enforce an attendance policy.

    What Is Commission?

    Typically, employers provide hourly or salary wages to workers. However, some business owners pay commission to employees. What is commission?  

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