Make time for a midyear payroll review
Tax Tip of the Week
June 8, 2015
Make time for a midyear payroll review
As the last month of the second quarter, June provides a good opportunity for a midyear payroll review. Here are three areas to assess and update.
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Form I-9. Make sure you have a completed Employment Eligibility Verification Form on file for each of your employees. Check that you and your employees signed the right sections and that you met the deadlines for completion. Finally, make sure retention policies are up to date. You're required to keep Form I-9 as long as an employee works for you. For ex-employees, retain the form for three years after the date of hire or one year after the date employment ended, whichever is later.
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Retirement plans. Consider introducing your employees to the new myRA, a retirement savings option. These plans allow employees to contribute monthly to a no-fee account that is similar to a Roth IRA. The funds in myRA accounts are invested in a government security and backed by the Treasury Department. As an employer, your only obligation is to facilitate the payroll deduction. You're not responsible for filing forms, making contributions, or tracking assets.
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Health insurance law compliance. Verify that you have stopped reimbursing your employees for health coverage. After June 30, 2015, repaying employees specifically for health insurance premiums could subject you to a penalty of $100 per day per employee. Another health law reminder: Make sure you have procedures in place so you can track information needed to fill out new 1095 forms for health insurance coverage. For 2015, these forms are generally required at year-end when you have 50 or more full-time employees, even if you do not offer coverage.
Give us a call for more information and for help completing your midyear payroll review.
"Tax Tips" are published weekly to provide current tax information, tax-cutting suggestions, and tax reminders. If you would like more information on anything in "Tax Tips," or if you'd like to be on our mailing list to receive other tax information from time to time, please contact our office.
The tax information contained in this site is of a general nature and should not be acted upon in your specific situation without further details and/or professional assistance.
© MC 2015
June 8, 2015
Make time for a midyear payroll review
As the last month of the second quarter, June provides a good opportunity for a midyear payroll review. Here are three areas to assess and update.
-
Form I-9. Make sure you have a completed Employment Eligibility Verification Form on file for each of your employees. Check that you and your employees signed the right sections and that you met the deadlines for completion. Finally, make sure retention policies are up to date. You're required to keep Form I-9 as long as an employee works for you. For ex-employees, retain the form for three years after the date of hire or one year after the date employment ended, whichever is later.
-
Retirement plans. Consider introducing your employees to the new myRA, a retirement savings option. These plans allow employees to contribute monthly to a no-fee account that is similar to a Roth IRA. The funds in myRA accounts are invested in a government security and backed by the Treasury Department. As an employer, your only obligation is to facilitate the payroll deduction. You're not responsible for filing forms, making contributions, or tracking assets.
-
Health insurance law compliance. Verify that you have stopped reimbursing your employees for health coverage. After June 30, 2015, repaying employees specifically for health insurance premiums could subject you to a penalty of $100 per day per employee. Another health law reminder: Make sure you have procedures in place so you can track information needed to fill out new 1095 forms for health insurance coverage. For 2015, these forms are generally required at year-end when you have 50 or more full-time employees, even if you do not offer coverage.
Give us a call for more information and for help completing your midyear payroll review.
"Tax Tips" are published weekly to provide current tax information, tax-cutting suggestions, and tax reminders. If you would like more information on anything in "Tax Tips," or if you'd like to be on our mailing list to receive other tax information from time to time, please contact our office.
The tax information contained in this site is of a general nature and should not be acted upon in your specific situation without further details and/or professional assistance.
© MC 2015
