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HomeArchived E-NewslettersDeluxe Payroll Newsletter – May 2012

Deluxe Payroll Newsletter – May 2012

August 24, 2017


Youth Employment – What Every Employer Should Know

Hiring young workers can be very beneficial to employers to supplement their full time workforce. In addition, early work experiences can often provide career paths for youth employees. However, youth employment can be tricky especially when employing workers less than 18 years of age. The U.S. Department of Labor (DOL) continues to promote a positive and safe work experience during the employment period. Please consider the following guidelines when hiring for your position:

  • Diligently keep track of daily and weekly hours worked and the job performed within your company
  • Workers under age 18 are subject to Federal Child Labor Provisions
  • 14 – 15 must observe restrictions under the Fair Labor Standards Act which protects the youth by limiting the hours worked and types of jobs performed. For example…

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Voluntary Classification Settlement Program

On September 21, 2011 the IRS announced a new program for reclassification of Independent Contractors to Employees allowing businesses to gain more control over the Contractors that are currently providing services to their business.

The VCSP program is a settlement program that is designed to provide relief to employers who were incorrectly treating workers as Independent Contractors. The tax relief or “fresh start” initiative allows employers to become compliant and make minimal tax payments on past payroll tax obligations rather than waiting for a possible IRS audit. Under this program employers can receive substantial relief from federal (941) payroll taxes they have owed for workers misclassified as nonemployees. Eligible employers must file Form 8952 and follow these guidelines:

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Thinking about hiring seasonal workers?

Often employers are faced with seasonality during their business and a perfect example is a retail operation selling during the Holiday season. Or, perhaps owning a restaurant near our coastal resort areas and the business is only open from May to September. Employers are very savvy these days in cutting expenses in order to maximize profits during their peak times.

May we suggest a few ways to minimize your payroll tax expenses?

  • Most students are willing to learn your business and have strong communication skills to interact with your customers.
  • All Students, whether international or US based can be paid at a lower “training” rate depending upon annual sales and the state of employment (check your employment state for guidance).

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Are you prepared for your next audit?

Workers Compensation Audit? IRS Payroll Audit? Either audit is time consuming and requires a great deal of expertise to prepare your supporting documentation. These types of audits generally have one return in common and that is your Employers Quarterly Federal Return (form 941). This return filed to the IRS is essential in summarizing your Gross Taxable Wages and associated tax payments. The return includes Employer/Employee Social Security and Medicare taxes as well as Federal Taxes withheld during a quarterly tax period. For example, your First Quarter is January 1st through March 31st and the 941 return is due to be filed by April 30th.

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