Payroll setup and maintenance can be a daunting task, with both employee and organizational implications to consider – in addition to a host of state and federal laws. It's important to have clear policies in place so that you're compliant with the IRS, and so that you can quickly resolve any issues around payment that arise.
Employers Council can help you setup and maintain payroll, guiding you through questions around overtime pay, garnishments, payroll deductions, tax reporting and withholding, how to resolve overpayments, and much, much more.
Employers Council partners with
Paylocity to offer payroll solutions to its members in order to deliver the newest, most advanced technology and reporting plus a dedicated payroll support representative. In addition to the hundreds of employment law and HR resources available through a membership with Employers Council, our members can also access Paylocity at a significantly discounted rate.
Don't know where to turn when it comes to payroll administration and management? Join today for access to expert advice and payroll services!
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Employers Council can guide you through payroll administration and management in the following areas:
Most employers are required to pay an overtime premium of 50% of an employee's hourly wage, or time-and-a-half, for every hour beyond 40 that they work in a single workweek. However, these laws contain many exceptions, so your employees may not be entitled to overtime pay.
To determine whether or not your organization needs to provide overtime pay, you can look at whether or not you are covered by FLSA (the Fair Labor Standards Act), which is the federal law establishing overtime pay. This generally applies to your organization if you exceed $500,000 in annual sales. However, exceptions to and applications of FLSA range, so it's worth consulting with an employment law expert to determine the pay policies you need to have in place based on your industry and organization size. State laws can also determine whether or not you are required to provide overtime pay if you are not covered by FLSA.
If your organization is covered by FLSA or a state overtime law, that means you must provide overtime pay. However, certain employees are exempt from this. These include:
- Salaried employees
- Independent contractors
- Seasonal employees
The overtime landscape can be complex. Employers Council can help you determine whether or not you must offer overtime pay, and which employees are entitled to receiving it.
Payroll deductions are portions of an employee's paycheck that are withheld by an employer. Deductions can range from insurance or pension contributions to child support payments and union dues.
As an employer, it's important to distinguish between government-mandated payroll deductions and voluntary payroll deductions, and to have clearly communicated policies to employees about the deductions you plan to withhold from their paycheck. Employers Council can help you navigate the policies you need in place to comply with state and federal laws, and how to ensure that your employees' expectations match the amount they receive.
Mistakes can happen, and Employers Council can help you shape policies that anticipate different scenarios worth being proactive about – not reactive.
Overpayments can be the result of claim processing errors or omissions made by an employer and / or their third-party administrators (TPAs). Therefore, employers and TPAs must ensure that claim response protocols meet standards associated with timeliness and accuracy. A single failure to do so, or a pattern of failures, can incur loss of account credits or repayment of funds. In addition, states have been given the ability to assess monetary and criminal penalties against employers and agents in these scenarios.
Employers Council can help you set up a payroll system that doesn't lead to overpayments, and navigate an overpayment in the event that a mistake does happen.
Tax Withholding and Reporting
An Employer Identification Number, or an EIN, is used to identify a business entity by the IRS. When setting up a business, employers need to apply for an EIN for the purposes of tax administration and reporting. The type of business you have determines what taxes you pay and how you pay them. General tax types include:
Income Tax – All businesses except partnerships must file an annual income tax return. This is a tax you pay as you earn income throughout the year. Typically, employees choose to pay their tax through withholding.
Estimated Taxes – If payments for income tax are not withheld throughout the year,
estimated tax payments are required instead.
Self-Employment Tax – Self-employed individuals pay a social security and Medicare tax, with
Employment Taxes – As an employer, you have certain tax responsibilities that include:
- Social security and Medicare taxes
- Federal Income tax withholding
- Federal unemployment (FUTA) tax
- Excise Tax – If you work in certain industries, you may be subject to an excise tax, i.e. a tax on the first retail sale of heavy trucks, trailers, and tractors.
Employers Council can help you navigate what taxes apply to your organization, what withholding implications those carry for you and your employees, what tax forms you need to complete and distribute, and how to ensure you are compliant with the IRS – from setting up an EIN to filing your annual taxes.
Payroll Records and Reporting
Payroll records are documentation on employees that include average pay rates, number of hours worked, deductions, health plan contributions, bonuses, and sick pay for each employee. These must be maintained for all individuals in your workplace for a minimum period determined by both federal and state laws. For example, recent legislation has impacted
the kinds of payroll records and reporting you must keep in the state of Colorado.
Employers Council can help you establish what kinds of records to keep, how to maintain them, and for how long so you can easily stay compliant with both state and federal laws.
Employers often find themselves becoming more involved in their employee's personal financial affairs when they are served with garnishments or other attempts to collect monies owed by the employee. Employers Council can help you identify and properly process employee wage garnishments and income withholding orders.
When addressing wage garnishments, it's important to know the answers to questions like:
- What is a valid garnishment?
- What types of garnishments attach to employee wages in my state?
- How do garnishments differ from other income withholding orders?
- What is a levy for unpaid taxes?
- What is a student loan garnishment?
- What are my obligations under orders to deduct for health insurance?
You also need to have clear policies in situations around garnishments, like:
- How and when to process a wage garnishment.
- How and when to process an income withholding for support.
- How much must an employer withhold and the deadlines for response and payment.
- How to handle multiple garnishments and income withholding orders, and how to establish priorities for payment.
- How a bankruptcy affects other orders.
In addition to having on-call experts who can help guide you through the intricacies of garnishments, members of Employers Council also have access to specific training on this topic:
It's important to acknowledge that garnishments can have strong impacts on employees. Employers Council can help you determine the best way to proceed with particular employees and how to comply with state and federal laws surrounding garnishments.
Frequently Asked Questions
How much of a discount do employers get on Paylocity through their Employers Council membership?
Our partner Paylocity will give Employers Council members a 10% discount to get started.
Do I need to be a Paylocity subscriber in addition to an Employers Council member in order to get help from Employers Council on payroll issues?
While Paylocity is a fantastic payroll solution, you do not need to sign up for their service in order to access Employers Council's payroll experts.
I am payroll professional that needs CPP credits. Does Employers Council offer those to its members?
This year, we plan to expand our member offerings to include CPP webinars you can view from the comfort of your desk at a time that is most convenient for you.
I have employees overseas who I need to pay, but I don't know how. What's the best way to pay them?
There are lots of payment solutions that can help you set up a consistent payment process for overseas employees. Our partner Blue Marble may be just the answer for you. Contact us for more information.
I need some help with administering my payroll. Can Employers Council fill in for staff?
Employers Council has payroll professionals who can do this for you on a short-term basis to fill in for staff, step in to help when you switch to a new provider, or assist you on an ongoing basis.
Become a member for access to our payroll experts, in addition to a significant discount on Paylocity's payroll solutions.
Become a Member