2024 Payroll Compliance Boot Camp: Navigating Overpayments, Deductions, and Taxation

Session 1 | Payroll Overpayments: Handling them Correctly in 2024 | Vicki M. Lambert | 90 Mins

Employees can be overpaid in even the most well managed payroll department.  Yes, it does happen when mistakes are made but it isn’t always the result of an error.  Perhaps the employee received a sign on bonus but did not stay for the required length of time. Or the employee was advanced vacation but is now terminating before he or she has fully earned the time.  No matter the reason, overpayments can and do happen and must be handled properly.   The first questions that usually arise relate to IRS regulations.  What is required if the overpayment occurred this year?  But what if it occurred in a previous tax year, does that change the rules?  Are the rules different for federal income tax than they are for social security or Medicare taxes?

Recouping overpayments is also much more complex than just adhering to IRS code! Wage and hour law compliance must also be honored when dealing with overpayments. Before the payroll department even needs to determine IRS requirements they must first determine if recouping the over payment is even legal under the FLSA.  Issues such as exempt employee status, minimum wage and overtime rules for non exempt employees must be considered when recovering overpayments from employees. 

And of course, the overpayment did not occur in a vacuum when it comes to state laws. Each individual state may have their own compliance issues involving wage and hour laws!  Is there a time limit for recouping the overpayment in that state? Does the employee have to be notified in advance before the deductions can begin?  Or does the state just say NO! to the whole process?   

Webinar Objectives

In this webinar our expert speaker will discuss these regulations and more including the private letter ruling that governs the IRS requirements. We will examine the FLSA requirements on recouping overpayments including the 1998 opinion letter that spells out these requirements. We will also discuss how to conduct research to determine the state’s requirements for handling overpayments. We will review the wage and hour laws of several states and the factors that they use to determine if an overpayment can be recouped.

Webinar Highlights

Handling Overpayments under IRS and State Tax Codes:

• Why a 1990 IRS Private Letter Ruling on handling overpayments applies today
• Correcting overpayments in the same calendar tax year
• Why asking for the gross is better than the net check for prior year overpayments
• Correcting FICA taxes for a prior year overpayment
• Correcting FUTA/SUI taxes
• Using Form W-2 or Form W-2c to report overpayments

Wage and Hour Laws and Their Impact on Recouping Overpayments:

• The standards under the FLSA in terms of timeframe for recouping prior year overpayments
• Is a written agreement for repayment always required under the FLSA
• Collecting overpayments from exempt employees and its effect on salary basis compliance
• Recouping overpayments and its effect on minimum wage and overtime requirements
• Can employers treat advanced vacation payments as overpayments if an employee terminates
• Where do the states stand on recouping overpayments

Session 2 | Payroll Deductions in 2024 | Vicki M. Lambert | 90 Mins

In payroll we calculate the gross wages of an employee by meticulously following strict regulations on what must be or must not be counted as hours worked and taxable income.  We pay the employee their net paycheck only by the payment method that is permitted.  But what about in between?  When it comes to deducting from the employee’s gross wages to achieve the net income are you also adhering strictly to the rules?

After calculating gross wages for an employee is accomplished, much more difficult decisions must be made.  What must an employer deduct from an employee’s wages? What can be deducted legally? What can never be deducted? These questions and more must be answered correctly before processing that paycheck. And if this is the employee’s final check…the rules may change! Handling deductions is a complex task that payroll must get right every time for every payroll check.  Failure to deduct the proper taxes could result in penalties on the employer from the IRS but making an illegal deduction for a fringe benefit or for collecting an overpayment can get the employer a visit from the federal Department of Labor auditor, the state department of labor auditor or both! Sometimes the federal government will allow the deduction but that certain state won’t. 

Of course, everyone knows that payroll deducts for federal and state taxes. However, how much input does the employee have concerning these deductions? This will be answered in this webinar. Which taxes are mandatory, which are a courtesy and which one the employee controls will be explained during this webinar.   If the IRS or the state wants payroll to collect for back taxes; how is that processed?  What does payroll do if a “payday loan” deduction is received as opposed to a creditor garnishment? Which ones must we honor and why. We will discuss this during this webinar. 

Webinar Objectives

In this webinar our expert will discuss what can and what cannot be deducted from an employee’s regular paycheck as well as their final one. Failure to follow the regulations pertaining to employee wage deductions can result in substantial penalties and interest.

Webinar Highlights

• Taxes—which are mandatory, which are a courtesy, and which ones the employee controls
• Child support—the limits but not beyond
• Tax levies—federal and state
• Creditor garnishments—how many can you honor and how often
• Voluntary wage assignments for “payday loans”—when are they required to be honored
• Handling fringe benefits such as health insurance or group term life
• Uniforms—when the employer pays for it and when the employee furnishes it
• Meals—when they become part of the employee’s wages
• Lodging—when it is part of the employee’s wages and when is it a perk
• Shortages—the employee came up short, so they must cover that right?
• Breakage—you broke it, so you have to pay for it, legal or not?
• Overpayments—the employee was overpaid so you can just take the money back, or can you?
• Advanced vacation pay—the employee knows the vacation hours were advanced so we can take them back when the employee quits can’t we?
• Loans to employees: what terms can be set while the employee is still active and what can be taken when the employee terminates
• Employee purchases—active employees and terminated employees
• Anti-wage theft laws and the states

Session 3 | 2024 Garnishment Update | Dayna J Reum, CPP | 60 Mins

Garnishments are a requirement of doing business and having employees but juggling the requirements of different types of garnishments and federal and state laws can be exhausting.  This webinar will give you the tips and tools to know how to stay compliant and process garnishments Along with challenges and risks employers hold when not properly handling garnishments.  Will review the impact to garnishments due to the recent tax reform accordingly.

Webinar Agenda

• Child Support Review
  • Employer Responsibility/Employee Protections
  • Priority of Withholding/Multiple Orders
  • Child Support withholding requirements
  • Defining Income/Calculating disposable pay
  • Lump Sum Payments
  • Calculating Child Support Payments
  • When to remit payments
  • Administrative fees
  • Handling terminated employees
  • E-IWO (electronic income withholding orders)
  • Other Child Support Concerns
  • Medical Support Orders
  • Details of State Requirements
• Levy Review
  • Federal Tax Levies
    • Forms
    • Priorities
    • Calculating deductions
    • Special Situations
    • Remittance Requirements
    • Voluntary Deductions
  • Other Federal Garnishments/CARES Act
  • State Tax Levies
    • Requirements
    • State Laws
• Creditor Garnishments

Webinar Highlights

• Better understanding the employer responsibilities
• How to properly calculate Garnishment deductions?  According to the law or the order or a little bit of both?
• Review of lump sum reporting requirements and how to comply
• Proper order of garnishment priority when an employer receives multiple orders.
• How to determine which law to follow state or federal?

Session 4 | Fringe Benefit Taxation | Dayna J Reum, CPP | 60 Mins

Participants with walk away with a better understanding of the IRS view on fringe benefit taxation.  The details of the IRC exceptions allowed by the IRS will be detailed and explained to participants.  Participants w Companies are providing more fringe benefits to employers more than ever before, thus reduces company cost but raises employee morale.  Because of this the IRS has more to say on what Fringe Benefits are taxable and what are not.  The IRS for non-taxable fringe benefits puts a lot of regulation around how the fringe benefit is given and when that also determines if a thought non-taxable item may end up being taxable.

Participant will be able to better identify and calculate the fair market value of fringe benefits for taxation purposes.

Webinar Agenda

• Review FMV (Fair Market Value) and how the IRS determines it.
• Discussion on No additional cost services, employee discounts, working condition fringe benefits & De minimis Fringe Benefits.
• Review qualified transportation benefits
• Discuss several excludable fringe benefits such as Retirement planning, athletic facilities, achievement awards etc.
• Discuss fringe benefits that should be taxable
• Review Moving/Relocation Expenses
• Review executive taxation items, like spousal travel. Company aircraft usage etc.
• Once a benefit is determined taxable, how to handle it
  • Brief overview of how to handle any fringe benefits that AP pay.
• Annual Fringe Benefit limits will be reviewed.

Webinar Highlights

• IRS rules for taxation of Fringe Benefits
• How to calculate the value of a noncash fringe benefit
• Review of excludable fringe benefits
• Details of how the tax cuts and jobs act impacted fringe benefits
• Procedures for recording fringe benefits
• Year end best practices for fringe benefit taxation

Session 5 | Form I-9 2024 update | Dayna J Reum, CPP | 60 Mins

As of August 1, 2023, the Form I-9 has been updated to include a remote verification option.    This webinar will review the changes in detail and how the employer can deal with them.   We also have additional options of going electronic with the Form I-9.  This webinar will review all of your electronic options when it comes to the Form I-9 and how you company can best become more electronic.

The current administration is cracking down on I-9 compliance are you ready for an audit.  This session will get you ready to know all the details of the new supplement A & B forms as part of the I-9 and how to properly complete them.

Webinar Objectives

• Understand the recent updates to the Form I-9 as of 8/1/2023
• Understanding the new I-9 requirements for individuals working in the US on temporary work visas.
• Review section by section of the form
• Review of the new Supplement A & B Forms
• Review what the requirements are to keep form I-9 electronic
• How to avoid mistakes in the I-9 process from document abuse to discrimination
• How to handle Audits in regard to the I-9
• Remote verification requirements going forward and how to true up the remote verifications from COVID-19 flexibility which the deadline is quickly approaching.
• Review of taking SSN Cards and what you need to know
• Understand electronic I-9 requirements
• Understand proper processing of each section of the Form I-9
• Review of antidiscrimination laws and how employers can protect themselves
• Review all updates of the e-verify system and why you should use it
• Current Comment period for new updates coming

Webinar Agenda

• Working in the US and Employment Verification
• Discrimination/Requirements
• Changes to the I-9 Form
• COVID-19 Relaxation of rules
• How to properly complete the I-9
• Section by Section, Supplement A & B
• Correcting Mistakes
• Storage and Retention
• E-verify update

Session 6 | Payroll Tax for Non-Resident F-1, J-1, H-1B & EB-5 VISA holders | Debbie Cash | 90 Mins

Payroll Taxes for Non-Resident Aliens is different than taxes for US Citizens.  Many countries have tax treaties with the United States which allows Non-Resident aliens an exemption from either all or part of Federal tax withholdings.  Different types of VISA Holders get certain exemptions from Federal Tax and FICA/Medicare tax.

An F-1 VISA is specifically for Full-time Students who come to the US to study at an accredited college or university.  These students can also apply for Optional Practical Training (OPT) in their major field of study which allows them to remain in the US for an extended period of time after they have completed their studies.  A J-1 VISA is similar to an F-1 VISA but is for Teachers and Researchers in a specific field of study for a specific amount of time.

The F-1 & J-1 VISA holders are both exempt from FICA/Medicare tax if they become employed for personal services while in the US.  They may also be exempt from Federal Tax withholding if their country has a Tax Treaty with the US.  Some treaties exempt all wages from tax and others have specific dollar limits that can be earned before they are subject to taxes.

The H-1B VISA is for speciality occupations that allow US employers to hire non-immigrant workers with specialized knowledge.  These employees are not allowed treaty exemptions and are treated as US citizens for tax purposes.

The EB-5 VISA was created to stimulate the US economy through job creation from foreign investors.  It allows foreign investors to apply for lawful permanent residence provided they meet the make the necessary investment and intend to provide jobs to US Workers. 

This webinar will go over what Employers need to know on how to treat these employees for payroll tax purposes.  What forms they need to complete to receive a tax treaty exemption and the specific forms that must be filed at Year-End.  Also, what to do if there is not a tax treaty in their country.

Webinar Agenda

Our expert speaker will go over the different types of documents that are considered payroll documents that must be maintained for a specific amount of time.  Some forms you might not consider as payroll documents actually are.

Many States have different rules than the Federal regulations regarding these documents.  I will touch on a few of these States and give guidance on how to find out more information about their regulations.

Each different type of document will be discussed in regard to how long you are required to keep the documents.  This will include timesheets, payroll changes, additions/deductions from Wages, State taxes and many more.

Webinar Highlights

• Differences in these types of VISA’s
• Which tax forms are these employee wages reported on
• Correct forms to file for tax treaty exemptions
• Tax Treatment for employees
• Timelines to send in tax forms
• Different tax treatments depending on articles of the treaty

Who Should Attend

• Payroll Executives/Managers/Administrators/Professionals/Practitioners/Entry Level Personnel
• Human Resources Executives/Managers/Administrators
• Accounting Personnel
• Business Owners/Executive Officers/Operations and Departmental Managers
• Lawmakers
• Attorneys/Legal Professionals
• Bookkeepers
• Managers
• Tax Professionals
• Any individual or entity that must deal with the complexities and requirements of Payroll compliance issues