Business owners are wondering if they can still claim the Employee Retention Tax Credit (ERTC) under the CARES Act if they suffered a loss in revenues due to COVID-19. In particular, MarathonHR has received a number of questions about possible new ways to qualify. As a reminder, the ERTC was created to help businesses keep employees on their payroll during the COVID-19 pandemic and provide some financial relief. The ERTC is a refundable tax credit…
It’s a good idea to periodically revisit recordkeeping requirements under the Fair Labor Standards Act (FLSA). Every employer covered by the FLSA must keep certain payroll records for each covered, nonexempt worker for at least three years. It’s in an employers’ best interests to keep as much detailed information as possible to demonstrate compliance with the FLSA’s provisions regarding minimum wage, overtime, equal pay and child labor. What kind of information do I need to…
Changes include: Flexible Savings Accounts (FSAs)/Health Savings Accounts (HSAs) Next year, employees can put an extra $200 into their FSAs/HSAs, with the annual contribution limit rising to $3,050 (up from $2,850 in 2022). Employers should make sure that their plan documents, summary plan descriptions and election forms disclose this change to employees. QSEHRAs Allowances for qualified small employer health reimbursement arrangements (QSEHRAs) increased to $5,850 for individual coverage (an increase of $400) and $11,800 for…
Switching from one payroll software or provider to another is a major decision that can have a significant impact on a company and its employees if not handled correctly. When it comes to the cost of changing payroll systems, the burden should really be on the software or payroll provider to make the transition as seamless as possible for the employer. Migrations that don’t go well can result in: Lost productivity. When migrating from one…
If you employ people in positions that commonly receive tips or gratuities, it’s important to stay abreast of your responsibilities as an employer. Requirements for taking tip credits The current federal minimum wage is $7.25 per hour; employers may claim a tip credit to pay $2.13 per hour if employees make up the difference through tips. If an employee doesn’t make enough in tips to reach minimum wage, the employer must make up the difference….
When an employee leaves a job for any reason, the employer must follow applicable laws governing how quickly to issue the last paycheck. While federal law does not require employers to issue the final paycheck immediately, some states may require immediate payment. In addition, some states have different final paycheck deadlines depending upon the reason for the employee leaving (i.e., employees who quit vs. being fired or laid off.) In MarathonHR’s primary states of operation…
Unlimited Paid Time Off (PTO) may sound too good to be true, but it’s one of the latest tactics that employers are using to attract new employees. With unlimited PTO, employees may take off as much time as they wish – for vacation or anything else – as long as they can get their work done and company business isn’t disrupted. The policy can be great for recruiting. A new survey of 2,000 workers by…
One question that comes up, especially in the summer, is whether interns have to be paid. The Department of Labor (DOL) has issued Fact Sheet 71 to provide employers guidance on this issue. Summer internships can be extremely beneficial for both the company and the intern. To maximize this relationship and remain compliant with the Fair Labor Standards Act (FLSA), employers must pay attention to what is known as the primary beneficiary test – a…
To stay compliant with federal and state labor laws, employers must have systems in place to accurately capture hours worked and payroll records showing that employees were appropriately compensated for those hours. MarathonHR can counsel you on the optimal classification for an employee. One client recently needed guidance on whether a marketing hire should be exempt or nonexempt since the position required working varied hours, including some weekends and evenings. We reminded them that salaried…
For employers with employees who rely on tips as part of their income – restaurants, hair and nail salons, other service industries – it’s important to understand gratuities and how the Internal Revenue Service (IRS) expects them to be reported. Is there a difference between tips and gratuities? A gratuity can take the form of either a tip or a service charge. Tips are discretionary (optional or extra) payments that a customer gives to an…
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MarathonHR Helps Thomas Eye Center Focus on Patient Care and Service