Monthly Archives: February 2013

Social Networks link individuals with common interests. This can be sports, music, and even careers or school.  Historically, networking was done mostly in person or at certain conventions and conferences. Now with the advance of technology, common online sites allow for a new platform called social networking. Instead of using multiple outlets to connect and share information such as websites, chat rooms, and online yellow pages, users can normally find a host of data on a single social networking site.  Examples of these sites include Facebook^©, Twitter^©, and MySpace^™.

Savvy business owners are also jumping on the networking bandwagon to expose their product to a larger audience.  Pages can be created on some sites and users can become “fans” or “like” the content.    There are pros and cons to any advertising strategy, and businesses should research each social networking site thoroughly for reputation, content availability, and security rules.  This type of advertising is less expensive than traditional advertisements, and reaches a much larger demographic. In addition, links can be added to direct users to the actual webpage of the business, and contact information can be included.  Business owners should consider creating a dedicated position or job description since a lot of time and effort can go into maintaining the site and its content, especially for those requiring constantly updated information to keep the page relevant.

Companies moving into mainstream technology should consider the benefits of using a social networking site for advertising purposes, and to connect to their client base.

In President Obama’s State of the Union Address he spoke about a plan for the United States to build upon.  One of those ideas was to raise the minimum wage.  Currently those who work full-time at minimum wage only earn $14,500 a year.  President Obama would like to raise minimum wage to $9.00 an hour.  Check out Megan Slack’s post on The White House Blog about raising minimum wage and how it can help those who earn it.

There are many myths associated with increasing minimum wage.  The United States Department of Labor took a look at three of them.  Check it out.

Generally workers’ compensation insurance premiums are paid in advanced based on an estimated payroll figure determined prior to the policy period. This estimate does not take into consideration changes in employee compensation or policy changes.

Employers are demanding an integrated pay-as-you-go solution to be built into their payroll software.

Business policy holders, insurance agents, payroll processors or PEO’s now have access to a pay-as-you-go billing solution through PenSoft Payroll.

1. Setup employees’ classification code in PenSoft (the classification codes will have been sent to you from InsureLinx)
2. Process Payroll
3. Generate the Workers’ Compensation transmission file
4. Submit file directly to InsurePay via a secure login
5. File will be processed to calculate the premium and the amount will be automatically drafter from your account (ACH).

You’re done!  It is so simple.

Interested in learning more about the pay-as-you-go solution? Call your local agent today and ask if them to contact InsureLinx.  If you do not have an agent contact Mark Duncan with ISU Insurance or Cennairus Insurance.  Visit http://www.pensoft.com/services/insurepay.aspx for additional information or for assistance in getting a workers’ compensation insurance quote today.

 

Many businesses outsource payroll and tax processing to third-party service providers.  For many businesses this is the best solution to streamline their payroll process, assure filing deadlines and deposit requirements are met, and simplify the employee administration requirements.

When a business owner/employer outsources their payroll, who is responsible, if the third party fails to comply with federal, state, and local laws regarding the deposit and payment of taxes?

The employer.

The employer remains liable regardless of who has been delegated with the employment tax withholding, reporting, and payment responsibilities.  In the eyes of the Internal Revenue Service (IRS), “ignorance is no defense”.  Per Internal Revenue Code 6672 stating in part “Additionally, a person cannot cease to be a responsible person by delegating that responsibility to others”.  Since Code 6672 applies to “any” responsible persons, typically multiple persons can be held accountable within a company.

How Can Business Owners Protect Themselves in This Situation?

1. The IRS suggests keeping the address of record.  This insures the business owner receives and all IRS correspondence relating to their business.
2. Verify the payroll service provider is using the Electronic Federal Tax Payment System.  Employers can confirm payments are being made accurately and timely on their behalf.
3. The Internal Revenue Service requires all reporting agents to provide the employer with a written statement advising them of their responsibilities of timely filing of federal employment tax returns and payment of employment taxes.  Make sure as the employer you receive the written statement when entering into a contract for services and on at least a quarterly basis for as long as the Reporting Agent provides services.
4. Employers suspecting they are receiving a notice due to a payroll service provider failure to properly deposit or file timely tax reports, should contact the IRS by writing to the IRS office from which the notices was sent, call the phone number provided in the notice or personally visiting a local IRS office.

Outsourcing payroll and tax processing may be the best best business solution for your business but evasion of employment taxes can result in employers being subject to criminal and civil fines to it is imperative employers understand their responsibilities.

The Hampton Roads Chapter held their first meeting of 2013 on February 14.  One of our speakers was Melineé Cody, CPP, Director of Support and Training for PenSoft and 2012 inductee of the Meritorious Services Award from the APA.  She spoke on “What’s New in 2013 and How it Will Affect Your Payroll”.  Her topic was very informative for the entire group.  She discussed not only the changes in limits for things such as Social Security, Pension Plans, etc., but also on the increased limits for Medicare for those highly compensated.

Melineé also covered changes for the states of Illinois and Florida.  For Illinois, there is a change from quarterly to monthly filing for their unemployement tax.  For Florida, there is an agency name change, which also caused form changes for the state.

Overall, she provided very valuable information, and many if not all of our attendees walked away with knowledge they did not previously have.

Thank you to the Hampton Roads Chapter President, Jackie Kronstain CPP, for her contribution regarding the HR APA’s meeting!

Are you a local?  Interested in attending a breakfast meeting?

The Hampton Roads Chapter of the APA next meeting is April 11, 2013.  Come join the HR APA for breakfast and an informative meeting to earn 2 RCH’s!  Register at http://hrapa.com/meetinginfo.php?id=9&ts=1359231562.  The April meeting will be held at the Norfolk International Airport Conference Center.  The meeting costs $25 for members and $40 for non-members.

Are you looking to join an APA chapter?

Join the Hampton Roads Chapter!  To join visit http://hrapa.com/join.php.  They are $50 per member and $100 for a corporate membership for up to three people.

Interested in becoming a national member of the APA? Visit the APA at www.americanpayroll.org/members/membership2/