Congratulations goes to our very own, Stephanie Salavejus, for earning the 2013 Meritorious Service award from the APA at the 31st Annual Congress and being inducted into the American Payroll Association’s Payroll Hall of Fame.
This award is given for outstanding contributions to the American Payroll Association and the payroll profession. Congratulations Stephanie!
Typically employees may not volunteer to work unpaid hours, so how is it students, normally called interns, can essentially work for an employer without pay? It would seem as though employers are receiving a free pass to hire a student to do the work of an employee they would normally pay for the same tasks. Looking closer, there are distinct differences in the two and strict regulations to follow when hiring unpaid interns.
The Fair Labor Standards Act (FLSA) defines an employee as “any individual employed by an employer”. Digging deeper, to employ means “to suffer or permit to work”. Student internship falls outside the definition as long as six vital criteria are met by the employer:
- The training, even though it includes actual operation of the facilities of the employer, is similar to what would be offered at a vocational school.
- The training is for the benefit of the trainee.
- The trainees do not displace regular employees, but work under close observation.
- The employer providing training derives no immediate advantage from the activities of the trainees and on occasion the employer’s operations may actually be impeded.
- The trainees are not necessarily entitled to a job at the completion of the training period.
- The employer and the trainee understand the trainees are not entitled for wages for the time spent training.
All six criteria must be met for a worker to maintain a continued agreement with the employer as an intern. Otherwise, it can be defined as an employment relationship and the worker must be paid according to federal and state labor laws applicable to the company.
Tracking Employment History
PenSoft Payroll offers employee data fields to record job titles, education, and training accomplishments. PenSoft Employee Tracker provides the ability to record the complete employment history from internship to employment. When it comes to hiring, business owners trust PenSoft to help with the proper processing of payroll and compliance with federal and state employment laws.
Employers are continuously looking for ways to improve employee moral and job retention. Fringe benefits play an intricate part of a well rounded incentive package. Many of these benefits include health and life insurance, dependent care assistance, and other perks. Since most fringe benefits are tracked for taxability purposes, what happens when a benefit is received with a value so small its accountability is impractical? These types of benefits are called De Minimis Fringe Benefits.
Examples of these types of benefits range from occasional personal phone calls on the job to non-cash holiday gifts with a low fair market value. To qualify to be De Minimis, a benefit of this sort has to meet some basic rules. Cash is always taxable and can never be considered De Minimis. The frequency of the receipt of these gifts is also taken into consideration. An employer who regularly provides tickets to a sporting event as a reward or transportation fare can not claim the gift as De Minimis. If the gifting of these items were truly occasional and incidental, then they qualify. If the benefits qualify for exclusion, no reporting is necessary. For more detailed information about De Minimis benefits visit http://www.irs.gov and download Publication 15-B.
Are you ready for your quarterly reports? Is everything reconciled? Is your company and employee setup correct?
Quarterly reconciliation is the cornerstone of a solid payroll foundation. Detailed reports, spreadsheets, and good old fashioned mathematics allow payroll professionals to ensure balance in the payroll system. PenSoft Payroll takes most of the work out of the reconciliation process with pre-defined reports, along with the ability to send as many reports to file, allowing users to open them as spreadsheets for greater flexibility.
After attending this webinar you will be able to reconcile:
- Payroll Liability Account
- Payroll Expense Account
- Taxable Wages
Earn 1 Recertification Credit Hour (RCH) by attending this training.
Save Money, No Traveling Required!
Our reconciliation webinars are affordable! Only $99 per phone connection for a sixty minute webinar. Register NOW! Call 888-PENSOFT (888-736-7638) to reserve your seat at one of our upcoming webinars.
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