by Afilliated HR & Payroll | Feb 6, 2024 | Benefits & Compensation
Many businesses, their accountants and advisers have been wondering what’s happening with the employee retention credit, a refundable tax credit for businesses and tax-exempt organizations that had employees and were affected by the COVID-19 pandemic. In recent weeks, the IRS has been focusing on weeding out companies that applied but were not eligible. Copies of Letter 105 C, Claim Disallowed, are on their way. Recipients are being notified that their claims are being disallowed since either the entity did not exist or it did not have paid employees during the period of eligibility.
For those with pending claims who realize that they may have filed an inaccurate tax return, there is an opportunity to withdraw from the program. Those taxpayers who have not yet received any refund have until the end of the year to withdraw their claim. By doing so, they can avoid any future repayment, interest and penalties. Withdrawals are also possible if a check was issued but was not cashed or deposited. Additionally, a voluntary disclosure program will allow those who received questionable payments to avoid any further IRS action.
The word from the top
As IRS Commissioner Danny Werfel tells it, “As we continue our audit and criminal investigation work involving the employee retention credits, we continue to urge people who submitted a claim to review the rules with a trusted tax professional. If they filed an inaccurate claim, we urge them to consider withdrawing their pending claim or use the upcoming disclosure program to repay improper refunds to avoid future action.”
As of Sept. 14, the IRS had put a halt on processing ERCs at least until the end of 2023. Those claims submitted prior to Sept. 14 will receive enhanced compliance reviews. This is a crucial step in protecting against fraud and to protect businesses and organizations from facing penalties or interest payments stemming from bad claims touted by promoters. A legitimate claim is a refundable tax credit designed to reward those businesses that continued to pay their employees during the COVID-19 pandemic. The operation of these businesses were fully or partially suspended in compliance with the government order or saw significant losses of gross receipts during the eligible period.
The disallowance letters that identify ineligible claims before they’re paid serve several purposes that help taxpayers and tax administration. They:
- Help ineligible taxpayers avoid audits, repayment, penalties and interest.
- Protect taxpayers by preventing an incorrect refund from going to an ERC promoter.
- Save IRS resources by disallowing incorrect credits before they enter the audit process.
During this period, the agency urges taxpayers applying for the ERC to use extreme caution about aggressive marketers and potential scammers. It is recommended they consult with a trusted tax professional about their eligibility.
For more information on ERC eligibility, see the ERC frequently asked questions and the ERC Eligibility Checklist, which is available as an interactive tool or as a printable guide.
by Afilliated HR & Payroll | Jan 30, 2024 | Career Planning, Regulatory Compliance
Workers who are considered employees do not have to pay their own taxes during the year. Instead, employers withhold income tax from their employees’ paychecks and pay it to the IRS on behalf of the employee.
Now, if not enough tax is withheld from each employee’s paycheck, then the employee might end up receiving an unexpected tax bill come tax season. They might even come face-to-face with penalties when filing their tax returns in the next year.
On the other hand, if employees end up overpaying taxes as a result of having too much tax withheld from their paychecks throughout the year, the employee may receive a tax refund. That’s never a bad thing, but adjusting the tax that is withheld upfront may mean your employee will receive bigger paychecks throughout the year rather than a lump sum come tax season.
Ultimately, the amount of tax that is withheld from employee paychecks is determined by what employees do when they enter the workforce or change jobs. It all starts with the way employees fill out their W-4 form, the Employee’s Withholding Certificate.
This information tells employers how much money they should withhold from an employee’s paychecks for federal income tax. The information that employees submit is out of the employer’s hands, but if your employee notices that something is off with the tax being withheld in their name, you can refer your employee to the information they submitted.
Get the forms right
If need be, employees can submit new W-4 forms when their personal or financial situation changes. That way, their current situation can be reflected in their withholding amounts.
Also, if your employees are not sure whether the right amount of tax is being withheld from their paychecks, the IRS offers a Tax Withholding Estimator tool on the official IRS.gov website. This tool can help people estimate their federal income tax withholding amounts while seeing how it may affect their refund, take-home pay or tax owed.
Keep in mind that all of this information applies only to workers whom you employ. If you pay contractors or freelancers to do work for you, remember that they are responsible for paying their own taxes directly to the IRS. You do not have to automatically withhold any of those taxes from their income because it is their responsibility, not yours.
That said, all taxpayers are encouraged to keep copies of their tax-related documents. Store them in a safe place to ensure that they can be easily found or remain readily available when it comes time for you to file an accurate return.
by Afilliated HR & Payroll | Jan 26, 2024 | Alert, Regulatory Compliance
As of February 6, 2024, Texas will prohibit employers of all sizes from adopting or enforcing a policy that requires applicants or employees to receive a COVID-19 vaccination.
Additionally, employers can’t take any adverse action against an employee or applicant for their refusal to be vaccinated against COVID-19. However, a healthcare facility, healthcare provider, or physician can have a reasonable policy that includes requiring unvaccinated employees to use protective medical equipment if they pose a risk to patients based on their routine, direct exposure to them.
Action Item
Eliminate any policy or practice of requiring COVID-19 vaccination for applicants or employees. Pay special attention to job ads, job descriptions, or other documentation that may not get frequent review.
by Afilliated HR & Payroll | Jan 16, 2024 | Career Planning, Learning & Development
No need to worry right away, because as technology dictates workplace functions on new terms, we will still rely on the unique soft skills only humans can provide. Workers will continue to play an indispensable role in creating and cementing links among their teams, management, clients and outside constituents. AI cannot operate with empathy, kindness or compassion. Those are the hallmarks of a social animal.
What are interpersonal skills?
Almost every job requires interpersonal abilities to some extent, whether it is listening and attending to clients, getting along smoothly with colleagues, or inspiring and motivating from the managerial side. Almost everyone, except for lighthouse keepers, must be prepared to interact with their boss and fellow team members. Relationships may be predicated on empathy, relating to how others feel; it is also crucial to understand clients’ concerns to help solve them. Cooperation is a key aspect of forging partnerships directed toward common goals. In order to establish these connections, workers must develop their verbal and written communication, attentive listening, and important nonverbal skills. Body language, gestures and eye contact often express more than lengthy memos can.
Some of the most powerful social skills workers must possess in the workplace are:
- Positive attitude.
- Being a team player.
- Ability to solve problems.
- Facility to know how to control their tone and volume of voice.
- Ability to choose their words carefully.
- Active listening proficiency.
- Capability of making decisions.
- Ability to adapt and be flexible to change.
- Conflict resolution ability.
- Professionalism.
- Reliability.
- Good manners.
- Supportiveness.
- Respectfulness.
Consider the skill of being a good listener, for instance. Be careful not to respond until another person has finished speaking. Or, you can cultivate how to skillfully have small talk and instill rapport by paying the right amount of attention to your colleagues. You can also be respectful by encouraging others to express their opinions and not interrupting them.
These traits are sometimes grouped under emotional intelligence. Some of them can be measured by EQ tests that try to quantify characteristics such as self-awareness, social insight, confidence and self-control. How do employees respond to praise or criticism? In their work relationships, are they able to guide or motivate others; bond with, influence or persuade team members; or handle conflicts? These are some of the questions EQ tests can answer.
Importance of the softer side
As technology grows ever more sophisticated, offices are becoming more communal. The typical solitary cubicle is transforming into a more team-based arrangement. Although there is no formal way to measure how team members leverage one another’s contributions, good social skills clearly help integrate team members’ input. Their cohesion supports company culture, which results in less HR intervention. When teams are successfully coordinated, members are happier and more successful at problem-solving and achieving goals. It is no wonder that a Business Solver study showed 93% of employees are likely to stay with a more empathetic employer. A Leadership IQ study revealed that, among new hires, 89% of failures are due to a lack of soft skills and difficulties managing their emotions.
Building social competence
Managers can help employees hone their soft skills by:
- Identifying problem areas.
- Setting goals.
- Encouraging role-playing.
- Offering feedback.
- Using positive reinforcement.
- Assigning homework exercises.
Gamification is particularly useful for enhancing social development. It might take the form of simulation exercises designed to understand customer pain points and complaints or peer-to-peer learning within a group. Many companies turn to training modules to focus on the key moments in client/customer interactions. A typical example is Walmart’s “Spark City.” The game simulates working in a Walmart store, including regular activities such as restocking, greeting customers, cleaning up spills or confronting shoplifters. Players earn points and receive feedback. Meanwhile, a corporate game at Farmers Insurance imitates collaboration with vendors and communication with customers. The training curriculum draws on virtual reality settings.
These games serve to determine the messages players hope to communicate about themselves and their solutions to daily challenges. Almost anyone can benefit, whether you’re an executive, a salesperson or any other team member.
by Afilliated HR & Payroll | Jan 9, 2024 | Benefits & Compensation, HR Administration, Recruiting and Developing Talent, Regulatory Compliance
Are we required to update our I-9s when the documentation used for them expires?
You would only update a Form I-9 if the expired document pertains to a limited period of employment authorization. You should never reverify U.S. citizens and, in most cases, lawful permanent residents (Green Card holders). However, if a lawful permanent resident presents their employer with temporary evidence of lawful permanent resident status for Section 2 (instead of an unexpired permanent resident card), then reverification may be necessary.
We recommend that you set up a tracking system for the I-9s that will require reverification. Consider setting a calendar reminder for 90 days before the expiration of the document or the expiration date listed by the employee in Section 1 of the I-9, whichever is sooner. Then provide the employee written notice of the need to reverify, the deadline to do so, and the I-9 list of acceptable documents they may use for reference.
Once the employee has presented acceptable documents, you should review and complete the reverification section of the Form I-9 (Supplement B of the Form I-9 version dated 8/1/23).
If the Form I-9 version that the employee originally completed is no longer valid, complete Supplement B of the Form I-9 version dated 8/1/23 to reverify the employee. To do this, an employer should:
- Enter the employee’s name at the top of each Supplement B page you use (and use the New Name field to record any name change the employee reports at the time of reverification or rehire);
- Use a new section of Supplement B for each instance of a reverification or rehire;
- Use the Additional Information fields if the employee’s documentation presented for reverification requires future updates; and
- Sign and date that section when completed and attach it to the employee’s completed Form I-9.
This Q&A does not constitute legal advice and does not address state or local law.
