SIMA Login Center
SIMA
Copyright 2018 SIMA Financial Group.
All Rights Reserved.
 

Payroll

DOL Launches Employee Tool for Assessing FFCRA Leave Eligibility

The U.S. Department of Labor (DOL) has created an online tool to help workers determine whether they qualify for paid sick leave or expanded family and medical leave under the Families First Coronavirus Response Act (FFCRA). The tool works by posing a series of questions that help employees assess whether the paid leave provisions of the FFCRA apply to their employer. Once employees learn the provisions do apply, the tool then assists them in determining whether they qualify for FFCRA paid sick leave or expanded family and medical leave. The DOL is also developing a similar tool for employers. Employee Leave Under the...

Continue reading

Employee Compensation and Benefits During Closures and Furloughs

As business closures increase due to the COVID-19 pandemic, employers are faced with questions about compensation and health benefit coverage for their employees. Government relief measures may provide compensation for businesses and individuals in certain situations. In other cases, existing rules on employee rights will apply. Paid leave may be required for some employees by federal or state law. Also, some state insurance regulators are requiring insurance carriers to provide policyholders with additional flexibility regarding premiums and coverage, and some carriers are making similar changes independent of state requirements. This Compliance Overview provides a summary of the issues that employers may encounter...

Continue reading

Navigating Unemployment Claims Due to Office Closures Related to the Coronavirus

Per the Virginia Employment Commission: "If you are a worker who has been totally or partially separated from your job due to Coronavirus, please note that no claim for unemployment insurance may be filed or processed until an actual lay off from employment has occurred, or until there has been an actual reduction in hours. When filing your claim for unemployment benefits, please be sure to check the reason for separation as Lack of Work/Lay off.  If you will be filing because of a reduction in hours, you will not receive benefits unless your gross earnings are less than your weekly...

Continue reading

Please be advised: SIMA Response to COVID-19

In response to COVID-19 we will be transitioning our team to a remote working policy for the foreseeable future. At this time a limited staff will remain at our office to provide essential operations. Our service to you as well as the health and safety of our team is our primary concern throughout this time. Our team has the technology and resources required to effectively work remotely and will continue to provide you the service you need. Our Accounting team plans to remain at the office until further guidance is provided by the Internal Revenue Service (IRS) on the possible extension...

Continue reading

Opinion Letters Provide an Insight on How the DOL applies the Law to Specific Facts

On Jan. 7, 2020 the U.S. Department of Labor (DOL) issued two opinion letters that clarify how the Fair Labor Standards Act (FLSA) applies in specific situations. Opinion letters provide the DOL’s official opinion on how the law applies in specific situations. Employers that rely on opinion letters may be able to establish a “good faith defense” under the law. As a result, employers should become familiar with these letters and review their practices to ensure compliance with FLSA requirements. FLSA 2020-1: Lump Sum Nondiscretionary Bonuses Must Be Included in Regular Rate In its first letter, the DOL asserts once again that...

Continue reading

Plan Ahead for Holiday Payrolls!

SIMA will be closed on Wednesday, December 25 and Wednesday, January 1 in observance of Christmas Day and New Year’s Day. Your payroll must be processed a day earlier than normal by 12:00 pm to ensure timely processing. Is your pay date on Wednesday, December 25 or Wednesday, January 1? There will be no direct deposits allowed on December 25 or January 1 due to holiday bank closures. If your pay date is on this day, please contact your payroll team at payroll@simafinancialgroup.com to let us know whether you would like to move your pay date to Tuesday or Thursday. Please don’t hesitate...

Continue reading

1099-MISC: Who should receive them, why proper classification is essential, and how to remediate errors

Form 1099-MISC is due to vendors by Jan. 31 for payments made the preceding year to non-corporate independent contractors. The IRS requires form W-9 to be completed before any payment is made to a vendor. Businesses do NOT have to issue a 1099 to any vendor that indicates on the Form W-9 that they are a corporation unless the payments were to an attorney. Employee or Contractor?  To determine if an individual is an employee or an independent contractor, consider the IRS 3-Factor Test: The Behavioral Test:  Does the company control or have the right to control what the worker does and...

Continue reading

FINAL RULING: New Overtime Rule Effective 1/1/20

On September 24, 2019, the U.S. Department of Labor announced a final rule to make 1.3 million American workers newly eligible for overtime pay. The final rule updates the earnings thresholds necessary to exempt executive, administrative and professional employees from the Fair Labor Standards Act’s (FLSA) minimum wage and overtime pay requirements, and allows employers to count a portion of certain bonuses/commissions towards meeting the salary level. The new thresholds account for growth in employee earnings since the thresholds were last updated in 2004. In the final rule, the Department is: raising the “standard salary level” from the currently enforced level of...

Continue reading

Costly Mistakes: Failing to Remit Payroll Taxes and Retirement Plan Contributions on Time

Like many businesses, you may be feeling the financial crunch these days and be tempted to use money you deduct for taxes and retirement plan contributions from employees’ wages. Failing to remit payroll taxes and retirement plan contributions in a timely manner is not only a violation of an employer’s legal obligation, it can also subject your company to heavy penalties. When employers deduct income and Social Security taxes from employees’ wages, the money is not theirs to use, even for a short period of time. You must remit the deducted amounts, along with your portion of payroll taxes, by their...

Continue reading

DOL Issues New Salary Limits for Overtime Exemptions

Final Rule Takes Effect Jan. 1 On Sept. 24, 2019, the U.S. Department of Labor (DOL) announced a new final rule that updates the salary thresholds that some individuals must meet in order to qualify for a minimum wage and overtime exemption under the federal Fair Labors Standards Act (FLSA). The final rule becomes effective on Jan. 1, 2020. As expected, this final rule increases the standard salary level for the executive, administrative and professional exemptions from $455 to $684 per week ($35,568 per year). It also increases the highly compensated employee salary level from $100,000 to $107,432 per year. In addition, the...

Continue reading