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Payroll

The Catch-Up Payment Provision for Overtime Exempt Employees

The DOL final overtime rule became effective Jan. 1, 2020. Among other things, the final rule also allows employers to use nondiscretionary bonuses and incentive payments (including commissions) to satisfy up to 10% of the salary level if these payments are made at least on an annual basis. To enable compliance with the nondiscretionary bonus option, the final rule allows employers to make a “catch-up” payment at the end of each 52-week period.  A full discussion can be found here....

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Payroll Tax Deferral Guidance

President Trump issued an executive order on August 8, 2020 allowing employers to defer employee’s social security taxes for certain employees for the period beginning September 1, 2020 through December 31, 2020. The Department of Treasury and the Internal Revenue Service issued Notice 2020-65 providing additional guidance on August 28, 2020. The executive order defers the employer’s obligation to withhold, deposit and pay the 6.2% Social Security tax for employees. It applies to employees who “generally” make less than $4,000 bi-weekly, calculated on a pre-tax basis, which equates to $104,000 annually. Any deferred Social Security taxes would then be collected from the...

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Holiday Payroll Notice – Please Plan Ahead

SIMA will be closed on Monday, September 7, in observance of the Labor Day Holiday. Your payroll must be processed by 12:00 pm a day earlier than normal to ensure timely processing. Is your pay date on Monday, September 7? There will be no direct deposits allowed on Monday, September 7, due to the Labor Day Holiday and 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 Friday or Tuesday. Please don’t hesitate to reach out to us if you need additional...

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Latest News on the Paycheck Protection Program (PPP)

The Paycheck Protection Program is an SBA loan designed to enable businesses to keep their workforce employed during the Coronavirus (COVID-19) crisis. The SBA routinely updates their site with important information regarding the program and loan forgiveness.  SIMA encourages clients to consult the SBA website for the latest. Notice: Paycheck Protection Program closed August 8, 2020 Paycheck Protection Program Loan Information Loan Details and Forgiveness Who Can Apply Lender Forms and Guidance Additional Program Information Other Assistance  ...

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President Trump Orders Payroll Tax Deferment

On Aug. 8, 2020, President Donald J. Trump ordered the U.S. Department of Treasury (the Department) to defer collecting certain payroll taxes from Sept. 1 to Dec. 31, 2020. Because the order is for a deferral, the unpaid taxes will need to be recouped at a later time, unless the Department can find an avenue to eliminate the obligation to pay the taxes. Eligibility for Deferred Payroll Taxes Under the order, employers will be able to defer taxes that help pay for Social Security and Medicare for individuals who receive less than $4,000 during any bi-weekly pay period (the equivalent of $104,000...

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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...

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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...

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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...

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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...

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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...

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