New and Newsworthy
COVID-19 Relief for Employers: New Employee Retention Tax Credit
The coronavirus (COVID-19) pandemic has shut down many sectors of the U.S. economy, causing widespread job losses. Over 10 million Americans applied for unemployment benefits in March, according to the U.S. Department of Labor. And far more claims are expected in April. Some economists predict that the unemployment rate could rise to Depression-era levels of 10% to 15% before the crisis ends (compared to 3.5% in February 2020). [...]
401(k) Contributions: Employers Should Keep Calm but Know the Options
The coronavirus (COVID-10) pandemic has had adverse effects on many industries. Both employers and employees are seeking ways to respond to financial stress resulting from the economic slowdown and financial market volatility. If your company's revenue has plummeted, you might be considering eliminating or scaling back your contributions to employees' 401(k) accounts. Here's what you should know before making any cuts. Without a Safe Harbor Plan Generally, employers [...]
Deducting Medical Expenses for 2019 and Beyond
Under current tax law, medical expenses can be deducted as an itemized deduction on your federal income tax return only to the extent that they exceed 7.5% of adjusted gross income (AGI). This AGI threshold was in place for 2017 and 2018 under the Tax Cuts and Jobs Act (TCJA). And now it's been extended for 2019 and 2020 by the recent spending package President Trump signed into [...]
Who Pays When Employees Fulfill Civic Duties?
Most people agree that civic duties are important. The fact is, many responsibilities such as jury duty and voting have to be performed during traditional work hours. For employers, allowing staff members to take time extra time off can affect the smooth operation of their businesses. Do you have to set aside the immediate interests of your company to let employees be good citizens? And if you give [...]
10 Topics for Handbook Review
There is danger lurking in employee handbooks which are rarely or never updated. Employment laws change. New ones are added. New court decisions affect employment practices. And social changes also impact the workplace. So regularly, perhaps once a year, employers need to review the policies in the employee handbook. (It's wise to ask an HR specialist or an attorney who is familiar with employment law for guidance in [...]
New DOL ‘Rate of Pay’ Regs Update Overtime Pay Rules
What is the "regular rate of pay" for a nonexempt employee? The answer is needed when calculating hourly overtime wages, which must exceed base wages by 50%. New regulations from the U.S. Department of Labor (DOL) that take effect January 15 update the definition of "regular rate of pay" to guide your overtime pay calculations. To Include or Exclude? These days, employees enjoy many "perks," such as wellness [...]
