Table of Contents

The Payroll Source®

Table of Contents pages: 1 2 3

• • ABOUT THE AUTHOR 33
  • ACKNOWLEDGEMENTS 44
  • SECTION 1: THE EMPLOYER-EMPLOYEE RELATIONSHIP 55
  • • 1.1 Importance of the Determination 66
    • 1.2 Employee vs. Independent Contractor 77
    • • 1.2-1 Common Law Test 88
      • 1.2-2 Reasonable Basis Test 99
    • 1.3 Employment Status Determined by Law 1010
    • • 1.3-1 Statutory Employees 1010
      • 1.3-2 Statutory Nonemployees 1111
    • 1.4 Temporary Help Agency Employees 1212
    • 1.5 Other Third-Party Arrangements—Leased Employees, PEOs, Statutory Employers, Payer Agents 1313
    • • CPEO Certification Dates 1414
    • 1.6 Employees Under Other Federal and State Laws 1515
    • • 1.6-1 Fair Labor Standards Act 1515
      • 1.6-2 State Wage-Hour Laws 1616
      • 1.6-3 State Income Tax Withholding Laws 1717
      • 1.6-4 State Unemployment Insurance Laws 1818
      • • Table 1.1 1919
      • 1.6-5 State Disability Insurance Laws 2020
    • 1.7 Worker Misclassification: Enforcement and Penalties 2121
    • • 1.7-1 IRS Penalties 2121
      • 1.7-2 IRS Enforcement Efforts 2222
      • 1.7-3 FLSA Complaints Filed With the Department of Labor 2323
      • 1.7-4 State Unemployment Agencies 2424
    • 1.8 Proof of the Right to Work in the U.S. 2525
    • 1.9 New Hire Reporting 2626
    • • Table 1.2 2727
    • 1.10 Review Questions and Exercises 2828
  • SECTION 2: FEDERAL AND STATE WAGE-HOUR LAWS 2929
  • • 2.1 Fair Labor Standards Act 2929
    • 2.2 Federal/State Relationship 3030
    • 2.3 Employer and Employee Coverage 3131
    • 2.4 Exempt and Nonexempt Employees 3232
    • • 2.4-1 White Collar Exemption 3232
      • 2.4-2 Retail and Service Industry Exemption 3333
      • 2.4-3 Public Sector Exempt Employees 3434
      • 2.4-4 Other Exempt Employees 3535
      • • Table 2.1 3636
    • 2.5 Minimum Wage 3737
    • • 2.5-1 Tips and the Tip Credit 3838
      • 2.5-2 Equal Pay for Equal Work 3939
    • 2.6 Overtime Pay Requirements 4040
    • • 2.6-1 The Workweek 4141
      • 2.6-2 Hours Worked 4242
      • 2.6-3 Regular Rate of Pay 4343
      • 2.6-4 Special Problems in Regular Rate Determinations 4444
      • 2.6-5 Compensatory Time Off 4545
      • • Table 2.2 4646
    • 2.7 Compensable Time Issues 4747
    • • 2.7-1 Unauthorized Overtime 4747
      • 2.7-2 Meal and Rest Periods 4848
      • 2.7-3 Travel Time 4949
      • 2.7-4 On-Call Time 5050
      • 2.7-5 Waiting Time 5151
      • 2.7-6 Time Spent at Meetings and Training Sessions 5252
      • 2.7-7 Preliminary and Postliminary Activities 5353
      • 2.7-8 Receiving Medical Attention 5454
    • 2.8 Child Labor Restrictions 5555
    • 2.9 Enforcement and Penalties 5656
    • 2.10 Public Contracts Laws 5757
    • • 2.10-1 Walsh-Healey Public Contracts Act 5757
      • 2.10-2 Wage Rates for Public Buildings and Works (Davis-Bacon and Related Acts) 5858
      • 2.10-3 Contract Work Hours and Safety Standards Act 5959
      • 2.10-4 Service Contract Act 6060
      • 2.10-5 Copeland ‘Anti-Kickback’ Act 6161
    • 2.11 State Wage-Hour Charts 6262
    • • 2.11-1 State Minimum Wage Rates 6363
      • • Table 2.3 6464
      • 2.11-2 State Tip Credits 6565
      • • Table 2.4 6666
      • 2.11-3 State Overtime Pay Requirements 6767
      • • Table 2.5 6868
      • 2.11-4 State Meal and Rest Period Requirements 6969
      • • Table 2.6 7070
      • 2.11-5 Directory of State Wage and Hour Agencies 7171
    • 2.12 Review Questions and Exercises 7272
  • SECTION 3: TAXABLE AND NONTAXABLE COMPENSATION 7373
  • • 3.1 Gross Income and Wages Under the IRC 7373
    • • 3.1-1 Income and Employment Taxes Defined 7474
      • 3.1-2 Fair Market Value 7575
    • 3.2 Fringe Benefits Under the Internal Revenue Code 7676
    • • 3.2-1 Nontaxable Fringe Benefits 7676
      • 3.2-2 Personal Use of Employer-Provided Vehicles 7777
      • • Table 3.1 7878
      • 3.2-3 Personal Use of Employer-Provided Aircraft 7979
      • 3.2-4 Free or Discounted Commercial Flights 8080
      • 3.2-5 Discounts on Property or Services 8181
      • 3.2-6 Club Memberships 8282
      • 3.2-7 Emergency Responder Benefits 8383
    • 3.3 Additional Employer-Provided Benefits 8484
    • • 3.3-1 Life Insurance 8484
      • • Definition of split-dollar life insurance arrangement. 8585
        • Taxation under the economic benefit regime. 8686
      • 3.3-2 Moving Expenses 8787
      • 3.3-3 Educational Assistance 8888
      • 3.3-4 Group Legal Services 8989
      • 3.3-5 Employee Business Travel Expense Reimbursements 9090
      • • Table 3.2 9191
      • 3.3-6 Employer-Provided Meals and Lodging 9292
      • 3.3-7 Adoption Assistance 9393
    • 3.4 Other Payments 9494
    • • 3.4-1 Advances and Overpayments 9494
      • 3.4-2 Awards and Prizes 9595
      • 3.4-3 Back Pay Awards 9696
      • 3.4-4 Bonuses 9797
      • 3.4-5 Commissions 9898
      • 3.4-6 Conventions 9999
      • 3.4-7 Death Benefits 100100
      • 3.4-8 Dependent Care Assistance Programs 101101
      • 3.4-9 Directors’ Fees 102102
      • 3.4-10 Disaster Relief Payments 103103
      • 3.4-11 Employer-Paid Taxes (Grossing-Up) 104104
      • 3.4-12 Equipment Allowances 105105
      • 3.4-13 Gifts 106106
      • 3.4-14 Golden Parachute Payments 107107
      • 3.4-15 Guaranteed Wage Payments 108108
      • 3.4-16 Jury Duty Pay 109109
      • 3.4-17 Leave-Sharing Plans 110110
      • 3.4-18 Loans to Employees 111111
      • 3.4-19 Military Pay 112112
      • 3.4-20 Outplacement Services 113113
      • 3.4-21 Retroactive Wage Payments 114114
      • 3.4-22 Security Provided to Employees 115115
      • 3.4-23 Severance or Dismissal Pay 116116
      • 3.4-24 Stocks and Stock Options 117117
      • 3.4-25 Strike Benefits 118118
      • 3.4-26 Supplemental Unemployment Benefits 119119
      • 3.4-27 Tips 120120
      • 3.4-28 Uniform Allowances 121121
      • 3.4-29 Vacation Pay 122122
      • 3.4-30 Wages Paid After Death 123123
    • 3.5 Withholding and Reporting Rules for Employer-Provided Benefits 124124
    • • 3.5-1 Withholding on Cash Fringe Benefits 124124
      • 3.5-2 Withholding and Reporting on Noncash Fringe Benefits 125125
    • 3.6 Review Questions and Exercises 126126
  • SECTION 4: HEALTH, ACCIDENT, AND RETIREMENT BENEFITS 127127
  • • 4.1 Health Insurance 127127
    • • 4.1-1 Affordable Care Act Health Insurance Requirements 128128
      • • Part I—Employee and Employer 129129
        • Part II—Employee Offer and Coverage 130130
        • Part III—Covered Individuals 131131
        • Part I—Applicable Large Employer Member 132132
        • Part II—ALE Member Information 133133
        • Part III: ALE Member Information—Monthly 134134
        • Part IV: Other ALE Members of Aggregated ALE Group 135135
      • 4.1-2 Tax Treatment of Contributions and Benefits 136136
      • • Definitions 137137
      • 4.1-3 Medical Savings Accounts 138138
      • 4.1-4 Long-Term Care Insurance 139139
      • 4.1-5 COBRA Health Insurance Continuation 140140
      • 4.1-6 Health Reimbursement Arrangements 141141
      • 4.1-7 Health Savings Accounts 142142
    • 4.2 Family and Medical Leave Act 143143
    • 4.3 Sick Pay 144144
    • • 4.3-1 Sick Leave Pay 145145
      • 4.3-2 Sick Pay Under a Separate Plan 146146
      • 4.3-3 Permanent Disability Benefits 147147
    • 4.4 Workers’ Compensation Insurance 148148
    • • 4.4-1 Benefit Payments 148148
      • 4.4-2 Premium Payments 149149
    • 4.5 Cafeteria Plans 150150
    • • 4.5-1 What Benefits Can Be Offered 151151
      • 4.5-2 How Cafeteria Plans Are Funded 152152
      • 4.5-3 What the Cafeteria Plan Document Must Contain 153153
      • 4.5-4 Benefit Elections 154154
      • 4.5-5 Who Can Participate in the Plan 155155
      • 4.5-6 Nondiscrimination Testing 156156
      • 4.5-7 Flexible Spending Arrangements 157157
      • 4.5-8 Tax Treatment of Cafeteria Plans 158158
      • 4.5-9 Reporting Requirements 159159
    • 4.6 Retirement and Deferred Compensation Plans 160160
    • • 4.6-1 Qualified Pension and Profit-Sharing Plans (IRC §401(a)) 161161
      • 4.6-2 Cash or Deferred Arrangements (IRC §401(k)) 162162
      • 4.6-3 Tax-Sheltered Annuities (IRC §403(b)) 163163
      • 4.6-4 Deferred Compensation Plans for the Public Sector and Tax-Exempt Groups (IRC §457(b)) 164164
      • 4.6-5 Employee-Funded Plans (IRC §501(c)(18)(D)) 165165
      • 4.6-6 Individual Retirement Accounts 166166
      • 4.6-7 Simplified Employee Pensions (IRC §408(k)) 167167
      • 4.6-8 Savings Incentive Match Plans for Employees of Small Employers (SIMPLE Plans) 168168
      • 4.6-9 Employee Stock Ownership Plans 169169
      • 4.6-10 Nonqualified Deferred Compensation Plans 170170
      • • Treatment of payments or losses of deferred amounts after they are included in income. 171171
    • 4.7 State Taxability of Cafeteria Plan and §401(k) Salary Reductions 172172
    • • Table 4.1 173173
    • 4.8 Review Questions and Exercises 174174
  • SECTION 5: PAYING THE EMPLOYEE 175175
  • • 5.1 Pay Frequency 176176
    • • Table 5.1 177177
    • 5.2 Payment on Termination 178178
    • • Table 5.2 179179
    • 5.3 Payment Methods 180180
    • • 5.3-1 Cash or Check 180180
      • 5.3-2 Direct Deposit (Electronic Funds Transfer) 181181
      • • Table 5.3. 182182
        • Table 5.4 183183
      • 5.3-3 Electronic Paycards 184184
    • 5.4 Pay Statements Provided to Employees 185185
    • • Table 5.5 185185
    • 5.5 Unclaimed Paychecks 186186

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