Payroll Service, Changing Providers – Chapter Three: What Should Happen when I Change?

What happens when I change Payroll Providers? Timing Forms Procedures Timing. It is easiest for all concerned to change payroll service providers at calendar year end. That way there is no question about responsibility for any tax forms or deposits. Every form, deposit or payment starting with January 1 is the responsibility of the new…

What happens when I change Payroll Providers?


  • Timing
  • Forms
  • Procedures

Timing. It is easiest for all concerned to change payroll service providers at calendar year end. That way there is no question about responsibility for any tax forms or deposits. Every form, deposit or payment starting with January 1 is the responsibility of the new payroll service provider. There is no trying to balance the salary numbers and make sure no terminated employee is missed and that all deposits were made on time. If you can not change at year-end then calendar quarter end (March 31, June 30, and September 30) is second best. That said, if you need or want to, you should be able to change at any time of the year.

How long should it take? The bigger the company the longer it will take simply because the more employees there are the more data there is. If you have employees in multiple states that will make the process take longer. You should always be able to take a business of 50 employees and change over in less than two weeks, from submitting the paperwork to a payday with the new payroll service provider.

Forms. The new payroll service provider should provide you with a complete set of forms. These will include bank authorization forms, employee data forms, direct deposit authorization forms, information sheets on the company, tax deposit frequency information, forms detailing earnings / obligations / benefits / accruals, payroll submission information and Powers of Attorney forms. This provides the new payroll service provider with all the standard data necessary to set up your payroll to suit your needs but gives the provider all the current data to bring files to date and be able to create year end forms such as a 940 and W2s.

Why the Power of Attorney forms? The CPA at the payroll service provider needs that form so they can discuss your account with the IRS and your State. Without these forms you must always be in the middle between the government and the CPA solving the problem. It works best for the CPA to work directly with the agents and officers at the IRS.

Also in the forms should be a privacy policy disclosure for your files. The best privacy policy is one that states no information is given out to anyone except under the order of a court of competent jurisdiction.

Procedures. Once you complete all the forms and returned them to the new payroll service provider the provider should follow up with any clarifications and provide additional forms if there are unique circumstance that require additional information. The provider should then provide you with the necessary training for you to create the input documents for payroll. They should go over with you or the person you designed exactly how payroll is entered. They should demonstrate any additional steps you as the client must take to keep your salary records accurate. They should confirm the first entry date and the first payday. They should answer any question you or your staff has about the procedures or output.

After the first payroll is entered and processed the provider should go over the reports and output with you to make sure there are no questions or misunderstandings.

Check out

Payroll Service, Changing Providers. Chapter One. Reasons to change Providers

And

Payroll Service, Changing Providers. Chapter Two. What Should you Look for in a New Provider?

Payroll Service, Changing Providers – Chapter Two: What Should you Look for in a New Provider?

Service Technology Professionalism Cost Location Service. Can your new provider handle your unique needs? You can only ask. But do not just take their word. Ask for references in your size and type of business. Smaller providers may only be able to get close but that is OK. You're concerned about how, not what, service…


  • Service
  • Technology
  • Professionalism
  • Cost
  • Location

Service. Can your new provider handle your unique needs? You can only ask. But do not just take their word. Ask for references in your size and type of business. Smaller providers may only be able to get close but that is OK. You're concerned about how, not what, service is provided. Ask the references for other reference back to the provided that they did not provide you with. That is where you may get your best information. But in all fairness, remember the old adage “You can not make all of the people happy all of the time.”

Technology. Is the provider up to date on billing technology? It is hard for the major payroll providers to upgrade a system for hundreds of thousands of users. They will always be slower to change just because of size and inertia. The very small payroll service providers can not afford the newest technology. You also do not want bleeding edge technology just leading edge. Currently (and this changes all the time) you want to talk about paperless payroll, online payroll, payroll debit cards and employee self-service. There are other topics that will apply to your unique circumstances.

Professionalism. How long as the company was in business? They are a fly-by-night outfit and will disappear with your tax deposits. Do they have standing in the community? Are they an EFTPS batch filer mean they have at least 100 clients that file tax deposits for?

Do they have qualified payroll professionals and CPAs on staff to handle problems? You will have dealings with the IRS if nothing else over mistakes that the IRS makes. Without a CPA on staff you will either have to deal with the IRS yourself or pay your regular CPA to handle the problem. If your CPA does not deal with salary tax problems on a regular basis it will be time consuming for him, and expensive for you. to get up to speed with IRS procedure and policy on an area he does not deal with daily.

Cost. How important is cost in the mix of factors in making a decision on which payroll service provider you choose? That question you have to ask yourself. If all other things mentioned above were equal then cost would be the determining factor. If you get the best price and then spend hours every pay period because of obsolete technology, hours fixing their mistakes. Then spend hours placating your employees. Then spend hundreds of dollars with your CPA fixing an IRS error because the new payroll service provider has no CPAs on staff. What have you gained?

Please also review the cost paragraph in chapter one to better understand how payroll companies can mislead you about pricing.

Location. There was a time that location of a payroll company was important, delivery of checks and reports, long distance phone calls, local banking relationships and so on. Not so much in this day and age. With email and FedEx it does not matter very much where your payroll service provider is located in relationship to your business. With paperless payroll location is absolutely irrelevant as everything is handled over the Internet and all money is transferred through the banking system electronically.

Check out

Payroll Service, Changing Providers. Chapter One. Reasons to change Providers

And

Payroll Service, Changing Providers. Chapter Three. What should happen when I Change?

Payroll Service, Changing Providers -Chapter One: Reasons to Change Providers

Why change your payroll provider? Service Stinks Cost too High Too many Errors No help with IRS Lost in the Shuffle Service Stinks. Payroll service is all about service. If you do not perceive that your business receives good service then you are probably not getting good service. Payroll service providers know that their level…

Why change your payroll provider?


  • Service Stinks
  • Cost too High
  • Too many Errors
  • No help with IRS
  • Lost in the Shuffle

Service Stinks. Payroll service is all about service. If you do not perceive that your business receives good service then you are probably not getting good service. Payroll service providers know that their level of service has to be extremely high. Are you getting what you were promised? Too often salespeople promise what production can not deliver. Are your problems addressed, and more importantly solved, immediately. If your account has been overdrafted and you do not get your money back in two business days or less you are not getting good service.

Cost too High. Are you paying more than you should? How do you tell? Get some quotes. There are a number of free quote services on line. Google “Payroll quotes” and go from there. Many times your payroll company will negotiate with you if you feel the price is too high, but not always. Remember also that the major payroll companies have a revenue maximization process. They will quote you a price to get your business. There used to be right on the Paychex contract a line called WIT for the salesperson to fill in. WIT stand for “Whatever it Takes”. The salesperson would give any concession to get the payroll business. Then the local office would stealthily increase the price every payroll or every few payrolls until it reached the maximum level the local office thought it could sustain.

The other thing a lot of payroll companies do is quote you prices but do not tell you what is not included in that price. Things like a cost for: each hire, each termination, each report, each new report, each non standard report, each W2, each W2 reprint, tax service, phone entry, year end reports, unnecessary CDs, access fees, monthly fees and so on. Also if they give you a “discount” to get your business it can easily vanish.

Be careful of quotes to make sure everything is in them and your price is guaranteed for a period of time. Then check it every pay period to make sure it is what you expect.

Too many errors. Errors are inevitable when humans handle the payroll. If your service is making too many then you may choose to leave what ever the cost. Errors cost you in time and morale if not in actual dollars. Does your payroll provider try to fix blame for an error or do they just fix it. They should just fix it! If it really is your error and you admit it, expect a fee. If you think it is their problem and say so, they should take responsibility regardless of what they think. Does your payroll provider call you if they see something strange or do they just do it their way? If they do it their way you know they are not concerned enough about you to make a phone call or send an email.

Every employee of every client looks at payroll and needs for it to be perfect. It will not be, but it needs to be as close as possible

No help with the IRS. Does your payroll service when presented with a letter from the IRS tell you to call your CPA? Shame on them. The IRS will send you letters. The IRS makes mistakes. The IRS will not fix their mistakes unless and until you can prove to them they are wrong. Many times even if you made the mistake a good negotiator can get the IRS to remove the penalties and sometimes the interest. I can not tell you how many penalties in the last fifteen years I have had abated simply by contacting the IRS in a professional manner and knowing what to say and how to say it. Your payroll service provider should be an expert in getting penalies abated. Your CPA will probably not be a payroll tax expert. Your payroll service provider should have CPAs on staff, that you can talk with to resolve IRS and State tax problems.

Lost in the shuffle. Do you talk to a different person every time you call your payroll service provider? Do you get passed from extension to extension to extension until you end up with voice mail that is not returned? When you call for help do you get a voice mail system and not a person? When you call for help do you reach India? If you can not talk to live people, who can solve your problems and do it in English, then you are lost in the shuffle. Enough said!

Check out

Payroll Service, Changing Providers. Chapter Two. What Should you Look for in a New Provider?

And

Payroll Service, Changing Providers. Chapter Three, What Should Happen When We Change Payroll Providers?

Payroll Tax Penalties, When the IRS Sends a Letter

“Payroll Taxes are Due, with Penalties and Interest” At least that is what the letter from the IRS says. First thing, do not panic. Quoting Daniel J. Pilla's study for the Cato Institute “About 40 percent of the revenues the IRS collects through penal assessments are abated when citizens challenge the penalties.” So we now…

“Payroll Taxes are Due, with Penalties and Interest”

At least that is what the letter from the IRS says. First thing, do not panic. Quoting Daniel J. Pilla's study for the Cato Institute “About 40 percent of the revenues the IRS collects through penal assessments are abated when citizens challenge the penalties.”

So we now know the odds are good that the IRS is wrong or will blink first. What do we do?

The normal problems with payment taxes are.

Failure to File.

Taxes under reported.

Taxes under deposited.

Taxes deposited late.

Any of these can create a situation where the services charges penalties and interest against a business and then sucks up subsequent tax deposits creating additional late and short payments simply exacerbating the situation. We will get to that later.

Read the notice from the IRS. It should tell you why they are charging a penalty and interest and how it is calculated. If the notice does not lay out that information, you have missed the first notice from the IRS. That is not at all unusual. If you do not have the first notice call the IRS and get all the information from them. Also ask them to fax you a “Statement of Account” for the period and type of tax in effect. This will show you what they have on the IRS file, without regard to whether it is correct or not.

Failure to file.

The IRS says you never filed a return and they have created a return for you. They will estimate taxes due in an amount they know regardless of what would have been due due to your account. They do this to get your attention. Many people, if the estimated amount were too low, would just pay it. The IRS does not want that to happen so they always over estimate if they create a “Substitute Return” and file it for you.

The answer to that is to send a copy of the return. If you filed it certified mail send a copy of the receipt when it was sent providing the date and a copy of the return receipt showing it was received. One tip is never sending more than one return in an envelope. The clerk opening the envelope may staple them together and only the top return will ever be reported as being received. If you did not send it certified in your accompaniment letter talking about your history of filing on time and this one was certainly just misrouted. If you have collateral proof of the filing date like a canceled check that was sent with the return quote that information or even include copies. If the return was due on the 15th and the check attached cleared your bank on the 18th that is pretty convincing that the report was actually there by the 15th.

Taxes under reported.

Find out why they say that. Have they transposed a number when they hand entered the return? That happens with regularity. Have they just taken a number out of their hat? That happens periodically. Once we received two notices for two different customers on the same day saying they had overpaid their 940 taxes and offering them each a refund of over $ 36,000.00 each. The total 940 tax deposits for the two clients combined were less than $ 2000.00. And no, I did not let them apply for and receive the checks.

Again send the IRS a copy of the return that you filed. If the return is wrong then send the IRS a corrected form such as a 941-C to correct the original filing. For instance, if you put second quarter figures on the third quarter report. There will not be a penalty for late filing if in fact you filed an original return on time even if it was incorrect. A tip is if you can not prepare the actual return on time, estimate it and file it. Then file a corrected return when you can, this avoids a late filing fee.

Taxes under deposited.

They say you made fewer or smaller deposits than you reported. Check their list and dates of deposits against yours. Do not accept their word for when it was made. You have the proof in your files. We have noticed a real problem recently. EFTPS payments are not being shown with the date in the electronic file the same as on the “IRS Statement of Account.” How some programmer messed that up is beyond me. So prepare the data showing your proof that the payments were made on time, bank deposit slips, EFTPS confirmations or whatever proof you have. Package up copies and send them to the IRS with a letter of explanation, and a request for them to update their records.

If in fact you missed a deposit, it happens, make it immediately and ask for abatement anyway. Site valid reasons why the deposit could have been inadvertently missed. Discuss steps you have taken to make sure it will not happen again.

Taxes deposited late.

See taxes under deposited and do the same thing with dates. Document and send letters. Do not give up. Just because the first person at the IRS turns you down literally means nothing. They almost always turn down the first request for abatement of a penalty. Dealing with the IRS is a long series of no's followed by a single yes. When you do get the yes, shut up and walk away.

One of the favorite tricks of the IRS involves a string of deposits. Let's say you were suppose to make 12 deposits of $ 1000.00 each the 15th of each month starting Feb 15 and ending Jan 15th for January through December. The second deposit is missing, and the check never got cashed. You do not know what happened. The IRS will take the third payment and apply it to the second month's taxes but it is late so they charge a penalty. Now the fourth month's deposit gets applied to the third month's taxes but it is also a month late so there is another late paying penalty. You will quickly have 10 late payment penalties and the 12th month penalized as not being paid at all. The penalties exceeded the taxes missing. The service can not due this though they will try. If you design the third deposit for the third month taxes they must apply the payment there regardless. If they do not record them that way you can force them to do so, it is their regulations that say they must follow it. Accept the penalty only on the one month and then ask for abatement anyway. If you have never had a late payment the IRS is suppose to give you a free one anyway.

If you have a valid business reason that a penalty has occurred in spite of good due diligence on your part the IRS is suppose to abate the penalty. Understand that IRS employees may be gauged by how much revenue they bring in (the IRS vehemently denies this but ex IRS employees do not always). When that is true they do not want to abate penalies regardless. Another trick they have is to offer a reduced penalty as a favor, when in fact they should have zeroed it out. Or they will offer to abate penalies on two quarters if you pay the third. It is typically not a good idea to accept these offers. You can do better. Keep writing letters and filing documents at the higher and higher levels until one person gets reasonable and says yes. Then take that yes and run.

Can an ordinary citizen do this? Sure! Is it easier for a payroll tax professional? Sure! The IRS is far more likely to listen to a CPA than a citizen. The CPA knows what buttons to push and how to go to the next level. An ordinary citizen may not. The CPA is far less likely to get emotionally borrowed than the citizen whose pocket is being emptied.

Your payroll service provider should have CPAs on staff to handle these situations for you. If not, seriously consider a payroll service provider that does. Because when, not if, the IRS crews up your regular CPA will charge you full rate to solve problems that should be solved by your payroll provider for free.

Payroll Software, Payroll Services, Online Payroll – What’s the Difference? Which is Best?

Selecting the right payroll solution is an important decision for all business owners. The wrong payroll solution can be expensive not only in terms of money, but in productivity, which translates back to morale, which translates back to money. When selecting billing solutions, carefully consider your resources. Here are brief descriptions of each type, and…

Selecting the right payroll solution is an important decision for all business owners. The wrong payroll solution can be expensive not only in terms of money, but in productivity, which translates back to morale, which translates back to money. When selecting billing solutions, carefully consider your resources. Here are brief descriptions of each type, and the resources you need to implement them:

Payroll Software – Payroll within Accounting Software

When using payroll software, or when running payroll within your accounting software, your company runs payroll “in-house.” Your company is responsible for all upgrades to the software, including tax table and tax rate changes. This option provides a high level of control, which some clients prefer. Generating checks, withholding taxes, tax return filings, and payroll tax payments are the main duties that must be carried out in a timely manner by someone within the business. Electronic services, such as direct deposit, may or may not be available through the software.

To run payroll in this manner, you need a person who is not only familiar with payroll laws, but also familiar with the accounting side of payment. Payroll is confusing, even daunting, so do not expect a $ 9 an hour clerk to set up and run your payroll.

Speaking of payroll set-up: be certain your software provides excellent customer support during the set-up process. Depending on the number of checks run in the current year, payroll set-up can be challenging, to put it mildly.

If you have many checks to print, consider buying a printer specifically for this purpose (it can also be used to print accounts payable checks). Contact your check vendor for more information about ordering the correct type of check for your printer.

In terms of the monthly expense, this option will probably run between the next two options.

Payroll Services

When using a payroll service, your company outsources payroll duties entirely. You are in contact with the payroll service as often as you run payroll (for example, every week or every two weeks), telling the service how many hours each employee worked, informing the service of new or terminated employees, or asking any other questions . The payroll service will then generate and deliver checks; withhold taxes; make tax payments; file tax returns; and compute, distribute, and file year-end forms. Electronic services are available. Human resource (HR) services are sometimes available. Usually you can find a payroll service in close proximity to your business.

This is a very simple option. A phone call to the payroll service takes care of most payroll duties. This is a good option for those who do not want to take care of pay duties themselves, and who do have other resources (such as time or personel) to run payroll in some other manner. Even the set-up should be trouble free, since the payroll service will handle it.

This option is the most expensive of the three options.

Online Payroll – Internet Payroll

Online payroll, also known as Internet payroll, can be customized to suit the client's needs. For clients who wish the ease of a payroll service, wanting only to make a phone call each payroll period with the service taking care of everything else, online payroll can provide that. For clients who prefer the control that payroll software brings, wanting to run checks and take care of other duties “in-house,” online payroll can provide that as well. Even something in between these two options is possible. The level of service varies from one provider to another. Even within a single provider there can be varying levels of service, depending on what clients need. Same with the set-up; the online service can handle it all, or the client can handle it all or or there can be a mix of both parties taking care of it.

Clients are not responsible for maintaining tax tables or updating software when using an online payroll provider. Electronic services, such as direct deposit, electronic tax payments, and electronic tax returns, are available. It is not necessary to find an online payroll provider in close proximity to your business, since you can both access the same data through the Internet.

This is a good solution for those who are already comfortable with the concept of online banking. Payroll data is stored on secure servers, and transmitted with a high degree of encryption, so it is very safe.

Regardless of how this solution is customized, this option is most likely the least expensive of the three options.

Final Thoughts

Take some time to shop around and compare payment solutions. You will be better able to make the right choice if you carefully consider the time, money, and personel you can devote to payroll tasks.

Want to Change Payroll Services? Here’s What to Expect

Thinking about changing payroll services? Smaller payroll companies often charge less less than their larger, nationally recognized counterparts. The main reason for this discrepancy is that the smaller companies do not have the overhead of the larger companies, so they can pass the savings along to clients. If decide you want to change from a…

Thinking about changing payroll services? Smaller payroll companies often charge less less than their larger, nationally recognized counterparts. The main reason for this discrepancy is that the smaller companies do not have the overhead of the larger companies, so they can pass the savings along to clients.

If decide you want to change from a big-name provider to a smaller payroll firm, or if you are starting a business and need payroll services, remember that smaller payroll providers often offer the same services as the larger companies:

  • One time set-up fee, payroll service handles set-up
  • Payroll customer or payroll service enters hours worked and prints paystubs each pay period
  • Payroll service handles all tax payments and tax returns
  • Payroll service offers electronic services for all transactions – direct deposit, tax forms, tax payments, W-2s
  • Payroll service offers ability to pay sub-contractors with direct deposit, then issue and electronically file 1099s at year-end
  • 3-4 week lead time before processing first payroll with new payroll service
  • Lower monthly rates than the big name payroll services

Note that some smaller payroll services have the capacity to pay 1099 contractors with direct deposit , a service not offered by nationally recognized payroll firms.

If you determine that the smaller payroll service will meet your needs, be sure to have the following information available as soon as possible:

1. All previous payroll tax returns for the current year.

2. For each and every employee that has worked for your firm during the year, whether still employed or not:

  • Complete name
  • Last known mailing address
  • Social Security number
  • W-4 (for filing status)
  • Hire date
  • Quarter-to-date earnings and withholdings
  • Year-to-date earnings and withholdings

3. Information about your company:

  • Company type (sole-proprietor, s-corporation, etc.)
  • Company address
  • Date you plan to run the first payroll with the new service
  • Federal employer ID number and state employer ID number
  • Federal filing requirement
  • Tax payment schedule for both Federal and state
  • State tax rates, if applicable
  • Pay schedules (when / how often employees get paid)
  • Vacation and / or sick leave policies
  • Deduction information on any retirement plans and insurance premiums
  • Garnishment information

Enroll in all electronic payroll services the new company offers. Not only do these ensure accurate and timely tax filings and payments, there are usually no additional fees for them, and they are much easier than the old system of paper checks, paper coupons, trips to the bank, and trips to the post office.

The power of the Internet means you do not need to pick a payroll service in your local area. Both the you and the new service can access pay data from the convenience of your Internet browsers.

If you are looking to increase your bottom line, a smaller payroll service may be able to help. Shop around and compare.

Payroll Processing Outsourcing

Why outsource your payroll? There was a time that a business payroll was handing out cash at the end of the day. That time is long gone. Payroll, payroll record keeping, payroll tax reporting has become both complex and full of traps for the unwary or uneducated. The process can be very time consuming and…

Why outsource your payroll?

There was a time that a business payroll was handing out cash at the end of the day. That time is long gone. Payroll, payroll record keeping, payroll tax reporting has become both complex and full of traps for the unwary or uneducated. The process can be very time consuming and expensive. By outsourcing your payroll processing you are avoiding risks and taking advantage of all the advances in technology to save time and money.

Save Time

Using a payroll outsourcing provider will save you time. Particularly an internet payroll service providing a paperless payroll solution. How will they do that?

You will be able to input time anywhere and anytime from any Internet connected computer.

Your payroll outsourcing provider will process the entire payroll and if you use a paperless payment solution all net pays will be distributed electronically. No longer will you have to waste time and money distributing checks and salary payment vouchers Your unbanked employees will no longer have to pay exorbitant fees just to cash their paycheck. No longer will employees have to run to the bank to deposit or cash their paycheck and get stuck in long lines. No longer will you feel obligated to cash checks for your employees. No longer will you have to reissue checks that are lost or run through the washing machine.

Your payroll outsourcing provider will make all your payroll tax deposits for you. Your payroll outsourcing provider will complete and file all payroll tax forms with all government entities you have to report to. Not only will your payroll outsourcing provider do all this they will guarantee that it is done correctly.

Your payroll outsourcing provider solution will provide all employees with payment payment vouchers and yearend Form W-2's via the internet. Not longer will you have keep track of terminated employees to provide them with Form W-2's.

Your payroll outsourcing provider utilizes a paperless payroll will be able to provide you with all your reports via email or the internet. They are encrypted and secure from prying eyes. No longer will you have stacks of old reports to lockup and extremely pay to be destroyed.

Save Money

Some business owners do not realize the true cost of doing payroll in house. They do not add up all the hours that are spent on various aspects of payroll and related activities that a payroll outsourcing provider would take care of. Some of the saving in money takes place because of the following:

Your payroll outsourcing provider guarantees accuracy on calculating and filing your payroll tax reports and payroll tax deposits and will pay any penalties or interest charged to you through his error.

You will never have to pay for a software upgrade or for new tax tables your payroll outsourcing provider should provide all of that as part of its payroll services

Your payroll outsourcing provider will draft your company bank account for a single draft item eliminating the cost of payroll checks and the cost of reconciling of payment checks. In addition this eliminates your payroll checks being used for fraud by check scam criminals.

You will never have to pay to get a Form W-2 reprinted for an employee who lost or did not receive their Form W-2 because your payroll outsourcing provider posts them on a secured and password protected server for your employees to view and print them .

Your payroll outsourcing provider utilizes a paperless payroll solution that will distribute all net pays to every employee electronically. No lost checks to replace. No cost of delivery of checks or payroll vouchers. No shipping checks to employees in other locales.

Your payment outsourcing provider utilizing a paperless payment solution will send you all reports electronically, no delivery fees. No storage costs for old reports or costs to ultimately destroy them.

There are numerous other places, some of which you probably have already thought of, where time and money can be saved by outsourcing. Why does not each one outsource payroll then? Here are a few reasons why people do not outsource payroll and answers to their concerns.

Q: Cost

A: The cost is a lot less than most people think, check out salary pricing . It is a lower cost than the cost of people, software, hardware, security and systems, training, forms, accounting fees, penalties, answering IRS inquires, etc. necessary to do a professional job in-house.

Q: Loss of control

A: Actually your level of control increases. You have time to review. You have complete reports that are secure from prying eyes. You have payroll outsourcing professionals, sometimes CPA's, to answer questions and help you avoid pitfalls you do not even know exist.

Q: My payroll is unique

A: It may have unique aspects, some payrolls do. Payroll outsourcing providers are use to that and have very sophisticated software that can handle almost anything. In fact a payroll processor is more likely to have software to handle unique circumstances than the average small business.

Payroll Software Review – PayWindow 2006 Payroll System

ZPay Systems has been creating payroll software for over 20 years starting with ZPAY, ZPAY 3 and now PayWindow 2006. This payroll software is easy to use especially if you do not have any experience in accounting. It is loaded with all of the features you could possibly need whenever you are a small, medium…

ZPay Systems has been creating payroll software for over 20 years starting with ZPAY, ZPAY 3 and now PayWindow 2006. This payroll software is easy to use especially if you do not have any experience in accounting.

It is loaded with all of the features you could possibly need whenever you are a small, medium or large sized business. The reporting center is also feature rich with features such as: Check printing, check register, wage reports for Month, Quarter and Year to Date, Tax liability report, payroll history reports employee mailing labels, lists and pay envelope labels, Direct Deposit for all employees, Unlimited Payroll Employees, and accountants can have as many clients (company files) as your hard drive will hold. The software is good for both Macintosh and PC's.

It is full featured payroll software that can be up and running in minutes and you can finally stop paying for expensive annual upgrades to QuickPay (makers of QuickBooks). Even if you've never upgraded your Quicken to QuickBooks you can easily make two simple journal entries every month in Quicken; one for payroll and one for total payroll taxes.

The cost of the software is surprisingly low at $ 69.95. I was a little concerned when I first saw the price tag but it goes to show not EVERYTHING good has to come with a high price tag.

ZPay Systems has been given two industry awards for their payroll software and one people's choice award. They offer several demo tours of the software that you can view before purchasing and they also offer a FREE 30-day trial. They offer excellent product support and have a wonderful tutorial section.

You can download the free trial here: [http://www.payroll-software-choices.com].

About the Author: Nancy McMillon evaluates payroll software. You can read more payroll software reviews at [http://www.payroll-software-choices.com].

Selecting Payroll Software

How do you find the right payroll software for my business? When I go to start a new business, I am going to want and need good payroll software. However, there are a number of options out there in the way of payroll software so it's difficult to choose the one that is right for…

How do you find the right payroll software for my business? When I go to start a new business, I am going to want and need good payroll software. However, there are a number of options out there in the way of payroll software so it's difficult to choose the one that is right for my business. The best thing to do, as with any major purchase, is to determine what you need in the software and then buy the package that works best for your business.

When you are just starting your business, you are probably not going to have an immediate need for large robust software. The payroll software you do buy, though, should meet whatever needs your company is going to have. For instance, are your employees going to be on a time clock and paid hourly? If so, you will want to find a payroll software that will work in conjunction with a time clock of some sort. You will also want to find a software package that can figure a number of hourly pays to account for the different employees who make a different amount. If, however, all of your employees are going to be on salary, you probably do not need that functionality.

Another function you may want to consider is the ability to easily make adjustments. Let's face it, employees are going to forget to punch in or out from time to time and you will have to have the one to fix the time in the clock. Look for a payroll software package that makes this function easy. Most do, but make sure you know whether or not you are comfortable with the user friendship before you make your final selection and purchase.

Third, and in some cases most importantly, find out how much a payroll software package is going to cost you. Find out how much the up front cost is, how much upgrades are, and what kind of support is offered. There are plenty of payroll software services out there, but the good ones are going to offer you support lines to help ensure your success. Also, find out how much the payroll software will cost if your company grows, versus buying a larger program up front and letting your company grow into it. What is important, though, is to find out what will be most cost effective for your company over the long run.

If you are starting a new business with employees, you will definitely need to consider payroll software. You do not want to be sitting down figuring hours and pay by hand every week or every other week. The problem is that there are so many payroll software packages out there that it can be difficult to come up with one that is right for you. The answer, quite simply, is to do your homework. Look into various programs and figure out what kind of functionality you will need and what kind of price you can afford. By breaking it down that way, you will have your perfect payroll software package [http://www.dixiejournal.com/category/business-reviews] before you know it.

Payroll Illinois, Unique Aspects of Illinois Payroll Law and Practice

The Illinois State Agency that oversees the collection and reporting of State income taxes deducted from payment checks is: Department of Revenue 101 W. Jefferson St. PO Box 19022 Springfield, IL 62794-9022 (217) 785-0970 (800) 732-8866 (in state) http://www.revenue.state.il.us Illinois requires that you use Illinois form “IL-W-4, Employee's Illinois Withholding Allowance Certificate” instead of Federal…

The Illinois State Agency that oversees the collection and reporting of State income taxes deducted from payment checks is:

Department of Revenue

101 W. Jefferson St.

PO Box 19022

Springfield, IL 62794-9022

(217) 785-0970

(800) 732-8866 (in state)

http://www.revenue.state.il.us

Illinois requires that you use Illinois form “IL-W-4, Employee's Illinois Withholding Allowance Certificate” instead of Federal W-4 Form for Illinois State Income Tax Withholding.

Not all states allow salary reductions made under Section 125 cafeteria plans or 401 (k) to be treated in the same manner as the IRS code allows. In Illinois cafeteria plans are: not taxable for income tax calculation; not taxable for unemployment insurance purposes if used to purchase medical life insurance. 401 (k) plan deferrals are: not taxable for income taxes; taxable for unemployment purposes.

In Illinois supplementary wages are taxed at a 3.0% flat rate.

You must file your Illinois state W-2s by magnetic media if you have at least 250 employees and are required to file your federal W-2s by magnetic media.

The Illinois State Unemployment Insurance Agency is:

Department of Employment Security

401 S. State St.

Chicago, IL 60605-1289

(312) 793-5700

http://www.ides.state.il.us/

The State of Illinois taxable wage base for unemployment purposes is wages up to $ 9,800.00.

Illinois requires Magnetic media reporting of quarterly wage reporting if the employer has at least 250 employees that they are reporting that quarter.

Unemployment records must be retained in Illinois for a minimum period of five years. This information generally includes: name; social security number; dates of hire, rehire and termination; wages by period; pay pay periods and pay dates; date and circumstances of termination.

The Illinois State Agency charged with enforcing the state wage and hour laws is:

Department of Labor

Labor Law Enforcement

160 North LaSalle, Ste. C1300

Chicago, IL 60601

(312) 793-2800

[http://www.state.il.us/agency/idol/]

The minimum wage in Illinois is $ 6.50 per hour.

The general provision in Illinois concerned paying overtime in a non-FLSA covered employer is one and one half times regular rate after 40-hour week.

Illinois State new hire reporting requirements are that every employer must report every new hire and rehire. The employer must report the federally required elements of:

  • Employee's name
  • Employee's address
  • Employee's social security number
  • Employer's name
  • Employers address
  • Employer's Federal Employer Identification Number (EIN)

This information must be reported within 20 days of the hiring or rehiring.
The information can be sent as a W4 or equivalent by mail, fax or electronically.
There is a $ 15, $ 500 penalty for a late report in Illinois.

The Illinois new hire-reporting agency can be reached at 800-327-4473 or on the web at [http://www.ides.state.il.us/employer/newhire/general.htm]

Illinois does not allow compulsory direct deposit

Illinois requires the following information on an employee's pay stub:

  • itemized discounts
  • Illinois requires that employee be paid no less often than semimonthly; monthly for FLSA-exempt employees; union contract can provide different intervals.

    Illinois requires that the lag time between the end of the pay period and the payment of wages to the employee not exceeded semimonthly-13 days; weekly-7days; monthly-21 days; daily-1 day.

    Illinois payroll law requires that involuntarily terminated employees must be paid their final pay immediately immediately if possible, if not, by next regular payday; next regular payday if suspended due to labor dispute or temporarily laid off and that voluntarily terminated employees must be paid immediately if possible; if not, by next regular payday.

    Deceased employee's unpaid wages must be paid when normally due to the person owed for funeral expenses, spouse, or child after small estate affidavit; estate no over $ 15,000.

    Escheat laws in Illinois require that unclaimed wages be paid over to the state after five years.

    The employer is further required in Illinois to keep a record of the wages abandoned and turned over to the state for a period of 5 years.

    Illinois payroll law mandates no more than 40% of minimum wage may be used as a tip credit.

    In Illinois the payroll laws covering mandatory rest or meal breaks are those employees must have 20 minutes during first 5 hours of 7and a half-hour shift.

    Alabama statute requires that wage and hour records be kept for a period of not less than five years. These records will normally consist of at least the information required under FLSA.

    The Illinois agency charged with enforced Child Support Orders and laws is:

    Division of Child Support Enforcement

    Department of Public Aid

    509 S. 6th St.

    Springfield, IL 62701

    (800) 447-4278

    [http://ilchildsupport-employer.com/Default.aspx]

    Illinois has the following provisions for child support discounts:

    • When to start Withholding? 14 working days after the withholding order is delivered to the employer.
    • When to send Payment? Within 7 days of Payday.
    • When to send Termination Notice? “Promptly.”
    • Maximum Administrative Fee? $ 5 per payment.
    • Withholding Limits? Federal Rules under CCPA.

    Please note that this article is not updated for changes that can and will happen from time to time.

    Payroll New Hampshire, Unique Aspects of New Hampshire Payroll Law and Practice

    New Hampshire has no State Income Tax. There for there is no State Agency to oversee withholding deposits and reports. There are no State W2's to file, no supplement wage withholding rates and no State W2's to file. Not all states allow salary reductions made under Section 125 cafeteria plans or 401 (k) to be…

    New Hampshire has no State Income Tax. There for there is no State Agency to oversee withholding deposits and reports. There are no State W2's to file, no supplement wage withholding rates and no State W2's to file.

    Not all states allow salary reductions made under Section 125 cafeteria plans or 401 (k) to be treated in the same manner as the IRS code allows. In New Hampshire cafeteria plans are taxable for unemployment insurance purposes. 401 (k) plan deferrals are taxable unemployment purposes.

    In New Hampshire supplementary payments are required to be aggregated for the state income tax withholding calculation.

    The New Hampshire State Unemployment Insurance Agency is:

    Department of Employment Security

    Unemployment Compensation Bureau

    32 S. Main St.

    Concord, NH 03301-4857

    (603) 224-3111

    [http://www.nhworks.state.nh.us/ucpage.htm]

    The State of New Hampshire taxable wage base for unemployment purposes is wages up to $ 8000.00.

    New Hampshire requires Magnetic media reporting of quarterly wage reporting if the employer has at least 250 employees that they are reporting that quarter.

    Unemployment records must be retained in New Hampshire for a minimum period of six years. This information generally includes: name; social security number; dates of hire, rehire and termination; wages by period; pay pay periods and pay dates; date and circumstances of termination.

    The New Hampshire State Agency charged with enforcing the state wage and hour laws is:

    Department of Labor

    Inspection Division

    95 Pleasant St.

    PO Box 2076

    Concord, NH 03302-2076

    (603) 271-3176

    http://www.labor.state.nh.us/

    The minimum wage in New Hampshire is $ 5.15 per hour.

    The general provision in New Hampshire concern paying overtime in a non-FLSA covered employer is one and one half times regular rate after 40-hour week.

    New Hampshire State new hire reporting requirements are that every employer must report every new hire and rehire and contractors over $ 2,500. The employer must report the federally required elements of:

    • Employee's name
    • Employee's UI ID
    • Employee's address
    • Employee's social security number
    • Employer's name
    • Employers address
    • Employer's Federal Employer Identification Number (EIN)

    This information must be reported within 20 days of the hiring or rehiring.
    The information can be sent as a W4 or equivalent by mail, fax or electronically.
    There is a $ 25.00 penalty for a late report in and $ 500 for conspiracy in New Hampshire.

    The New Hampshire new hire-reporting agency can be reached at 800-803-4485 or 603-229-4371 or on the web at [http://www.nhworks.state.nh.us/newhire/newhire.htm]

    New Hampshire does not allow compulsory direct deposit

    New Hampshire requires the following information on an employee's pay stub:

  • statement of payments
  • New Hampshire requires that employee be paid no less often than weekly; biweekly, semimonthly, or monthly if commissioner agreements.

    New Hampshire requires that the lag time between the end of the pay period and the payment of wages to the employee not exceed eight days after workweek when wages are earned.

    New Hampshire payroll law requires that involuntarily terminated employees must be paid their final pay with in 72 hours; next regular payday if suspended due to labor dispute or temporarily laid off. Voluntarily terminated employees must be paid their final pay by the next regular payday or by mail if employee requests it; within 72 hours if 1 pay period's notice is given.

    Deceased employee's wages of $ 500 must be paid to the surviving spouse; adult children; parent; siblings; funeral expenses (in that order).

    Escheat laws in New Hampshire require that unclaimed wages be paid over to the state after one year.

    The employer is further required in New Hampshire to keep a record of the wages abandoned and turned over to the state for a period of 10 years.

    New Hampshire payroll law mandates no more than $ 2.77 may be used as a tip credit.

    In New Hampshire the payroll laws covering mandatory rest or meal breaks are only that must have 30 minutes rest after five hours of work.

    There is no provision in New Hampshire law relating record retention of wage and hour records therefor it is probably wise to follow FLSA guidelines.

    The New Hampshire agency charged with enforcing Child Support Orders and laws is:

    Division of Child Support Services
    Department of Health and Human Services
    Health and Human Services Bldg.
    129 Pleasant St.
    Concord, NH 03301
    (603) 271-4427
    http://www.dhhs.state.nh.us

    New Hampshire has the following provisions for child support discounts:

    • When to start Withholding? 14 days after receipt of order.
    • When to send Payment? Payday.
    • When to send Termination Notice? Within 15 days of termination.
    • Maximum Administrative Fee? $ 1 per payment.
    • Withholding Limits? Federal Rules under CCPA.

    Please note that this article is not updated for changes that can and will happen from time to time.

    Payroll Louisiana, Unique Aspects of Louisiana Payroll Law and Practice

    The Louisiana State Agency that oversees the collection and reporting of State income taxes deducted from payment checks is: Dept. of Revenue PO Box 201 Baton Rouge, LA 70821-0201 (225) 219-0102 http://www.rev.state.la.us/ Louisiana requires that you use Louisiana form “L-4 (R-1300), Employee's Withholding Exemption Certificate” instead of Federal W-4 Form for Louisiana State Income Tax…

    The Louisiana State Agency that oversees the collection and reporting of State income taxes deducted from payment checks is:

    Dept. of Revenue

    PO Box 201

    Baton Rouge, LA 70821-0201

    (225) 219-0102

    http://www.rev.state.la.us/

    Louisiana requires that you use Louisiana form “L-4 (R-1300), Employee's Withholding Exemption Certificate” instead of Federal W-4 Form for Louisiana State Income Tax Withholding.

    Not all states allow salary reductions made under Section 125 cafeteria plans or 401 (k) to be treated in the same manner as the IRS code allows. In Louisiana cafeteria plans are not taxable for income tax calculation; not taxable for unemployment insurance purposes. 401 (k) plan deferrals are not taxable for income taxes; taxable for unemployment purposes.

    In Louisiana supplementary wages are required to be aggregated for the state income tax withholding calculation.

    You must file your Louisiana state W-2s by magnetic media if you have at least 250 employees and are required to file your federal W-2s by magnetic media.

    The Louisiana State Unemployment Insurance Agency is:

    Department of Labor

    1001 N. 23rd St.

    PO Box 94094

    Baton Rouge, LA 70804-9094

    (225) 342-7690

    [http://www.ldol.state.la.us/wrk_owca.asp]

    The State of Louisiana taxable wage base for unemployment purposes is wages up to $ 7000.00.

    Louisiana requires Magnetic media reporting of quarterly wage reporting if the employer has at least 250 employees that they are reporting that quarter.

    Unemployment records must be retained in Louisiana for a minimum period of five years. This information generally includes: name; social security number; dates of hire, rehire and termination; wages by period; pay pay periods and pay dates; date and circumstances of termination.

    The Louisiana State Agency charged with enforcing the state wage and hour laws is:

    Department of Labor

    1001 North 23rd St.

    PO Box 94094

    Baton Rouge, LA 70804-9094

    (225) 342-3011

    http://www.ldol.state.la.us/

    There is no provision for minimum wage in the State of Louisiana.

    There is also no general provision in Louisiana State Law covering paying overtime in a non-FLSA covered employer.

    Louisiana State new hire reporting requirements are that every employer must report every new hire and rehire. The employer must report the federally required elements of:

    • Employee's name
    • Employee's address
    • Employee's social security number
    • Employer's name
    • Employers address
    • Employer's Federal Employer Identification Number (EIN)
    • Employee's occupation

    This information must be reported within 20 days of the hiring or rehiring.
    The information can be sent as a W4 or equivalent by mail, fax or electronically.
    There is a $ 25 penalty for a late report in Louisiana and $ 500 for conspiracy.

    The Louisiana new hire-reporting agency can be reached at 888-223-1461or on the web at http://www.dss.state.la.us/departments/dss/New_Hire_Registry.html .

    Louisiana does not allow compulsory direct deposit

    Louisiana has no State Wage and Hour Law provisions concerning pay stub information.

    Louisiana requires that employee be paid no less often than semimonthly or biweekly for manufacturing, mining, or public service corporations.

    Louisiana requires that the lag time between the end of the pay period and the payment of wages to the employee not exceed ten days after pay period; 15 days for public service corporations.

    Louisiana payroll law requires that involuntarily terminated employees must be paid their final pay with in 15 working days and that voluntarily terminated employees must be paid 15 days after they quit.

    Deceased employee's wages of $ 6,000 must be paid to the surviving spouse or adult child (in that order) if there is an instrument indicating relationship to deceased.

    Escheat laws in Louisiana require that unclaimed wages be paid over to the state after one year.

    The employer is further required in Louisiana to keep a record of the wages abandoned and turned over to the state for a period of 10 years.

    There is no provision in Louisiana law concerning tip debts against State minimum wage.

    In Louisiana the payroll laws covering mandatory rest or meal breaks are only that minors under 16 must have 30 minutes rest after five hours of work.

    Louisiana statute requires that wage and hour records be kept for a period of not less than one year. These records will normally consist of at least the information required under FLSA.

    The Louisiana agency charged with enforcing Child Support Orders and laws is:

    Support Enforcement Services Program

    Department of Social Services

    PO Box 94065

    618 Main St.

    Baton Rouge, LA 70804

    (225) 342-4780

    http://www.dss.state.la.us/

    Louisiana has the following provisions for child support discounts:

    • When to start Withholding? Immediately after receipt of order.
    • When to send Payment? Within 7 days of Payday.
    • When to send Termination Notice? Within 10 days of termination.
    • Maximum Administrative Fee? $ 5 per pay period.
    • Withholding Limits? 50% of disposable earnings.

    Please note that this article is not updated for changes that can and will happen from time to time.

    Payroll Connecticut, Unique Aspects of Connecticut Payroll Law and Practice

    The Connecticut State Agency that oversees the collection and reporting of State income taxes deducted from payment checks is: Department of Revenue Services 25 Sigourney Street Hartford, CT 06106 860-297-5962 800-382-9463 www.drs.state.ct.us/index.html Connecticut requires that you use Connecticut form “CT-W4, Employee's Withholding or Exemption Certificate” instead of Federal W-4 Form for Connecticut State Income Tax…

    The Connecticut State Agency that oversees the collection and reporting of State income taxes deducted from payment checks is:

    Department of Revenue Services

    25 Sigourney Street

    Hartford, CT 06106

    860-297-5962

    800-382-9463

    www.drs.state.ct.us/index.html

    Connecticut requires that you use Connecticut form “CT-W4, Employee's Withholding or Exemption Certificate” instead of Federal W-4 Form for Connecticut State Income Tax Withholding.

    Not all states allow salary reductions made under Section 125 cafeteria plans or 401 (k) to be treated in the same manner as the IRS code allows. In Connecticut cafeteria plans are: not taxable for income tax calculation; taxable for unemployment insurance purposes. 401 (k) plan deferrals are: not taxable for income taxes; taxable for unemployment purposes.

    In Connecticut no special rate for taxing supplementary charges instead supplementary foods are to be aggregated.

    You must file your Connecticut State W-2s by magnetic media if you have at least 25 W2's to file and are required to file your federal W-2s by magnetic media.

    The Connecticut State Unemployment Insurance Agency is:

    Unemployment Insurance Tax Division

    Connecticut Labor Department

    200 Folly Brook Blvd.

    Wethersfield, CT 06109-1114

    860-263-6550

    www / ctdol.state.ct.us / uitax / txmenu.htm

    The State of Connecticut taxable wage base for unemployment purposes is wages up to $ 15,000.00.

    Connecticut requires Magnetic media reporting of quarterly wage reporting if the employer has at least 250 employees that they are reporting that quarter.

    Unemployment records must be retained in Connecticut for a minimum period of four years. This information generally includes: name; social security number; dates of hire, rehire and termination; wages by period; pay pay periods and pay dates; date and circumstances of termination.

    The Connecticut State Agency charged with enforcing the state wage and hour laws is:

    The Department of Labor

    Wage and Workplace Standards Division

    200 Folly Brook Blvd.

    Wethersfield, CT 06109

    860-263-6790

    www.ctdol.state.ct.us/

    The state minimum wage in Connecticut is $ 7.10 per hour.

    The general provision in Connecticut concern paying overtime in a non-FLSA covered employer is one and one half times regular rate after 40-hour week.

    Connecticut State new hire reporting requirements are that every employer must report every new hire, rehire and contractor if the contract exemptions $ 5,000.00 for a calendar year. . The employer must report the federally required elements of:

    • Employee's name
    • Employee's address
    • Employee's social security number
    • Employer's name
    • Employers address
    • Employer's Federal Employer Identification Number (EIN)
    • For contractors state EIN

    This information must be reported within 20 days of the hiring or rehiring.
    The information can be sent as a W4 or equivalent by mail, fax or electronically.
    There is a no penalty for a late report in Connecticut.

    The Connecticut new hire reporting agency can be reached at 860-263-6310 or on the web at http://www.ctdol.state.ct.us/lmi/newhire.htm

    Connecticut does not allow compulsory direct deposit

    Connecticut requires the following information on an employee's pay stub:

    • Gross and Net Earnings
    • straight time and overtime pay
    • hours worked
    • itemized discounts

    In Connecticut the statutory requirement concern pay frequency is weekly, however, pay frequency can be as long as monthly if the Connecticut Labor Commissioner agreements. The lag time between when the services are performed and when the employee must be paid can not exceed 8 days.

    Connecticut payroll law requires that involuntarily terminated employees must be paid their final pay by the next business day however if the employee is suspended during a labor dispute or laid over the employer has until the next regular payday.

    Voluntarily terminated employees must be paid their final pay by the next regular payday.

    Deceased employee's wages up to $ 20,000.00 need to be paid to the surviving spouse or next of kin; or to the funeral director or physician if they have a preferred claim. The wages are paid upon application from the surviving spouse or next of kin; or upon affidavit of debt due from the funeral director or physician.

    Escheat laws in Connecticut require that unclaimed wages be paid over to the state after three years.

    The employer is further required in Connecticut to keep a record of the wages abandoned and turned over to the state for a period of 10 years.

    There is a provision in Connecticut law that tip credits of up to $ 2.02 per hour against State minimum wages.

    In Connecticut the payroll laws covering mandatory rest or meal breaks are: a 30-minute meal period during a 7 and one half-hour shift. Taking place after the first two hours and before the last two hours of the shift.

    There is no provision in Connecticut law concerning record retention of wage and hour mandates a retention period of not less than three years.

    The Connecticut agency charged with enforcing Child Support Orders and laws is:

    Department of Social Services

    Child Support Enforcement Program

    25 Sigourney

    Hartford, CT 06105-5033

    800-842-1508

    www.dss.state.ct.us/svcs/csupp.htm

    Connecticut has the following provisions for child support discounts:

    • When to start Withholding? First pay period after 14 days from service
    • When to send Payment? Within 7 days of Payday.
    • When to send Termination Notice? “Promptly”
    • Maximum Administrative Fee? No provision.
    • Withholding Limits? 85% of first $ 145.99 exempt

    Please note that this article is not updated for changes that can and will happen from time to time.

    Payroll Nebraska, Unique Aspects of Nebraska Payroll Law and Practice

    The Nebraska State Agency that oversees the collection and reporting of State income taxes deducted from payment checks is: Department of Revenue Nebraska State Office Bldg. 301 Centennial Mall S. PO Box 94818 Lincoln, NE 68509-4818 (402) 471-2971 (800) 742-7474 http://www.revenue.state.ne.us/index.html Nebraska does not require you to use a state form to calculate state income…

    The Nebraska State Agency that oversees the collection and reporting of State income taxes deducted from payment checks is:

    Department of Revenue

    Nebraska State Office Bldg.

    301 Centennial Mall S.

    PO Box 94818

    Lincoln, NE 68509-4818

    (402) 471-2971

    (800) 742-7474

    http://www.revenue.state.ne.us/index.html

    Nebraska does not require you to use a state form to calculate state income tax withholding.

    Not all states allow salary reductions made under Section 125 cafeteria plans or 401 (k) to be treated in the same manner as the IRS code allows. In Nebraska cafeteria plans are not taxable for income tax calculation; not taxable for unemployment insurance purposes. 401 (k) plan deferrals are not taxable for income taxes; taxable for unemployment purposes.

    In Nebraska supplementary wages are taxed at a 5% flat rate.

    You may file your Nebraska State W-2s by magnetic media if you choose to.

    The Nebraska State Unemployment Insurance Agency is:

    Department of Labor

    550 S. 16th St.

    PO Box 94600

    Lincoln, NE 68509-4600

    (402) 471-9835

    http://www.dol.state.ne.us/

    The State of Nebraska taxable wage base for unemployment purposes is wages up to $ 7000.00.

    Nebraska has optional reporting of quarterly wages on magnetic media.

    Unemployment records must be retained in Nebraska for a minimum period of four years. This information generally includes: name; social security number; dates of hire, rehire and termination; wages by period; pay pay periods and pay dates; date and circumstances of termination.

    The Nebraska State Agency charged with enforcing the state wage and hour laws is:

    Department of Labor

    Division of Safety

    State Office Bldg.

    301 Centennial Mall South

    PO Box 95024

    Lincoln, NE 68509-5024

    (402) 471-2239

    http://www.dol.state.ne.us/

    The minimum wage in Nebraska is $ 5.15 per hour.

    There is also no general provision in Nebraska State Law covering paying overtime in a non-FLSA covered employer.

    Nebraska State new hire reporting requirements are that every employer must report every new hire and rehire. The employer must report the federally required elements of:

    • Employee's name
    • Employee's address
    • Employee's social security number
    • Employer's name
    • Employers address
    • Employer's Federal Employer Identification Number (EIN)

    This information must be reported within 20 days of the hiring or rehiring.
    The information can be sent as a W4 or equivalent by mail, fax or electronically.
    There is a $ 25.00 penalty for a late report in Nebraska.

    The Nebraska new hire-reporting agency can be reached at 888-256-0293 or 402-691-9957 or on the web at [http://www.nenewhire.com]

    Nebraska does allow compulsory direct deposit but the employee's choice of financial institution must meet federal regulation E regarding choice of financial institutions.

    Nebraska has no State Wage and Hour Law provisions concerning pay stub information.

    Nebraska requires that employee be paid on paydays designated by employer or agreed to by employer and employee.

    In Nebraska there are no statistical requirements relating to lag time between when the services are performed and when the employee must be paid.

    Nebraska payroll law requires that involuntarily terminated employees must be paid their final pay earlier of next regular payday or within 2 weeks and that voluntarily terminated employees must be paid their final pay earlier than next regular payday or within 2 weeks.

    There is no provision in Nebraska law concerning paying dismissed employees.

    Escheat laws in Nebraska require that unclaimed wages be paid over to the state after one year.

    The employer is further required in Nebraska to keep a record of the wages abandoned and turned over to the state for a period of 7 years.

    Nebraska payroll law mandates no more than $ 3.02 of minimum wage may be used as a tip credit.

    In Nebraska the payroll laws covering mandatory rest or meal breaks are only that manufacturing employees must have a 30-minute meal period between noon and 1 pm or another suitable hour.

    There is no provision in Nebraska law concerning record retention of wage and hour records therefor it is probably wise to follow FLSA guidelines.

    The Nebraska agency charged with enforcement Child Support Orders and laws is:

    Child Support Enforcement Office

    Department of Health and Human Services

    PO Box 94728

    301 Centennial Mall So., 5th Fl.

    Lincoln, NE 68509-4728

    (402) 479-5555

    http://www.hhs.state.ne.us/cse/cseindex.htm

    Nebraska has the following provisions for child support discounts:

    • When to start Withholding? First pay period after receipt of notice.
    • When to send Payment? Within 7 days of Payday.
    • When to send Termination Notice? 30 days after termination.
    • Maximum Administrative Fee? $ 2.50 per month.
    • Withholding Limits? Federal Rules under CCPA.

    Please note that this article is not updated for changes that can and will happen from time to time.

    Payroll New Jersey, Unique Aspects of New Jersey Payroll Law and Practice

    The New Jersey State Agency that oversees the collection and reporting of State income taxes deducted from payment checks is: Department of the Treasury Division of Revenue 50 Barrack St. CN 248 Trenton, NJ 08648-0248 (609) 292-6400 (800) 323-4400 (in state) http://www.state.nj.us/treasury/revenue New Jersey allows you to use the Federal W-4 form to calculate state…

    The New Jersey State Agency that oversees the collection and reporting of State income taxes deducted from payment checks is:

    Department of the Treasury

    Division of Revenue

    50 Barrack St. CN 248

    Trenton, NJ 08648-0248

    (609) 292-6400

    (800) 323-4400 (in state)

    http://www.state.nj.us/treasury/revenue

    New Jersey allows you to use the Federal W-4 form to calculate state income tax withholding or the New Jersey form “NJ-W4 Employee's Withholding Allowance Certificate”.

    Not all states allow salary reductions made under Section 125 cafeteria plans or 401 (k) to be treated in the same manner as the IRS code allows. In New Jersey cafeteria plans are taxable for income tax calculation; taxable for unemployment insurance purposes. 401 (k) plan deferrals are not taxable for income taxes; taxable for unemployment purposes.

    In New Jersey supplementary wages are required to be aggregated for the state income tax withholding calculation.

    You may file your New Jersey State W-2s by magnetic media if you choose to.

    The New Jersey State Unemployment Insurance Agency is:

    Unemployment and Disability Insurance

    John Fitch Plaza

    PO Box 912

    Trenton, NJ 08646

    (609) 633-6400

    http://www.nj.gov/labor/mainpages/employer.html

    The State of New Jersey taxable wage base for unemployment purposes is wages up to $ 24,300.00.

    New Jersey requires Magnetic media reporting of quarterly wage reporting if the employer has at least 100 employees that they are reporting that quarter.

    Unemployment records must be retained in New Jersey for a minimum period of five years. This information generally includes: name; social security number; dates of hire, rehire and termination; wages by period; pay pay periods and pay dates; date and circumstances of termination.

    The New Jersey State Agency charged with enforcing the state wage and hour laws is:

    Department of Labor

    Division of Labor Standards and Safety Enforcement

    Office of Wage and Hour Compliance

    225 E. State St.

    PO Box 389

    Trenton, NJ 08625-0389

    (609) 292-7860

    http://www.state.nj.us/labor/mainpages/employer.html

    The minimum wage in New Jersey is $ 5.15 per hour.

    The general provision in New Jersey concerned paying overtime in a non-FLSA covered employer is one and one half times regular rate after 40-hour week.

    New Jersey State new hire reporting requirements are that every employer must report every new hire and rehire. The employer must report the federally required elements of:

    • Employee's name
    • Employee's date of birth
    • Employee's address
    • Employee's social security number
    • Employer's name
    • Employers address
    • Employer's Federal Employer Identification Number (EIN)

    This information must be reported within 20 days of the hiring or rehiring; every 15 days on mag media. The information can be sent as a W4 or equivalent by mail, fax or electronically. There is a $ 25.00 penalty for a late report and $ 500 for conspiracy in New Jersey.

    The New Jersey new hire-reporting agency can be reached at 888-624-6339, 877-654-4737, or 609-689-1900 or on the web at http://www.nj-newhire.com

    New Jersey does not allow compulsory direct deposit

    New Jersey requires the following information on an employee's pay stub:

  • statement of total wages and obligations
  • New Jersey requires that employee be paid no less often than semimonthly; monthly for exempt employees.

    New Jersey requires that the lag time between the end of the pay period and the payment of wages to the employee not exceed ten days.

    New Jersey payroll law requires that involuntarily terminated employees must be paid their final pay by their next regular payday (by mail at employee's request) and that voluntarily terminated employees must be paid their final pay by the next regular payday or by mail if employee requests it .

    Deceased employee's wages must be paid when normally due to the surviving spouse, children 18 or over, guardian of minor children, parents, siblings, or person paying funeral expenses (in that order).

    Escheat laws in New Jersey require that unclaimed wages be paid over to the state after one year.

    The employer is further required in New Jersey to keep a record of the wages abandoned and turned over to the state for a period of 5 years.

    New Jersey payroll law mandates no more than 40% (less for some workers) of minimum wage may be used as a tip credit.

    In the New Jersey payroll law there is no provision covering required rest or meal periods.

    New Jersey statute requires that wage and hour records be kept for a period of not less than one year. These records will normally consist of at least the information required under FLSA.

    The New Jersey agency charged with enforcing Child Support Orders and laws is:

    Department of Human Services

    Division of Economic Assistance

    Office of Child Support and Paternity Programs

    State Services

    Box CN 716

    Trenton, NJ 08625

    (877) 655-4371

    http://www.njchildsupport.org

    New Jersey has the following provisions for child support discounts:

    • When to start Withholding? First pay period ending after postmark date.
    • When to send Payment? Payday
    • When to send Termination Notice? “Promptly”
    • Maximum Administrative Fee? $ 1 per payment.
    • Withholding Limits? Federal Rules under CCPA.

    Please note that this article is not updated for changes that can and will happen from time to time.