At PayTech, we are dedicated to keeping you up-to-date on all the latest news that concerns you, your business, and the services we provide! Read on to see PayTech’s July Updates on payroll, HR, accounting, and our general market news.
The IRS is cracking down on 1099 contractors. From businesses trying to manage expenses to businesses trying to show growth, many companies are using 1099 contract labor. In many cases, these laborers are not truly 1099 contractors but employees. The IRS has 20 items they use to determine if someone is a contractor or an employee. For more information, click here. If you have questions regarding whether or not your contractor is truly a contractor, contact PayTech today for an analysis!
The Affordable Care Act (ACA) is one of the most talked-about government acts currently. There are many questions by companies on what they need to do in order to be compliant, as the fines for being out of compliance could be crippling for companies, and questions about what is included in the act are rampant, since there are parts of the act that are still being reworked, even this many years after it was passed.
PayTech is helping our clients be ACA compliant. We are offering a monthly ACA report for our clients, as well as processing for their 1094/1095. If you feel that you need some questions answered about ACA compliance, please reach out to us. We continue to watch for changes and read the updates as they come out; our clients can always rely on us for the most up-to-date information, and to make sure they are compliant!
PayTech is proud to offer quarterly webinars on Human Resources! Our next webinar is scheduled for August 20th, and will be on Classifying and Paying Exempt Employees. If you would like to attend this free webinar please contact Sarah Szanto at email@example.com.
Employer Reimbursement of Employee Health Insurance: An employer health plan doesn’t include an arrangement under which an employee can have an after-tax amount applied toward health coverage, or can take that amount in cash compensation, as such an arrangement fails to satisfy the market reforms. Arrangements like this may be subject to excise tax of $100/day, but small employers (those with less than 50 full-time employees) get relief from these penalties until July 1, 2015 (see Notice 2015-17). These health care reimbursements should be included in employees’ W-2 compensation beginning July 1, 2015!