This webinar addresses all of these issues and helps payroll departments to establish a clear policy on handling overpayments that keep it in compliance with all federal and state requirements and regulations!
Mistakes can be made on an employee's paycheck in the most well managed payroll department. Underpayments of course, are not difficult to resolve. However, correcting errors involving overpayment of wages can be quite different! Multitudes of questions arise regarding what is required of the employer under IRS regulations.
But recouping overpayments are not just governed by IRS tax laws. Wage and hour law compliance must also be honored when dealing with overpayments. Issues such as exempt employee status, minimum wage and overtime rules for nonexempt employees must be considered when recovering overpayments from employees.
And of course, individual states have their own compliance issues involving state tax code and/or wage and hour laws! What do you need to watch out for on the state level when creating a collection of overpayment of wages policy?
Are you prepared to handle overpayments compliantly and effectively?
Areas Covered in the Session:
Handling Overpayments under IRS and State Tax Codes
Wage and Hour Laws and Their Impact on Recouping Overpayments
- Why a 1990 IRS Private Letter Ruling on handling overpayments applies today
- Correcting overpayments in the same calendar tax year
- Why asking for the gross is better than the net check for prior year overpayments
- Correcting FICA taxes for a prior year overpayment
- Correcting FUTA/SUI taxes
- Using Form W-2 or Form W-2c to report overpayments
Where do the states stand on recouping overpayments
Who Will Benefit:
- The standards under the FLSA in terms of timeframe for recouping prior year overpayments
- Is a written agreement for repayment always required under the FLSA
- Collecting overpayments from exempt employees and its effect on salary basis compliance
- Recouping overpayments and its effect on minimum wage and overtime requirements
- Can employers treat advanced vacation payments as overpayments if an employee terminates
- Payroll Professionals
- Human Resources
- Accounting Personnel
- Business Owners
- Attorneys, or any individual or entity that must deal with the complexities and technicalities overtime calculation within the payroll process.