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Wayne, NJ



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The House and the Senate have approved the “Middle Class Tax Relief and Job Creation Act of 2012.” The legislation will keep the 2% “payroll tax cut” in effect through the end of 2012. The “payroll tax cut” temporarily lowers the Social Security withholding tax rate on wages earned by employees from 6.2% to 4.2%. The cut originally was only supposed to last for one year, beginning with wages earned on Jan. 1, 2011. However, legislation enacted in late 2011 extended the payroll tax cut through Feb. 29, 2012. The payroll tax cut saves the average worker about $20 per week ($1,000 per year).

How does this affect you?   Your employees will continue to see less withholding on their paychecks until at least the end of

PayMatic Payroll Service

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A new law in New York, The Wage Theft Prevention Act requires employers to provide each employee working in New York State with a notice of certain pay rate and employer information in January of each year beginning in 2012 (must be provided by February 1, 2012). The law previously required this notice be given to all new hires but now adds that the notice be given annually to all employees in addition to new hires.
The notice must be in both English and the primary language of the employee to whom it is provided. The employee must sign and date receipt acknowledgement of the notice and the employer must retain a copy of the signed and dated notice for six years. Employers can provide the notice electronically so long as there is a system where the employee can acknowledge the receipt of the notice and are able print a copy of the notice for their records on a workplace-provided computer. Employers can be assessed damages by the Department of $50.00 per week per worker if proper notice is not given.
The notice must include the following:

  • Rate or rates of pay, including overtime rate of pay (if it applies)
  • How the employee is paid: by the hour, shift, day, week, commission, etc.
  • Regular payday
  • Allowances taken as part of the minimum wage (e.g., tip, meal, and lodging deductions)
  • Name of the employer and any other names used for business (DBA)
  • Address and phone number of the employer’s main office or principal location

Form templates and more information

English form templates

Spanish form templates

More information

PayMatic Payroll Service

Employee Eligibility – what you need to know about hiring legal employees

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We are often asked how employers are to verify that their employees are legally allowed to work in the US, can they rely on the employee’s word or a copy of a social security card, what are the ramifications if those rules are ignored. This E-tip addresses exactly what you need to do to verify that your employees are eligible to work in the US and when the E-Verify system must be used.

Employers must verify their employees’ eligibility by completing the USCIS form I-9, Employment Eligibility Verification.  Some employers must use of E-Verify in addition to completing form I-9, see below for a list of employers required to use the E-Verify system.

Who must be verified?

Employers and referral agencies are required by the law to verify the right of each of their employees to work in the United States, to attest that they have seen documentary proof of this right and to maintain records of such attestation. Both permanent and temporary employees need to be verified. Those who are hired for casual domestic work in a private home, not on a regular basis, do not require verification.

  • Employee leasing: employers are responsible to verify employee work eligibility even if they lease some or all of their employees and should independently verify their employees to provide a defense against sanctions.
  • Referrals: Employers must make sure they verify referrals from employment agencies even though employment agencies are required to verify on their own.  The law provides an exception to this rule when the referral agency is a state employment agency.
  • Unions: Unions are not required to verify the person they refer, so be sure to verify all referrals from union hiring halls.
  • Independent contractors: or other individuals providing labor by a contractor do not need to complete the I-9 either. However, if an employer has knowledge that an independent contractor is not authorized to work in the United States, they are not allowed to use their services.

Completing form I-9

By the first day of employment, all new hired employees must complete section 1 of the form I-9 to verify their identity, and sign that they are legally allowed to work in the United States.  The employer is responsible for ensuring that section 1 is timely and properly completed. It is not mandatory that the employee provides their social security number on the I-9, unless the employer also uses the E-verify system,

Within three business days of employment, the employer must verify if the employee is legally allowed to work in the United States by completing section 2 of the form. This section asks employers to examine certain documents that would establish both the employee’s identity, and their authorization to work in the United States. Some documents can confirm both identity, and authorization simultaneously, and some documents can support either identity or authorization.  The employer must then sign and certify under penalty of perjury in section 3 of the form that the documents appear to be genuine and relate to the employee named.   While employees must present original documents, employer are not required to photocopy or keep copies of the documents.  However, if photocopies are made, they must be made for all new hires.

Check the I-9 itself for a complete list of acceptable documents. Employers must accept any document or combination of documents listed on the form and employers many not request any documents other than those showing identity and work authorization listed on the form I-9.

Judging documents’ authenticity. Employers are not expected to ascertain the legitimacy of documents presented during the verification process. They need only verify that each document examined appeared on its face to be genuine and that they relied on it in good faith. Employer determinations of the authenticity of documentation will be judged on a “reasonable man” basis (i.e., could the average person reasonably believe that the document is authentic).

No policing duty: If an applicant for employment or for employment referral cannot or will not produce identity or employment authorization cards, it is unlawful to hire or refer the individual. However, nothing in the law requires the employer or referral agency to alert immigration authorities or other agencies as to the individual’s possible status as an illegal or unauthorized alien.

Do I Need to File the I-9 with the government?

No, the employer does not need to file form I-9 with any government agency, but must keep the form in their records for three years during employment, or one year after employment is terminated, whichever is later. These records must be readily available for request by authorized United State Government officials.

I-9 Audits & Penalties

Audits on employer I-9 completion and retention is typically done by the United States Immigration and Customs Enforcement (ICE). In an effort to crack down on the hiring of illegal workers, I-9 audits have been on the rise in recent years; in 2010 ICE conducted over 2,200 I-9 audits. These audits resulted in fines of more than $50 million and criminal charges for 180 business leaders in 2010.

Knowingly hiring illegal employees is a serious crime, and employers can be fined up to $3,200 per unauthorized alien for the first offense, up to $6,500 per unauthorized alien for the second offense, and up to $16,000 per unauthorized alien for each offense after that. The fines for discriminating against employees are the same.  There are also penalties for not completing the I-9 form correctly. Employers can be fined up to $1,100 for each I-9 form that is not properly filled out, retained, or made available for inspection.

E-Verify

E-Verify is an online U.S. Government database that allows employers to instantly verify their employees’ employment eligibility. Enrollment is voluntary in most states and is free, simply by signing up through the USCIS website. Once an employer enrolls in E-Verify they must use it to verify all employees, and cannot selectively use the service for certain employees. The I-9 form must still be completed by E-Verify participants in the same manner as businesses that do not use E-Verify. Participation is not permanent, and employers can request to terminate their participation in the E-Verify after they have enrolled.

Enrollment is mandatory for contractors doing business with the federal government and the following states currently require mandatory enrollment for all or some employers: Alaska (eff. 4/1/12), Arizona,  Georgia, Indiana (public employers), Louisiana (eff. 8/15/11), Mississippi, Nebraska (public employees), North Carolina (eff. 10/1/11), South Carolina (eff. 1/1/12), Tennessee, Utah (15+ employees), Virginia (public employees)

Summary

Properly verifying employees, and retaining the I-9 form can save employers a lot of money in potential fines. PayMatic has extensive knowledge on the best practices for verifying employees, as well as a wide range of other payroll issues. Contact PayMatic Payroll Service today to see how we can help you fulfill your business’s specific needs.

copyright PayMatic Payroll Service

Payroll Reimbursements Continued…

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In our last post I outlined a few key payroll topics that companies deal with when reimbursing their employees.  This post picks up right where last month’s issue left off, covering the following employee compensation categories:

  • Advances
  • Per diem expenses
  • Mileage reimbursements

Advances are similar to reimbursements in that they are funds given to employees to cover business expenses, they are different in the timing of the compensation. By definition, reimbursements are paid out to an employee after the expense has been incurred, while advances are paid in advance, in anticipation of a future business expense.

Most of the same rules that apply to reimbursements apply to advances, but there are some differences. Since it is nearly impossible to accurately anticipate the exact amount of an employee’s future expense, there are numerous instances where advances end up being in excess of the actual cost of the expense. In these cases the employee must return the amount of the advance that is in excess of the advance, or that amount is subject to tax withholding. The only way to avoid tax withholding on the excess funds is by using the money for other business expenses. Other exceptions apply for per diem and mileage reimbursements.

A per diem allowance is an alternative to an advance, where an employee is away from home on company business, and is given money on a per day basis to cover expenses. When using the per diem method for expense allowances, the employee is not required to submit receipts to substantiate their expenses, rather they must complete expense reports describing the time place, and business purpose of the expenses.

As with other types of expense reimbursements, if the employee does not substantiate any of the expenses, the amount given to satisfy those expenses are subject to tax withholding. In order for a per diem allowance plan to be considered accountable, three requirements must be met:

  1. The plan must be provided to pay for regular and necessary expenses an employee would encounter for lodging, meals, and incidentals while on legitimate business away from home.
  2. The amount given is not above the actual amount of expenses, or the anticipated expenses, unless excess funds are returned to the employer.
  3. The rate must be in compliance with the federal per diem rate, or any other IRS approved rate.

Per diem rates are broken into two categories: high-cost areas and low-cost areas. Check with the IRS to find out what areas are considered high-cost, and low-cost. For 2011, employees traveling to high-cost areas are entitled to a flat rate of $233 per day for lodging, meals, and incidentals, while those doing business is areas defined as being low-cost, can be given a daily rate of $160 to cover these expenses. These rates are only valid when traveling within the continental United States.

Another type of reimbursement where the IRS gives a set rate is mileage reimbursement. Employees often use their own personal vehicles to perform their job duties. In these cases, employers have the option of reimbursing the employee for the mileage they drive. Since it is hard to determine an employee’s actual cost of operating their vehicle, the IRS has set forth a fixed rate that employers can use to reimburse their employees. As of January 1, 2011 the IRS has determined this rate to be $0.51 per mile when driving for work, and $0.19 per mile when relocating for work.

The $0.51 per mile allocated by the IRS for this purpose is meant to cover vehicle depreciation, maintenance, gasoline, oil, insurance, and registration. Other legitimate business expenses incurred while driving can be separately reimbursed.

While we have gone over many of the topics dealing with expense reimbursements and advances, we have only scratched the surface of these involved issues. For a more detailed understanding of how reimbursements work, contact Paymatic Payroll today. Our knowledgeable and skilled team can help you understand your business’s specific needs, as well as any pertinent regulations when dealing with expense reimbursements, or any other kind of payroll and human resource situations.

PayMatic Payroll Service

Payroll Employee Reimbursements Done Right

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Running a small or medium sized business comes with a lot of responsibilities. The amount of bills and expenses incurred by most businesses is enough to keep its owner up at night. One especially problematic area is that of reimbursements. In a perfect world, all expenses would be paid with company checks, or credit cards, leaving a clear path for accounting to identify the source and business reason for each expense. However, we do not live in a perfect world, and it is oftentimes necessary for employees pay for these expenses out of their pockets, and even incur their own expenses for the company. In these instances the company must either reimburse its employees for these expenses, or give them an advance.

Reimbursements are not so cut and dry, however, and there are many questions that must be considered when reimbursing employees:

  • What kind of expenses are reimbursable?
  • How much is reimbursable?
  • What kind of documentation is needed?
  • Are the reimbursements subject to Tax Withholding?

In this month’s E-tip, we address many of these questions, and offers a concise explanation of how to properly give employees reimbursements, advances, and pay for their per diem expenses while staying in compliance with federal and local tax laws.

Accountable Plan

Clients often ask whether expenses paid for by their employees can be reimbursed tax free. In order for reimbursements to be tax exempt, they must be paid under what’s known as an “accountable plan,” and the reimbursements must meet certain criteria.

In short, an “accountable plan” is one where employees must account for their expenses with documentation and reasoning. The following three elements are checked to determine whether or not employee reimbursements and advances are eligible to be made without FITW:

  • Business connection
  • Adequate substantiation
  • Excess funds returned within reasonable time

For reimbursements and advances to be tax free, employees must prove their expense has a prudent business connection. The expense must be paid for or incurred by an employee while performing their duties as an employee. If advance is paid, it must be done so at a time when it is anticipated that an expense will take place.

Employees must also provide the employer with adequate substantiation, which typically comes in the form of a receipt, however, the substantiation rule is met as long as the employee provides the amount of the transaction, as well as its time and place. Additionally, the description of the business connection must be part of the substantiation.

Paymatic recommends companies put an expense report policy in place, requiring employees to submit expense reports detailing the information regarding the expense reimbursements, complete with receipts attached, prior to issuing reimbursements. It is always a good idea to have policies in place to standardize these kinds of processes within a company. These types of proactive procedures allow for more managerial control, and fewer compliance issues with the IRS and other tax agencies.

The final element for an “accountable plan” only applies to advances. This rule dictates that any advanced amount in excess of the substantiated expense must be returned to the employer within a reasonable amount of time. A reasonable time can be determined as either being a fixed amount of time, usually within 30 days from when the expense is incurred, or on a periodic basis where the employer provides the employee with periodic statements showing the expenses that must be substantiated. These statements are usually quarterly, and employees should not take more than 120 days to substantiate outstanding expense advances.

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Payroll Wage Hour Law – What Is Considered Hours Worked Under The FLSA?

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The Fair Labor Standards Act (FLSA) requires that all covered, nonexempt employees be paid at least the minimum wage for all hours worked. The FLSA also provides that covered, nonexempt employees who work more than 40 hours in the workweek must receive at least one and one-half times their regular rate of pay for the overtime hours. While some state laws vary the following is a summary of FLSA law for the most commonly asked about non-work or non-productive hours.

Meal or Lunch Periods: Meal or lunch breaks are not work time and are not compensable, unless an employment agreement specifically designates meal periods as compensable. For a meal break to be excluded from an employee’s working hours, it must be at least 30 minutes under normal circumstances, a shorter period may be considered a meal break under certain circumstances, such as where the employees themselves request a shorter meal period, but generally a period of less than 20 minutes, such as for coffee or snack breaks, should not be treated as a meal break and are usually considered rest periods and should be compensated as such.

Rest periods: Rest periods of 5 to 20 minutes count as hours worked and are compensable, because they are customary in industry, and they tend to increase the efficiency of the worker, which in the long run is beneficial to the employer. A rest period of more than 20 minutes may qualify as a non compensable meal break, if it can be used constructively by the employee. Like meal breaks, rest breaks are required by some states under certain conditions, but not by the FLSA.

Pre-work and Post-work Time: Whether waiting time is or is not compensable as hours worked under the FLSA depends on whether the employee is “engaged to wait” or is “waiting to be engaged”. According to the Wage-Hour Division, being “engaged to wait” is compensable while “waiting to be engaged” is not. An example of “engaged to wait” would be employees that are required to stay on the employer’s premises while they are waiting for their assignments. However, the employee’s presence on the employer’s premises is not necessarily the deciding factor. Employees can also be “engaged to wait” when they are working away from the employer’s premises, such as when they are waiting to be allowed to enter a customer’s home before beginning work. En example of “waiting to be engaged” would be employees who work for temporary help agencies (“Temps”) and voluntarily wait in a central location to be sent on a job. Because they are waiting to be engaged, the waiting time is not compensable.

Although employers are not required to pay employees for arriving ahead of schedule for work, they must compensate an employee for the time that they have to wait when they arrive as scheduled and the work is unavailable until later.

Although employers are not required to pay employees for arriving ahead of schedule for work, they must compensate an employee for the time that they have to wait when they arrive as scheduled and the work is unavailable until later.

Travel / Commute Time: Travel from home to work (i.e., commuting) does not typically count towards hours worked. However, there are certain exceptions if the employee uses a company provided vehicle in the following way(s): (a) the commute is made for the convenience of the employer and (b) the employee is engaged in work-related tasks during the commute. Note: Commuting to and from work in a company vehicle within the normal commuting area of the business is not typically considered compensable and is subject to the terms of an employer-employee agreement. Compensable commute time in a company-owned vehicle may also be determined by whether the vehicle is provided for the convenience of the employeeversus the benefit of the employer. Other examples of exceptions where travel time is considered hours worked (unless precluded by the terms of an employer-employee agreement) include: (a) traveling a substantial distance on an emergency after-hours call to engage in work for the employer’s customers, (b) commuting in a company vehicle that carries heavy, burdensome loads for the benefit of the employer, (c) when an employer demands that an employee spends time driving other employees to work in a company vehicle, or (d) if travel is a part of an employee’s principle job activity.

Holiday, Vacation, and Sick Leave: The granting of holiday, vacation, or sick leave, with or without payment, is entirely dependent on the employer and any agreement it may have with its employees. None of the time that an employee spends on holiday, vacation, or sick leave is treated as hours worked, even if the employee is compensated for the time. Leave time is always disregarded in computing overtime.

Example: An employee who actually works 40 hours during a week with a paid holiday is not due overtime for the eight “extra” hours recorded that week for holiday leave

Off-Duty and On-Call Time: Off-duty time refers to a certain amount of time specifically set aside for employees where they are entirely relieved of duty such that they may attend to their own business. Employers are required to give advanced notice of off-duty time so employees may leave work and are informed when work will resume. Off-duty time is not considered compensable unless the employee is required to wait during this time. On-call time is, under normal circumstances, not considered compensable time if the on-call time is not considered “overly restrictive” per se. An exception to this general rule can occur, however, if the employer establishes an overly restrictive on-call policy such that the employee’s time is spent predominantly for the benefit of the employer.

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Payroll Overtime Law – 7 Most Frequently Asked Questions About Overtime Pay

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Background: The FLSA (or Wages and Hours Bill) of 1938 established a minimum wage, guaranteed overtime pay for some jobs, set guidelines for appropriate record keeping and prohibited most employment of minors. Adhering to FLSA regulations is paramount to the success and continued positive growth of any business.

What is considered overtime?

Under federal and most states law, work in excess of 40 hours per week qualifies as overtime. In some states, overtime could kick in after working more than 8 hours a day or on 7 days per week. Overtime is calculated on a weekly basis and cannot be averaged by bi-weekly or monthly period. This means that if your employee worked 50 hours one week and 20 hours the next, the employee will receive 10 hours of overtime pay.

A workweek calculated for overtime must be a fixed and regularly recurring period of 168 hours, seven consecutive 24-hour periods.

How much is overtime pay?

Overtime is one and half times the regular rate of pay. It makes no difference whether regular pay is the minimum wage or $30 an hour. For piece rate jobs, the regular rate of pay is the average hourly rate calculated by dividing the total pay for the workweek by the total number of hours actually worked. There is no requirement to pay double time for any pay under the federal FLSA.

Who is subject and who is exempt from overtime pay?

Most employees are subject to overtime pay unless they satisfy two specific requirements and thus qualify as “exempt” from overtime pay.

First, exempt employees must be paid on a salary or fee basis of at least $455 per week. Salary is defined as “payment each pay-period of a predetermined amount that is not subject to reduction due to variations in quality or quantity of work, regardless of the number of hours worked.” Fee is defined as, “payment of an agreed sum for a job without regard to the amount of time required for its completion.”

The second requirement pertains to the type of work done by the employee. Exemptions are allowed for “white-collar” employees only that meet specific requirements that vary based on the person’s particular area of employment. Executives, administrators, highly educated professionals (such as physicians and attorneys), creative professionals (like writers and artists), computer professionals (such as software programmers), outside sales reps and highly compensated employees (that earn less than $100,000 and typically perform executive, administrative, or other professional tasks) are considered white-collar employees and may be exempt from overtime. Note that job titles alone are insufficient to determine exempt status and employees must meet specific requirements to be considered exempt.

Are there restrictions on deducting pay from an exempt employee for missed work?

Yes. Employers may not make deductions of exempt employees if the reason for absence is due to the employer or the operating needs of the business (e.g., work is unavailable and the employee is ready, willing, and able to work). Moreover, deductions may not be made for absences resulting from jury duty, attendance as a witness in court, or temporary military leave. These restrictions carry important implications for the exemption status of your employees.

Deductions may be made from the salaries of exempt employees when absences of one or more full days result from personal reasons (e.g., illness and/or disability). These deductions must be made, however, per the terms of an explicit plan, policy or practice. It is also acceptable to impose penalties or deductions from salaries in the event of serious infractions of established workplace policies (e.g., harassment and workplace violence). Lastly, partial-week unpaid suspensions (of at least 1 day) may be imposed in response to workplace misconduct and will not affect the exemption status of the employee.

Can my employees sign an agreement to waive their right to overtime pay?

No. By law, overtime may not be waived, nor can an agreement be passed that only eight hours a day/40 hours a week be constituted as working time. Many employers announce that no overtime work is permitted or that it will not be paid unless authorized, but this will not absolve the employer of paying for overtime hours that are worked.

Our employees don’t record their work hours and they don’t tell me if they work overtime. I don’t have to pay it, right?

Wrong. It is the employer’s obligation to control the working hours. “Failure to ask for overtime” by the employee is not a defense for employers.

Furthermore, the FLSA requires that employers keep the records listed below for non-exempt employees. While employers may use any timekeeping method they choose, they must keep these records for at least three years.

  • Employee’s full name, social security number and full address
  • Date of birth (if under 19 years)
  • Gender and occupation
  • Time and day of week when employee’s workweek begins
  • Hours worked each day and each workweek
  • Basis on which employee’s wages are paid (e.g., “$9 per hour”, “$440 a week”, “piecework”) and regular hourly pay rate
  • Total daily or weekly straight-time earnings and total overtime earnings for the workweek
  • All additions or deductions from the employee’s wages
  • Total wages paid each pay period
  • Date of payment and the pay period covered by the payment

For employees that work on a fixed schedule from which they seldom vary, the employer may keep a record showing the exact schedule of daily and weekly hours and merely indicate that the worker did follow the schedule. When a worker is on a job for a longer or shorter period of time than the schedule shows, the employer must record the number of hours the worker actually worked, on an exception basis.

How do I calculate overtime for non-exempt salaried employees?

There are two ways to calculate overtime for salaried employees: fixed hours and fluctuating hours. Both of these methods require an explicit understanding between employer and employee.

1. Fixed hours method: If the agreement is a salary based on a fixed workweek, it is understood that the employee will receive a salary for an agreed upon fixed amount of hours per week. The regular hourly rate of pay is calculated by dividing the salary by the number of hours the employee is expected to work. The overtime rate would be 1.5 times the regular hourly rate of pay.

Example: John works 40 hours per week on a $600 salary. His hourly rate is $15 per hour ($600/40 hours = $15 hourly rate). In a particular week John works 50 hours, the hourly overtime rate would $15 x 1.5 = $22.50. John’s total pay for the week would be $825 ($600 regular pay + $225 (10 overtime hours @ $22.50 per hour = $825)

2. Fluctuating hours method: If the agreement is a salary based on a fluctuating workweek, it is understood that the employee will receive a salary regardless of how many hours are worked. The hourly rate of pay is calculated by dividing the salary by the number of hours actually worked. The overtime rate would then be an additional half of the hourly rate.

Example: Matt worked 50 hours in a particular week on a $600 salary. His hourly rate for this week would be $12 per hour ($600/50 hours = $12 hourly rate). Then add $6 for each overtime hour (half of $12 = $6). Matt’s total pay for the week would be $660 ($600 regular pay + $60 (10 overtime hours @ $6 additional per hour) = $660).

It is important to note that when using the fluctuating method the hourly rate must never be less than the minimum wage.

While there is no legal difference between paying a non-exempt employee on salary versus hourly basis, it is however, a good practice to pay all non-exempt employees on an hourly basis to ensure that overtime is paid properly unless the employee is never expected to work more than 40 hours a week, For example, a receptionist whose hours are fixed from 9 am to 5 pm each day.

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Payroll unemployment bill for interest due mailed in New York and New Jersey employers

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Several states are implementing Special Assessments or increasing UI tax rates as interest becomes due on Federal loans taken by the state fund.  Because of the recent high number of unemployment claims, the states were forced to borrow money from the federal government.   By law, they are required to assess the interest charge to employers based on their payroll amounts reported by the employer.

What you need to do

Customers in New York and New Jersey will be receiving a bill from the state unemployment division for the interest assessment.  Pay the amount due directly to the agency by the due date indicated on the bill.

New York
Write a check for the amount due, write your employer registration number on the check and mail a check with a copy of the bill payable to:

NYS Unemployment Insurance
PO Box 4301
Binghamton, NY 13902

New Jersey
Write a check for the amount due, write your employer registration # on the check and mail a check with a copy of the bill payable to: NJ Employment Security Agency and mail it with the coupon to:

New Jersey Department of Labor and Workforce Development
Division of Employer Accounts
PO Box 059
Trenton, NJ 08625-0059

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Workers Compensation Pay As You Go

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What is Pay As You Go?

Typically, Workers’ Compensation insurance charge as much as 25% up-front and the premium is based off an estimated annual payroll, before the actual payroll is determined, followed by an yearly audit and adjustment to adjust for the actual payroll exposure.  For far too many businesses, that estimated payroll is either overstated or understated. This results in large refunds or sizable audit bills at the end of the payroll year.   In addition, it is hard for a company to evaluate its insurance costs when they don’t know what that cost is until after an audit.

Workers Compensation Pay As You Go program charges your premium in “real time” automatically through PayMatic’s payroll system.     Premiums are charged after every pay period and based on what your actual payroll is.  Each pay period, PayMatic submits your payroll information to the insurance carrier and the company then charged a premium based on that payroll.

You do nothing, PayMatic Payroll does all the reporting for you.

BENEFITS

  • Audits are almost non existent
  • No up-front deposits or finance charges
  • No large audit bills
  • Fast and efficient quoting and binding process
  • No setup – we already have your employee and payroll information
  • Real time calculation of premiums means real time evaluation of your insurance cost!

PayMatic also provides pay as you go disability insurance and pay as you go liability insurance, ask us about those program.  Call 845-290-9869 for more information or for a free no obligation quote.

2% Payroll Tax Holiday

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On December 17, 2010 the president signed into law a tax bill that extends the Bush tax cuts and provides a one year 2 percent decrease in Social Security Tax for employees. PayMatic Payroll Service has followed this bill closely and we have completed programming and deployment of these changes.

The payroll Social Security Tax break is a one-year, 2 percent reduction in the employee portion of Social Security Tax from the current 6.2 percent to 4.2 percent.  This will result in an increase in your employees take home pay for the 2011 calendar year.  For example, a worker earning $60,000 per year would pay $2,520 in 2011 (4.2% of $60k) vs. having paid $3,720 in 2010, for a net increase in their take home pay of $1,200.

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