From Overpayments to Deductions: A Payroll Professional's Guide to Staying Compliant
In the ever-complex world of payroll, managing overpayments and handling deductions are two of the most intricate tasks payroll departments face. Mistakes can happen even in the most well-managed payroll departments, whether it's an overpaid bonus, unearned vacation time, or deducting voluntary fringe benefits. Ensuring compliance with both federal and state laws is critical to avoid penalties from the IRS or labor departments. This combo webinar delves into the comprehensive rules, regulations, and best practices for handling overpayments and processing deductions to ensure your payroll department stays compliant and efficient.
Webinar Objectives:
- Gain a complete understanding of IRS and wage-and-hour law regulations for handling payroll overpayments and processing deductions.
- Learn the steps to legally recoup overpayments while maintaining compliance with FLSA and state wage laws.
- Master the rules for legally deducting from employee wages, from mandatory taxes to voluntary benefits, and more.
- Explore the state and federal differences regarding wage deductions, ensuring your payroll practices align with jurisdictional requirements.
Session 1: Overpayments
Overpayments happen for many reasons, not always due to errors. Whether it's an unearned sign-on bonus, advanced vacation, or other situations, overpayments must be corrected within the boundaries of IRS tax regulations and wage laws. But it doesn’t stop there—state and federal wage laws bring additional complexity to how and when repayments can be collected.
Key Topics:
- Handling overpayments under IRS and state tax codes, including the 1990 IRS Private Letter Ruling.
- Recouping overpayments within the same calendar tax year versus prior years.
- Compliance with wage and hour laws under the Fair Labor Standards Act (FLSA), including exempt employee salary considerations, overtime rules, and minimum wage compliance.
- Legal limitations on recouping overpayments across states, including notification requirements and timeframes.
Session 2: Deductions
Once gross wages are calculated, the next step is to ensure the correct deductions are taken from employee paychecks. Mandatory taxes, voluntary benefits, and fringe benefits all have their own rules, which differ between federal and state laws. Making improper deductions can lead to significant penalties.
Key Topics:
- What can and cannot be deducted from wages: mandatory taxes, voluntary deductions, and employer-controlled deductions.
- Legalities of deducting for uniforms, cash shortages, breakage, meals, and lodging.
- Navigating child support, tax levies, creditor garnishments, and "payday loan" deductions.
- Recouping loans, advanced vacation, and employee purchases upon termination.
- Understanding the impact of anti-wage theft laws across various states.
Webinar Highlights:
- Handling Overpayments:
- IRS and FICA corrections for current and prior year overpayments.
- State laws governing overpayment recoupment, including notification and legal timelines.
- Federal and state requirements for handling advanced vacation, loans, and employee purchases.
- Managing Deductions:
- Understanding mandatory and voluntary deductions, and what employees control.
- Compliance with federal and state laws on tax levies, garnishments, and fringe benefits.
- Legal considerations when deducting for uniforms, meals, lodging, shortages, and breakage.
- Rules for handling deductions from final paychecks, especially for advanced vacation time and employee loans.
This webinar offers payroll professionals the tools and knowledge to confidently manage overpayments and deductions while navigating the legal complexities at both the state and federal levels.
Who should Attend:
- Payroll Executives/Managers/Administrators/Professionals/Practitioners/Entry Level Personnel
- Human Resources Executives/Managers/Administrators
- Accounting Personnel
- Business Owners/Executive Officers/Operations and Departmental Managers
- Lawmakers
- Attorneys/Legal Professionals
- Any individual or entity that must deal with the complexities and requirements of paying employees
