Employer-provided 401(k) plans are a very popular retirement savings vehicle. In fact, according to a 2015 study, 85% of employees who have access to a 401(k) plan participate in it.
While 401(k) plans typically offer a variety of investment options, one key factor is often overlooked by both employers and employees in deciding the funds to offer and invest in: plan fees.
Best Predictor of Fund Performance is...
Plan fees can run from well under 1% to over 2% of assets under management. While 1% or 2% might not seem like a lot, the fee will heavily impact the growth of savings toward retirement over time. According to Morningstar and Consumer Reports, the best predictor of fund performance is not the experience of the fund manager or the fund’s past performance. Instead, the best predictor of performance is...
If you received an email from "the boss" requesting a PDF of the 2016 W-2s and earnings summary of all staff for quick review, would you send it?
The Internal Revenue Service issued a News Release on January 25 warning about an email scam that uses a corporate officer’s name to request employee Forms W-2 from company payroll and human resources departments.
The IRS received notification that the scam, which first appeared in 2016, is making its way around the country again this year. The fraudulent email, which may contain the actual name of the CEO, requests employee W-2 information. Cybercriminals then file fraudulent returns for tax refunds.
For the IRS News Release about this alert, please check the Forms and Downloads page in the Customer Center.
If your company pays weekly or bi-weekly, will you have an extra check date this year? In other words, if your company pays weekly, will you pay your employees 52 times this year or 53? Likewise, if your company pays bi-weekly, will you pay your employees 26 times this year or 27? The 27th/53rd additional pay date occurs every 5 or 6 years if you pay weekly and every 11 years if you pay bi-weekly. The easiest way to understand why these additional pay dates occur is to review a calendar:
Combine the extra day left over year after year, coupled with the extra day from leap year every 4 years, and you have an issue to deal with every 5-6 years or every 11 years depending on your pay frequency.
The week of December 5-9 was National Tax Security Awareness Week. The IRS, along with payroll processors, tax return preparers and software firms provided tips to alert taxpayers to security threats, including identity theft and tax refund fraud.
The weeklong series of news releases, available in the Client Center, covered topics and suggestions including:
It's the Social Security Administration!
If you’ve received a “No-Match Letter” from the Social Security Administration (SSA), there’s no reason to say, “Good grief!”
It does mean that an employee’s name and social security number (SSN) do not match in the government’s system. However, it does not necessarily mean that you, or your employee, have done anything wrong. In all likelihood, it is the result of a clerical error.
When you receive the letter, please do not ignore it. You should take reasonable steps to resolve the mismatch and you must apply the steps uniformly across all of your employees. Of course, you should also document and date your attempts to resolve the mismatch.
Specifically, you should:
To verify all Social Security Numbers in our system for all of our customers, we send electronic files to the SSA. If there are any discrepancies, we forward a report of those inconsistencies to you. You can also verify the employee’s name and SSN match by going to the SSA website at http://www.ssa.gov/employer/ssnv.htm
We also offer E-Verify services, so you can check the SSN of your new hires and confirm that they’re eligible to work in the United States at the same time. You will have no “tricks,” just peace of mind knowing that you are in compliance with the law.
The Internal Revenue Service released a new Tax Tip about fake tax bill notices related to the Affordable Care Act (ACA.) The scam involves fraudulent versions of notice CP2000 for tax year 2015 and may be received via email, as an attachment, or by mail.
You’ll be able to tell if you receive one of these fraudulent notices if -
(CLICK HERE TO READ THE ENTIRE IRS NOTICE regarding the “Fake IRS Tax Bill Notices”)
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The Breakroom is the Corporate Payroll Services resource center for 'News You Can Use,' feature stories, holiday notices, regulatory updates, product announcements, commentary and more.