Payroll Answer Book: 2023 Edition

Payroll Answer Book gives payroll professionals guidance on the steps they need to take to comply with the laws and regulations governing payroll. From both a legal and practical standpoint, broad and deep coverage is given to the payroll implications of the wage and hour law and how to handle the federal employment taxation of benefits offered to employees. Detailed information is provided on computing and paying payroll taxes, how to handle garnishments and other deductions, how to determine whether workers are employees or independent contractors, what records must be kept, what the benefits and disadvantages of direct deposit of employees' wages are, how to treat sick pay, how to handle a merger or acquisition, what to ask when employees work abroad, and how the payroll department can protect employees' data. In addition to answering the full range of payroll questions, the Payroll Answer Book contains abundant examples that illustrate necessary calculations. The 2023 Edition of Payroll Answer Book brings the payroll professional up to date on the latest federal law and regulatory changes, including: The National Labor Relations Board's proposed rule to clarify the rules on joint employment State salary-level test for FLSA white-collar exemptions Update on the minimum wage for workers on federal contracts of $16.20 per hour, up from $12.15 in 2022 Information on completing Form 941 Forms that designated agents must file with Form 941 COVID-19 impact on employment verification Twenty-two states require employers to use e-Verify Form 1099-NEC for nonemployee compensation, which replaces 1099-MISC Penalties for unfiled 1099-NEC (formerly 1099-MISC) Late Night ACH payments can be submitted up to 11:30 p.m. E.T. to be credited the next day, effective September 2022 NACHA is reviewing the use of crypto currency Nine states allow employers to require direct deposit for employees Earned Wages Access on Demand Pay has increased over the past year Due dates for commonly filed tax forms How to complete the 2023 W-2 Form State minimum wage law changes Standard withholding order for child support set to expire September 30, 2023 Cents-per-mile valuation method increases to $0.655, up from two increases in 2022: $0.625 for July 1 - December 31, 2022 and $0.585 for January 1 - June 30, 2022, and the FMV for passenger automobiles (including trucks and vans) remains at $60,800 for 2023 New Social Security wage limit for 2023 is $160,200 2023 federal deposit lookback period 2023 FICA exclusion amounts for election workers and household workers Due dates for filing 2023 Forms 941 Expiration date for the 2023 exemption from federal income tax withholding Supplemental wage withholding rates are 22 percent (37 percent for wages exceeding $1 million) for 2023 2023 figures used to withhold federal income tax from wages paid to nonresident aliens Maximum earned income credit and income limits for 2023 List of legal holidays for 2023 Inflation-adjusted penalty amounts for failure to furnish correct Forms W-2 Qualified plan contributions and benefits limits for 2023 Maximum excludable adoption assistance benefits, and adjusted gross income (AGI) limitations, for 2023 For 2023, high-low per diem rates for high-cost and other cities are now $297 and $204, respectively 2023 AGI limits for IRA contributions 2023 qualified plan contribution limits, including catch-up contributions High-deductible health plan and health savings account contributions limits for 2023 2023 exclusion from wage limits, by age, for employer-paid long-term care insurance premiums The 2023 highly compensated employee (HCE) threshold is $150,000 for qualified plan nondiscrimination testing purposes The 2023 key employee compensation threshold, for nondiscrimination testing purposes, is $215,000 2023 control employee thresholds for purposes of valuing the personal use of a company vehicle Saver's credit AGI limits for 2023 2023 qualified transportation fringe benefits limits for parking and transit The Virgin Islands continues to have a federal Unemployment Tax Act (FUTA) credit reduction, along with four new additions: California, Connecticut, Illinois, and New York for 2022 Totalization agreements used for expatriates Registration used by companies to pay employees in another country Considerations for year-end processing on international payroll Employment contracts are common for employees in foreign locations Who expatriates are, and what type of payments they receive on their assignments Tables for calculating the amount of wages exempt from levy are published annually in IRS Publication 1494 IRS has gradually commenced its levy collection practices, but is sensitive to the impact of COVID-19 Requirements to support and substantiate PPP loans DOL joint employment status State minimum wages for 2023 DOL and NLRB will be coordinating efforts to pursue employers who have misclassified workers Penalties for misclassification of workers California Privacy Rights Act eliminated the employee exception to CCPA, giving employees the same rights as consumers, effective January 1, 2023 Measures to ensure physical security within the Payroll Department What steps an employer should take if there is a breach of security at the state level Third-party vendor role in data security Cloud computing impact on Payroll Department security protections Rules related to moving employee payroll data to and from the United States for processing Rules governing data privacy in the European Union Rules governing date privacy of the United Kingdom since departing the EU Key elements for the Payroll Department during the management of a merger or acquisition Schedule D of Form 941 requirements in a merger or consolidation Requirements around W-4s in a merger Filing requirements for FUTA in the context of a statutory merger or consolidation Common Paymasters and Common Pay Agents operate in a merger or acquisition transactions Disregarded entity under successorship rules The SUTA dumping rules related to state unemployment filing Retention requirements for various employee-related documents Third-party payer for sick pay reporting Update on sick pay laws for state and local jurisdictions Recent changes in Certified Professional Employer Organizations (CPEOs) Best practices to secure employee records