Public Announcements

 

2015 Salary Guide is a Payroll Professional's Friend


Whether Job Searching or Hiring, the 2015 Salary Guide Is a Payroll Professional’s Friend

Payroll specialists are essential to the smooth operation of companies of all sizes — so much so that the field is experiencing rapid growth. If you’re a payroll professional looking to move up in the ranks, say to payroll coordinator or payroll manager, you need a good understanding of the hiring environment, what jobs are hot and what your future salary could look like. As an employer, you want to know how to attract and retain the best and brightest. The 2015 Salary Guide from Robert Half can help with these and other topics.

 A great resource

The 2015 Salary Guide is an excellent way for both staff and managers to stay up-to-date on industry hiring trends and compensations. The guide includes accounting and finance starting salary data for more than 375 positions, including payroll clerk, payroll coordinator and payroll manager, sorted by company size.

 Benchmarking salary

The 2015 Salary Guide notes that a payroll coordinator starting at a large company can expect to earn between $42,500 and $57,750, a 3.4 percent increase from 2014. Employers will pay more for experience: A payroll manager/supervisor starting at the same size company can expect to earn 3.8 percent more in the coming year, or $58,000 to $91,500 a year. To customize the ranges for your area, use our Salary Calculator and search under Operational Support.

Hiring trends and management advice

Despite the name, the Salary Guide has more than just wage ranges. A payroll professional can use the 2015 Salary Guide for career advice. Find out how much more you can earn with a desirable certification like the Certified Payroll Professional. The CPP can also help you advance from payroll clerk to payroll manager.And managers can consult the guide to find out why making a counteroffer is a bad idea, and how having a good blend of full-time and temporary workers can improve your company’s operation.

 If you’re ready to propel your payroll career forward or hire your next payroll professional, use the Robert Half Salary Center as a starting point for your research into salaries, hiring trends and more.

 Accountemps, a Robert Half company, is the world’s first and largest specialized staffing firm for temporary accounting, finance and bookkeeping professionals. The staffing firm has more than 345 locations worldwide. More resources, including online job search services and the Accountemps blog, can be found at accountemps.com.

On Behalf of: Accountemps A Robert Half Company

 

 

Studying for CPP Exam?

 Overcome your certification exam apprehension with APA’s new Certified Payroll Professional Boot Camp. This virtual course will arm you with the confidence and detailed knowledge you need to pass the Certified Payroll Professional (CPP) exam the first time.

Register for the CPP Boot Camp in February and be placed in a drawing to have your exam fee reimbursed – that's up to a $425 value – but hurry! This sweetheart of a deal ends February 28.

 

Modification of “Use-or-Lose” Rule For Health Flexible Spending Arrangements (FSAs)

IRS post a Modification of "Use-or-Lose' Rule For Health Flexible Spending Arrangements (FSAs) and Clarification Regarding 2013-2014 Non-Calendar Year Salary Reduction Elections Under § 125 Cafeteria Plans

The notice contains modifications to the rules for § 125 cafeteria plans. First, sections II through V of the notice modify the "use-or-lose" rule for health FSAs that is currently set forth in proposed regulations under § 125 of the Internal Revenue Code (the Code). This modification permits § 125 cafeteria plans to be amended to allow up to $500 of unused amounts remaining at the end of a plan year in a health FSA to be paid or reimbursed to plan participants for qualified medical expenses incurred during the following plan year, provided that the plan does not also incorporate the grace period rule. This carryover of up to $500 does not affect the maximum amount of salary reduction contributions that the participant is permitted to make under §125(i) of the Code ($2,500 adjusted for inflation after 2012). This carryover option provides an alternative to the current grace period rule and administrative relief similar to that rule.

Second, section VI of the notice clarifies the scope of the transition relief provided in the preamble to proposed regulations under § 4980H that allows greater flexibility for individuals to make changes in salary reduction elections for accident and health plans provided through § 125 cafeteria plans for non-calendar cafeteria plan years beginning in 2013.

To read the full notification click here

 

2014 Pension Plan Limitations

IRS Announces 2014 Pension Plan Limitations; Taxpayers May Contribute up to $17,500 to their 401(k) plans in 2014

The Internal Revenue Service today announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2014.  Some pension limitations such as those governing 401(k) plans and IRAs will remain unchanged because the increase in the Consumer Price Index did not meet the statutory thresholds for their adjustment.  However, other pension plan limitations will increase for 2014.  Highlights include the following:

  • The elective deferral (contribution) limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan remains unchanged at $17,500.
  • The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan remains unchanged at $5,500.
  • The limit on annual contributions to an Individual Retirement Arrangement (IRA) remains unchanged at $5,500.  The additional catch-up contribution limit for individuals aged 50 and over is not subject to an annual cost-of-living adjustment and remains $1,000.
  • The deduction for taxpayers making contributions to a traditional IRA is phased out for singles and heads of household who are covered by a workplace retirement plan and have modified adjusted gross incomes (AGI) between $60,000 and $70,000, up from $59,000 and $69,000 in 2013.  For married couples filing jointly, in which the spouse who makes the IRA contribution is covered by a workplace retirement plan, the income phase-out range is $96,000 to $116,000, up from $95,000 to $115,000.  For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple’s income is between $181,000 and $191,000, up from $178,000 and $188,000.  For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.
  • The AGI phase-out range for taxpayers making contributions to a Roth IRA is $181,000 to $191,000 for married couples filing jointly, up from $178,000 to $188,000 in 2013.  For singles and heads of household, the income phase-out range is $114,000 to $129,000, up from $112,000 to $127,000.  For a married individual filing a separate return, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.
  • The AGI limit for the saver’s credit (also known as the retirement savings contribution credit) for low- and moderate-income workers is $60,000 for married couples filing jointly, up from $59,000 in 2013; $45,000 for heads of household, up from $44,250; and $30,000 for married individuals filing separately and for singles, up from $29,500.

Below are details on both the unchanged and adjusted limitations.

Section 415 of the Internal Revenue Code provides for dollar limitations on benefits and contributions under qualified retirement plans.  Section 415(d) requires that the Secretary of the Treasury annually adjust these limits for cost of living increases.  Other limitations applicable to deferred compensation plans are also affected by these adjustments under Section 415.  Under Section 415(d), the adjustments are to be made pursuant to adjustment procedures which are similar to those used to adjust benefit amounts under Section 215(i)(2)(A) of the Social Security Act.

Effective January 1, 2014, the limitation on the annual benefit under a defined benefit plan under Section 415(b)(1)(A) is increased from $205,000 to $210,000.  For a participant who separated from service before January 1, 2014, the limitation for defined benefit plans under Section 415(b)(1)(B) is computed by multiplying the participant's compensation limitation, as adjusted through 2013, by 1.0155.

The limitation for defined contribution plans under Section 415(c)(1)(A) is increased in 2014 from $51,000 to $52,000.

The Code provides that various other dollar amounts are to be adjusted at the same time and in the same manner as the dollar limitation of Section 415(b)(1)(A).  After taking into account the applicable rounding rules, the amounts for 2014 are as follows:

The limitation under Section 402(g)(1) on the exclusion for elective deferrals described in Section 402(g)(3) remains unchanged at $17,500.

The annual compensation limit under Sections 401(a)(17), 404(l), 408(k)(3)(C), and 408(k)(6)(D)(ii) is increased from $255,000 to $260,000.

The dollar limitation under Section 416(i)(1)(A)(i) concerning the definition of key employee in a top-heavy plan is increased from $165,000 to $170,000.

The dollar amount under Section 409(o)(1)(C)(ii) for determining the maximum account balance in an employee stock ownership plan subject to a 5 year distribution period is increased from $1,035,000 to $1,050,000, while the dollar amount used to determine the lengthening of the 5 year distribution period is increased from $205,000 to $210,000.

The limitation used in the definition of highly compensated employee under Section 414(q)(1)(B) remains unchanged at $115,000.

The dollar limitation under Section 414(v)(2)(B)(i) for catch-up contributions to an applicable employer plan other than a plan described in Section 401(k)(11) or Section 408(p) for individuals aged 50 or over remains unchanged at $5,500.  The dollar limitation under Section 414(v)(2)(B)(ii) for catch-up contributions to an applicable employer plan described in Section 401(k)(11) or Section 408(p) for individuals aged 50 or over remains unchanged at $2,500.

The annual compensation limitation under Section 401(a)(17) for eligible participants in certain governmental plans that, under the plan as in effect on July 1, 1993, allowed cost of living adjustments to the compensation limitation under the plan under Section 401(a)(17) to be taken into account, is increased from $380,000 to $385,000.

The compensation amount under Section 408(k)(2)(C) regarding simplified employee pensions (SEPs) remains unchanged at $550.

The limitation under Section 408(p)(2)(E) regarding SIMPLE retirement accounts remains unchanged at $12,000.

The limitation on deferrals under Section 457(e)(15) concerning deferred compensation plans of state and local governments and tax-exempt organizations remains unchanged at $17,500.

The compensation amount under Section 1.61 21(f)(5)(i) of the Income Tax Regulations concerning the definition of “control employee” for fringe benefit valuation purposes is increased from $100,000 to $105,000.  The compensation amount under Section 1.61 21(f)(5)(iii) is increased from $205,000 to $210,000.

The Code also provides that several pension-related amounts are to be adjusted using the cost-of-living adjustment under Section 1(f)(3).  After taking the applicable rounding rules into account, the amounts for 2014 are as follows:

The adjusted gross income limitation under Section 25B(b)(1)(A) for determining the retirement savings contribution credit for married taxpayers filing a joint return is increased from $35,500 to $36,000; the limitation under Section 25B(b)(1)(B) is increased from $38,500 to $39,000; and the limitation under Sections 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $59,000 to $60,000.

The adjusted gross income limitation under Section 25B(b)(1)(A) for determining the retirement savings contribution credit for taxpayers filing as head of household is increased from $26,625 to $27,000; the limitation under Section 25B(b)(1)(B) is increased from $28,875 to $29,250; and the limitation under Sections 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $44,250 to $45,000.

The adjusted gross income limitation under Section 25B(b)(1)(A) for determining the retirement savings contribution credit for all other taxpayers is increased from $17,750 to $18,000; the limitation under Section 25B(b)(1)(B) is increased from $19,250 to $19,500; and the limitation under Sections 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $29,500 to $30,000.

The deductible amount under Section 219(b)(5)(A) for an individual making qualified retirement contributions remains unchanged at $5,500.

The applicable dollar amount under Section 219(g)(3)(B)(i) for determining the deductible amount of an IRA contribution for taxpayers who are active participants filing a joint return or as a qualifying widow(er) is increased from $95,000 to $96,000.  The applicable dollar amount under Section 219(g)(3)(B)(ii) for all other taxpayers (other than married taxpayers filing separate returns) is increased from $59,000 to $60,000.  The applicable dollar amount under Section 219(g)(3)(B)(iii) for a married individual filing a separate return  is not subject to an annual cost-of-living adjustment and remains $0.  The applicable dollar amount under Section 219(g)(7)(A) for a taxpayer who is not an active participant but whose spouse is an active participant is increased from $178,000 to $181,000.

The adjusted gross income limitation under Section 408A(c)(3)(B)(ii)(I) for determining the maximum Roth IRA contribution for married taxpayers filing a joint return or for taxpayers filing as a qualifying widow(er) is increased from $178,000 to $181,000.  The adjusted gross income limitation under Section 408A(c)(3)(B)(ii)(II) for all other taxpayers (other than married taxpayers filing separate returns) is increased from $112,000 to $114,000.  The applicable dollar amount under Section 408A(c)(3)(B)(ii)(III) for a married individual filing a separate return is not subject to an annual cost-of-living adjustment and remains $0.

The dollar amount under Section 430(c)(7)(D)(i)(II) used to determine excess employee compensation with respect to a single-employer defined benefit pension plan for which the special election under Section 430(c)(2)(D) has been made is increased from $1,066,000 to $1,084,000.

 

Racing Towards Year End - Employment Tax Update FREE webinar

Join us for a free webinar

 Save money and avoid errors! 

Payroll and tax professionals are invited to attend a

FREE Webinar on the latest employment tax developments. 

 Internal Revenue Service:

  • Employment tax updates
  • Information on becoming a Reporting Agent for payroll returns and deposits
  • Navigating the IRS web site to find information payroll professionals need

 

U.S. Small Business Administration:

  • The Affordable Care Act - information on the Small Business Health Insurance Credit for employers with less than 50 employees and the shared responsibility rules for larger employers. 

 

U.S. Department of Labor, Employee Benefits Security Administration (EBSA):

  • What employers need to know about retirement plans, including basic rules of fiduciary responsibility
  • Timely deposits of employer contributions and participant contributions
  • Form 5500 filings
  • EBSA’s voluntary correction programs

 

U.S. Citizenship & Immigration Service:

  • E-Verify program and responsibilities for employers
  • Navigating the Form I-9 and non-lawful permanent resident requirements
  • Which documents qualify and I-9 record keeping

 

 Enrolled Agents are entitled to up to 1 Federal Tax CE Credit; other payroll and tax professionals

may qualify depending on the requirements of their organizations.

  Choice of Dates and Times (all times are Pacific Time)

Tuesday, November 19, 2013 – 1:00 pm-3:00 pm   

Wednesday, December 4, 2013 – 9:30 am-11:30 am  

(offered with closed captioning*)

To register, click on the date above.  Before registering, be sure your spam filter is set to accept email from our webinar provider – confirmation and reminder emails will appear with the name “SL Northwest” and will be from the email address noreply@infiniteconferencing.com.  If you have any problems registering, contact us directly at SL.northwest@irs.gov

*Closed captioning displays the words that describe the audio portion of the program for viewers who are deaf or hard of hearing. Captions are available in English only. 

 

 

Oregon Law Updates

The Oregon State Legislature adjourned July 8th, 2013 and with it passed many bills that could affect how employers manage payroll.  The below list is a brief summary on some of the bills impacting payroll departments.  For a full list of bills passed, please visit the Oregon State Legistlature website.

http://www.leg.state.or.us/index.html

Oregon Veteran’s day law -

Oregon passed a law that allows veteran employee’s to take veteran’s day off as unpaid or paid through leave programs i.e. Vacation, PTO/FTO, or Personal Day Off, if they provide the employer with 21 days notice and it does not provide an undue hardship to the employer 

http://www.leg.state.or.us/13reg/measures/sb0001.dir/sb0001.en.html

Article regarding the law –

http://www.barran.com/display-alert.asp?AlertID=194

Update on sick leave in Oregon -

The bill has died for 2013 and will likely be reintroduced in 2014.

http://gov.oregonlive.com/bill/2013/HB3390/

Update on House Bill 2683 - Direct Deposit of Employee Wages

The bill passed which authorizes an employer to pay wages due to an employee through direct deposit into an employee's account. Removes language requiring employees to agree to direct deposit, but also states that an employer must pay wages by check if the employee makes a written or oral request to opt out of direct deposit. 

http://www.leg.state.or.us/13reg/measpdf/hb2600.dir/hb2683.en.pdfOregon%20

Update on House Bill 2950 - OFLA Expansion to include Bereavement Leave

Allows eligible employees under the Oregon Family Leave Act (OFLA) to take family leave to deal with the death of a family member by attending the funeral or alternative to a funeral of the family member; making arrangements necessitated by the death of the family member; grieving the death of the family member; or receiving counseling or other medical treatment to cope with the death of the family member.

Limits the period of leave to two weeks, which counts as part of the total 12?week OFLA annual leave entitlement. States that leave for this purpose must be completed within three months of the death of the family member or the discovery of the death of the family member.

http://www.leg.state.or.us/13reg/measpdf/hb2900.dir/hb2950.en.pdf

Update on SB 252 - Unemployment Late Filing Penalties for Employers

Increases to $100 the minimum employer penalty for late filings of quarterly payroll and tax reports, and penalty for continued late filings of zero payroll reports. The filings are due by the 10th day of the second month following the end of the calendar quarter. The maximum penalty may be up to 5 percent of the taxable wage base in effect for the year.

http://www.leg.state.or.us/13reg/measpdf/sb0200.dir/sb0252.en.pdf

Update on SB 192 - Unemployment Insurance Benefits 

Requires charge of benefits to employer’s account if employer fails to respond timely or adequately to request for information regarding claim, if failure causes overpayment of benefits and employer has a pattern of failing to respond timely or adequately to requests. Excludes from definition of “affected employee” individuals employed on seasonal, temporary or intermittent basis, for purposes of shared work unemployment benefit program. Requires shared work plan to include description of how requirements of program will be implemented and estimate of number of layoffs avoided because of program and to certify that certain retirement benefits will be provided as if workweek had not been reduced. Alters computation of maximum benefits under program. Provides that employers are not billed for benefits when program is fully funded by federal government. Allows individuals receiving extended benefits to receive self-employment assistance benefits.

http://www.leg.state.or.us/13reg/measpdf/sb0100.dir/sb0192.en.pdf