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Payroll Taxes

Payroll Tax Savings for NJ Employers- August Deadline

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Did you check your NJ SUI rates?

Tax Savings

On July 28, 2017, the annual Notice of Employer Contribution Rates were mailed to all New Jersey employers. This is not a bill, but rather a summary of the way the NJ Department of Labor calculates your employer contribution rate for unemployment and disability. This form enables you to determine whether a voluntary contribution would save you money in the subsequent year.

Can I reduce my NJ SUI rate?
A voluntary contribution increases your reserve balance and may reduce your contribution rate. Each employer should calculate the amount of the voluntary contribution required to reduce the rate. The required voluntary payment should be compared to the savings realized from a lower rate.

The unemployment expense is a substantial component of the labor cost of staffing agencies. You should give it careful attention. If you wish to make a voluntary contribution to your reserve balance you have 30 days from the date of your notice to do so. We recommend that you verify all the NJ DOL calculations including the amount of the employer contributions and the benefits charged to your account. Report any discrepancies to the NJ Dept. of Labor.

By making a voluntary payment, employers may reduce the NJ SUI rate for the coming year. Please be aware that this payment increases your reserve balance and helps reduce the NJ SUI rate in future years as well.

Checked your TWES Account?

Good news…if you didn’t receive the Notice and have a Tax Web Enabled System (TWES) account online…you can find your contribution rates there as well. The TWES system provides a wealth of information allowing employers to review their account status, open balance, payment history, employer and worker contribution rates, credit balance and any delinquency. You can log on to the TWES website at https://my.state.nj.us/

Remember doing your summer homework now may save you money down the road! If you would like assistance in determining if a voluntary contribution will save you money, please do not hesitate to contact us immediately.

Immigration Eyes New 1-9

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Statute of LIberty

What’s New?

Beginning January 22, 2017, employers must use only the new Form I-9 as reported by the US Citizenship and Immigration Services on their website www.uscis.gov. The new form is dated 11/14/2016 on the bottom of each page and expires 8/31/2019.

 

Why Should I Be Concerned?

The changes are minor, mainly to promote ease of use, particularly when completed on a computer. However, the consequences of using the old form are not necessarily minor. The penalties for Form I-9 violations have recently been doubled. The penalty for failing to comply with Form I-9 employment verification requirements are a minimum of $216 and a maximum of $2,156 per individual.  As of January 22, 2017, one of those requirements, is to use the new form.

Multi-state Staffing Firms Need to Multitask

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Multi-states

With more than three million temporary and contract employees working for America’s staffing companies, demand for other-than-permanent workers continues to stay strong.

One goal for many staffing firms involves multi-state expansion. Having a presence in more than one state acts as a buffer against a slowdown in one location; and it enhances the firm’s image, helping it pitch to large companies with multistate operations.

But staffing firms that expand across state borders need to multitask, and consider issues like whether they need to register with each state in which they’re active.

Here’s Why

In July 2015, international staffing services company Insight Global LLC sued competitor Collabera Inc. in New Jersey Superior Court. Global alleged that Collabera induced at least 12 former employees of the plaintiff to leave Global and work for Collabera in violation of their employment agreements.

It turned out that at the time Global filed the complaint against Collabera, the plaintiff firm was NOT registered or licensed to do business in New Jersey, as was required under the Private Employment Agency Act, or PEAA.

“All businesses that provide employment and personnel services must be licensed and/or registered in New Jersey in order to operate within the State,” according to the PEAA.

That apparently helped to nail the Court’s decision to dismiss Global’s suit, since “…if an employment agency, temporary help services firm, or consulting firm failed to prove licensure or registration, the entity cannot bring a cause of action in New Jersey state courts.”

Collecting fees in multi-states…

The wording indicates that the ruling may not be limited to voiding separation agreements and employment agreements. The court ruling also notes that the PEAA bars an unregistered company’s claims “for a collection of fees…”

When Crossing the Border…

Staffing services firms as well as all businesses should review the laws of the states in which they do business, and determine whether or not they are complying with registration requirements. Firms need to be aware that they may not be able to enforce contracts or collect fees if they are not registered properly in the states and major cities in which they operate. In addition to registering with the Secretary of State and Division of Taxation, staffing companies should handle other requirements in each state, including sales tax, worker’s compensation and disability insurance coverage.

 

 

Hot Savings for New Jersey Employers August Deadline to Reduce SUI Rates

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Did you check your NJ SUI rates?

Over the last few weeks, all New Jersey employers received a Notice of Employer Contribution Rates.  This is not a bill, but rather a summary of the manner in which the NJ Department of Labor calculates the employer contribution rate for unemployment and disability.  This form enables you to determine whether a voluntary contribution would save you money in the subsequent year. 

 Can I reduce the NJ SUI rate?

A voluntary contribution increases the reserve balance and may reduce your contribution rate.   Each employer should calculate the amount of the voluntary contribution required to reduce the rate.  The required voluntary payment should be compared to the savings realized from a lower rate. 

The unemployment expense is a substantial component of your labor cost. Business owners should give it careful attention. If you wish to make a voluntary contribution to your reserve balance you only have 30 days from the notification date (July 27, 2016) to do so. We recommend that you verify all the NJ DOL calculations including the amount of the employer contributions and the benefits charged to your account.  Report any discrepancies to the NJ Dept. of Labor. 

By making a voluntary payment, employers may reduce the NJ SUI rate for the coming year.  Please be aware that this payment increases your reserve balance and helps reduce the NJ SUI rate in future years as well.  

If you would like assistance in determining if a voluntary contribution will save you money, please do not hesitate to contact us immediately. We will provide you with an illustration of the benefits which you stand to reap from making such a contribution. Within the 30 day period you will be able to weigh the considerations and act accordingly.

Hot Savings – Reduce NJ SUI Rates in August

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What’s my New Rate?

In July all New Jersey employers received a Notice of Employer Contribution Rates.  This is not a bill, but rather a summary of the manner in which the NJ Department of Labor calculates your employer contribution rate for unemployment and disability.  This form enables you to determine whether a voluntary contribution would save you money in the subsequent year.  A voluntary contribution increases the reserve balance and may reduce your contribution rate.  In many circumstances a voluntary contribution represents an excellent opportunity to reduce labor costs. 

The Clock is Ticking

The unemployment expense is a substantial component of your labor cost. Staffing agencies should give it careful attention. If you wish to make a voluntary contributionto your reserve balance you have 30 days from the notification date to do so. In addition, we suggest that you verify the amount of the employer contributions and the benefits charged to your account.  Report any discrepancies to the NJ Dept. of Labor.

 Won’t my Payroll Company Take Care of This?

Outside payroll services generally don’t test the new rates for cost saving opportunities. We can assist you in determining if a voluntary contribution makes sense for you. We can provide you with an illustration of the benefits you stand to reap from making such a contribution. You will be able to weigh the considerations and act accordingly. 

 

 

 

NJ Court Gives Stiffed Workers Six Years to Pursue Unpaid Wages

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Employees in NJ now have six years, instead of two years, to bring certain claims for additional wages, thanks to a decision handed down by the New Jersey Federal District Court—Meyers et al v. Heffernan et al, No. 3:2012cv02434 (D.N.J. 2014).

Here’s What Happened

The plaintiffs in the case were commissioned salespeople. In 2010, they filed a civil suit alleging that in 2007, executive officers of their (since-bankrupt) employer, Mortgage Lenders Network USA Inc., had stopped paying them the commissions they had earned, in violation of the New Jersey Wage Payments Law (WPL) and other regulations.

The defendants, however, claimed that the WPL carries a two-year statute of limitations; which would bar the employees’ wage-claims, since they were filed more than three years after separating from the Mortgage Lenders Network.

 

But the court took an expansive view. Looking beyond the strict terms of the WPL, it found that “the nature of the injuries identified with the plaintiffs’ cause of action are more analogous to breach of contract…” and held that a private course of action under the WPL is instead subject to the six-year statute of limitations that is provided by N.J.S.A. 2A:14-1 for breach of contract claims for economic harm.

So What Does This Mean for Me?

For some time now, New Jersey business owners’ exposure has been on the rise, thanks to a jump in the number of audits by both the state Department of Labor and the federal DOL. By tripling the statute of limitation for this kind of case, the unpublished court decision could further expand the exposure of business owners to additional wage lawsuits.

Thanks—So What Should I Do?

First, make sure that your wage-hour and other guidelines comply with local, state and federal standards. Then, be sure that your staff has been made aware of the guidelines, policies and procedures, and that they are actually being followed.

Is There Anything Else I Should Know?

Yes. Even if you and your staff are paying people properly, you have to document the data. Otherwise it could come down to a case of your word versus someone else’s.

Make sure that you maintain adequate time records; weekly time sheets which contain the daily hours worked as required for hourly wage earners. Ensure that the time sheets are signed by the appropriate personnel.

Finally, keep those records in a safe place for at least seven years. Many business owners think they only need to keep wage and hour records for three years, but as we’ve seen with this latest court case, keeping them longer can be safer. Urbach & Avraham has many years’ experience handling federal and state DOL audits for staffing and non-staffing firms. We work closely with our clients to present their time records and documentation to the DOL in the most favorable manner.