Not All IRS Guidance is as Good as Gold

Nina Olson is with the Taxpayer Advocate Service (TAS).  This is an independent organization within the IRS that assists taxpayers who are experiencing “troubles” with the IRS in getting issued resolve through the “normal channels”. During recent congressional hearing she was asked what seemed like simple questions concerning the types of IRS guidance taxpayers can rely on.  But the answer was not simple.  She has written a blog; IRS Frequently Asked Questions Can be a Trap for the Unwary on July 26, 2017, that contains excellent information for those of us who need to research tax questions and rely on tax guidance from the IRS.  I recommend reading it to ensure you know what you can and cannot rely on when researching the IRS website for tax guidance.

Using Fluctuating Workweek? Might Want to Think Again

If you are currently using the fluctuating workweek that is permitted under the Fair Labor Standard Acts (FLSA) you may want to review that decision.  The Fifth Circuit Court of Appeals has drawn some limits on that method.  Bill Pokorny has done a fantastic blog on discussing this recent court case. Check it out for the latest if you are currently using this type of workweek or just want to increase your current knowledge in this area.

Does Time and A Half Pay Count Towards Overtime?

When conducting my webinars on the FLSA requirements one area always seems confusing to attendees and that is the eight types of payments that can be excluded when calculating regular rate of pay.  The one found most often to be confusing to my attendees and maybe to you as well is the one that is for bona fide overtime premiums. Bill Pokorny has done an excellent blog post on this subject that I know you will find helpful on this topic. Please take the time to check it out if you offer this type of payment or to improve your general payroll knowledge.

Disaster Relief for Employees and Employers

With the major disasters befalling us many employers and employees are looking for ways to help or seeking help to recover.  The IRS, the states and others are providing relief for these disasters.  For example the IRS is permitting pension plan hardship loans and filing extensions. They are also permitting leave sharing programs and leave donations with favorable taxation.  Click here for outline of the IRS latest tax relief. 

Employer Information Report (EEO-1) Pay Data Collection Blocked

The U.S. Equal Employment Opportunity Commission (EEOC) has been notified by the Office of Management and Budget (OMB) that it is initiating a review and immediate stay of the effectiveness of the pay data collection aspects of the EEO-1 Form that was revised on September 29, 2016, in accordance with with its authority under the Paperwork Reduction Act (PRA).

The previously approved EEO-1 form which collects data on race, ethnicity and gender by occupational category will remain in effect. Employers should plan to comply with the earlier approved EEO-1 (Component 1) by the previously set filing date of March 2018.

Acting Chair Lipnic said:

“The EEOC remains committed to strong enforcement of our federal equal pay laws, a position I have long advocated. Today’s decision will not alter EEOC’s enforcement efforts.

I had consistently urged OMB to make a decision on this matter so that stakeholders would be aware of their reporting obligations.

Going forward, we at the EEOC will review the order and our options. I do hope that this decision will prompt a discussion of other more effective solutions to encourage employers to review their compensation practices to ensure equal pay and close the wage gap. I stand ready to work with Congress, federal agencies, and all stakeholders to achieve that goal.”

My editorial:  Is this a good move?  I am not sure, but it seems like it will do more to discourage employers from closing the wage gap.  So far voluntary “encouragement” to bring compensation practices closer to ensure equal pay has not really worked very well, now has it? Having to actually set down on paper, in a report to the EEOC, exactly what the wage gap is in an employer’s compensation was a good way to shed light on the subject.

What do you think?

Last Round for Now: Obama Era New OT Rules Knocked Out

On August 31st, the Judge in charge of the court case for the new OT rules initiated by President Obama issued its final ruling.  Basically he sided with the plaintiffs. For an excellent recap of the ruling I am referring you to Bill Pokorny’s blog.