Inova Payroll Blog

Preparation Strategies for Upcoming DOL Overtime Rule

Posted by Grace Ferguson on May 5, 2016

Update May 18, 2016: The new overtime rule was announced today and takes effect December 1. The threshold is $47,476 and will be updated every three years. Incentive pay like bonuses can account for up to 10% of the threshold amount.

Update November 23, 2016: A preliminary injunction issued by a federal judge has delayed the new FLSA overtime rule that was set to take effect December 1. With the delay in the rule, employers are not required to meet the rule's increased salary threshold of $47,476 for exempt status starting December 1. The rule will continue to be reviewed by the court and a final decision will be issued at a later date.

On March 14, 2014, President Barack Obama signed a memorandum, directing the U.S. Department of Labor to revise the Fair Labor Standards Act overtime protection rules. The DOL subsequently issued a proposed rule that would raise the annual salary for the overtime exemption from $23,660 to $50,440. The final rule is expected within days and the general consensus is that employers should start preparing for the change now as they may have 60 days to comply.

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Topics: Payroll, Employer News

Tip Reporting Cheat Sheet

Posted by Inova Payroll on Mar 24, 2016

Tip income represents special payroll and reporting challenges for restaurant employers. Underreporting of tip income triggers a two-fold effect: inadequate withholding of the employee’s share of taxes and underpayment of the employer’s portion. Still, that’s just one side of the tip reporting coin. On the other side are requirements you must meet, such as minimum wage, tax withholding and tip allocation.

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Topics: Payroll, Employer Basics

8 Payroll Mistakes That Could Cost You

Posted by Kim Peco on Jun 30, 2015

Whether you own a small business with one employee or a growing company with dozens, mistakes are bound to happen. Unfortunately when it comes to payroll, those mistakes can end up costing you a pretty penny.

Did you know that in 2014 U.S. businesses were fined roughly $5 billion in payroll tax penalties? That’s a good chunk of funds to give up for unintentional mishaps. But don’t add a payroll penalty line item to your budget yet! We have compiled a list of eight common payroll mistakes that businesses make so you can avoid them…and the penalties that follow.

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Topics: Payroll, Small Business

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Thank you for visiting our blog. Please note that we do our best to fully research the blog topics you see here and present accurate and up-to-date information. We believe the information to be accurate but make no claims as such. We also want to share with you that we do not provide professional accounting, financial, legal or tax advice and we recommend contacting a licensed accounting, financial, legal or tax advisor for business advice. For any comments related to the blog, please email us at info@inovapayroll.com.