- Payroll Center
- Resources for Payroll Professionals
- ACA Information for Payroll
- For Additional Information
- State labor laws
- News for Payroll Professionals
Information for Payroll Professionals
- Payroll Professionals Tax Center
- Employment Taxes for Businesses
- Independent Contractors vs. Employees
- Employment Tax Forms
- Employment Tax Publications
- Affordable Care Act Tax Provisions
- Recordkeeping Requirements
- Wages, Overtime and the FLSA
- Outsourcing Payroll and Third Party Payers
- Payroll Tax Relief – Employee Reclassification
- Payroll Deduction Agreement [PDF IRS Form 2159]
Many employers outsource (some) of their payroll and related tax duties to third-party payroll service providers. See Employer’s Outsourcing Payroll Responsibilities for a discussion of payroll outsourcing duties and responsibilities.
Remember, employers are ultimately the parties responsible for the payment of income tax withheld and both the employer and employee portions of social security and Medicare taxes.
The FLSA sets minimum wage, overtime pay, recordkeeping, and youth employment standards for employment subject to its provisions. Unless exempt, covered employees must be paid at least the minimum wage and not less than one and one-half times their regular rates of pay for overtime hours worked.
How Long Should Records Be Retained: Each employer should retain for at least three years, payroll records, collective bargaining agreements, sales and purchase records.
Records on which wage computations are based should be retained for two years, i.e., time cards and piece work tickets, wage rate tables, work and time schedules, and records of additions to or deductions from wages.
These records must be open for inspection by the DOL representatives, who may ask the employer to make extensions, computations, or transcriptions. The records may be kept at the place of employment or in a central records office.
Employers may use any timekeeping method they choose. For example, they may use an electronic timekeeping system, a time clock, have a timekeeper keep track of employee’s work hours, or tell their workers to write their own times on the records. Any timekeeping plan is acceptable as long as it is complete and accurate.
Employees on Fixed Schedules: Many employees work on a fixed schedule from which they seldom vary. The employer may keep a record showing the exact schedule of daily and weekly hours and merely indicate that the worker did follow the schedule. When a worker is on a job for a longer or shorter period of time than the schedule shows, the employer must record the number of hours the worker actually worked, on an exception basis.
Resources for Payroll Professionals
Small Business Administration (SBA)
The Small Business Administration aids, counsels, assists and protects the interests of small businesses and helps people start, build and grow businesses. www.sba.gov
Office of Women’s Business Ownership
The Office of Women’s Business Ownership and the Women’s Business Center assist women achieve their dreams and improve their communities by helping them start and run successful businesses, regardless of social or financial disadvantage, race, ethnicity or business background. www.sba.gov/aboutsba/sbaprograms/onlinewbc/index.html
Business.gov is the official business link to the U.S. Government. It was developed to provide better customer service for small businesses interacting with the Federal Government. http://business.usa.gov/
The American Payroll Association
The American Payroll Association is a nonprofit association dedicated to the professional society for payroll professionals. The associations objectives are to increase the payroll professional’s skill level through education and mutual support, to obtain recognition for payroll work as practiced in today’s business and legislative environments and as a professional discipline, to represent the payroll professional on the federal, state and local level, and to provide public service education on payroll and employment issues. www.americanpayroll.org
The National Association of Computerized Tax Processors
The National Association of Computerized Tax Processors is a nonprofit association that represents tax processing software and hardware developers, electronic filing processors, tax form publishers, and tax processing service bureaus. The association promotes standards in tax processing and works closely with the IRS and state governments to promote efficient and effective tax filing. The association also advocates private sector solutions to government tax processing technology requirements. www.nactp.org
National Payroll Reporting Consortium, Inc.
The National Payroll Reporting Consortium, Inc., is a non-profit trade association of organizations that provide highly automated payroll processing and employment tax services to employers. NPRC members serve more than 1.4 million employers with a combined total of more than 35 million employees, over one-third of the private sector workforce. www.nprc-inc.org * Government News * Government Agencies & Payroll Associations.
E-Verify is an Internet-based system that allows businesses to determine the eligibility of their employees to work in the United States. For instructions and policy guidance, click here to visit the Employers section of the website, or click here to visit the Employees section.
ACA Information for Payroll
- Reporting Employer Sponsored Health Coverage on Form W-2
- Reporting the Additional Medicare Tax on Form W-2 – see FAQ 52
- Reporting the Additional Medicare Tax on Form 941 – see FAQ 51
For Additional Information
- Wages (FLSA)
- Employees and Independent Contractors
- Hours Worked
- Wage Garnishments
- DOL Wage and Hour Division
- 10 Steps to Setting Up a Payroll System (SBA article)
- Prevailing Wages
- Payday Requirements
- Minimum Wage Laws in the States
- State Labor Offices
- State Labor Law Topics
- Find more resources for your state here.
- e-News for Payroll Professionals – information specifically affecting federal payroll tax returns
- e-News for Tax Professionals – news for tax professionals, links to resources on IRS.gov and local news and events by state
- e-News for Small Businesses – information about IRS small business outreach products and programs
- SSA/IRS Reporter Newsletter
Access to this quarterly newsletter for employers.
- W-2 News for Employers and Small Businesses
Sign up to receive the SSA electronic newsletter for employers who submit W-2s to Social Security.
- Social Security Administration (SSA) – Employer Web page – How to file W-2s online and how to use SSA’s Social Security Number Verification Service.
- Check out the latest issue of the APA’s PAYTECHonline:
- Payroll Events
- Payroll Resources
- Government Corner