November, 2003 The Payroll News Volume 1, Issue 6
http://www.custompay.us/

The Latest News, Tips and Tools For Payroll and Tax Issues
New Program is implemented for CustomPay clients
CustomPay is sponsoring a new employee benefits program for all existing clients … (read more)

Payroll

Tax Calendars for 2004 (IRS Publication 509) has been released by the IRS ... (read more)

Arizona has repealed the requirement for withholding a minimum of $5 per month ... (read more)

The IRS has announced special tax relief, beginning October 21, 2003 ... (read more)

Federal 'High-Low' Per Diem Rates Issued. Updated rates apply for travel undertaken on or after November 1, 2003.

HR

CCH finds employee absenteeism costs companies more than ever … (read more)

Unemployment insurance

The Rules of the Texas Workforce Commission covering unemployment compensation have been amended as follows … (read more)


Read more articles on our website www.CustomPay.us under News and Articles.
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New Program is implemented for CustomPay clients

A new sponsored employee benefits program

CustomPay is sponsoring a new employee benefits program that allows all existing clients to take up to 40% discount on premiums for Long-Term Care insurance from one of the best LTC carriers on the market. Whether it is a one employee operation or 300 employees, one participant or hundreds, anyone - business owners, employees or their parents can acquire a comprehensive individual policy at a corporate group discount. It is our way to say thank you for being a CustomPay client. If you would like to apply or have questions, please contact Marty Levine, CPA at mlevine@custompay.us.

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Payroll

IRS issues tax calendars for 2004

Tax Calendars for 2004 (IRS Publication 509) has been released by the IRS. The publication notes the extended due date for Forms 1098, 1099, and W-2, if filed electronically (not via magnetic media). The due date for filing these forms with the IRS or Social Security Administration is extended to March 31, 2004. (The date for giving recipients these forms is February 2, 2004.)

Arizona repeals $5 withholding requirement

Arizona has repealed the requirement for withholding a minimum of $5 per month. The $5 minimum withholding applied to employees regardless of income or deductions, including those employees who had no federal withholding and those who elected the 0% Arizona withholding rate. It also applied to employees who were specifically exempt from Arizona withholding. (Ch. 1 (H.B. 2001), Laws 2003, Second Special Session, approved and effective as of October 23, 2003.)

IRS grants tax relief due to California wildfires

The IRS has announced special tax relief, beginning October 21, 2003, for some California residents in the Presidential Disaster Area that was struck by wildfires. The disaster area counties are: Los Angeles, San Bernardino, San Diego and Ventura. The deposit penalty waiver period for employment taxes is October 21 through November 7, 2003. The disaster designation for applicable returns is "CA Wildfires".
Technically, the extension to file and pay does not apply to information returns or to employment tax deposits. However, the IRS may abate penalties on such deposits for affected taxpayers due to reasonable cause during the penalty waiver period, provided the payments are made by the last day of the waiver period.
The affected taxpayers include individuals and businesses located in the disaster area, those whose tax records are located in the disaster area, and relief workers. The same relief will also apply to any places added to the disaster area later. (IRS News Release IR-2003-126, October 28, 2003.)

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HR

CCH finds emplotee absenteeism costs companies more than ever

The average per-employee cost of absenteeism climbed to an all-time high of $789 per year in 2002, up from $755 in 2001.

This higher cost comes despite a slight decline in absenteeism rates from 2.2 percent in 2001 to 2.1 percent in 2002 and reflects a price tag of as much as $60,000 a year for small companies, while the largest employers ante up more than $3.6 million.

Personal Illness accounted for 33 percent of no-shows. However, reasons other than illness accounted for 67 percent of unscheduled absences. Specifically, these reasons were: Family Issues (24 percent); Personal Needs (21 percent).

Stress (12 percent); and Entitlement Mentality (10 percent).

Morale seems to make a difference: companies that reported Very Good / Good morale had a lower absenteeism rate (1.9) compared to those reporting Fair/ Poor morale (2.4). The effects of September 11 also were much more likely to contribute to a change in unscheduled absenteeism rates among organizations with lower morale.

When it comes to combating unscheduled absenteeism, the two work-life programs rated as most effective were Alternative Work Arrangements and Compressed Work Week. Other programs receiving high ratings included: Leave for School Functions, On-Site Child Care, Employee Assistance Plans and Telecommuting.

Paid Leave Banks (also known as paid time off) continued to be ranked as the most effective absence control program. However, fewer than one-half of organizations have adopted Paid Leave Banks, while nearly all organizations report using Disciplinary Action.

Reducing employee no-shows doesn't appear to be likely in the near future: 83 percent of companies surveyed believe that unscheduled absenteeism is likely to stay the same or get worse in the next two years.

2002 CCH ® Unscheduled Absence Survey

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Unemployment insurance

Texas amends its UI rules

The Rules of the Texas Workforce Commission covering unemployment compensation have been amended as follows.

Unemployment obligation assessment. The Commission will collect an unemployment obligation assessment from each employer eligible for an experience tax rate if, after January 1 of a year, an interest payment on an advance from the federal trust fund will be due and the estimated amount necessary to pay the interest is not available in the obligation trust fund or other sources, or bond obligations are due and the amount necessary to pay in full those obligations, including bond administrative expenses, is not available in the obligation trust fund or available otherwise.

CCH


With all payroll tax related questions please contact Natalie Berman, CPA at nberman@nbaccorp.com
With payroll questions please contact Sepi Jahed, CPP at sjahed@custompay.us
With employee benefits questions please contact Boris Foxman, RFC at bfoxman@custompay.us

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