Adams Keegan Webinar Recap | Thanksgiving Compliance Stuffing

In November, our live webinar focused on the latest developments within HR, payroll, and benefits.

Charles Rodriguez, Brandon Roland, Marty Barton, and Cindy Mastrofrancesco from Adams Keegan discussed year-end payroll practice tips for bonuses, gifts, wage corrections, and more, as well as an explanation of the National Labor Relations Board (NLRB)'s Joint Employer Rule.

Didn’t catch the conversation on November 30? Here’s what you need to know.

Common taxable events

October and November mark the initiation of communication with clients and capture of essential payroll items. The below are some of the most common items we see impact taxable income and accurate W-2 reporting.

• Bonuses and gift cards
• Personal use of employer-provided vehicles and aircraft
• Group-term life
• Moving expense reimbursements
• Third-party sick payments
• Self-employed health insurance premiums (for owners of s-corporations, LLCs, and partnerships)

It’s important for clients to stay ahead of the year-end rush by proactively handling employee documentation.

Payroll: Year-end preparation for employees and W-2s

Employees with Efficenter accounts should regularly review their pay stubs to ensure accuracy in state and local taxes and federal income tax withholding amounts. They should check the W-4 form summary for the work state abbreviation and withholding status and edit federal or state forms accordingly. Additionally, they should verify personal information like their name, position, and current mailing address.

Employers should regularly update employee records for relocations as they affect state withholding and local taxation. To help facilitate this, they should establish clear protocols for remote employees to notify both HR and payroll departments about any changes in residence.  Employers should also recommend that employees review their Form W-4 quarterly, especially regarding exempt claims for federal income tax withholding.

NLRB's Joint Employer Rule

The NLRB’s Joint Employer Rule was issued in late October of this year and, while it initially was to be implemented by December 26, now faces a delayed rollout. Unlike the past, where actual control determined joint employment, this rule broadens the threshold, extending to mere reservation of control. It also addresses the franchisor-franchisee dynamics and external vendor relationships. 

The NLRB Joint Employer Rule bears implications for various industries, from temporary staffing to contracting arrangements, posing challenges in determining shared responsibility over employee terms. Amidst these developments, the need for a cautious approach emerges, emphasizing employer preparedness without immediate alterations to existing contracts. Employers are urged to remain informed, keeping an eye on forthcoming court opinions and administrative changes. It's crucial to adopt a measured response, assessing relationships with vendors and franchisors while awaiting further clarity on the rule's implementation.

By ensuring accuracy in employee documentation and continuously monitoring evolving rules, employers can better prepare for the year ahead and mitigate potential challenges.

For a full dive into the discussion, access the complete webinar here! Set aside approximately 45 minutes to immerse yourself in the conversation.