The New Jersey Small Business Retirement Marketplace Act will go into effect this March 2022, requiring employers who meet specified criteria to offer their employees the ability to participate in a qualified retirement plan.
Employers with 25+ employees in the past year who have been in business for at least two years are required to participate unless you currently have a qualified plan.
Tax credits are available for employers who offer a qualified plan.
Employers unable to offer a traditional retirement plan are required to enroll in the New Jersey Secure Choice Savings Program, a state-sponsored retirement plan.
PSS can help you find the retirement plan that best fits your company’s needs.
2022 Retirement Plan Contribution Limits
Preparing for retirement just got a little bit easier. In November, the IRS announced new contribution limits for 2022. For 401(k) and 403(b) accounts, the contribution limit increased to $20,500 while the catch-up contributions remain at $6,500. SIMPLE IRA Plans increased to $14,000 and catch-up contributions remain at $3,000.
If these increases apply to your retirement strategy, you may want to make some adjustments to your contributions. Call us today to find out how you can maximize your retirement savings.
Federal law requires employers to send employees W2 statements regardless of how little earnings or wages are.
The statement can be sent in either paper or digital form and must be postmarked no later than January 31st.
If an employer does not send a W2, both the employer and the employee are still liable for federal income taxes. The employee will have to estimate their wages and tax withheld and provide additional information to the IRS such as dates worked and rate of pay.
If you do not supply your employee with a W2, the employee should ask for you to provide this. According to the IRS, if the employer does not send a W2 to an employee by February 15th, the employee should ask the IRS to demand the form from the employer. The IRS will then step in and tell the employer it must be provided in 10 days or face penalties.
If you have ever received notice of a court-ordered wage garnishment for an employee, you may be left with that feeling of yet another thing you need do.
Wage garnishments are more common than you may think, and improperly handling one can adversely affect your business.
A Wage garnishment is a legal court ordered mandate requiring the employer to withhold and remit a portion of a person’s earnings to pay a financial obligation. They can be for child support, tax debts, student loans, bankruptcy, etc.
The order legally requires you to hand over a specified portion of the employees’ paycheck and send it directly to a third party. The court order will outline what you must do.
To avoid any legal penalties, the business must follow all instructions.
Don’t let court orders cause additional work for you. Let PSS manage the deductions and payments, so you don’t have to.
While federal law has no requirement for an employer to use a specific timekeeping system, it does mandate that all employers pay nonexempt employees for all hours they work.
Regardless of the size of your business, especially those with nonexempt employees, skimping in this area is not in your best interest.
In fiscal year 2021, the U.S. Department of Labor recovered more than $230 million in back wages. Often, these recoveries stem from nonexempt employees filing a complaint against their employer for unpaid regular or overtime wages.
One way to stay under the DOL’s radar is to ensure you have a simple and accurate timekeeping system in place.
PSS can help! Not only do we have options for timekeeping, but you can import your payroll for faster, and more accurate processing. Call us today to get started!
Take some time today to tell your friends and business associates about Payroll Service Solutions. If their company successfully becomes a new customer, our team will credit your next payment $50 or gift you personally a $50 Amazon gift card (your choice).
This program is unlimited—you are eligible to be rewarded for each referral that becomes a new customer! Click here to get started
According to a psychological study, the old adage “time flies when you’re having fun” isn’t quite true. In fact, it’s just the opposite. When people were listening to music they enjoyed, time seemed to pass more slowly. This could be because people pay more attention to things they like, which slows their perception of time.