IRS reminds employers that implementing certain optional retirement plan provisions of SECURE 2.0 affect Form W‑2 and Form 1099‑R reporting starting in 2023 - The IRS recently issued Fact Sheet 2024‑18 to highlight how...more
While many employers use the term "1099 employee" as a means to distinguish independent contractors from the company's W-2 employees, no such term exists from a legal standpoint. In fact, in addition to being inaccurate,...more
Some taxpayers are receiving automatically generated IRS notices of underpayments and penalties with respect to Form W-2 income tax and FICA withholdings, unemployment taxes, and backup withholding, as well as other year-end...more
For the past several years, thousands of businesses have been hit with phishing scams during tax season. Through these social engineering scams, hackers obtain employee Forms W-2 for filing fraudulent tax returns seeking...more
Seyfarth Synopsis: Yesterday, the Department of Family and Medical Leave (DFML) reported on guidance it received from the Department of Revenue regarding how employers participating in the Commonwealth’s Paid Family and...more
In final regulations set to take effect for 2020 Forms W-2, the IRS gives employers the option of using truncated Social Security numbers (SSNs) on employee Forms W-2 issued after December 31, 2020. The new rules are an...more
In the spring of 2019, the Social Security Administration (SSA) renewed its practice of sending employment eligibility correction request notices (known as “no-match letters”) to employers. The SSA had discontinued the...more
After a break of several years, employers are again receiving “no-match” letters from the Social Security Administration. The purpose of the letters, now formally called Employer Correction Requests, is to inform employers...more
Under the Immigration Reform and Control Act (IRCA), employers must verify the identity and employment authorization of each person hired after November 6, 1986. This verification process is documented by completing and...more
In March 2019, the Social Security Administration resumed issuance of Employer Correction Request Notices, commonly referred to as “Social Security No-Match Letters.” The No-Match Letters are being sent to businesses...more
For several years now, we’ve been alerting employers about the dangers of phishing scams that attempt to obtain private and personal information from employers... Many of these scams rear their ugly head around tax season,...more
Social Security Administration (SSA) has begun notifying employers that the information reported on an individual employee’s W-2 form does not match the SSA’s records with “Request for Employer Information” letters, known as...more
Employers commonly make payments to former employees for a number of reasons. Two of the more routine payments are those from a non-qualified deferred compensation plan (such as payments from a supplemental executive...more
The New Jersey State Bar Association recently met to discuss, among other things, our favorite topic: Cybersecurity. (Perhaps our esteemed Privacy, e-Communication and Data Security Practice Group chair was there….) We wanted...more
Phishing. Spoofing. - These words may sound silly, but for employers, they are anything but. Phishing is the attempt to obtain sensitive electronic information—such as usernames, passwords, or financial...more
As tax season comes to an end, remember to tell your employees about their potential eligibility for the earned income tax credit (EITC), if you have not done so already. In 2017, the Oregon Legislature enacted SB 398...more
At the forefront of mind of every gig economy company is the troublesome question of whether its workers are properly classified as independent contractors. Just search our blog for cases involving “misclassification” and...more
It is tax season once again, and with it comes an increased threat of phishing scams targeting human resources and payroll personnel. In 2016, the IRS alerted employers to a then-emerging email phishing scheme in which...more
Seyfarth Synopsis: Employers have been scammed into sending sensitive W-2 information to malicious third parties. This article outlines the key steps California employers must immediately take if subject to this unfortunate...more
Section 530 Relief - Employers that have workers which the employer classifies as “independent contractors” (Form 1099) risk having these workers reclassified by the IRS as employees. This is a major audit area for the...more
I admit that, like many Americans, I am fascinated with the lives of the British royal family. That is especially true with respect to Charles and Di’s two young princes. I enjoy hearing news about Prince Williams’ adorable...more
A large portion of the data breaches that occur each year involve human resource related information. Bryan Cave has put together a multi-part series to help human resource managers understand, prepare for, and react to, a...more
IRS Form SS-8 Determinations of Employee Status - Employers that have workers which the employer classifies as “independent contractors” (Form 1099) risk having these workers reclassified by the IRS as “employees.” This...more
A continuing point of contention in employment law revolves around who is an employee versus who is an independent contractor. The issue seems to come up often in wage and hour cases and workers’ compensation or unemployment...more
With new and sophisticated schemes perpetrated by hackers and scammers, and sensitive personal information becoming increasingly accessible to numerous insiders, it is only a matter of time before most employers will be...more