Complying with Federal Tax Rules, Wage Laws, and State Requirements Without Breaking a Sweat

Employees can be overpaid in even the most well-managed payroll department.  Yes, it does happen when mistakes are made but it isn’t always the result of an error.  Perhaps the employee received a sign-on bonus but did not stay for the required length of time. Or the employee was on an advanced vacation but is now terminating before they have fully earned the time. No matter the reason, overpayments can and do happen and must be handled properly. The first questions that usually arise relate to IRS regulations. What is required if the overpayment occurred this year?  But what if it happened in a previous tax year, does that change the rules?  Are the rules different for federal income tax than they are for social security or Medicare taxes?

Recouping overpayments is also much more complex than just adhering to the IRS code! Wage and hour law compliance must also be honoured when dealing with overpayments. Before the payroll department even needs to determine IRS requirements they must first determine if recouping the overpayment is even legal under the FLSA. Issues such as exempt employee status, minimum wage and overtime rules for non-exempt employees must be considered when recovering overpayments from employees. 

And of course, the overpayment did not occur in a vacuum when it comes to state laws. Each individual state may have their own compliance issues involving wage and hour laws!  Is there a time limit for recouping the overpayment in that state? Does the employee have to be notified in advance before the deductions can begin?  Or does the state just say NO! to the whole process?   

Join us for this information-packed webinar where industry expert speaker Vicki M. Lambert, CPP will discuss these regulations and more including the private letter ruling that governs the IRS requirements. Vicki will examine the FLSA requirements on recouping overpayments including the 1998 opinion letter that spells out these requirements. She will also discuss how to research to determine the state’s requirements for handling overpayments. Vicki will review the wage and hour laws of several states and the factors that they use to determine if an overpayment can be recouped.

Webinar Objectives

• Understand common reasons why employee overpayments happen
• Learn how to fix overpayments under IRS rules, including current and past tax years
• Know when and how to use Forms W-2 and W-2c to report overpayments
• Understand FLSA rules for collecting overpayments from exempt and non-exempt employees
• Learn how overpayments affect minimum wage and overtime calculations
• Discover what state laws say about recovering overpayments, including notice and time limits
• Get tips on creating payroll policies that follow both federal and state laws

Webinar Agenda

• Handling Overpayments under IRS and State Tax Codes:
  • Why a 1990 IRS Private Letter Ruling still applies today
  • How to recover overpayments in the same calendar tax year
  • Net vs. gross pay-check impact for overpayments in previous tax years
  • Modifying FICA tax and FUTA/SUI tax adjustments
  • Reporting overpayments on Form W-2 or Form W-2c correctly
• Wage and Hour Laws and Their Effect on Overpayment Recovery
  • FLSA rules for recovering overpayments in prior years
  • Legal mandates for written repayment agreements
  • Exempt employee compliance problems and salary basis rules
  • Impacts for minimum wage and overtime law
  • State-specific rules and employer mandates

Webinar Highlights

• Expert insights on IRS and state tax laws governing overpayments
• Step-by-step guidance on reclaiming payroll overpayments
• Navigating FLSA and wage laws for compliant recovery
• Avoiding legal pitfalls in payroll overpayment corrections
• Practical case studies and real-world applications
• Q&A session with industry professionals

Who Should Attend

• Payroll Executives, Managers, Administrators and Practitioners
• Human Resource Executives and Administrators
• Accounting Personnel and Enterprises Owners
• Operations and Departmental Managers
• Lawyers, legal experts and lawmakers
• Anyone dealing with payroll intricacies and compliance issues

Credit(s)

IRS CPE Credits: 1 Tax hour