- David Warren
- Last Active
- No Roles
The temp agency looks at hours worked while he/she was their employee. You look at hours worked while he/she is your employee. This is what the law says. Encourage the employee to call up federal DOL and explain them why he/she is special and deserves special handling. Then do whatever DOL tells you to do.2
It is always easier to do these sorts of things at the end of the pay period. On the other hand, Very Senior Management in my experience does not give a flying f*** about making PR's job easier (or possible).
Not the question, but things like IC>employee risk an argument that that the worker was legally ALWAYS an employee and just being mishandled. Non-exempt to Exempt is not a big deal (if the Exempt test passes), but the reverse is maybe not true. Possible argument that the employee legally was always non-exempt.3
Utah is not my state and I have no idea what Utah law specifies. I am retired. Back when I was working, I always subscribed to one of the big payroll library services which spelled out exactly what the rules were for each state (APA, BNA, CCH, RIA). We had employees in 43 states (not Utah) and actually looked up the withholding rules for each state.
My last full time job was with a very big software company everyone has heard of. For many reasons we did not like using exactly the instance on the W-4 to provide instructions for both federal and state withholding, even if state law allowed it. Employees would always do things like claim the W-4 change was supposed to be for federal only. Or state only. Or they were trying to change the address on their check and wanted their taxes left alone. Or they changed states and payroll using their secret mental powers was supposed to just know this. This can get very old.
We had a generic in house e-form system. For any state that did not have its own form, we create a state specific withholding form, that made it very clear what state was involved, that it was for state taxes only and that if the employee changed states it was their responsibility to file a new form. We also changed the Federal W-4 to indicate that it was for federal taxes only. Which is actually what IRS thinks in the first place. The e-form system maintained a log of exactly when/what all changes were and we had individual IDs/PW for all employees. We also sent email confirmations of all changes.We sent annual reminders with current instructions. Did not stop employees from making B.S. claims, but it did not give them much ground to stand on.
If you are in very few states, it is not difficult to Photoshop the state forms for the W-4, and not use the e-forms approach. But IMO using exactly the same instance of the W-4 for both federal and state is a really bad idea. Make employees give separate instructions for federal and state. And make them spell out which state they are talking about.
Not the question, but there is a similar problem with visas. SOMEONE needs to keep track off this. Send quarterly memos to all visa holders and ask if anything has changed. Keep track of visas that expire and contact employees say 30 days ahead of time. Yes this should be HR, but if it blows up, it becomes Payroll's problem.1
Legally each pay period stands by itself and there is nothing in federal law talking about using annual methods. I have always used a percent of pay period method worked method. The feds do not require this particular method, but there are some court decisions which bless the method. Example, 40 hours worked and 96 standard hours in this pay period. Pay 40/96 times the salary. Easy to explain and legally supported. The regulation specifically mentions the "proportionate method", and this is that. You can argue that your annual methods are also proportionate, but they are harder to explain to the employee and do not have any court decisions backing them up. KISS.1
Unless the rules have changed you CANNOT deduct the overage. Both sides are legally supposed to have an insurance risk.1