Paychex Inc., a leading provider of payroll, human resource, and benefits outsourcing solutions for small- to medium-sized businesses, today released its monthly update on compliance issues it is monitoring – issues that impact America’s businesses.
“Paychex does more than handle payroll and HR outsourcing for America’s businesses. Our risk management and compliance teams spend a great deal of time focusing on regulatory changes to issues like unemployment and health insurance. We help lessen the burden on America’s businesses by focusing on these complicated issues so they can focus on doing what they do best, running their businesses.”
- Martin Mucci, Paychex President and CEO
Payroll Tax Extension / Emergency Unemployment
Regulatory Development: On February 22, President Obama signed into law an extension of the payroll tax deduction and emergency unemployment insurance (UI). The extension of these two programs will last through the end of the year.
What it Means: In addition to extending the two-percent payroll tax cut and emergency unemployment benefits, and maintaining the current reimbursement rate for doctors who accept Medicare, this bill allowed the IRS to finally release the revised form 941 for the first quarter. Additionally, the bill includes several provisions meant to enhance the nation's unemployment insurance system. For example, there is a provision in the bill that allows states to use UI money for programs that help integrate the jobless back into the work force. These include employer wage subsidies for hiring and retraining the unemployed, and an expansion of "work-sharing" programs in which an employer, instead of laying off personnel, can reduce the hours of multiple employees. The worker’s pay would be supplemented by UI funds to compensate for the lost hours.
The JOBS (Jumpstart Our Business Startups) Act
Regulatory Development: Last week, the JOBS (Jumpstart Our Business Startups) Act was introduced in the House. The bi-partisan legislation is designed to jumpstart the economy and restore opportunities for America’s primary job creators: small businesses, startups, and entrepreneurs.
What it Means: If enacted, the legislation would increase access to capital for small businesses, and make it easier to start a company. It would also include relief from the current SEC reporting requirements that prohibit the use of advertisements to solicit investors when bringing a company public, enable entrepreneurs to raise equity capital from a broader group of investors, and increase the threshold when a startup would need to register with the SEC. The legislation is expected to obtain quick approval in the House; it has bi-partisan support in the Senate.
Tax Refund Fraud & Identity Theft
Regulatory Development: The IRS and Department of Justice recently announced a nationwide sweep against suspected identity thieves.
What it Means: The action, which targeted 105 individuals in 23 states, is a response to the escalating problem of tax refund fraud. In conjunction with the sweep, the IRS is visiting money service and check cashing businesses in identified high-risk cities, including Atlanta, Phoenix, Miami, New York, and Chicago, to ensure they are not facilitating the cashing of fraudulently obtained tax refund checks. Various measures have been reportedly installed by the IRS to improve the prevention, detection, and resolution of identity theft.
For Media Interviews:
As the nation’s leading provider of payroll and HR services for small businesses, Paychex works closely with the IRS and other government agencies on issues of importance. Paychex is constantly monitoring compliance-related issues that impact our 564,000 clients across the country, and we are available to answer your questions. Please contact Tom Brede at (585) 389-1870 at Eric Mower and Associates on behalf of Paychex, to schedule an interview on any of these important new regulatory measures.