Archive for July, 2010

Joe’s Jottings

Wednesday, July 28th, 2010

Joe ReillyPayroll Control Systems believes in putting the SERVICE back into Payroll Services. With all the transition we’ve seen in this industry over the past several years, Many of our competitors seem to be more focused on all of the ancillary services they can cross sell into their customers strictly to increase profit margins! Where did the SERVICE in Payroll Service go?

At PCS we focus on what we do best… bringing the best in class products for Timekeeping, Payroll and HR to our customers with a seamless, localized, one on one approach to sales, implementation, training and customer support. We leave selling 401K, benefits and other specialized services to the experts that should be selling them. We are continually working to open new relationships and build seamless integration with experts in various fields, providing our Clients with resources and advice they can count on.

As always, if you have any questions or suggestions, please call me at 763-513-5951.

We appreciate your business!!

Joe Reilly
President
Payroll Control Systems

IRS News and Quick Tips

Wednesday, July 28th, 2010

Six Tax Tips for New Business OwnersNews and Tips

Are you opening a new business this summer? The IRS has many resources available for individuals that are opening a new business. Here are six tax tips the IRS wants new business owners to know.

  1. First, you must decide what type of business entity you are going to establish. The type of business entity will determine which tax form you have to file. The most common types of business are the sole proprietorship, partnership, corporation and S corporation.
  2. The type of business you operate determines what taxes you must pay and how you pay them. The four general types of business taxes are income tax, self-employment tax, employment tax and excise tax.
  3. An Employer Identification Number is used to identify a business entity. Generally, businesses need an EIN. Visit IRS.gov for more information about whether you will need an EIN. You can also apply for an EIN online at IRS.gov.
  4. Good records will help you ensure successful operation of your new business. You may choose any recordkeeping system suited to your business that clearly shows your income and expenses. Except in a few cases, the law does not require any special kind of records. However, the business you are in affects the type of records you need to keep for federal tax purposes.
  5. Every business taxpayer must figure taxable income on an annual accounting period called a tax year. The calendar year and the fiscal year are the most common tax years used.
  6. Each taxpayer must also use a consistent accounting method, which is a set of rules for determining when to report income and expenses. The most commonly used accounting methods are the cash method and an accrual method. Under the cash method, you generally report income in the tax year you receive it and deduct expenses in the tax year you pay them. Under an accrual method, you generally report income in the tax year you earn it and deduct expenses in the tax year you incur them.

IRS Publication 583, Starting a Business and Keeping Records, provides basic federal tax information for people who are starting a business. This publication is available on IRS.gov or by calling 800-TAX-FORM (800-829-3676).  Visit the Business section of IRS.gov for resources to assist entrepreneurs with starting and operating a new business.

Article Source: IRS Summertime Tax Tip 2010-05

For more tips, visit www.irs.gov

Did You Know?

Fifty-eight of the 100 U.S. employers surveyed have formal, environmentally friendly workplace programs, and nearly all have recycling and paper-reduction programs. Other efforts:

  • 85 percent use the Web and/or teleconferencing.
  • 78 percent have internal green communication programs to reduce paper usage.
  • 72 percent use online HR communications.
  • 58 percent have internal communication programs that offer employees tips and information on being environmentally friendly.
  • 57 percent use online summary plan descriptions.
  • 57 percent offer telecommuting.
  • 52 percent offer a rideshare program.
  • Sixty-one percent of companies with green programs haven’t measured their cost savings. However, among those that have, nearly two-thirds realized savings in paper and electricity costs, and 49 percent reduced their heating and cooling costs.

    Operations and HR typically are the corporate departments responsible for green programs (50 percent and 47 percent, respectively).  – Article Source: SHRM Online Staff visit www.shrm.org for more!

    Social Security Number Verification Tips

    Q: What happens when a new hire’s social security trace comes up, “not a match” on the SSN system? A: You must communicate verbally and in writing with the employee.  First, the employee cannot work until the problem is resolved.  Second, the message is simple – “bring better documents” and give a reasonable deadline for them to respond.  In the letter, it is important to identify the consequences such as, “Your employment will terminate on (date) if you do not respond to this request by (date).”

    Legal Disclaimer: This article is intended for informational purposes only and by no means should replace or substitute other legal documents (governmental or non-governmental) reflecting similar content or advice. If you have any questions concerning your situation or the information provided, please consult with an attorney or an HR Professional.

    PCS Welcomes Two New Hires!

    Wednesday, July 28th, 2010

    Mark Mills and John De Leeuw bring a combined 28 years of payroll and human resources industry experience to Payroll Control Systems’ Sales Department!

     Mark Mills, Emerging Market Sales Representative

    Mark Mills

    Mark Mills joins Payroll Control Systems as an eight year veteran of the payroll and HR industry with Ceridian and RSM McGladrey Employer Services.  Mark has served on the HR Roundtable for the Burnsville Chamber of Commerce, held a group health and life license for four years and is active in several local business communities.  He grew up in the Midwest and received his Bachelor’s degree in Psychology from the University of Colorado.   Mark lives in Bloomington where he enjoys spending time with his two sons and serving the community as a volunteer Scoutmaster and youth coach.  Mark will be handling the emerging markets in the southwest suburbs of Minneapolis.

     

    John De Leeuw, Business Development ManagerJohn De Leeuw

    John De Leeuw joins PCS with over 20 years of payroll and HR industry experience in sales, sales leadership, business development and channel acquisition with Ceridian, Wells Fargo, US Bank and regional service bureaus located in Illinois and Massachusetts.  John’s role as Business Development Manager with PCS will include developing the banking, insurance, franchise, and accounting channels for PCS along with managing the current partner relationships we already have.  John lives in White Bear Lake and enjoys boating on the St. Croix with his wife, Jane.

    U.S. Treasury Reports on HIRE Act

    Tuesday, July 27th, 2010

    HIRE UpdateThe U.S. Department of the Treasury today released a new report showing that, from February 2010 to May 2010, businesses have hired an estimated 4.5 million new workers who had been unemployed for eight weeks or longer, making those businesses eligible to receive up to a projected $8.5 billion in HIRE Act tax exemptions and credits for hiring the unemployed.

    Alan B. Krueger, Assistant Secretary for Economic Policy and Chief Economist at the Treasury Department, announced the release of the report in Sanford, North Carolina with Congressman Bob Etheridge (NC-2) and Andy Warlick, President and CEO of Parkdale Mills, a yarn manufacturer that recently reopened a plant in Sanford and has already hired more than 30 workers who are eligible for HIRE Act tax exemptions, a number that will likely grow as they continue to add more workers.

    “Helping unemployed Americans get back to work – particularly the long-term unemployed - is essential to ensuring a strong economic recovery,” said Assistant Secretary Krueger. ”Targeted, temporary incentives like the HIRE Act are helping to fuel a private-sector-led recovery.  After a period of extraordinary difficulty, the economy is continuing to grow and private sector companies have added jobs for six straight months.”

    The Hiring Incentives to Restore Employment (HIRE) Act of 2010 provides employers an incentive to hire workers who have been unemployed for 60 days or longer by exempting wages paid to these workers from the employer’s 6.2 percent share of Social Security payroll taxes for the remainder of the year.  In addition to exempting employers from these payroll taxes, the HIRE Act allows employers to claim a tax credit of up to $1,000 for each newly hired qualifying worker who is retained for one year.  An employer is eligible to receive almost $3,500 in tax savings from hiring an unemployed worker who is paid $40,000 in salary this year. 

    “This new tax credit provided a powerful incentive to grow our business and was a major factor in our decision to re-open the plant in Sanford,” said Andy Warlick, President and CEO of Parkdale Mills.  “It’s an example of tax policy that’s done the right way – that’s not about off-shoring but about re-shoring, and it’s helping us create jobs here.” 

    Using monthly data from the Current Population Survey, Treasury estimated that, from February 2010 to May 2010, 4.5 million workers who had been unemployed for eight weeks or longer were hired by employers who are eligible for the HIRE Act payroll tax exemption.  If these 4.5 million newly hired employees remain employed for the rest of the year, their employers would be eligible for an estimated $5.1 billion in payroll tax savings as a result of the Act.  Furthermore, if three-quarters of the workers remain employed for 52 weeks, then their employers would receive another $3.4 billion in tax credits for these hires.

    Treasury’s report includes employment data through May 2010. The HIRE Act tax exemption is still available for the remainder of 2010 to employers who hire unemployed workers.  Treasury’s Office of Economic Policy will estimate the number of newly hired workers whose employers qualify for the HIRE Act tax exemption and update this report monthly for the rest of the year.

    To follow the PCS updates on HIRE Act, click here.

    Increase Cash Flow with PCSTruePay

    Tuesday, July 27th, 2010

    Pay As You Go Workers CompensationOur exclusive Pay-As-You Go Workers Compensation solution was designed especially for businesses seeking increased cash flow and greater peace of mind. Pay-As-You-Go Workers Compensation allows businesses access to affordable workers compensation insurance designed to work with your business and your payroll cycle. There’s no premium deposits required to start a Pay As You Go, payroll deducted, workers compensation policy when you use our payroll outsourcing service.

    We collect your workers compensation premium based on “real-time” payroll data, which helps make your workers compensation insurance virtually audit proof. Additionally, we will process and help manage your audit each year with any of our Pay-As-You-Go insurance solutions.

    Program Features:

    • Easy Payroll Workers Compensation Deduction Setup
    • No Start-up Cost
    • Insurance and Payroll Quote in Three Business Days
    • Competitive Rates from National Insurance Companies
    • Automatic Renewal Process to Maintain Coverage
    • Simple Premium Collection via our Payroll Preparation Processing
    • Keep your own agent our use one of ours

    Why You Should Pay Workers Compensation Premiums As-You-Go:

    1. Zero Down! No more down payments to bind Workers Compensation coverage.
    2. Cash Flow! In these uncertain times, projecting your payroll and having the funds to make the estimated payments in advance can be challenging.
    3. Pay what you owe! No more and no less.
    4. No More Surprises! You will avoid time-consuming and expensive audits because your payroll service provides all the required records on an ongoing basis.
    5. Convenience! Bundling Workers Compensation insurance with a payroll service is convenient and efficient.

    Contact us today to learn more about our payroll and insurance solutions.

    PCS Launches New Website!

    Tuesday, July 27th, 2010

    PCS WebsiteWe are proud to announce the launch of our new website effective July 2nd, 2010. This was the final step in phase one of a complete update of our web-based marketing and customer service efforts. Over the past six months we have launched our newsletter, blog, social media sites and the new website.

    The new site, located at www.pcspayroll.com was designed and built by M-Design Interactive and boasts a completely new look and feel along with seamless navigation to our core products and services. We have added quick links to news worthy items, our SAS 70 Type II request form, and our Better Business Bureau report. You’ll also find links to our social media pages including LinkedIn, Facebook, Twitter and our blog, www.truthinpayroll.com.

    We’d appreciate your help! Please visit our social media sites and “friend” or “like” us where applicable. Feel free to write comments and testimonials as we are actively monitoring activity in each of these areas. You could also help us by writing quick reviews about PCS on yelp and dexknows.com. Just click the links and tell others about your experience with PCS!

    Many updates and additional functionality are part of our phase two plans. Included in these are:

    • Expanding product details and information with full demonstrations and tutorials.
    • Updating and expanding our entire Partners section.
    • Adding a more robust, secure Client area with log in capability to access tutorials and other sensitive data.
    • Adding polling features and events calendars.

    Keep checking back on a regular basis. Your comments and suggestions are always welcome!