Issue link: http://palletcentral.uberflip.com/i/801657
palletcentral.com PalletCentral • January-February 2017 37 to hire and fire and make other employment decisions. A 2014 law required the IRS to establish a voluntary certification program for PEOs to handle payroll administration and tax reporting responsibilities. The registration process began on July 1, 2016. The IRS has promised to publish a list of certified PEOs (CPEOs), as well as those whose certification has been revoked or suspended. Temporary workers. If you have a need for additional help for specific projects for a limited time, you may want to use temporary help. These workers are employees of the temporary agency. You pay a flat fee to the agency (typically figured on an hourly basis per worker); the agency as employer is responsible for payroll taxes, ACA obligations, etc. 5. Consider Minimum Wage and Overtime Rules Be sure to keep up-to-date with changes in the minimum wage and overtime rules. A number of states and cities have minimum wage rates that are higher than the federal rate (currently $7.25 per hour), and the higher rates control. Several localities have increased their rates effective January 1, 2017; some are scheduled to increase on July 1, 2017. The federal rate could be increased by Congress. Factor in the impact of your minimum wage rate on the pay scale for your entire staff. And, as minimum wage rates increase, be sure to take into account the added payroll tax cost. The Fair Labor Standards Act (FSLA) requires the payment of time-and-a-half to employees who work more than 40 hours in a work week unless they are exempt (e.g., executive, administrative, and professional employees with certain responsibilities and a minimum salary amount). Last May, the U.S. Department of Labor issued a Final Rule redefining workers who are exempt. The Final Rule, which was set to take effect on December 1, 2016, did not change the responsibilities aspect but would have increased the salary threshold from $455 per week ($23,660 per year) to $913 per week ($47,476 per week). However, a federal judge imposed an injunction. What will happen to the Final Rule is uncertain. Expanding your staff in 2017 may be a key move in growing your business. In thinking about hiring, be sure to factor in tax costs and other federal law responsibilities. Work with your CPA or other financial advisor to determine the real cost of hiring before you move ahead. PC Barbara Weltman is a tax and business attorney, prolific author with such titles as J.K. Lasser's Small Business Taxes and Smooth Failing, and trusted professional advocate for small businesses and entrepreneurs. She is also the publisher of Idea of the Day® and monthly e-newsletter Big Ideas for Small Business® at www.barbaraweltman.com.