Webinar Overview:

Overpayments to employees can happen, even in the most efficient payroll departments. Whether due to a simple mistake, a sign-on bonus not fulfilled, or advanced vacation time unearned, overpayments must be managed correctly to ensure compliance with IRS, FLSA, and state regulations. This webinar will guide you through the latest IRS and state tax rules, including a critical IRS private letter ruling that governs how overpayments should be handled. Additionally, we’ll explore the complexities of wage and hour laws when recovering overpayments and what factors to consider before taking action.

Key Learning Points:

• IRS & State Tax Compliance: Learn how to correct overpayments under IRS regulations, including using Forms W-2 and W-2c and understanding FICA and FUTA/SUI corrections.
• FLSA Compliance: Gain insights on recouping overpayments under the Fair Labor Standards Act (FLSA), including its impact on exempt employees, minimum wage, overtime, and written agreements.
• State-Specific Rules: Understand the various state-level wage and hour laws, time limits, and notification requirements involved in recovering overpayments.
• Real-World Scenarios: Navigate real-life situations such as recovering advanced vacation pay and recouping bonuses when employees don’t meet their commitment.

Why Attend?

This session is designed to help payroll and HR professionals handle overpayments with confidence and accuracy. You’ll walk away with practical strategies and a deeper understanding of how to stay compliant with complex federal and state regulations.

Who Should Attend:

• Payroll Professionals (Executives, Managers, Administrators)
• Human Resources Leaders
• Accounting and Finance Personnel
• Business Owners and Department Managers
• Legal Advisors and Compliance Officers

Key Topics Covered:

IRS and Tax Considerations:

• How a 1990 IRS ruling still applies to today’s payroll practices
• Handling overpayments within the same tax year vs. prior tax years
• Adjusting FICA, FUTA, and state unemployment taxes
• Reporting overpayments through W-2 and W-2c

FLSA Wage and Hour Laws:

• Timeframes for recovering overpayments under FLSA guidelines
• Handling overpayments for exempt vs. non-exempt employees
• Written agreements and salary basis compliance when recouping
• Impact of overpayment recovery on minimum wage and overtime

State-Specific Wage and Hour Regulations:

• State laws on time limits and employee notification for overpayment recovery
• Restrictions and prohibitions on wage deductions in certain states
• Advanced vacation pay and treatment as overpayments upon termination

Don’t miss this opportunity to sharpen your expertise and ensure your payroll processes stay compliant!