{"id":3090,"date":"2011-03-17T22:54:40","date_gmt":"2011-03-17T22:54:40","guid":{"rendered":"http:\/\/ua-cpas.com\/blog\/?p=20"},"modified":"2011-03-17T22:54:40","modified_gmt":"2011-03-17T22:54:40","slug":"njsa-legal-symposium-re-nj-dol-audits-march-2011","status":"publish","type":"post","link":"https:\/\/www.ua-cpas.com\/blog\/index.php\/2011\/03\/17\/njsa-legal-symposium-re-nj-dol-audits-march-2011\/","title":{"rendered":"NJSA Legal Symposium re: NJ DOL audits March 2011"},"content":{"rendered":"

UA Partner, Pamela Avraham, spoke at the NJSA Legal Symposium on March 2, 2011 on NJ DOLS audits of staffing firms. Her presentation addressed how to prevent and handle NJ DOL audits. Her is the summary of the presentation
\nNJ DOL Audits- How to Prevent Them and How to Handle Them<\/strong><\/p>\n

Items which trigger an audit<\/strong>:
\n1.\tEmployee complains directly to NJ DOL
\na.\tCompensable time for:
\ni.\tWaiting at assignment
\nii.\tAnswering emails in evening
\niii.\tTraining
\nb.\tNot paid for claimed hours worked
\nc.\tOT
\ni.\tExempt vs Non-Exempt Status
\nd.\tEase of filing complaint
\ni.\tOnline
\nii.\tFormularios en espa\u0148ol
\niii.\tTrabajadores indocumentados
\n2.\tIndependent contractor files an unemployment claim
\n3.\tCorporate tax return indicates unusual items
\na.\tNo wages on line for Wage Deductions- only 1099 compensation
\nb.\tEmployee benefits not proportionate to wage deduction
\nc.\tHigh amounts in consulting expense
\n4.\tFrom information discovered while auditing the clients of a staffing firm
\nWays to Prevent Audit<\/strong>
\n1.\tImplement system to resolve compensation discrepancies
\na.\tWeigh the cost benefit of \u201cbeing right\u201d over having a disgruntled employee
\n2.\tSupervisor must report any disputes to manager or accounting manager
\n3.\tExplain to 1099 contractors all ramifications of 1099 status
\n4.\tReview corporate income tax return with CPA
\n5.\tGuidelines found in IRS Circular E and Publication 15-A
\n6.\tForm SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes
\n7.\tConsult regularly with employment attorney<\/p>\n

Requested Documents for Audit<\/strong>
\n1.\tStandard list for wage discrepancy audit
\n2.\tStandard list for 1099 vs employee dispute
\na.\tDifference between IRS standards vs NJ standards
\nWhat Auditors Discover and Determine during the Audit<\/strong>
\n1.\tReview of general ledger
\na.\tPayments for 1099 contractors in employee benefits
\nb.\tPayments to independent contractors in numerous accounts
\ni.\tRepairs and Maintenance
\nii.\tConsulting
\niii.\tPer Diem
\niv.\tOffice Cleaning
\nv.\tComputer Services
\n2.\tReview of cash disbursements
\na.\t\u201cvacation\u201d payments for 1099 contractors
\nb.\tBonuses for 1099 contractors
\nc.\tPayments to contractors with number of hours specified
\ni.\tPaying OT for more than 40 hours a week
\nd.\tPayments to employee classified as 1099
\ni.\tThe \u201csplit employee\u201d- W-2 for one function, usually a 40 hour week, and 1099 treatment for different function- sales, computer work, security
\nii.\tBest of both worlds for employee
\niii.\tProper classification
\niv.\tPayments made may be subject to OT for non-exempt employee
\n3.\tReview of timesheets
\na.\tDon\u2019t agree to payroll records
\nb.\tNo payment for OT
\nc.\tTotal hours per week don\u2019t equal sum of all hours worked in week
\nd.\tHours shown as a total per week, hours worked each day are not indicated
\n4.\tReview of payroll register
\na.\tDriver deduction
\nb.\tDeduction for improper loans
\nc.\tDeduction for damages caused by employee
\nd.\tOther illegal deductions
\ne.\tNo payment for OT
\nf.\tBonus based on production \u2013 may be subject to OT<\/p>\n

5.\tReview of 1099 vs employee
\na.\tSchedule C of independent contractor- separate company is preferred
\nb.\tWC policy of independent contractor
\nc.\tWebsite of independent contractor
\nd.\tBusiness cards, invoices of contractor
\ne.\tSet of books and records of contractor
\nf.\tContract or agreement between company and contractor
\ng.\tAdvertisements of contractor
\nh.\tCalculation of payment- based on hours
\ni.\tNumber of clients of contractor
\nPotential Exposure
\nPayments to employees which are improperly classified as independent contractors may subject the employer to the following <\/strong>:
\n1.\tNJ Unemployment, penalties and interest
\n2.\tNJ withholding tax
\n3.\tUS employment taxes
\na.\tSocial Security Taxes
\nb.\tMedicare Taxes
\nc.\tFederal income tax withholdings
\nd.\tAll of the above per IRS Section 3509
\n4.\tOT
\n5.\tMedical benefits
\n6.\tPension benefits
\n7.\tWC issues
\n.<\/p>\n","protected":false},"excerpt":{"rendered":"

UA Partner, Pamela Avraham, spoke at the NJSA Legal Symposium on March 2, 2011 on NJ DOLS audits of staffing firms. Her presentation addressed how to prevent and handle NJ DOL audits. Her is the summary of the presentation NJ DOL Audits- How to Prevent Them and How to Handle Them Items which trigger an […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[189],"class_list":{"0":"post-3090","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-staffing-agencies","7":"tag-staffing-agencies-2","8":"entry"},"_links":{"self":[{"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/3090","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/comments?post=3090"}],"version-history":[{"count":0,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/3090\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/media?parent=3090"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/categories?post=3090"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/tags?post=3090"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}