Interest rates for the second quarter will drop, the IRS recently announced. According to Revenue Ruling 2026-5, the rates for April, May and June of 2026 will be: Overpayments -- 6% (down from 7%) Corporate overpayments -- 5% (down from…
Payroll
A California carwash has agreed to a $1.2M settlement to resolve wage theft allegations, according to the California Labor Commissioner’s Office (LCO). The seven-figure payout averages $52,174 per affected employee across 23 workers, with individual settlements ranging from $8,500 to…
The Department of Labor (DOL) recently issued a Federal Register notice, increasing the minimum wage for certain federal contractors. Here are the details contained in the February 9, 2026, notice. First, it’s important to clarify that the rate change applies to federal contracts…
A Little Caesars franchisee will pay $409,457 for federal wage and hour violations, the Department of Labor (DOL) recently announced. The case shows how payroll mistakes turn into expensive liabilities when overtime calculations and recordkeeping controls fall short. Payroll Mistakes…
The IRS summarized several tax provisions of the One Big Beautiful Bill Act (OBBBA) in the 2026 version of Publication 15. Publication 15 is called the Employer’s Tax Guide -- or sometimes, Circular E. Of special interest to Payroll pros,…
Employers in states that have paid family and medical leave programs will be relieved to know the IRS has extended its reporting deadline. In fact, employers have an extra year to add information about this type of paid time off…
The IRS has finalized the tax year 2026 Form W-2, solidifying more of the reporting requirements established by federal legislation passed last year. Plus, the final version of General Instructions for Forms W-2 and W-3 was released shortly after the…
After payday, an employee flags a missing differential. HR sends the details to payroll, and the team begins retracing punches, schedules, and pay rules. By the next day, the issue has escalated to Finance because the fix now requires a…
If someone qualifies as exempt from the overtime requirements of the Fair Labor Standards Act (FLSA), is an exempt classification mandatory? The Department of Labor (DOL) recently confirmed that an exempt classification isn’t a must, even if an employer is…
A new opinion letter looked at whether one company needed to add bonuses into its overtime calculations under federal law. The answer from the Department of Labor (DOL)? Yes. That meant the company dropped the ball and had to either…
IRS has released 2026 mileage rates and other updates impacting employees who drive personal vehicles for work or employer-provided vehicles. First, IRS said in a recent notice that the business standard mileage rate for 2026 is 72.5 cents per mile.…
Many states increased their minimum wage rates on January 1, 2026. Did you catch the changes needed to pay employees accurately? When it comes to compliance, minimum wage is just one of many areas where you'll find differences among states,…
