Federal Forum Answers Toughest Payroll Questions

Experts from the Internal Revenue Service (IRS), Office of Child Support Enforcement (OCSE), Social Security Administration (SSA), U.S. Citizenship and Immigration Services (USCIS), and the U.S. Department of Labor (DOL) were on hand Thursday morning for the Forum on Federal Payroll Issues workshop session.

Beginning late last year, payroll professionals were able to email questions to the APA, which were then forwarded to the panel for research. Answering questions about how federal law should be applied to the most difficult of payroll situations were:

• Barbara Fiebich, Director of Specialty Examination in the Small Business/Self-Employed Division at the IRS
• Joseph Tiberio, Chief of Employment Tax Examination in the Small Business/Self-Employed Division at the IRS
• Scott Pedersen, Team Lead in the Office of Electronic Services and Technology with the SSA
• Robert Vaden, Community Outreach and Resource Planning Specialist (CORPS) in the Wage and Hour Division at the DOL
• Jennifer Nelson, Management and Program Analyst in the Engagement Branch of the Verification Division at the USCIS
• Sherri Grigsby, Manager of the Employer Services Team in the OCSE at the U.S. Department of Health and Human Services

Here are some of the questions and abridged answers:

Is OCSE developing any new services to help employers comply with their responsibilities in the child support program?

Sherri Grigsby: We’re always looking for ways to make thing easier for employers and child support agencies, which includes enhancing our child support portal. Employers can register and update information about their organization and report lump sum payment and employee terminations. This will really be helpful to employers who know their employees owe child support. We are also working on two-way communication on our child support portal. Oftentimes, we need to exchange sensitive information, so we can help them resolve their issues. We are in the analysis phase of that right now.

If an employer is forced, due to negligence or error, to pay off a garnishment balance for an employee, should the amount be reflected on the employee’s Form W-2 as income?

Barbara Fiebich: This is a very interesting question. If an employer were to pay a personal expense, such payment would constitute as wages. This amount would be subject to taxation and must be reported on the employee’s Form W-2.

USCIS routinely opens windows for reregistration of temporary protective status (TPS) designations and, in some instances, extends existing TPS employment authorization documents Is the employer responsible for tracking these processes? Does USCIS send a letter or notice to individuals impacted by reregistration and extensions that they can provide to their employers to show proof of employment verification?

Jennifer Nelson: In order for employers to continue employing any individual whose work authorization is expiring, it is really the employer’s responsibility to conduct reverification in Section 3 of the Form I-9 and do that no later than the date the authorization expires. Because of this, employers may want to develop a calendar notification system and provide employees with a notice prior the expiration date.

Other questions asked during the session included ones on issues like the cents-per mile rate on electric cars, applying bonuses toward the value of an employee’s salary, and what changes have occurred to the Form I-9 due to COVID-19.

Attendees of the Forum on Federal Payroll Issues used the chat function in the platform to interact with one another and make comments about the information shared by the federal experts.

“I never miss these sessions,” said Theresa Shidler, CPP, Procurement/PR Manager at Family Development Services Inc. “There is so much good information.”

Jon Schausten, CPP, Director of Payroll and HRIS with OneAmerica, wished that he personally knew all the federal experts who participated—just in case he has any more questions later.

“Would it not be great to have this group on speed dial?” he asked.