Get your small business set for the new year

We strive to be the complete Small Business solution for all of your accounting needs, which is why we offer our payroll services at very competitive prices.  Our payroll services are customizable and are offered at a flat monthly rate so there are never any surprises with your small business's finances.  Use your preferred method of communication including call, fax, email or uploading time sheets.  Easily access your balanced books, access tip reporting, vendor payments and convenient W2 and 1099 production.

• Save time
• Better manage cash flow
• Employees can access services, like pay stub retrieval

Easily, securely, and conveniently take care of payroll issues! 

With flexible payroll options, you can choose a schedule that works for you. Weekly, bi-weekly, semi-monthly options for employees and contractors including direct deposit or checks.  Along with other payroll benefits.

• 401K
• Health Insurance
• Garnishments
• Tax Services
• General Ledger
• Workers Compensation Compliance

Employers have online access to a variety of reports and activities.  Employees have online access to their individual paystubs and W-2’s.  Everyone can pick up the phone and get a prompt and professional response to any payroll related question that arises.  Here are many of the commonly used features that we offer: 

• We can receive and distribute information via an online portal, e-mail, phone, fax, or in person at our office
• Pay employees with paper checks or direct deposit
• Automated filing of all quarterly and annual reports
• Automated payment via bank draft for tax remittance
• Both you and your employees have access to custom online dashboards
• We handle all types of employee deductions including pre/after tax health insurance, employee advance repayments, garnishments
• Tip reporting
• Compliance with tip-to-minimum

We love working with you! 

As always, we believe that our customer service is what gives us the edge over our competition.  If you have an issue with payroll, you don’t have to call an 800 number! Email, call us, or come to our office - we’re local! How many other payroll companies get to say that?


Basic Fees and Pricing

Basic Fees and Pricing: 

    $150   -    Setup Fee 

    $125   -    Monthly Payroll 

    $155   -    Semi-Monthly/Bi-Weekly Payroll 

    $195   -    Weekly Payroll 

    $3       -    Per employee, per month fee for total monthly employees over 10 

    $50     -    Annual W-2 base fee 

    $7       -    W-2 fee per employee

New Year, New Payroll Company!

Kick off the new year with a great payroll company! At Accounting Works, we offer competitive pricing and specialize in local customer service. Visit rvapayroll.com to find out how we can improve your payroll services.

A Small Business Owner's Guide to FLSA rules

As a small business owner, it's a big part of running your company to be current with fair labor laws and operational compliance - on top of everything else you have to do!  Instead of putting more on your plate, why not just have a reliable team of experts in your corner to ensure you're up-to-date with all your payroll compliance needs? From the HR Blog at Fuse, here are a few basics on Federal Labor Standard Act regulations.

What is FLSA coverage? Who is covered?

The Fair Labor Standards Act covers certain employees entitled to labor law standards like overtime pay and minimum wage. Employees with FLSA coverage have FLSA non-exempt status. Employees without FLSA coverage have FLSA exempt status. 

Employers pay exempt employees for the job duties they perform, not the hours it takes them to do the work. Therefore, exempt employees are not eligible for FLSA coverage and are not entitled to certain labor standards like overtime pay and minimum wage. There are several considerations that determine employee FLSA status including salary basis, salary level, and duties performed. 

How do you define FLSA status classifications?

FLSA NON-EXEMPT: The provisions of the FLSA cover non-exempt workers for minimum wage standards, overtime pay, and other labor standard protections. Employers must pay their FLSA non-exempt employees the federal minimum wage (at least) for hours worked. For all hours worked over 40 hours in a workweek, the employer must pay non-exempt employees overtime (time and one-half the regular rate of pay).

FLSA EXEMPT: Unlike non-exempt workers, FLSA coverage does not protect exempt workers. Employers pay exempt employees for the job they do, not the hours it takes them to do the work. Simply put, exempt employees are exempt from coverage.

In some cases, other federal labor laws override the FLSA. As a general rule, if another federal labor law governs a job, the FLSA does not apply.

How do you determine FLSA status?

First, you should determine whether the worker is an employee or independent contractor. If you define your workers incorrectly, you could be liable for unpaid taxes and fines.

The IRS provides three Common Law Rules for determining worker status. Is the worker an independent contractor or employee? Ask these questions:

1. Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job?
2. Financial: Are the business aspects of the worker’s job controlled by the payer? (these include things like how worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.)
3. Type of Relationship: Are there written contracts or employee type benefits (i.e. pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business?

If the answer is ‘yes’ to these questions, your worker is probably an employee, not an independent contractor. Though, the IRS says there is no magic formula that determines status. The most important thing to look at when identifying a worker is the entire relationship between the worker and employer. Then, document all information about this relationship.

Once you have determined that your employees, you must now identify their FLSA status: exempt or nonexempt.

There are several considerations that determine employee FLSA status including salary basis, salary level, and duties performed. In order to determine employee FLSA status classification, an employer must answer the questions about the employee and his or her duties. The Department of Labor calls these questions the FLSA exemption test.  

FLSA Exemption Test

To classify employee FLSA status, you must answer the following questions:

1. Does the employee earn a salary?
2. How much does the employee earn per week or per year?
3. Does the employee’s role require certain responsibilities or functions that the Department of Labor considers exempt duties?

While there are a few exceptions, employees must meet all three of the tests above to be considered exempt from FLSA coverage (meaning NOT covered by the FLSA). There are some exceptions, however, where other federal labor laws override FLSA coverage. The FLSA states that, as a general rule, if a job is governed by another federal labor law, the FLSA does not apply. 

An employee passes the FLSA exemption test if:

• The employee receives pay on a salary basis.
• The employee earns at least $23,600 per year or $455 per week. (If the DOL's Final Rule takes effect, the threshold will increase to $47,476 per year or $913 per week.)
• The employee performs exempt job duties.

The DOL’s exempt duties typically include these roles:

• Executive
• Administrative
• Learned Professional
• Creative Professional
• Computer Professional
• Outside Sales

Salary Basis Test

Is the employee paid on a salary basis?

An employee paid on a salary basis earns a guaranteed minimum amount of payment for any amount of work done in a given week. This minimum payment includes accrued PTO days for vacation and sick days. Salaried employees may earn above the guaranteed minimum amount of pay through bonuses or other incentives but they may never earn less. 

There are permissable and impermissable reductions in salary basis level for employees. Permissable reductions could include docked pay due to disciplinary suspension or an employee taking more sick/personal days than he/she has accrued. This does not affect an employee's FLSA exempt status. If an employer docks an employee's pay for impermissable reasons (and the employee does not reach the guaranteed minimum amount of payment), it would have an effect on that employee's FLSA status and the employee would be classified with FLSA nonexempt status. 

Salary Level Test

Does the employee earn above the salary threshold? 

If an employee earns a salary above the FLSA threshold of $23,600 per year ($455 per week), the employee is exempt from overtime pay and other FLSA coverage. Remember, if the DOL's new overtime rule takes effect, it will increase this threshold to $47,476 per year ($913 per week).

Duties Test

Does the employee perform "white collar" exempt duties?

The Department of Labor determines exempt duties based on the primary duty and other duties the employee does in his or her job. This is not determined by the employee's job title or description but by the actual work performed. White collar exempt duties typically fall under roles such as executives, administrators, and other professional positions requiring certain degree levels or high-level work.

“Primary duty” as stated by the Depratment of Labor means the principal, main, major, or most important duty the employee performs. Determination of an employee’s primary duty must be based on all the facts in a particular case, with the major emphasis on the character of the employee’s job as a whole.

Executive Exemption

The Executive Exemption includes the following responsibilities:

• Regular supervision of at least two or more other full-time employees.
• Management as the primary duty of the job.
• Has input in other workers' employment such as hiring, firing, and promotions.

Some examples include CEOs, mid-level managers, and shift managers.

Learned Professional Exemption

The Learned Professional Exemption includes primary duties which require advanced knowledge in order to perform including:

• Consistent exercise of judgment and discretion
• Advanced knowledge in the field of science or learning (including law, medicine, accounting, theology, actuarial computation, teaching, architecture, pharmacy, and other occupations distinguished from mechanical arts or skilled trades)
• Advanced knowledge acquired by a prolonged course of specialized instruction.
• Required to analyze, interpret, or make deductions from varying facts or circumstances. 

Note: The DOL states that advanced knowledge cannot be attained at the high school level.

Some examples include lawyers, doctors, teachers, accountants, and clergy.

Administrative Exemption

The Administrative Exemption includes the following primary duties:

• Office or non-manual work directly related to business operations or management
• Exercise of judgement and discretion 
• Support production or line employees and keep the business running without engaging in the production or sales of the actual product or service of the business.

Some examples include Human Resources, Payroll, Benefits Management, Marketing, Public Relations, and certain computer-related jobs. Read more about the FLSA Computer Exemption here.

FLSA and overtime rules FAQs

What is Back Pay?

Back pay is a retrospective payment relating to a prior pay period. This typically happens due to salary increase or incorrect rate of pay in the cases of minimum wage and overtime pay.

Here is a guide from the Department of Labor on FLSA methods employees may take to recover unpaid minimum wage or overtime pay:

(1) The Wage and Hour Division may supervise payment of back wages.

(2) The Secretary of Labor may bring suit for back wages and an equal amount as liquidated damages.

(3) An employee may file a private suit for back pay and an equal amount as liquidated damages, plus attorney's fees and court costs.

(4) The Secretary of Labor may obtain an injunction to restrain any person from violating the FLSA, including the unlawful withholding of proper minimum wage and overtime pay.

If an employee has received any back pay wages under the Wage and Hour Division or the Secretary of Labor has filed suit to recover lost wages, the employee may not bring suit under the FLSA.

What is considered work?

According to the FLSA (and the courts), “work” includes all time spent performing job-related activities which (a) genuinely benefit the employer, (b) which the employer "knows or has reason to believe" are being performed by an employee, and (c) which the employer does not prohibit the employee from performing. These can include activities performed during "off-the-clock" time, at the job site or elsewhere, whether "voluntary" or not.

What is overtime?

FLSA sets a threshold of hours to be worked in a single seven-day workweek at 40 hours. Any time worked over the threshold is considered overtime. Some jobs like, medical or government, may have different thresholds.

When should overtime be paid?

Unless an employee is exempt from FLSA coverage, an employee must receive overtime pay at the rate of time and one-half the regular rate of pay for any amount of time worked over 40 hours in a single workweek. Overtime pay is due in the corresponding pay period for which the overtime work was performed.

Is it illegal to work ‘off-the-clock”?

Yes! Any work performed off-the-clock is illegal. Workers should be paid for any hours worked, whether or not that work is counted on a timesheet. Even work that is not specifically requested but allowed must be compensated. Some of the most common types of the off-the-clock work include:

• Preparation like prep work to open a restaurant before a shift begins or transferring equipment to a worksite.
• Post-shift work that “should have” been completed during the time of the shift.
• Rework a project to correct errors or when project objectives change.
• Administrative work such as paperwork or follow up, even employee training.
• Waiting for work when nothing is immediately available and workers are required to wait for a task.

Under the FLSA Statute of Limitations, how long does an employee have to file a claim for unpaid overtime wages?

With the impending changes to overtime rules, employers and HR managers should be familiar with the rules of FLSA procedures, specifically the FLSA statute of limitations. Do you know how long your employees have to file a lawsuit for unpaid overtime wages?

The basic answer is two years-to-date after the wage violation, unless the employer willfully violated the FLSA, in which case the employee has three years to file.

If the employee experienced ongoing wage violations (not just one time), he or she will only be able to recover unpaid wages (called back pay) for the two years prior to filing the claim.

What is the difference between a wage claim and a lawsuit?

Employees may file a wage claim with the Wage and Hour Division of the DOL and, in some states, employees may be able to file with their state department of labor. A claim does not involve the court system, whereas a lawsuit does. If the claim cannot be resolved, the employee may file a lawsuit—if there is still time under the FLSA statute of limitations. A lawsuit may occur if the claim could not be resolved or if the claim was impractical, in which case an employer may take the suit to court.

Note that some states have different requirements for filing wage claims. In Delaware, for example, employees must file wage claims at least 90 days before the FLSA statute of limitations ends. In New Jersey, employees may claim wages worth $30,000 or less.

FLSA changes to overtime rules have consequences for many businesses in the U.S. Human Resources needs to know all the ways employees may claim back pay for overtime or off-the-clock work and what they could be entitled to under the FLSA statute of limitations.

The original article can be found here!

National Payroll Week Offer for Small Business

We are continuing to expand our services even broader to be THE full-service small business accounting firm preferred by RVA!  Payroll is a must with most small businesses and also one of the biggest hassles.  A time-consuming and often costly task that won't go away week after week.  Which is why, in honor of National Payroll Week (September 4-8), we will be offering a special promotion to new Payroll clients and those that refer them to us!

New Clients:

• If you sign up before September 30th your one-time setup fee of $150 will be waived!

Referrals:

• If you refer a small business to us for Payroll Services and they sign up by September 30th, we will send you a $50 rebate check!

We work with our clients to maintain a payroll system that gets our clients as close to a “push button” payroll as possible.

Our clients submit their employee hours, change in pay or new hires in a variety of ways and combinations.  We’re set up to work with them all: e-mail, fax, phone, mail, online entry, and even by stopping by our Richmond office.

Employers have online access to a variety of reports and activities.  Employees have online access to their individual pay stubs and W-2’s.  Everyone can pick up the phone and get a prompt and professional response to any payroll related question that arises.  Here are many of the commonly used features that we offer:    

• We can receive and distribute information via an online portal, e-mail, phone, fax, or in person at our office
• Pay employees with paper checks or direct deposit
• Automated filing of all quarterly and annual reports
• Automated payment via bank draft for tax remittance
• Both you and your employees have access to custom online dashboards
• We handle all types of employee deductions including pre/after tax health insurance, employee advance repayments, garnishments
• Tip reporting
• Compliance with tip-to-minimum

Basic Fees and Pricing:

$150       Setup Fee

$125       Monthly Payroll

$155       Semi-Monthly/Bi-Weekly Payroll

$195       Weekly Payroll

$3           Per employee, per month fee for total monthly employees over 10

$50         Annual W-2 base fee

$7           W-2 fee per employee 

The Many Hats of an Accountant

There are so many facets of an accountant's role in Small Business, the first of which is to get to know yours!  Understanding the different needs of different small businesses is vital to our role in helping them be successful - there is no one-size-fits-all solution as you can read about in the unique solutions we found for Paisley & Jade.  This article sheds light on the many ways we can help you!

Shutterstock

It's a Bird, It's a Plane: The Four Financial Superheroes That Will Benefit Your Small Business
By: Bryce Welker
Forbes.com

Accountants are no longer confined to “bean-counting” tasks. The days of pocket protectors and short-sleeved shirts with ties are long gone. Now, accountants are viewed as superheroes (or violent hitmen if you’ve seen the Ben Affleck movie, The Accountant) who save businesses from financial risks and lead monetization efforts.

Having an accountant by your side as you make business plans for the future is the best way to ensure you are protected from any potential financial dangers. An accountant’s detailed knowledge of trends or tax laws, and his or her fiscal expertise, in general, will take down any villainous threats that could be looming on the horizon.

Not all businesses need a traditional accountant but having someone on your team who really knows finance can help you in a variety of ways. They can act as an advisor who can improve ineffective operational systems that cut company margins. If you are showing quarter-over-quarter growth, you may not be aware of any waste in the design of company procedures. An expert in money management will be able to easily spot inefficiencies and find ways to lower expenses or increase sales.

I realized my accountant was my hero when I began to have more and more time at work after delegating to him. Even though I had accounting knowledge, I needed to concentrate on running other areas of the company. As a CPA and CEO, I knew I had an advantage over other CEOs when it came to financial planning, but I didn’t want to devote too much of my workday to those tasks. An accountant can help with anything from preparing client proposals to pinpointing risks in need of mitigation. A skilled accountant can find missed deductions or help avoid a costly audit by carefully preparing tax filings. And with the changing times, accountants’ roles are also evolving every day.

The Changing Role Of The Accountant

Obviously, key accounting tasks like bookkeeping remain a focus. But technological advancement has prompted a shift away from strictly dealing with numbers to providing broader services that not only calculate, but also analyze. Now, accountants can act as specialists in many areas of business, and clients are welcoming this type of support.

Not all accountants wear capes and wield calculators. Let’s look at some of the undercover financial superheroes:

1. Business Analysts: Accountants are constantly working with data, like the company’s profits and losses. This data is one part of a larger puzzle. Look for a specialist who has the ability to see the details and the bigger picture. The powers of a business analyst can help you synthesize the company’s data and determine how different initiatives fit together. A good business analyst needs to have a strong background in accounting and a knowledge of programming languages like Python.

2. Entrepreneurs: Throughout an accountant’s career, they will experience different business needs and meet all sort of clients. An accountant will start to see the gaps for products or services that don’t exist. And that’s exactly what happened to me: I was a CPA and entrepreneur when I saw a niche that had a need. By having a strong understanding of financial implications when starting a business, accountants can become very successful entrepreneurs. So if you have aspirations to become a entrepreneur, start with a foundation in finance.

3. Investor Relations Specialists: Accountants make great investor relations specialists because of their background in finance and their ability to quickly understand and strategically communicate all elements of the company to different audiences. Look for an investor relations specialist with top-notch communication, analytical and reporting skills if you struggle with clear communication between your company and investors. Not all businesses need this type of specialist.

4. IT Specialists: Like many other things in this world, a lot has changed with technological advancements. Software and information systems play a critical role now more than ever. And in order for any business to be efficient, they need to integrate IT into their business. An accountant's knowledge and experience with multiple IT systems can offer companies valuable insight that can increase efficiency. IT specialists can advise and guide a business on its IT choices and ultimately save the company money by creating more effective systems.

You might not think you need an accountant in the traditional sense. But there are so many ways financial know-how can benefit your company. A CPA will be able to fit into most positions, given their experience and expertise. Even if you don’t have an immediate need, consider opening a line of communication with a CPA who you may want to bring on in the future, at least part time. If your business is growing, it's a smart choice.

New Year's Payroll Resolutions

We want to help you start off the New Year right with your payroll services.  Having served Richmond’s small business community for over 10 years, we have seen a demand for affordable accounting services, including payroll, and have decided to fill it.  Beginning in 2017 we are offering competitively priced, comprehensive payroll services that are tailored specifically to your small businesses’ needs.

Through our platform, business owners and employees alike can log in through a website to easily view payroll periods, expenses and reports. Employees can download pay stubs and W2s.  Payroll advances, garnishments, and before and after tax deduction reports that any other full-service payroll company can provide, including:

-Year-to-Date Reports
-Check Register
-Taxable Wages
-Cash Requirements Report
-Generate checks
-Worker’s Comp Audits
-Direct Deposit

We are offering flat-fee rates for businesses with 10 or fewer employees and have a variety of flexible solutions for over 10 employees.  We want to save you time, money and headaches by filling your payroll needs.

Payroll Complaince Update

As Accounting Works rounds out the rest of the year, we will be turning our focus to offering comprehensive and competitively priced payroll services to our clients in 2017!  With an easy to use platform, we will be offering a flat rate for businesses with 10 or fewer employees and only a small fee for any additional employees! Of course, we'd like to work with any size business, so if you have a larger company we'd be happy to work out a plan that fits your needs.

That being said, it can be hard as a small business owner to keep up with changing regulations, especially if you're doing payroll yourself.  As a reminder, these payroll changes will take effect December 1, 2016!

Final Rule: Overtime
From the Wage and Hour Division (WHD) of the US Dept of Labor

Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees under the Fair Labor Standards Act

On May 18, 2016, President Obama and Secretary Perez announced the publication of the Department of Labor’s final rule updating the overtime regulations, which will automatically extend overtime pay protections to over 4 million workers within the first year of implementation. This long-awaited update will result in a meaningful boost to many workers’ wallets, and will go a long way toward realizing President Obama’s commitment to ensuring every worker is compensated fairly for their hard work.

In 2014, President Obama signed a Presidential Memorandum directing the Department to update the regulations defining which white collar workers are protected by the FLSA's minimum wage and overtime standards. Consistent with the President's goal of ensuring workers are paid a fair day's pay for a hard day's work, the memorandum instructed the Department to look for ways to modernize and simplify the regulations while ensuring that the FLSA's intended overtime protections are fully implemented.

The Department published a Notice of Proposed Rulemaking (NPRM) in the Federal Register on July 6, 2015 (80 FR 38515) and invited interested parties to submit written comments on the proposed rule at www.regulations.gov by September 4, 2015. The Department received over 270,000 comments in response to the NPRM from a variety of interested stakeholders. The feedback the Department received helped shape the Final Rule.

Key Provisions of the Final Rule

The Final Rule focuses primarily on updating the salary and compensation levels needed for Executive, Administrative and Professional workers to be exempt. Specifically, the Final Rule:

1. Sets the standard salary level at the 40th percentile of earnings of full-time salaried workers in the lowest-wage Census Region, currently the South ($913 per week; $47,476 annually for a full-year worker);
2. Sets the total annual compensation requirement for highly compensated employees (HCE) subject to a minimal duties test to the annual equivalent of the 90th percentile of full-time salaried workers nationally ($134,004); and
3. Establishes a mechanism for automatically updating the salary and compensation levels every three years to maintain the levels at the above percentiles and to ensure that they continue to provide useful and effective tests for exemption.

Additionally, the Final Rule amends the salary basis test to allow employers to use nondiscretionary bonuses and incentive payments (including commissions) to satisfy up to 10 percent of the new standard salary level.

The effective date of the final rule is December 1, 2016. The initial increases to the standard salary level (from $455 to $913 per week) and HCE total annual compensation requirement (from $100,000 to $134,004 per year) will be effective on that date. Future automatic updates to those thresholds will occur every three years, beginning on January 1, 2020.

Payroll Services for Small Business

Accounting Works has offered a variety of accounting services in Richmond for many years, working with many small business owners has made us realize that there are certain accounting needs not being met. I am speaking of Payroll Services.  Small to medium size businesses feel that the cost of outsourcing this service is not justifiable and instead opt to handle it in house, consuming both time and resources they can’t afford to lose. This has prompted us to begin a program for Payroll Services for businesses who need it.

Start your small business Spring Cleaning with payroll services at Accounting Works.  We are offering flexible and affordable payroll solutions to save small business owners time at a competitive price! Through our platform, business owners and employees alike can log in through the website. Employers can easily view payroll periods, expenses and reports. Employees can download pay stubs and W2s.  Payroll advances, garnishments, and before and after tax deduction reports that any other full-service payroll company can provide, including:

• Year-to-Date Reports
• Check Register
• Taxable Wages
• Cash Requirements Report
• Generate checks
• Worker’s Comp Audits
• Direct Deposit

For employers with 10 or fewer employees, we are offering these services for a flat fee of $155 per month, with only a small charge for any additional employees.  If you have more than 10 employees, don’t worry! We will work with you on a bulk solution to your payroll needs.

Accounting Works has been providing affordable accounting services to Small Business owners for years.  We’ve seen the need for affordable payroll solutions and we’re here to help!

Payroll Services for Small Business

Accounting Works has offered a variety of accounting services in Richmond for many years, working with many small business owners has made us realize that there are certain accounting needs not being met. I am speaking of Payroll Services.  Small to medium size businesses feel that the cost of outsourcing this service is not justifiable and instead opt to handle it in house, consuming both time and resources they can’t afford to lose. This has prompted us to begin a program for Payroll Services for businesses who need it.

Make it your New Year’s resolution to start your payroll services with Accounting Works.  We are offering flexible and affordable payroll solutions for small businesses beginning the first of the year! Through our platform, business owners and employees alike can log in through the website. Employers can easily view payroll periods, expenses and reports. Employees can download pay stubs and W2s.  Payroll advances, garnishments, and before and after tax deduction reports that any other full-service payroll company can provide, including:

• Year-to-Date Reports
• Check Register
• Taxable Wages
• Cash Requirements Report
• Generate checks
• Worker’s Comp Audits
• Direct Deposit

For employers with 10 or fewer employees, we are offering these services for a flat fee of $155 per month, with only a small charge for any additional employees.  If you have more than 10 employees, don’t worry! We will work with you on a bulk solution to your payroll needs.

Accounting Works has been providing affordable accounting services to Small Business owners for years.  We’ve seen the need for affordable payroll solutions and we’re here to help!