Draw Against Commission Explained: Recoverable vs. Non-Recoverable Draws for Employers
A draw against commission is an advance settled against later commissions. Once paid it is wages under the FLSA, so never claw it back from a final paycheck.
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Compensation
Employee compensation, payroll, executive pay, and related tax compliance
Singapore's Local Qualifying Salary Just Rose to S$1,800: What It Means for Your Foreign-Worker Quota
Singapore's Local Qualifying Salary rose from S$1,600 to S$1,800 on 1 July 2026 — full-time locals below the line now count as half a head (or zero below S$900) toward Work Permit and S Pass quotas, CPF filings drive the weekly headcount refresh, and 30% PWCS co-funding offsets qualifying raises.
Trump Accounts for Employers: The $2,500 Exclusion, W-2 Box 12 Code TA, and a 5-Step Setup Checklist
Employers can contribute up to $2,500 per employee per year to a child's Trump Account tax-free and report it in W-2 Box 12 under the new Code TA, debuting on 2026 forms. This guide covers the written Section 128 plan, the per-employee (not per-child) cap, the $5,000 aggregate per-child limit, cafeteria-plan salary reductions for dependents only, Section 129-style nondiscrimination testing, and the payroll and account-verification controls that keep the benefit out of taxable wages.
Maine and Virginia Pay Transparency Laws: What Small Employers Must Put in Every Job Posting
Virginia requires a good-faith pay range in every public and internal job posting as of July 1, 2026, with no employer-size exemption; Maine requires one from employers with 10 or more workers as of July 29, 2026, plus three-year pay records. Here is what each law demands, how they differ, and the posting and payroll steps to comply.
Daylight Saving Time Ends November 1: Why Your Overnight Shift Is Nine Hours, Not Eight
When clocks fall back at 2:00 a.m. on November 1, 2026, a scheduled eight-hour overnight shift becomes nine paid hours under the FLSA — and that ninth hour counts toward the 40-hour overtime threshold. Spring forward is not the mirror image: the hour never worked may be paid voluntarily but is excluded from the regular rate and cannot offset real overtime.
The 2½-Month Bonus Rule: Why Year-End Bonuses Must Be Paid by March 15 to Be Deductible
An accrual-basis employer can deduct year-end bonuses in the year earned only if employees actually receive the money within 2½ months after year-end — March 15 for calendar-year businesses. The deduction also requires a liability fixed by December 31 under the all-events test, and it fails for bonuses owed to related parties under Section 267 regardless of payment timing.
Stay Bonuses That Actually Keep People: How to Structure Retention Agreements Without Overpaying or Under-Withholding
A stay bonus agreement pays a key employee to remain through a fixed date, usually 10% to 30% of base salary as a lump sum or milestone installments. This guide covers when a retention bonus beats a raise, how to size it against replacement cost, the terms a written agreement needs (forfeiture carve-outs, clawback limits, who pays in a sale), and the payroll rules that apply, including the IRS flat 22% supplemental-wage withholding, FICA, and state supplemental rates.
Your $35,568 Salary No Longer Makes Someone Exempt: 2026 Overtime Salary Thresholds in Six States
The federal FLSA salary threshold for the white-collar exemptions is still $684 a week ($35,568 a year) in 2026 after the 2024 DOL rule was vacated and rescinded, but six states set higher floors - Washington $1,541.70/week, California $1,352.00, New York $1,275.00 in the NYC metro and $1,199.10 elsewhere, Colorado $1,057.69, Alaska $938.40, and Maine $871.16. The threshold that applies is the one for the state where the work is performed, and a failed classification exposes two years of unpaid overtime (three if willful) plus liquidated damages that double the recovery.
Phantom Stock Plans for Small Businesses: Reward Key Employees Without Giving Away Ownership
A phantom stock plan grants key employees hypothetical units that track company value and settle in cash — no shares issued, no dilution, no voting rights. Payouts are ordinary income subject to FICA when paid, the employer deducts them in the same year, and cash-settled awards are liability awards remeasured at fair value each reporting period. Paying within 2½ months after the year units vest satisfies Section 409A's short-term deferral exemption; a two-to-three-participant plan typically costs $4,000–$10,000 to launch.
Is an 18% Service Charge a Tip? The IRS Four-Factor Test and What It Costs Your Restaurant Payroll
A mandatory service charge fails the IRS four-factor tip test, so it is wages rather than tip income — you owe both FICA shares on it, lose the Section 45B credit on Form 8846, and it is excluded from the new OBBBA qualified-tip deduction. Covers the four-factor test, the journal entries that keep Service Charge Revenue separate from Tips Payable, and the payroll, tip-credit, sales tax, and fee-disclosure changes a restaurant hits the day it switches.
IRS Notice 2026-36: How OBBBA's Expanded 21% Excise Tax on Nonprofit Executive Pay Now Reaches Every Employee, Not Just the Top Five
OBBBA expanded Section 4960 from the top five to every current and former employee after 2016. Learn how Notice 2026-36 previews proposed rules, who counts as an ATEO, and what nonprofits must track for the 21% tax on pay over $1 million in 2026.