Weird Payroll Rules: Part 1

While you’re all experts in the industry, there may come a time when you’re faced with a bizarre payroll nuance. Here’s a few we’ve found particularly amusing ourselves.

Reporting Hires and New Hires to the Division of Child Support

In most states, when you hire a new employee, you report them to a special division or workforce dedicated to this part of the population. Usually, it’s in some economic or employee department. However, in some states, you’re required to submit any new hire or re-hire to that state's Division of Child Support. This is the case in places like Alaska and Oregon. There’s likely a solid reasoning behind it, but it does seem odd at first glance to see 'Child Support Program' when you’re submitting for your new IT guy.

For the Convenience of the Employer Rule

This rule determines whether meals, lodging, transportation, home-offices, or other work-related expenses (i.e. anything, really) provided by an employer are taxable. Any employee expenses paid for by the employer must ONLY be for the 'convenience' of the business/company providing it, and if so, must take place on said employee’s home or premises. These are not included in employee’s income. Seems like a lot of this can be up for debate, which is always fun, right?

Pennsylvania Local Tax Collector

This may not be 'weird' to people in Pennsylvania, but it took us aback. Due to the local taxes imposed within certain cities, and the drama that ensues thereafter, 73 local income tax collection agencies were created to make sure those taxes were being paid and collected. Seventy-three. They’re organized by districts and PSD codes, and each have their own website and office locations. They probably have their own polo shirts, too.