Sep 112012

Be sure you know your state’s rules for delivering a final paycheck when someone leaves your employment.  Not following the rules can put your company at risk of penalties for violating the final paycheck laws, and if a former employee sues you, you could be required to pay for their attorney’s fees as well as court costs.

Here is a brief summary of our most popular states:


Termination wages are due to the worker on the next regularly scheduled payday regardless of whether the worker quit or was fired.


Generally, an employer must issue a final paycheck to an employee immediately if the employee is being fired or laid off. The final paycheck must include all unpaid wages and any unused vacation time. However, an employer must issue a final paycheck to an employee who has resigned not more than 72 hours following the resignation, unless the employee has given 72 hours notice of his or her resignation, in which case the final paycheck must be issued on the date of resignation.


If an employee quits with less than 48 hours notice, excluding weekends and holidays, the paycheck is due within five days, excluding weekends and holidays, or on the next regular payday, whichever comes first.
If an employee quits with notice of at least 48 hours, the final check is due on the final day worked, unless the last day falls on a weekend or holiday. In that case, the check is due on the next business day.
If an employee is discharged, the final paycheck is due not later than the end of the next business day.
When an employer and employee mutually agree to terminate the relationship, the check is due by the end of the following business day, as in the case of discharge.
When employment is related to state and county fairs, and employment terminates on weekends or holidays, the check is due by the end of the second business day after the termination.

If you want to know the rules for a state not listed above, just ask us.


 Posted by at 11:47
Sep 102012

The Internal Revenue Service announced the new HSA contribution limits for 2013.

The HSA contribution limits for 2013 will be:

  • Individuals – $3,250*
  • Families – $6,45o*

*A participant over 55 years of age is allowed to contribute an additional $1,000.

In order to contribute to an HSA, you must have a qualified High Deductible Health Plan, also known as HDHP. The current definition of a qualified HDHP for 2013 (unchanged from 2012) is:

Individuals – High Deductible Health Plan

  • Minimum Deductible – $1,200
  • Maximum Out of Pocket – $5,950

Families – High Deductible Health Plan

  • Minimum Deductible – $2,400
  • Maximum Out of Pocket – $11,900

The Benefits of HSA Contributions

Most health insurance plans are moving to higher deductibles to save costs. If your plan meets the HDHP requirements, you are eligible to contribute to a HSA.

An HSA, is a a tax-favored savings account to help pay for a high deductible.  If you don’t reach the deductible, any money left in your savings account stays in that account and is invested tax deferred.

More specifically, the benefits of a HSA are:

  • Any contributions you make are tax deductible
  • Any withdrawals for qualified medical expenses are never taxed
  • Interest earned in your HSA account with the money not used to pay for health expenses is tax deferred. If those funds go unused until the age of 65, you’re allowed to withdraw them with no additional penalty, similar to a Traditional 401(k)
  • Any money invested in your HSA is yours to keep. It’s not a “use it or lose it” account like a FSA

If you think you may benefit from having a Health Savings Account, let us know and we’ll put you in touch with someone who can help you get started.

 Posted by at 12:44