GovCon Wednesdays – Estimated Read Time: 6 minutes Paid Time Off (PTO) policies are often treated as an HR formality—something documented once and revisited only when issues arise. But in practice, PTO policies directly impact payroll accuracy, financial reporting, and, for government contractors, compliance and audit readiness. If your PTO policy is unclear or inconsistently applied, it can create “fringe” rate distortions that are much harder to defend during an… Read More
Payroll & Tax
401(k) on Supplemental Wages: What GovCons Must Get Right for Compliance
GovCon Wednesdays – Estimated Read Time: 6 minutes When companies process bonuses, PTO payouts, or severance, most of the focus goes to payroll taxes and withholding. But one of the most common—and costly—oversights happens on the benefits side. 401(k) treatment on supplemental wages is not automatic. It depends on your plan document, your payroll setup, and how consistently you apply both. For government contractors, mistakes here don’t just impact employees—they… Read More