Pub. 2 2020 Issue 1

form 941). Gross overtime costs by each classification of employee must be totaled. Overtime is deducted from the payroll by classification for premium calculation purposes. The auditor must see the gross overtime broken out by classification in order to exclude it. All employees should be identified by name and title, including executive offi- cers and owners. The auditors will also review all 1099 forms to insure that “employees,” as defined by the workers’ compensation statute RSA 281-A: 2, VI, (b) (1), are not misclassified as independent contractors, http://www.gencourt.state.nh.us/ rsa/html/XXIII/281-A/281-A-2.htm. The workers' compen- sations statute defines an employee in a seven-part test and all seven criteria must be met in order to prove that a person is an independent contractor. The NH Dept. of Labor, U.S. Dept. of Labor and IRS are all concerned about the misclassification of employees. If an audit from one of these entities reveals a misclassified employee, severe civil penalties may be levied. Please remember that swap drivers are generally considered employees and not independent contractors unless they are employed by a company that provides that service to you and is covered by their own workers' compensation policy or they hold themselves out to be a business unto themselves. The state and federal government will always make a deter- mination on the employer/employee relationship based on the applicable statutes. If you have questions, please contact Pete Sheffer or the NHADA Legal Hotlines. Upon receipt of the completed audit, members’ 2019 pre- mium will be re-calculated and a final bill will be produced. If the net result is an overpayment, the overpayment will be applied to your 2020 premium. If the net result is an under- payment, a bill will be sent, and payment is due within 30 days of receipt. All members will receive a copy of their audit with a bill or an explanation of how the overpayment will be applied to future premiums. If you have questions or concerns about the audit, please notify us immediately. Once the rebate checks are disbursed in May, an audit cannot be changed. The 2020 year's premium will be estimated based on the actual audit payroll figures from 2019. We understand that payrolls fluctuate over the course of the year, particularly in the current economic climate. Therefore, in June of every year, we send out a self-audit form for members to complete in order to adjust the payroll figures. Our collective goal at the end of the year is to avoid large pre- mium adjustments. If members believe at any time during the year that their payroll figures have changed, please contact Marianne Gourgiotis to update your payroll figures. Marianne will gladly recalculate your premium and your monthly billing will be adjusted accordingly. Remember to be prepared for your audit, have your mate- rials ready and please do not keep the auditor waiting. Accurate premium billing depends on upon accurate audits. Please contact Marianne Gourgiotis if you have premium questions at 1-800-852-3372. Silver Partner New Hampshire roots facilitate our understanding of the nuances of NH business ownership and provide a foundation of knowledge specific to New England dealership operations. For more information please contact James Godfrey at (603) 653-0044 or james.godfrey@tss-cpa.com . Tyler Simms & St. Sauveur CPAs PC Proactivity, Accountability, Community, Teamwork, & Trust Silver Partner Northeast Delta Dental is the region’s most trusted name in dental insurance for companies of all sizes, individuals, and families in Maine, New Hampshire, and Vermont, administer- ing dental benefits for more than 927,000 people. To learn more about their products and how they can keep you smiling, please contact Laurie Churchill at NHADA headquarters. Laurie Churchill (800) 852-3372 lchurchill@nhada.com. Northeast Delta Dental Providing quality and affordable dental programs ENDORSED PARTNER N E W H A M P S H I R E 11