New Minimum Salary Threshold Takes
Effect Jan. 1
The Department of Labor has issued a final rule amending the overtime provisions of the Fair Labor Standards Act (FLSA)—raising the minimum salary threshold for workers to qualify for “white collar” exemptions to increase from $23,660 annually to $35,568.
This proposal was previously on the table in May of 2016 to raise the threshold to $47,476 annually. But days before the rule was set to take effect, a Texas federal district court judge blocked it. It was back under consideration recently, but not yet finalized (see PPA Press article from May 2019
advising employers of potential changes).
Now finalized, the new rule will take effect in January of 2020. It is expected to prompt employers to reclassify more than one million currently exempt workers to non-exempt status and raise pay for others above the new threshold.
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Affordable Care Act Reporting Reminder
The Affordable Care Act (ACA) employer mandate is still in place and with it stays the annual ACA reporting requirement that is applicable to three groups of employers:
- Employers with 50 or more full-time or full-time equivalent employees
- Employers who self-insure for healthcare, even if they have fewer than 50 employees
- Employers with multiple affiliated entities under common ownership, if they have a combined total of 50 or more full-time or full-time-equivalent employees
The deadlines (noted below) are not expected to be extended this year.
Employers will need to report information to the IRS about the healthcare coverage offered to their full-time employees using Forms 1094 and 1095. They must also distribute copies of the Form 1095 to their full-time employees, which contains information they may need to report as part of their income tax submission for the 2019 tax year.
In order to meet the reporting deadlines (noted below), employers should already be compiling and analyzing data to determine coverage and affordability.
Precision Payroll can assist you with these tasks. For further information about our ACA Reporting Services, please contact Tom Sodeika (firstname.lastname@example.org
) or Kiran Waheed (email@example.com
Important ACA Deadlines
- January 31, 2020: 1095 B or C forms delivered to employees
- February 28, 2020: Paper filing with IRS
- March 31, 2020: Electronic filing with IRS
Fillable PDF Forms Now Available for Onboarding and Benefits
You can now include fillable PDF forms in both the Onboarding and Benefits modules. This feature provides an easy way to centralize multiple forms required during benefit enrollment and onboarding into one process. You can build in messages that prompt the user to fill in required forms. Examples of fillable forms are tobacco affidavits and new hire data collection forms.
The forms must meet the following parameters to be added into the system:
- Must be a PDF and less than 32 MB
- Must be created by you as a fillable form
- Cannot be password-protected
Special notes for forms in Employee Messages
- If the form is marked for “Requires Completion,” it will prevent the employee from submitting Benefit Enrollment or Onboarding, regardless of rules set up for Enrollment/Onboarding.
- The document type is “Custom Forms” in Client Management > Client Utilities > Self Service Roles. Setting this on each individual employee document will override defaults on both the form and the company default.
- If the form is no longer needed, it can be removed from the message without needing to expire the message, and a new form can be created.
- Fillable forms are not linked to Electronic Consent in iSolved.
- Information contained in the form is not transferred to the employee record (ex. Employee address, phone number, etc.)
Once the employee fills in a form and submits it, the form is immediately saved to the Employee Documents section. The form can be edited only for name and access options. The saved version of the form is shown as a full PDF; no fields are available to update.
Please contact your Payroll Specialist with any questions.
Paid Family and Medical Leave Act
More and more states are activating Paid Family and Medical Leave (FMLA)—a state-mandated law that provides employees with paid family and medical leave. States with paid family leave require employees and/or employers to contribute to a paid leave fund. Eligible employees who work in states with state family and medical leave laws receive wages for qualifying reasons.
The details often vary by state, and compliance is key. Precision Payroll can assist in the calculations per your state’s rules, and with the submission of payments and reports.
If you’re an employer with employees who work in one of the states with paid family leave, you need to know your responsibilities. Here is an overview of the states with Paid Family and Medical Leave, and the details of each. The state is listed; please click the link to read details.
- District of Columbia
- New Jersey
- New York
- Rhode Island
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