Pay Matters! August 2019

07-30-2019

Welcome to Pay Matters, our monthly roundup of all the payroll and compliance news that you must know.

Stay informed and in compliance with our monthly payroll alerts and insights.

ACA’s Cadillac Tax on Brink of Repeal

On July 17, the U.S. House of Representatives voted to repeal the repeatedly delayed, so-called Cadillac tax.

This tax was created with the intention to help finance the expansion of health coverage under the Affordable Care Act and was scheduled to take effect in 2022 after being delayed twice by Congress. Employers offering high-cost health plans would have been subject to an excise tax of 40% of the cost of the insurance beyond designated thresholds.

The vote to repeal passed almost unanimously (419 to 6). Now the bill will go to the Senate.  If passed and signed by the President, many employers will be relieved of a potentially high tax burden.

Opponents of the repeal say it would result in the loss of millions of revenue dollars needed to fund the current health insurance system.

For more information on the Cadillac tax click here.

IRS Releases Shocking ACA Statistics

The IRS announced that an alarming 72% of large employers did not file their 2017 Forms 1095-C for the year 2017 in a compliant way:  25% of large employers did not file at all, while about 45% failed to correctly file. The IRS has started sending out noncompliance letters to employers and penalties may be severe.

Utilizing an ACA compliance product is key to avoiding IRS penalties. Contact your Client Services Team to find out about Viventium’s ACA tools.

New Overtime Rule May be Finalized for 2020 under New DOL Leadership

New Acting Labor Secretary Patrick Pizzella may be the catalyst for turning the Department of Labor’s (DOL) proposed overtime rule into reality.

Under the March 7 DOL proposal, the weekly salary threshold, above which qualifying employees may be classified as exempt from overtime pay, will rise to $679, or $35,308 per year. This is a significant increase from the current $455 per week and $23,660 annual threshold.

The DOL proposal also allows employers to count nondiscretionary bonuses and incentive payments, such as commissions, toward up to 10% of the salary test. In addition, the new salary threshold for Highly Compensated Employees (HCEs) will rise from $100,000 to $147,414 per year. The duties tests for executive, administrative and professional exemptions will remain unchanged, and there will be no automatic increases to the salary threshold, although the rule recommends adjusting the thresholds once every 4 years, pursuant to a notice and comment period.

Under Pizzella’s leadership, the overtime proposal may be finalized for 2020. Viventium will continue to monitor developments and keep you updated.

For more information on the DOL overtime proposal click here.

Upcoming Changes to the W-2 Electronic Filing Threshold

More employers will be required to electronically file Forms W-2 in the coming years.

On July 1, President Trump signed a bill reducing the W-2 electronic filing threshold from 250 to 100 for 2021 W-2s (filed in 2022), and to just 10 for 2022 W-2s (filed in 2023).

Viventium tax service clients are automatically in compliance with this new provision.  If you are not on tax service, follow Viventium’s year-end communications and enroll in W-2 filing service to ensure compliance.

For a copy of the bill click here.

House Passes $15 Minimum Wage Bill

The U.S. House of Representatives passed a bill to increase federal minimum wage to $15 per hour by 2025. The bill is unlikely to be considered by the Senate for approval. The federal minimum wage has been $7.25 per hour since July 2009.

EEOC Portal is Live         

On July 15, collection of 2017 and 2018 EE0-1 Component 2 employee data began with the opening of an online portal.

Employers with 100 or more employees must report Component 2 date for each quarter of 2017 and 2018 by September 30, 2019.  Employers must submit employee data organized into the usual categories of race/ethnicity, gender, and one of 10 job categories. That data must then be sorted into 12 pay bands, with annual hours reported, to create a grid representation of a workplace’s diversity.

The EEOC has created a website with resources including a sample form, FAQs and a User’s Guide to help employers meet their reporting requirements.

Viventium’s BI (business intelligence) product can help you meet your EEOC requirements.  Contact your Client Services Team for assistance in building your reports.

Connecticut Passes Generous Paid Family Leave Law

On June 25, Connecticut Governor Ned Lamont signed legislation to enact Connecticut’s paid family leave law, one of the most generous in the country.

Under the law, eligible employees will be entitled to up to 12 weeks of paid leave:

  1. to care for a new child (birth, adopted, foster);
  2. to care for a family member with a serious health condition;
  3. to care for his/her own serious health condition;
  4. for a qualifying exigency arising out of family member being on active duty; or
  5. to serve as an organ or bone marrow donor.

Benefits for eligible employees will start January 1, 2022 and will be paid at 95 percent of their base weekly wage up to 40 times the minimum wage and 60 percent of earnings above the minimum wage.  In addition, the maximum weekly benefit cannot exceed 60 times the minimum fair wage. Beginning January 1, 2021, benefits will be funded by employees through a payroll withholding of 0.5% of wages capped at the Social Security wage base. All private-sector employers with one or more employees are covered by the law.

Connecticut joins a growing number of states enacting paid family and medical leave laws, a trend that will likely continue in the coming months and years.

For a copy of the legislation click here.

Washington Delays PFML Reporting Deadline

Washington has granted employers extra time to report and pay their first and second quarter Paid Family and Medical Leave contributions.

On July 2, The WA Employment Security Department announced that the deadline to submit contributions and reports was moved from July 31 to August 31. The program’s electronic payment and filing portal can be accessed at SecureAccess Washington. Employers must create an account to file and pay for both quarters by the deadline.

More information including a reporting checklist and FAQ can be found at the paid family- and medical-leave program’s website.

California Expands Paid Family Leave Benefits

Effective July 1, 2020, eligible employees in California can take 8 weeks of paid family leave to care for an ill family member or after the birth, adoption, or fostering of a child. Currently, the law grants 6 weeks of paid leave.

For a copy of the bill click here.

Massachusetts PFML Law Updates

On June 18, Massachusetts released final Paid Family and Medical Leave (PFML) regulations clarifying that:

  • Contribution start date is delayed until October 1, 2019. The contribution rate changed to 0.75%
  • Covered earnings do not include earnings of 1099-MISC contractors unless the contract worker elects coverage under the PFML program or more then 50% of the employer’s workforce is comprised of 1099-MISC workers.
  • Employers may deduct different percentages (not to exceed 0.75%) from designated groups of workers (e.g. exempt vs. non-exempt).

Covered employees must be provided with a PFML notice by September 30, 2019 either on paper or electronically.  The notice must reflect the contribution rate and the date collections will commence. Updated notice templates can be found here.

If notices were already provided before the announcement of the delay on June 14, a rate update sheet, also available on the site, must be provided by September 30.

New York Expands Pay Equity Law

On July 10, New York Governor Andrew Cuomo signed legislation expanding worker protections under the New York Pay Equity Law.

Effective October 8, 2019, the expanded law requires equal pay among employees who perform “substantially similar” work, not just “equal work.” This distinction will require employers to look beyond job titles to the job roles and classes of jobs. The law also expands the protected groups beyond gender to include age, race, creed, color, gender identity or expression, military status, disability, genetic characteristics, familial status, marital status, domestic violence victim status, or other status protected by law.

Effective January 6, 2020 the law bans salary history questions to current employees and applicants. In addition, employers cannot use salary history to determine an employee’s pay rate.

Expanded Rights for New York’s Farm Workers

Effective January 1, 2020, New York farm workers must be paid overtime for hours worked over 60 in a week. In addition, farm workers are entitled to a 24-hour period of rest each week. Workers may choose to forego the day of rest but must be paid overtime at time and a half for those hours.

Under the law, paid leave and disability leave benefits must be provided, collective bargaining rights are granted, and farm workers are covered under unemployment insurance law.

California Local Minimum Wage Increase

In addition to the California local minimum wage increase reported in the July issue of Pay Matters (insert link to last month), Berkeley, California increased its minimum wage from $15.00 to $15.59 per hour effective July 1, 2019.

For more information see  https://www.cityofberkeley.info/MWO/.

 

Similarly, the city of Sonoma, CA announced the following increases:

 

Date Large Employers (26 or more employees) Small Employers (25 or fewer employees)
1/1/2020 $13.50 $12.50
1/1/2021 $15.00 $14.00
1/1/2022 $16.00 $15.00
1/1/2023 $17.00 $16.00

 

Note that special provisions apply to employees between 14 and 17 and to employers offering medical benefits.

 

Disclaimer:  Viventium will never automatically increase pay rates; It is always the employer’s responsibility to ensure compliance with minimum wage requirements.

 


This information is for educational purposes only, and not to provide specific legal advice. This may not reflect the most recent developments in the law and may not be applicable to a particular situation or jurisdiction.

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Overtime Shuffle - Lyrics

Overtime, oh, it’s a complicated game, Different rules in every state, it’s never the same, Multiply by 1.5, but there’s more to see, In this overtime equation, it’s not that easy, you see.

VERSE 1
In the world of work, there’s a tale to be told, About overtime hours, and the payroll gold, A consistent paycheck, that’s the worker’s dream, But when it comes to overtime, it’s not as easy as it seems.

PRE-CHORUS
Oh, Susie worked hard in San Francisco town, But the rules around overtime, they had her feeling down, 42 hours this week, she gave her all, Now it’s time to calculate, let the numbers fall.

CHORUS
Overtime, oh, it’s a complicated game, Different rules in every state, it’s never the same, Multiply by 1.5, but there’s more to see, In this overtime equation, it’s not that easy, you see.

VERSE 2
Exempt or non-exempt, the title they hold, Where they work, where you’re based, it’s all in the fold, California or New York, the laws they diverge, For payroll admins, it’s a never-ending surge.

PRE-CHORUS
Oh, the DOL’s website, a labyrinth to explore, State regulations galore, it’s quite a chore, Staying compliant, it’s a tricky art, Missing out on requirements can break your heart.

CHORUS
Overtime, oh, it’s a complicated game, Different rules in every state, it’s never the same, Multiply by 1.5, but there’s more to see, In this overtime equation, it’s not that easy, you see.

BRIDGE
But here’s a method that can save the day, A payroll software, to keep errors at bay, Input the info right, integrate with ease, No more manual labor, no more overtime fees.

VERSE 3
Back to Susie’s story, she’s owed her due, According to FLSA, it seems we have a clue, $860 on the table, that’s what we’d say, But California’s got its rules, changing the way.

PRE-CHORUS
Oh, California says, hours past eight, Are overtime-eligible, don’t underestimate, Now Susie’s owed $900, that’s the decree, In this overtime puzzle, you gotta set it free.

CHORUS
Overtime, oh, it’s a complicated game, Different rules in every state, it’s never the same, Multiply by 1.5, but there’s more to see, In this overtime equation, it’s not that easy, you see.

OUTRO
So when it’s overtime, and the rules entwine, Choose a payroll software, let it all align, Viventium’s the name, we’ve got the key, To make overtime calculations a breeze, you’ll see.

ENDING
Don’t overwork yourself, don’t you fret, With Viventium by your side, it’s a safe bet, Relax, you’re with us, in this overtime fight, With the right tools in hand, everything’s gonna be alright.

Retroactive Rhythms

Take back time, like a winding clock, Retroactive pay, mending every block. Calculate the hours, with precision and grace, In the world of care, in this payroll space.

VERSE 1
In the world of care, where time slips away, Caregivers dedicate, every single day. But when the hours are missed, in the daily race, Retroactive pay, steps up to embrace.

PRE-CHORUS
A caregiver tired, at the week’s end, Forgot to log hours, a mistake to mend. Admins face the challenge, calculations to make, To set it right, for the caregiver’s sake.

CHORUS
Take back time, like a winding clock, Retroactive pay, mending every block. Calculate the hours, with precision and grace, In the world of care, in this payroll space.

VERSE 2
Manual calculations, prone to a flaw, Dealing with shifts, odd hours, and the law. As your business grows, the cost takes flight, Automated solutions, shining bright.

PRE-CHORUS
Compliance is key, with FLSA’s might, Calculate and compensate, get it right. Avoid the audit’s gaze, fines and the cost, Retroactive pay, no longer lost.

CHORUS
Take back time, like a winding clock, Retroactive pay, mending every block. Calculate the hours, with precision and grace, In the world of care, in this payroll space.

BRIDGE
Employee satisfaction, a crucial part, Resolve mistakes, a work of heart. Relationships flourish, in pay’s embrace, A payroll software, creating a trace.

VERSE 3
Star caregivers, valued and strong, Retention and recruiting, where they belong. Automated solution, a total pay dance, Establish your business, a work-life romance.

PRE-CHORUS
A self-winding watch, Viventium’s grace, Optimizing payroll, in every case. No more struggles, in the payroll game, In it with you, time and time again.

CHORUS
Take back time, like a winding clock, Retroactive pay, mending every block. Calculate the hours, with precision and grace, In the world of care, in this payroll space.

OUTRO
As your business grows, in the hustle and fight, Viventium by your side, making it right. No more worries, in the payroll chain, In it with you, time and time again.

In the Arms of Geo Tax - Lyrics

Geo Tax, oh Geo Tax, our savior in the night, Guiding us through tax laws, shining a bright light. No more payroll worries, no more sleepless nights, With Viventium’s help, we’ll be alright.

VERSE 1
In the world of business, we all aim to thrive, Year after year, our dreams taking flight. But as we soar higher, we start to see, More money, more problems, just like B.I.G. Outgrowing our shell, it’s an exciting phase, But it brings with it some challenging days. Solutions we had, now show their flaws, As we push the boundaries, breaking through the walls.

CHORUS
Geo Tax, oh Geo Tax, our savior in the night, Guiding us through tax laws, shining a bright light. No more payroll worries, no more sleepless nights, With Viventium’s help, we’ll be alright.

VERSE 2
Employees across states, in different localities, Tax laws aplenty, creating complexities. Our old software’s limits, we’ve begun to see, Scaling up our business, we need to break free. Calculating pay and taxes, where it all begins, Errors in this process, lead to countless sins. Employees rely on us, trust in our might, To withhold what’s needed, get it just right.

CHORUS
Geo Tax, oh Geo Tax, our savior in the night, Guiding us through tax laws, shining a bright light. No more payroll worries, no more sleepless nights, With Viventium’s help, we’ll be alright.

BRIDGE
Taxes, they’re not simple, that’s for sure, A world of complexity, there’s always more. But Viventium stands with us, in this fight, Geo Tax, our ally, making everything right.

VERSE 3
CPAs may struggle, and admins too, Keeping up with taxes, what can they do? The rules keep changing, it’s hard to keep pace, But Viventium’s here, in this challenging space.

CHORUS
Geo Tax, oh Geo Tax, our savior in the night, Guiding us through tax laws, shining a bright light. No more payroll worries, no more sleepless nights, With Viventium’s help, we’ll be alright.

OUTRO
So relax, dear business, and set your mind free, With Geo Tax on our side, we’re the best that we can be. Viventium’s got us, in this tax-filled fight, No more worries, no more sleepless nights.

REPEAT CHORUS
Geo Tax, oh Geo Tax, our savior in the night, Guiding us through tax laws, shining a bright light. No more payroll worries, no more sleepless nights, With Viventium’s help, we’ll be alright.

Payroll Grid Serenade - Lyrics

Configurable Payroll Grids, a helping hand in sight, In the realm of admin life, where details are rife. With custom views and filters, they navigate through the night, Let’s celebrate this feature, it’s the heart of our work life.

VERSE 1
In the world of admin tasks, where changes often arise, There’s a tool that’s been a savior, under office fluorescent skies. With flexibility and precision, it eases their daily strife, Let’s sing about this feature, it’s the pulse of our work life.

CHORUS
Configurable Payroll Grids, a helping hand in sight, In the realm of admin life, where details are rife. With custom views and filters, they navigate through the night, Let’s celebrate this feature, it’s the heart of our work life.

VERSE 2
Admins wear many hats, in their daily grind, Sometimes they need to adjust, leave no errors behind. Adding extra hours, bonuses, or fixing pay, They need a simple method, to make it all okay.

CHORUS
Configurable Payroll Grids, a helping hand in sight, In the realm of admin life, where details are rife. With custom views and filters, they navigate through the night, Let’s celebrate this feature, it’s the heart of our work life.

BRIDGE
Custom views and filters, tailor it to your need, Focus on the important, no need for needless speed. A hundred-dollar bonus, a few clicks and it’s in flight, Admins get it done, making sure it’s right.

VERSE 3
In the admin’s world, where numbers have their say, This tool steps in gracefully, making tasks less gray. An interface so intuitive, like an Excel sheet, Changing data effortlessly, making work complete.

CHORUS
Configurable Payroll Grids, a helping hand in sight, In the realm of admin life, where details are rife. With custom views and filters, they navigate through the night, Let’s celebrate this feature, it’s the heart of our work life.

OUTRO
So here’s to Payroll Grids, in our song of praise they gleam, For admins working diligently, they fulfill a dream. In the world of office hustle, they bring much-needed light, Let’s tip our hats to this tool, and its invaluable might.

Automation Anthem - Lyrics

Rule-Based Automation, it’s the name of the game, Less manual toil, less stress and shame, With policies and standards, we’ll pave the way, To automate your chores and brighten your day.

VERSE 1
In the world of payroll, a daily task we face, Admins work hard, in this complex space, They handle policies, with attention and care, But there’s a solution that’s beyond compare.

PRE-CHORUS
Oh, payroll admins, your role’s crucial and true, But there’s a tool we’ve got, just for you, Let’s explore rule-based automation, my friend, With Viventium, your tasks will gently mend.

CHORUS
Rule-Based Automation, it’s the name of the game, Less manual toil, less stress and shame, With policies and standards, we’ll pave the way, To automate your chores and brighten your day.

VERSE 2
Standardize policies, that’s the key, For tenure, role, union status, you’ll see, PTO, bonuses, pay rates defined, Automation makes your workload more aligned.

PRE-CHORUS
Oh, payroll admins, the burden’s a load, But rule-based automation lightens the road, No more tiresome chores, no more dread, With Viventium, it’s smoother ahead.

CHORUS
Rule-Based Automation, it’s the name of the game, Less manual toil, less stress and shame, With policies and standards, we’ll pave the way, To automate your chores and brighten your day.

BRIDGE
In the world of payroll, where tasks repeat, We’ve got the solution, it’s oh so neat, “If this, then that,” it’s simple and sly, With Viventium by your side, you’ll reach for the sky.

VERSE 3
Tenure-based PTO, a common request, With Viventium, it’s passed the ultimate test, Set it up once, and then you’ll see, Automation handles the chore, oh so free.

PRE-CHORUS
Oh, payroll admins, take a breath, take a pause, With Rule-Based Automation, you’ll find no flaws, It’s easy, it’s simple, no programming in sight, Viventium’s got you covered, day and night.

CHORUS
Rule-Based Automation, it’s the name of the game, Less manual toil, less stress and shame, With policies and standards, we’ll pave the way, To automate your chores and brighten your day.

OUTRO
So if you’re a payroll admin, feeling the weight, Let Viventium’s Rule-Based Automation be your fate, No more worries, no more strife, With Viventium, you’ll transform your work life.

The Data Groove - Lyrics

Oh, the Report Library, it’s the heart of the show, Where numbers come alive and insights start to flow. With Viventium’s aid, it’s a breeze, can’t you see? Reporting made easy, for your company to be free.

VERSE 1
In the world of business, it’s a complex game, With factors and figures, it’s never the same. Decisions are key, they’ll determine your fate, So listen up closely, don’t be a bit late.

PRE-CHORUS
Gather your data, don’t let it fade, In the depths of spreadsheets, don’t let it cascade. Your HCM software, is it up to the task? To capture and store, to help you unmask.

CHORUS
Oh, the Report Library, it’s the heart of the show, Where numbers come alive and insights start to flow. With Viventium’s aid, it’s a breeze, can’t you see? Reporting made easy, for your company to be free.

VERSE 2
Once the data’s collected, it’s time to report, But it can be daunting, that’s the common retort. Pre-built solutions, they’re your guiding light, Turning raw data into visions so bright.

PRE-CHORUS
No more manual hours, no errors in sight, With report library’s might, everything’s right. Payroll summaries, tax liabilities, and more, All in a flash, you’ll have what you adore.

CHORUS
Oh, the Report Library, it’s the heart of the show, Where numbers come alive and insights start to flow. With Viventium’s aid, it’s a breeze, can’t you see? Reporting made easy, for your company to be free.

BRIDGE
Viventium’s here, with a passion so true, Constantly improving, for folks just like you. A Report Library, a gift from the stars, For data-driven dreams, it’ll take you far.

CHORUS
Oh, the Report Library, it’s the heart of the show, Where numbers come alive and insights start to flow. With Viventium’s aid, it’s a breeze, can’t you see? Reporting made easy, for your company to be free.

OUTRO
So remember this lesson, in the business terrain, It’s all ’bout decisions, don’t let ’em wane. With data as your guide, and Viventium’s grace, You’ll conquer the challenges you’ll face.