We know, you've got a lot going on. So much, in fact, that you don't have a ton of time to worry about what's new in the payroll world. That's where we come in!
Want to make sure you're not missing important developments in the payroll scene? Never fear: we've got the round-up of payroll news and updates that you need to know in order to stay in the loop. This is Pay Matters - the June 2017 edition.
Read on to stay informed and stay in compliance with relevant alerts and insights that matter most for your payroll.
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On May 4, the IRS published the 2018 health savings account (HSA) contribution limits. An HSA allows taxpayers enrolled in high-deductible health plans to set aside money for medical expenses on a pre-tax basis. The following chart compares the 2017 and 2018 annual limits:
|HSA Contribution Limit
(both employee and employer)
|HDHP Minimum Deductibles||Individual: $1,350
|HDHP Maximum Out-of-Pocket
(Deductibles, Co-Payments and Other Amounts, but not Premiums)
Employers may be granted a new option when compensating employees for overtime, as the House of Representatives approved The Working Families Flexibility Act of 2017 on May 2. Before it can become law, the bill must be approved by the Senate.
Under the bill, employers may provide paid time off (PTO) instead of extra pay as compensation for overtime worked. Employees would need to agree voluntarily, and employers would need to accrue the paid time off at a rate of at least 1.5 hours for every overtime hour work. Workers could accrue up to 160 hours in a 12-month period. Any unused PTO at the end of the 12-month period would be paid out to the employee at the higher of: 1. the employee’s regular rate of pay when the PTO was earned or 2. his/her current regular rate of pay.
Previous attempts to pass similar bills have not succeeded. This bill will now be considered by the Senate before it can move on to be signed into law.
Under California law, employees must be given one day of rest in a 7-day period. How to determine the 7-day period was clarified by the California Supreme Court on May 8. According to the law, employers must grant one day of rest in a workweek, but not on a rolling basis for any 7 consecutive days of work.
For example, if an employer’s workweek is Sunday through Saturday, an employer may still schedule an employee to work from one Thursday to the next Thursday, even though this is 7 consecutive days. The employer must make sure the employee is given one day of rest in each of the workweeks that this 7-day scheduling period crosses.
The clarification of the regulation is good news to employers who now have more flexibility when establishing their employee work schedules.
For more, click here.
Effective July 11, 2017, New Hampshire employers may pay employees weekly or biweekly. Under current law, employers must pay employees within 8 days after the end of the week the work was performed, including Sundays.
For a copy of the legislation, click here.
As part of an ever-growing trend in localities across the country, employers in Milpitas, California, should get ready for a new minimum wage.
The Milpitas hourly minimum wage is to increase on July 1 to $11.00 from the state's hourly minimum wages of $10.50 and $10 (depending on employer size).
The city's hourly minimum wage will continue to increase to $12.00 on January 1, 2018, $13.50 July 1, 2018, and $15.00 January 1, 2019.
Effective July 1, 2017, employers in Cook County, Illinois, will be subject to both a new minimum wage and new paid sick leave requirements.
The hourly minimum wage will increase to $10.00 on July 1, 2017, to $11.00 on July 1, 2018, to $12.00 on July 1, 2019, and to $13.00 on July 1, 2020. The hourly minimum wage is to be annually adjusted for inflation starting July 1, 2021.
Also effective July 1, employers must accrue for their employees one hour of paid sick leave for every 40 hours worked. Employers may limit the accrual to 40 hours a year, but employees may carry over up to 20 hours of unused paid time from year to year. Accruals begin on the first day of employment and may be used starting on the 180th day of employment.
The following towns within Cook County have chosen to opt out of the new minimum wage and sick pay requirements: Arlington Heights, Barrington, Bedford Park, Elk Grove Village, Elmwood Park, Evergreen Park, Hickory Hills, Mount Prospect, Oak Forest, Palatine, Palos Heights, River Forest, Riverside, Rolling Meadows, Rosemont, Schaumburg, Streamwood, Tinley Park, Western Springs and Wheeling. These towns will continue under the state minimum wage of $8.25 per hour.
For more details, click here.
Effective July 1, 2017, nearly all employers in Chicago, Illinois, must provide paid sick leave to their employees.
Under Ordinance 02016-2678, Chicago employees will accrue 1 hour of paid sick leave for every 40 hours of work. Accruals can be capped by employers at 40 hours of accrued leave per 12-month period. New hires can begin using accrued sick leave after a 6-month probationary period, and all employees can rollover 20 hours of unused paid leave to the following year.
For more details on the new requirements, click here.
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