Pay Matters! August 2018

08-02-2018
Tags: 

What's going on in the payroll world these days?

Don't worry, we don't expect you to have the answer - that's why we put together our monthly round-up of the payroll news and updates you need to know!

This is Pay Matters –  the August 2018 edition.

Check out the payroll alerts and insights in this newsletter to stay informed and in compliance.  We've got your back.


FEDERAL PAYROLL UPDATES

SSA to Notify Employers of Name/SSN Errors

Starting in August 2018, the Social Security Administration will be mailing “Education Correspondence” to employers who have filed 2017 Forms W-2 containing employee names and Social Security numbers that do not match SSA records.

This first letter will guide employers to SSA services they can use to ensure accurate information of Forms W-2. The letters are NOT penalty letters but are educational in nature.  Their goal is to alert the employer that they need to review their data and make corrections.

Beginning February 2019, the SSA will begin mailing a second letter, also informational, listing the actual name and SSN combinations that do not match SSA records.

The SSA has created both a sample letter and a webpage to assist employers.

IRS Releases New ACA Penalties Resource

At the end of 2017, the IRS began sending out Letter 226J, proposing an Employer Shared Responsibility Penalty (ESRP) to employers for not meeting the requirements of the Affordable Care Act. Employers had 30 days in which to respond to Letter 226J.

In March 2018, the IRS started to mail out their reactions to the employers' responses, using five different versions of Letter 227 (J, K, L, M, and N).

Recently, the IRS released a new resource to help employers understand and respond to Letter 227.

The resource explains the five different kinds of Letter 227 and the response required for each.  The IRS also provides guidance on the steps employers should take after receiving a letter and provides an FAQ to help employers with common questions.


STATE PAYROLL UPDATES

New Jersey Equal Pay Law

On July 1, 2018, the Diane B. Allen Equal Pay Act went into effect.  The act requires New Jersey employers who enter into a contract with the State of New Jersey to provide the NJ DOL with wage and demographic date for their employees.

Under the law, employers must electronically file an annual report by March 31 for the preceding year containing information on gender, race, ethnicity, compensation, and number of hours worked.  The required data and form will differ depending on whether the contract with New Jersey is for “public work” or “qualifying services.”

For more information, click here.

New Jersey to Allow Local Payroll Taxes

New Jersey is to allow some municipalities to impose payroll taxes on employers under a bill (A. 4163) signed July 24 by Gov. Phil Murphy (D), the state legislature said on its website.

Under the bill, municipalities may pass ordinances to impose a payroll tax on employers. The maximum rate of any payroll tax is to be 1 percent of employers’ payrolls, but municipalities may set lower rates.

Ordinances governing local payroll taxes are to be allowed to exclude from the tax employees who are residents of the municipality imposing the tax.

Under state law, only municipalities with a population of at least 200,000 may impose municipal taxes. Newark already administers a payroll tax.

The bill is effective July 24, as its effective date was dependent on the signing of another bill (S. 2) which also was signed by Murphy July 24.

Massachusetts to Implement New Paid Family and Medical Leave Program

As part of a growing trend among states and localities, Massachusetts Governor Charlie Baker signed a law creating a new paid family and medical leave program.  The program will be administered by the newly created Division of Family and Medical Leave.

Beginning January 1, 2021, eligible employees can receive the following benefits:

  • up to 20 weeks of job-protected paid medical leave to care for their own serious health condition;
  • up to 12 weeks of job-protected paid family leave to care of a family member with a serious health condition, bond with a newborn or adopted/foster child, or for a qualifying emergency of a family member who is part of the Armed Forces;
  • up to 26 weeks of job-protected paid family leave to care for a covered service member.

The program will be funded by a state payroll tax that goes into effect July 1, 2019. The tax will be withheld at an initial rate of 0.63%, split between employees and employers. Employees will cover 100% of family leave contributions and 40% of personal medical leave contributions, with employers covering the other 60%. Employers with fewer than 25 employees will not be required to contribute to the personal medical leave, but must still administer the employee contributions.  Employers who provide benefits that match or exceed the state program may opt out.

In addition, under the new law, starting on January 1, 2019, three pay requirement changes will be phased-in as follows:

  1. The state hourly minimum wage with rise from $11.00 to $15.00
  2. The tipped hourly minimum wage with increase from $3.75 to $6.75
  3. The premium pay (1.5 times the hourly rate) requirement for work performed on Sundays and certain holidays will be completely eliminated
Effective Date Hourly Minimum Wage Tipped Minimum Wage
January 1, 2019 $12.00 $4.35
January 1, 2020 $12.75 $4.95
January 1, 2021 $13.50 $5.55
January 1, 2022 $14.25 $6.15
January 1, 2023 $15.00 $6.75

Next Steps

As further guidance is released by the Massachusetts DOL, Viventium will continue to monitor this new payroll tax and keep you up to date on its requirements.

For the text of the law, click here.


LOCAL PAYROLL UPDATES

Reminder: NYC Temporary Schedule Change Law is in Effect

Effective July 18, 2018, employers must allow employees to make two temporary work-schedule changes annually for qualifying personal events. Changes can be made for any reason that qualifies under the New York City Earned Sick and Safe Leave Act, such as caring for a sick relative.

Employees can make changes to their work schedule for up to one business day. Changes may include remote work,  unpaid leave, or changes to work-hours.

The measure does not apply to employees who have worked fewer than 120 days for their employer, or who work fewer than 80 hours annually in New York City. The law creates a written process for communicating schedule changes and protections against employer retaliation for such requests.

For the text of the measure, click here.

NYC Fast Food Industry Must Comply with Law to Allow for Payroll Deductions to Fund Non-Profits Contributions

In June 2017, NYC passed a law requiring fast-food employers to set up a system through which employees can elect to make contributions to non-profit organizations through payroll deductions. Under the law, fast food employers must provide employees with a written authorization form to set up the payroll deductions. Employers must implement the deduction no later than the first pay period after 15 days of receiving an employee authorization. Employers must also remit the contribution to the selected non-profit organization within 15 days of the payroll deduction.

This “Deductions Law” was initially fought by the Restaurant Law Center, whose lawsuit resulted in a temporary halt to enforcement of the law.  On June 8, 2018, the halt expired and can now be enforced by NYC. All employers in the fast-food industry are encouraged to provide the written authorization to their employees and implement a payroll deduction and remittance system.


MINIMUM WAGE UPDATES

Delaware

Delaware minimum wage will increase to $8.75 on October 1, 2018 and to $9.25 on October 1, 2019.

Massachusetts

Massachusetts' minimum wage will increase gradually over 5 years to $15.00 per hour.  The increase will take place as follows:

  • $12.00 in 2019;
  • $12.75 in 2020;
  • $13.50 in 2021;
  • $14.25 in 2022; and
  • $15.00 in 2023.

Emeryville, CA

Effective July 1, 2018, Emeryville, California minimum hourly wage increased from $15.20 to $15.69 for employers with 56 or more employees, and from $14.00 to $15.00 for employers with 55 or fewer employees.

 


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.

Subscribe To Our Monthly Roundup

Flexible Software Anyone Can Use

Viventium-Logo

By filling out this form, you submit your information to Viventium, who will use it to communicate with you regarding updates and other services.

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.