The federal government recently passed the CARES Act which contains a few options for employers related to COVID-19 relief. Below is a summary of the three main options included in the CARES Act including the Payroll Protection Program loans now available for small businesses. Continue reading
The U.S. Department of Labor has released a final ruling on what constitutes a joint employer relationship when it comes to liability for wage and hour matters. In a wage and hour investigation, a four-factor balancing test will be used by courts to determine whether two entities are considered joint employers. The four-factor test will assess whether the company: Continue reading
As 2019 winds down there are a number of things that you need to be aware of going in to 2020 to ensure compliance with federal and state wage and hour rules and other payroll related laws. Continue reading
For the first time in many years the IRS has significantly revamped the Federal W-4 form for 2020. This new form will be required to be completed by all new employees beginning on January 1, 2020. Any existing employees who wish to make changes to their federal tax withholding after January 1st will also need to use the new version. Employers can ask, but cannot require, all existing employees to submit a new version of the W-4 form. However, if an employee hired before January 1, 2020 does not complete a 2020 W-4 employers must use the last completed W-4 to calculate appropriate federal withholding for the employee. Continue reading
For employees working the graveyard shift, this weekend could be a bit longer than normal. With the exception of Arizona and Hawaii, Daylight Savings Time ends this Sunday, November 3rd at 2 AM local time for all U.S. states. At this time, the clocks will roll back to 1 AM and repeat the hour. If you have employees that work at that time, your payroll liability will likely be higher than on a typical work day because of the additional hour worked unless scheduling modifications are made. Continue reading
Following suit with other states, Nevada will soon require employers with 50 or more employees to provide general paid leave to all employees. This include full-time and part-time employees, but excludes temporary, on-call, and seasonal employees.
Effective January 1st, 2020, employers must provide “at least 0.01923 hours of paid leave per hour of work performed.” This means that an employee who works 40 hours a week for a whole year will accrue 40 hours of paid leave. This paid leave can be used for any reason, in fact your employee does not have to give you a reason. Still, employees must give a “reasonable” amount of notice before using their paid leave. Continue reading
This morning the Department of Labor (DOL) announced the new salary threshold for exempt employees. Currently employees who meet certain job duties tests and are paid on a salary basis equal to at least $455 per week can be considered exempt from overtime. The new ruling increases the salary threshold from $455 per week to $684 per week. This new threshold is effective January 1, 2020.
The new threshold means that employers who have exempt employees making less than $684 need to either reclassify the employees as non-exempt (making them eligible for overtime pay when working more than 40 hours in a workweek ) or need to increase wages to be above the weekly minimum. Continue reading
Veteran’s Day, a day to commemorate and honor those who have served in our nation’s military in the past and present, is November 11. It dates back to 1918 when the fighting ceased on the eleventh hour of the eleventh day of the eleventh month during World War I. For this reason, November 11, 1918 is largely considered the end of the war “to end all wars.” It was in November 1919 that President Wilson declared November 11 as the first Armistice Day. In a speech he stated, “To us in America, the reflections of Armistice Day will be filled with solemn pride in the heroism of those who died in the country’s service and with gratitude for the victory, both because of the thing from which it has freed us and because of the opportunity it has given America to show her sympathy with peace and justice in the councils of the nations…” It was generally celebrated with parades and cessation in business beginning at 11:00 am.
However, much has changed since November 1919. Through the hustle and bustle of modern-day business, it has caused much confusion about how employers should observe Veteran’s Day and what legal obligations they have. In Iowa, Massachusetts, New Hampshire, and Oregon employers may be required to provide veterans a day off if they are normally scheduled. Continue reading
The IRS has announced today that the individual contribution limit for 401(k) plans in 2019 will increase from $18,500 to $19,000. Individuals age 50 or over will be able to contribute an additional $6,000 per year as a catch up contribution.
There were also changes announced to other types of retirement plans, you can read more details regarding these changes here: Notice 2018-83.
The state of Michigan has recently passed a law that will gradually increase the minimum wage for non-exempt employees to $12.00 per hour by January 1, 2022. The state minimum wage applies to all Michigan employers with two or more employees who are 16 years of age or older.
In the past, Michigan has allowed employers to pay tipped employees 38% of the minimum wage, but that percentage will gradually increase to 80% of the minimum wage by January 1, 2022. Continue reading