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
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.
By the end of 2017 the IRS plans to send notification to applicable large employers (ALE) of potential liability for failure to comply with the “pay or play” mandate of the Affordable Care Act (ACA). These notifications (Letter 226J) will be sent to ALE employers that the IRS determines had one or more employee, in at least one month in 2015, that received a subsidy toward health care premiums purchased through the marketplace because the employer failed to provide health coverage that is compliant with the ACA requirements (affordable and providing minimum essential coverage). The IRS will make this determination based on information provided by employers on Forms 1094-C and 1095-C (required ACA reporting forms) as well as information provided to the IRS on individuals’ tax returns. Continue reading
On March 1, the Internal Revenue Service (IRS) issued IR-2016-34 to alert payroll and HR professionals to be cautious of a phishing email scheme that attempts to gain personal information about employees.
The emails look to be from company executives and request personal information regarding employees. Among the email messages reported, the following are some of the details included:
- “Kindly send me the individual 2015 W-2 (PDF) and earnings summary of all W-2 of our company staff for a quick review.”
- “Can you send me the updated list of employees with full details (Name, Social Security Number, Date of Birth, Home Address, Salary).”
- “I want you to send me the list of W-2 copy of employees wage and tax statements for 2015, I need them in PDF file type, you can send it as an attachment. Kindly prepare the lists and email them to me asap.”
Be sure to notify your employees, especially those in your Payroll and HR Departments or those that have access to personal employee information. Before sending any personal information, employees should verify that the executive requesting the information did in fact send the request.
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