Pay Matters! June 2018

06-06-2018
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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 2018 edition.

Read on to stay informed and stay in compliance with relevant alerts and insights that matter most for your payroll.


FEDERAL PAYROLL UPDATES

IRS Grants 2018 HSA Relief

The Internal Revenue Service announced relief for taxpayers with family coverage under a High Deductible Health Plan (HDHP) who contribute to a Health Savings Account (HSA). For 2018, taxpayers with family coverage under an HDHP may treat $6,900 as the maximum deductible HSA contribution, although the IRS had previously announced the limit to be $6,850.

A change in the inflation adjustment calculations for 2018, under the Tax Cuts and Jobs Act, had reduced the maximum deductible HSA contribution for taxpayers with family coverage under an HDHP by $50, to $6,850.

In a turnaround, Revenue Procedure 2018-27 announced this relief for affected taxpayers and allows the $6,900 limitation to remain in effect for 2018.

IRS Announces 2019 HSA Limits      

The IRS has announced the increased HSA contribution limits for 2019.

The maximum contribution for an individual with self-only coverage under a high deductible health plan (HDHP) will be $3,500, up $50 from 2018.

The maximum contribution for an individual with family coverage under a HDHP will be $7,000, up $100 from the revised 2018 cap (see previous item).

An HDHP will be defined as a plan with an annual deductible of at least:

Self-only coverage: $1,350

Family coverage: $2,700

For more, including out-of-pocket limits, click here.

IRS Announces 2019 ACA Penalty Increase and Higher Safe Harbor Affordability Percentages

ACA Employer Mandate Penalties are increasing.

The IRS has released the index adjusted penalty amounts for 2019 as follows:

  • The amount of the 4980H(a) penalty is $2,500 per employee per year, an increase from $2,320.
  • The amount of the 4980H(b) penalty is $3,750 per employee per year, an increase from $3,480.

In addition, the safe harbor percentage for calculating affordability is increasing in 2019 from 9.56% to 9.86%. Viventium will update our ACA service with the new percentage for 2019.

 


STATE PAYROLL UPDATES

New York Extends Hire-a-Veteran Credit

The New York State Hire-a-Veteran credit has been extended through the tax year 2020. Previously, the last tax year the credit could be claimed was 2018.

The credit is available to employers for hiring and employing qualified veterans, for not less than one year and not less than 35 hours each week. To be eligible, a qualified veteran must now begin employment prior to January 1, 2020.

For more information, click here.

New York Department of Labor Increases Youth Job Programs Credit

The New York Youth Jobs Program encourages businesses to hire unemployed, disadvantaged youth, ages 16 to 24, who live in New York State. Starting January 1, 2018, the credit amounts for each certified youth have been increased as follows:

Employment period

Prior Amount New Amount
Full-time Part-time* Full-time

Part-time*

Monthly credit for first 6 months

$500

$250 $750

$375

Credit after additional 6 consecutive months

$1,000

$500 $1,500

$750

Credit for additional year** $1,000 $500 $1,500

$750

*A part-time job is a job of at least 20 hours per week, or 10 hours per week when the certified youth is enrolled in high school full-time.

**After the completion of the first two time periods and all the employment conditions were met for those time periods.

For more information on this credit, visit the DOL website at www.labor.ny.gov.

New Jersey Paid Sick Leave is Coming

Effective October 29, 2018, private employers in New Jersey will be required to accrue and pay sick leave for their employees.

Under the bill, New Jersey employers must accrue 1 hour of paid sick leave for every 30 hours worked, up to 40 hours annually. Unused leave may be carried over to the following year.  However, employees are not required to grant more than 40 hours of paid leave annually. There is no obligation to pay out earned but unused sick leave at termination.

Covered employees may use earned sick leave not only to care for their own physical and mental health and that of a family member, but also to attend a school meeting or event related to an employee’s child. Employees can also use their paid sick leave if a school or daycare is closed due to a public health concern.

Though several New Jersey localities have already enacted sick leave ordinances, the New Jersey state law will pre-empt any local paid sick laws.

For more information on New Jersey’s Paid Sick Leave law, click here.

Track your New Jersey Paid Sick leave requirements with PTO accruals through Viventium!

Rhode Island Paid Sick Leave Law

Rhode Island has joined the growing number of states and localities enacting paid sick leave laws. Effective July 1, 2018, Rhode Island employers with 18 or more employees must accrue paid sick leave for their employees. Employers with under 18 employees must provide unpaid sick leave. Leave can be used to care for oneself or a family member.

The amount of paid sick time to accrue is being phased in over a three-year period. Employees accrue one hour of paid sick time for every 35 hours worked, up to a maximum of 24 hours during the calendar year 2018. The maximum accrual increases to 32 hours during the calendar year 2019 and to 40 hours for future years.

Employers should be sure to review their existing policies to ensure compliance with all state and local paid sick leave laws.

For more, click here.

California Adopts Stricter Independent Contractor Test

California employers may now find it harder than ever before to prove a worker is properly classified as an independent contractor. A recent California Supreme Court decision announced that workers must meet the stricter standards for the “ABC” test to be classified as independent contractors.

Modeled after the Massachusetts independent contractor test, the new California test requires workers to meet each of three requirements to qualify as independent contractors:

(A) The worker is free from the control and direction of the hiring entity about the performance of the work, both under the contract for the performance of the work and in fact;

(B) the worker performs work that is outside the usual course of the hiring entity’s business; and

(C) the worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed.

California previously used the Borello test, which offered employees more flexibility in making their determination.

California employers should familiarize themselves with the state’s new standards as well as how they interact with federal laws

Get the answers to these questions and other HR topics with Viventium’s HR service.

Vermont Bans Salary History Inquiries

With the intent of closing the gender wage gap, an increasing number of states and localities are imposing restrictions on employers’ use of prior employment salary history in making compensation decisions for onboarding employees.

Vermont is the latest state to join the trend. Effective July 1, 2018, employers are prohibited from seeking compensation history information regarding a candidate. Employers are also prohibited from requiring a candidate’s past salary to meet the certain minimum or maximum requirements for employment. However, if an employee voluntarily shares salary history details, the employer may seek to confirm the salary history or ask the employee to confirm it after a job offer is made.

The general theory behind this trend is that using salary history to determine current compensation perpetuates gender wage gaps that existed because of past discrimination.  If employers do not use salary history in their decision making, they may be more likely to offer compensation based on merit.  California, Delaware, Massachusetts, Oregon, New Jersey, and New York all currently have laws that restrict the use of salary history information, and many localities have recently passed similar legislation.

As the trend grows, it is increasingly important for employers to familiarize themselves with the laws in the states where they conduct business and to seek legal advice when necessary.

Have questions about salary history laws or other HR topics?  Viventium’s HR service can help!

 


LOCAL PAYROLL UPDATES

San Francisco, CA Amends Paid Sick Leave Law

San Francisco passed its original paid sick leave law in 2007 -- a pioneering act, which has since been followed by many states and localities. The city has now made some changes and clarifications to its law, including the following:

  1. The new law establishes guidelines whereby members of a controlled group will be considered a single employer for purposes of the paid sick leave law. Requirements differ for employers with 10 or more employees and for those with less than 10.
  2. Employers may require employees to provide reasonable notice before taking paid sick leave. Employers may also make reasonable efforts to verify that the leave taken was indeed eligible under the law.
  3. Previously undefined, “regular rate of pay” for the purposes of San Francisco paid sick leave is now defined in accordance with state laws.
  4. Employees are eligible to take accrued leave on their 90th day of employment. The new law states that if an employee terminates and is rehired within a year, the previously worked days count toward the 90-day calculation.

The new rules are effective on June 7, 2018.

For more, click here.

Seattle, WA Passes Employee Head Count Tax

The City of Seattle unanimously passed an employee headcount tax that goes into effect on January 1, 2019.

Under the law, employers with annual incomes exceeding $20 million must pay a tax of $0.14323 per hour worked, which translates to about $275 per full-time employee annually. The tax is expected to generate $48 million in revenue annually from about 585 companies. The revenue is budgeted to go towards affordable housing in Seattle, where the recent tech boom has brought a spike in housing costs and an increase in homelessness.

Duluth, MN Adopts Sick, Safe Time Leave Law

Minimum standards for earned sick and safe time in the City of Duluth were adopted May 29, 2018, by the Duluth City Council and are to take effect January 1, 2020.

Under Ordinance No. 10571, employees are to accrue one hour of earned sick and safe time for every 50 hours worked and up to 64 hours in a year. Employers are to permit employees to carry over up to 40 hours of earned but unused sick and safe time into the following year. Time is to accrue only in one-hour increments, not in fractions of an hour.

At least 40 hours of earned sick and safe time are to be provided after the first 90 days of employment for use by an employee in the first year and at least 40 hours are to be provided at the beginning of each subsequent year.

The leave may be used to attend to the employee’s own health and care; the health and care of a family member; or for reasons related to domestic abuse, sexual assault, or stalking of the employee or the employee’s family member.

Employers are not required to pay for earned but unused sick and safe time upon termination.

 


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
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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
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ENDING
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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
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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
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VERSE 3
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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
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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
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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
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CHORUS
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BRIDGE
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VERSE 3
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PRE-CHORUS
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CHORUS
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OUTRO
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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
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VERSE 2
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PRE-CHORUS
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CHORUS
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BRIDGE
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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.