U.S. Supreme Court Rules on FLSA Burden of Proof Standard
In January 2025, the Supreme Court (the Court) handed employers a win by confirming exemptions under the Fair Labor Standards Act (FLSA) need only be proven by a “preponderance of the evidence.” In doing so, the Court unanimously rejected the argument that a higher evidentiary standard—“clear and convincing evidence”—applies to FLSA exemption disputes. The decision […]
Michigan Employers: ESTA Takes Effect in February
With much talk around changes to the Earned Sick Time Act and minimum wage law, the changes have officially been signed by Governor Gretchen Whitmer. Bill 4002 was passed by the House and Senate and has been signed into effect by the Governor as of Feb. 21, 2025. While several important changes were made, the […]
Less Affordable Care Act Reporting Now Required by Employers
Recent legislative changes have streamlined Affordable Care Act (ACA) reporting requirements, reducing administrative burdens for employers. The enactment of the Paperwork Burden Reduction Act (PBRA) and the Employer Reporting Improvement Act (ERIA) introduces key modifications effective for the 2024 tax year. The Paperwork Burden Reduction Act The PBRA amends the Internal Revenue Code and reduces […]
IRS Increases Standard Mileage Rate for Business Use in 2025
The IRS has increased the optional standard mileage rate for automobiles driven for business to 70 cents per mile for 2025. The mileage rates for vehicles used for other purposes will remain unchanged from 2024. Optional standard milage rates are used to calculate the deductible costs of operating vehicles for business, charitable and medical purposes, as well […]
Federal Court Overturns U.S. DOL’s Overtime Exemption Rule Nationwide
A Texas federal court overturned a U.S. Department of Labor (DOL) rule that raised the minimum salary required to be paid to most employees classified as exempt from overtime and minimum wage requirements. The court’s decision, that has a nationwide effect, invalidates the DOL’s final rule that put in place a salary level increase on […]
Social Security Wage Base Increases for 2025
The Social Security Administration (SSA) recently announced an increase in the wage base subject to Social Security tax for 2025. Starting Jan. 1, 2025, the maximum taxable earnings for Social Security will rise from $168,600 in 2024 to $176,100, which is an increase of $7,500. This adjustment reflects the cost-of-living increase tied to inflation and […]
IRS Releases 2025 Limits for Retirement Plan Contributions and Benefits
Employees can contribute even more to their 401(k) plans in the upcoming year. Adjusted for the cost of living, effective Jan. 1, 2025, employees can contribute up to $23,500 into their 401(k) and 403(b) plans, most 457 plans and the Thrift Savings Plan for federal employees. This is a $500 jump from the $23,000 limit […]
Michigan Minimum Wage Rate 2025 Increase Schedule
Michigan’s minimum wage is set to increase twice in 2025. The first increase will take effect on Jan. 1, 2025, as part of the standard annual adjustment. A second increase will follow on Feb. 21, 2025, in response to a recent Michigan Supreme Court ruling regarding the Improved Workforce Opportunity Wage Act. From Jan. 1 […]
IRS Resumes Processing Employee Retention Credit Claims, Reopens Related Voluntary Disclosure Program
It’s no secret the Employee Retention Credit (ERC) has been a pain point for the IRS due to the tremendous amount of improper claims received, causing the organization to put a moratorium on processing ERC claims in 2023. However, the IRS recently announced it will resume processing ERC claims filed between Sept. 14, 2023, and […]