Regular Rate Clarification Comes with DOL Final Rule Release
The Department of Labor (DOL) has provided employers with some much needed clarity on the perks that are to be included in workers’ “regular rate of pay” in the final release of a new rule set to take effect Jan. 15, 2020. Under the Fair Labor Standards Act (FLSA), employers must pay workers at least […]
Social Security Wage Base Rises for 2020
The Social Security Administration (SSA) recently announced starting Jan. 1, 2020 the maximum earning subject to payroll tax will increase by $4,800 to $137,700 – up from $132,900 in 2019. The SSA fact sheet summarizes all the 2020 changes, however here are some of the quick highlights: The maximum Social Security tax employees and employers […]
New Tip Regulation Underway
The Department of Labor (DOL) has proposed a rule that would implement changes to the tip credit under the Fair Labor Standards Act (FLSA). The FLSA requires covered employers to pay employees at least the federal minimum wage, which is currently $7.25 per hour. Employers are allowed to count a limited amount of the tips […]
IRS Rule Eases Hardship Withdrawals
Recently, the Internal Revenue Service (IRS) issued final regulations on 401(k) hardship withdrawals, relaxing current restrictions and easing the process for plan participants. Set to go into effect Jan. 1, 2020, some of the changes stemming from the regulation are mandatory, while others are voluntary. Check out the key provisions below: Plans will no longer […]
Overtime Rule Finalized by Department of Labor
The U.S. Department of Labor has announced its long-awaited Final Overtime Rule making changes to federal overtime regulations governing which employees are entitled to minimum wage and overtime pay under the ‘white-collar’ exemptions. Effective as of Jan. 1, 2020, the Final Overtime Rule will increase the standard salary level by almost 50% from $455 to […]
ACA Affordability Threshold Decreases for 2020
The Internal Revenue Service recently announced that the employer-sponsored health coverage will satisfy the Affordable Care Act (ACA) affordability requirement in 2020 if the lowest-cost, self-only coverage option available to employees does not exceed 9.78% of an employee’s household income. This limit comes down from the current year’s 9.86%. As part of ACA’s employer mandate, […]
EEOC Reporting Deadline Approaching
Earlier this year in May, the Equal Employment Opportunity Commission (EEOC) required employers to submit EEO-1 Component 1 data that lists employees by job category, race, ethnicity and sex. Fast approaching is the September 30 due date for Component 2 data, which includes the employees’ hours worked and pay information from their W-2, broken down […]
Health Reimbursement Accounts to Take on New Form
A newly issued regulation could change how employers pay for employee health care coverage. On June 13, 2019, the Department of Health and Human Services, the Internal Revenue Service, the Department of Treasury and the Department of Labor issued a new final rule intended to expand the options for health reimbursement accounts (HRAs) for which […]
DOL Seeks FMLA Improvements
Changes to the Family and Medical Leave Act (FMLA) are on the horizon. Recently, the Department of Labor (DOL) announced it has plans to modify the regulation in an effort to “better protect and suit the needs of workers” and “reduce administrative and compliance burdens on employers” as part of the 2019 Spring regulatory agenda. […]