In response to the Coronavirus (COVID-19) pandemic, President Trump signed into law the Families First Coronavirus Response Act on March 18, 2020 which will impact many employers. DM Payroll Solutions has outlined the highlights of the new law below. Emergency Paid Sick Leave Employers with fewer than 500 employees are required to provide paid emergency […]
The Department of Labor and Economic Opportunity has provided guidance to Michigan employers on ways to avoid potential layoffs related to COVID-19. At this time, employers are strongly urged to place employees on temporary leave and advise the worker they expect to have work available within 120 days as opposed to termination. This option provides […]
The U.S. Department of Labor (DOL) announced it has increased the civil monetary penalties for violating federal minimum wage, overtime, posting and safety requirements. These increases come as a result of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, in which federal agencies must issue regulations annually to adjust for inflation of […]
The Department of Labor (DOL) has issued a final rule to revise and update its regulations under the Fair Labor Standards Act (FLSA) aimed at clarifying when a worker, including those outsourced, are employed by more than one company. The final rule, set to take effect Mar. 16, 2020, created a four-part test to determine […]
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 […]
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 […]
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 […]
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 […]
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 […]
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, […]
