Compliance Corner: HR & Payroll Compliance Issues in the News
Here is our bimonthly round-up of Human Resources and payroll compliance issues in the news.
EEO-1 Reporting
A federal judge has ordered the Equal Employment Opportunity Commission (EEOC) to collect employee pay data—sorted by race, ethnicity and sex—by Sept. 30.
The agency said it could make the collection portal available online to employers by July 15 and would provide information and training to employers prior to that date, according to documents filed with the court.
Employers should keep in mind that they still must submit their 2018 data for Component 1 of the EEO-1 form by May 31. Component 1 asks for the number of employees who work for the business by job category, race, ethnicity and sex.
Component 2 data—which includes hours worked and pay information from employees’ W-2 forms by race, ethnicity and sex—is the subject of the legal dispute.
Businesses with at least 100 employees and federal contractors with at least 50 employees and a contract with the federal government of $50,000 or more must file the EEO-1 form.
ACA Reporting
In 2018, a Texas Court ruled in favor of 20 Republican state attorneys general (“AGs”) to invalidate the Affordable Care Act (“ACA”). Sixteen Democratic AGs and now the House of Representatives (as of January 2019) are joined in defending the ACA and appealing the Texas court’s decision. The case is currently on appeal in the 5th Circuit.
Whichever way the Fifth Circuit rules, there will be an appeal to the Supreme Court to make a final determination on the status of the ACA. As the appeals process takes time, it is uncertain whether the case will reach the Supreme Court before the 2020 election.
For now, the ACA remains the law of the land and employers should continue to comply with the various aspects of the law.
Watch Recorded Webinar:Understand Your Responsibilities: An ACA Update for 2019
FLSA Overtime Wage Threshold
On March 7, 2019, The United States Department of Labor (DOL) issued proposed new regulations that would increase the minimum salary level requirements under the Fair Labor Standards Act (FLSA) for the executive, administrative and professional (“white collar”) overtime exemptions from $455 per week to $649 per week, as well as the highly compensated employee (“HCE”) overtime exemption from $100,000 to $147,414.
The 60-day notice and public comment period is scheduled to end in late May. Comments on the proposed regulations are due by May 21 [84 F.R. 10900, 3-22-19]. If the proposed new regulations are finalized in May as they stand, the DOL estimates that approximately 1.3 million currently exempt employees would no longer qualify as exempt, absent some intervening action by their employers (e.g., raising salaries to comply with the new white-collar salary level and/or HCE compensation threshold).
The new regulations are expected to go into effect later this year.
IRS to Release a Draft of the 2020 Form W-4 by May 31
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The IRS plans to issue an “early release” draft of the 2020 Form W-4, Employee’s Withholding Allowance Certificate, for public comment by May 31. The IRS will welcome comments on the first draft and plans to issue a second draft this summer, followed by the final version later in the year.
The IRS expects the 2020 Form W-4 to more accurately reflect changes made by the Tax Cuts and Jobs Act (TCJA; Pub. L. 115-97). The TCJA, which went into effect on January 1, 2018, significantly altered the federal tax system, including removing personal exemptions.
SHRM-CP and SHRM-SCP Credits Now Available
Beginning in May, select Net at Work Employer Solutions webinars will now be valid for SHRM professional development credits (PDC).
Once you pass the exam and receive your SHRM Certified Professional or SHRM Senior Certified Professional certification, you need to participate in professional development activities related to the SHRM Body of Competency and Knowledge. Every three years you must accumulate 60 PDCs or retake the test to maintain your certification.
Look for the SHRM “Recertification Provider” seal when you register for our webinars; attend the webinar and you will be sent notification of the PDCs earned. It’s an easy way to maintain your professional standing by attending our free webinars. Just another way Net at Work is working to unleash the potential of your company.
For more information on SHRM certification, please visit https://www.shrm.org/certification.
Legal Update Webinar June 12, 2019 1 -2 PM EDT
Join Theresa A. Mongiovi, Esq. for a discussion of current HR and Payroll law trends and changes. Theresa is a partner with the legal firm of Brubaker Connaughton Goss & Lucarelli and heads their Employment and Labor Law Department. She presented our very popular 2019 Affordable Care Act Update in February.
In this up-to-the minute presentation, she will review the latest legal decisions on a variety of topics including EEO-1 reporting requirements, FLSA Overtime changes and the status of ACA reporting. Join us to learn how to prepare your HR and Payroll departments for the changes to come.
Upcoming Live Webinar:HR Legal Update with Theresa Mongiovi
Date: June 12
