IRS Releases New Income Tax Withholding Tables The Internal Revenue Service (IRS) has released IRS Notice 1036, Early Release Copies of the 2018 Percentage Method Tables for Income Tax Withholding. The notice updates the income tax withholding tables for 2018, reflecting changes made by the Tax Cuts and Jobs Act. Employers should begin using the 2018 withholding tables as soon as possible, but not later than February 15, 2018. The new withholding tables are designed to work with the Forms W-4 that workers have already filed with their employers. Click here to read IRS Notice 1036. For additional tax information, please visit our section on Employer Tax Laws. Reminder: Post OSHA Form 300A Starting Feb. 1 Employers subject to the recordkeeping requirements of the federal Occupational Safety and Health Act (OSH Act) are reminded to post their 2017 OSHA Form 300A, Summary of Work-Related Injuries and Illnesses, from February 1–April 30, 2018. OSHA Form 300A lists the total number of job-related injuries and illnesses that occurred during the previous year, and must be posted even if no work-related injuries or illnesses occurred during the year. It should be displayed in a common area where notices to employees are usually posted so that employees are aware of the injuries and illnesses occurring in the workplace. In addition, a company executive must certify that he or she has examined the employer’s OSHA Form 300, Log of Work-Related Injuries and Illnesses, and that he or she reasonably believes—based on his or her knowledge of the process by which the information was recorded—that the OSHA Form 300A is correct and complete. For more information on the OSHA Form 300A requirement, please click here. To read more about worker safety and health, please visit our Safety & Wellness section. What Employers Need to Know About ACA Reporting in 2018 Under the Affordable Care Act, applicable large employers (ALEs)—generally those with at least 50 full-time employees, including full-time equivalent employees, in the preceding calendar year—must report certain information to their full-time employees and the Internal Revenue Service (IRS) about the health care coverage they have offered (if any). With deadlines for 2017 reporting just a few weeks away, ALEs should begin thinking about these five information reporting facts: ALEs are required to furnish a Form 1095-C to each of their full-time employees by March 2, 2018. ALEs must file Forms 1095-C, accompanied by the transmittal Form 1094-C, with the IRS no later than February 28, 2018 (or April 2, 2018, if filing electronically). Self-insured ALEs must also report via Forms 1094-C and 1095-C. ALEs that file 250 or more Forms 1095-C must file them electronically. ALEs can find a complete list of information reporting resources at the IRS’s Information Center for Applicable Large Employers. Check out our Information Reporting section for more on the information reporting requirements. DOL Adopts New Test for FLSA Applicability to Interns The U.S. Department of Labor (DOL) has adopted the primary beneficiary test for determining whether interns of for-profit employers count as employees under the federal Fair Labor Standards Act (FLSA). The FLSA requires for-profit employers to pay employees for their work. Interns and students, however, may not be “employees” under the FLSA—in which case the FLSA does not require compensation for their work. In ruling on FLSA cases, courts have previously used the primary beneficiary test to examine the “economic reality” of the intern-employer relationship to determine which party is the “primary beneficiary of the relationship.” On January 5, 2018, the DOL announced its adoption of the primary beneficiary test for purposes of its enforcement of the FLSA. The primary beneficiary test includes the following seven factors: The extent to which the intern and the employer clearly understand that there is no expectation of compensation. Any promise of compensation, express or implied, suggests that the intern is an employee—and vice versa. The extent to which the internship provides training that would be similar to that which would be given in an educational environment, including the clinical and other hands-on training provided by educational institutions. The extent to which the internship is tied to the intern’s formal education program by integrated coursework or the receipt of academic credit. The extent to which the internship accommodates the intern’s academic commitments by corresponding to the academic calendar. The extent to which the internship’s duration is limited to the period in which the internship provides the intern with beneficial learning. The extent to which the intern’s work complements, rather than displaces, the work of paid employees while providing significant educational benefits to the intern. The extent to which the intern and the employer understand that the internship is conducted without entitlement to a paid job at the conclusion of the internship. If analysis of these circumstances reveals that an intern is an employee, then he or she is entitled to both minimum wage and overtime pay under the FLSA. Click here for more on the primary beneficiary test. To learn more about employee compensation, please visit our section on Employee Pay. 5 Must-Do’s for Employee Orientation Employee orientation is an important piece of HR and employee management. A formal orientation is essential to setting a new hire up for success and helping your company maintain the corporate image and values you portrayed during the interview process. Employee orientation can also be designed for current staffers who are being promoted to a new position within the company and need a similar type of program. Learn the must-do’s for employee orientation in the video below. For more on employee orientation, check out our Onboarding section.

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Forms 1095 Due to Employees by March 2nd Employers subject to the Affordable Care Act’s (ACA) information reporting requirements are reminded that the deadline to furnish Forms 1095-B and 1095-C are quickly approaching. The reporting deadlines in 2018 are for reporting information on the 2017 calendar year, and are as follows: Applicable large employers (ALEs)—generally those with 50 or more full-time employees, including full-time equivalents—must furnish a Form 1095-C to all full-time employees by March 2, 2018. Self-insuring employers that are not considered ALEs, and other parties that provide minimum essential coverage, must furnish a Form 1095-B to responsible individuals (which may be the primary insured, employee, former employee, or other related person named on the application) by March 2, 2018. For more on employer information reporting requirements, check out our comprehensive section on Information Reporting. EEOC Releases Guidance on Workplace Harassment Prevention The U.S. Equal Employment Opportunity Commission recently issued Promising Practices for Preventing Harassment, a guidance document that contains harassment prevention recommendations for employers in four broad categories: Leadership and accountability; Harassment policies; Harassment complaint systems; and Harassment training. For each category, the guidance lists numerous actions employers can take. Recommended actions include, for example: Allocating sufficient resources for effective harassment prevention strategies; Crafting an unequivocal statement that harassment based on, at a minimum, any legally protected characteristic, is prohibited; and Conducting regular, interactive, and comprehensive harassment prevention training for all employees. The document states that while the practices it discusses are not legal requirements under federal employment discrimination laws, they may enhance compliance efforts. To read the guidance document, click here. For more information on compliance issues concerning discrimination in the workplace, please visit our Discrimination section. IRS Announces 2018 Standard Mileage Rates The Internal Revenue Service (IRS) has issued the 2018 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, or medical purposes. 2018 Standard Mileage Rates Beginning on January 1, 2018, the standard mileage rates for the use of a car, van, pickup, or panel truck will be: 54.5 cents per mile for all business miles driven (up 1 cent from 2017) 18 cents per mile driven for medical purposes (up 1 cent from 2017) 14 cents per mile driven in service of charitable organizations (unchanged from 2017) Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates. IRS Notice 2018-03 contains additional information about mileage rates. For more on employer-provided transportation benefits, please see our section on Fringe Benefits. Small Business Health Care Tax Credit Form Released The IRS has released Form 8941, Credit for Small Employer Health Insurance Premiums, and related instructions, for tax year 2017. Eligible small employers use this form to figure the credit for health insurance premiums under the Small Business Health Care Tax Credit. The Small Business Health Care Tax Credit is designed to encourage small businesses and tax-exempt employers to offer health insurance coverage to their employees. Among other requirements, an employer may be eligible for the credit for tax year 2017 if: It had fewer than 25 full-time equivalent employees for the tax year; It paid at least 50% of the premium cost for single health care coverage for each employee; The average annual wages of its employees for the year were less than $53,000; and It paid premiums on behalf of employees enrolled in a qualified health plan offered through a Small Business Health Options Program (SHOP) Marketplace (or qualifies for an exception to this requirement). Note: Employers in Hawaii cannot claim this credit for insurance premiums paid for health plan years beginning after 2016. Click here to review Form 8941 and its instructions. Our Small Business Health Care Tax Credit section provides additional details regarding the credit. 10 Employee Retention Resolutions for 2018 With a new year upon us, your attention is likely focused on setting financial and productivity goals for your business. As you plan, make sure to look at one area you may have overlooked: employee retention. Employee retention has a huge impact on your bottom line, and now is a great time to make some employee retention resolutions that will pay off all year long. Watch the video below to learn 10 key employee retention resolutions for 2018. For more on employee retention, check out our Human Resources section.

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DOL Releases Updated Model CHIP Notice An updated model notice for employers to provide information on eligibility for premium assistance under Medicaid or the Children’s Health Insurance Program (CHIP) is now available for download from the U.S. Department of Labor (DOL). Click here to download the latest employer CHIP notice in PDF format. A Microsoft Word version is also available. Annual Notice Requirement The employer CHIP notice must be provided annually before the start of each plan year to inform each employee (regardless of enrollment status) of potential opportunities for premium assistance in the state in which the employee resides. This may or may not be the same as the state in which the employer or its principal place of business is located. An employer can choose to provide the notice on its own or concurrently with the furnishing of: Materials notifying the employee of health plan eligibility; Materials provided to the employee in connection with an open season or election process conducted under the plan; or The summary plan description (SPD). The updated model notice includes information on how employees can contact their state for additional information and how to apply for premium assistance, with information current as of August 10, 2017. Our section on CHIPRA (the Children’s Health Insurance Program Reauthorization Act) contains additional information on employer responsibilities related to the state Children’s Health Insurance Program. IRS: Health FSAs Cannot be Used for Insurance Premiums A recently released IRS letter reaffirms the agency’s view that funds from a health flexible spending arrangement (health FSA) may not be used to reimburse health insurance premium payments or Medicare premium expenses. Certain Premiums May be Deducted The IRS letter points out that health insurance premium payments, including those for Medicare, may qualify for purposes of the itemized deduction for medical expenses. However, only premiums for which the taxpayer is not claiming a separate credit or deduction can be included as part of a medical expenses deduction. Additional restrictions apply to this deduction. For more information, please see IRS Publication 502, Medical and Dental Expenses. Click here to read the IRS letter in its entirety. For additional information on health FSAs, visit our HSAs, FSAs, and Other Tax-Favored Accounts section. Taming the Productivity Killers From water cooler gossip, to interminable meetings, to hours wasted scrolling through social media, the modern workplace is teeming with threats to employee productivity. These distractions are taking a toll: several recent surveys show that U.S. employees are spending a mere 40-50% of their workdays engaged in job-related tasks. Fortunately, there are simple steps you can take to help employees avoid common productivity pitfalls. Properly Train Employees: Whether it is on-the-job training, formal courses, or online learning, any investment you make in employee training is an investment in productivity. Properly trained employees are more effective, more likely to stay at their jobs, and less likely to expose your organization to unnecessary risks and liabilities. Avoid Burdensome Meetings: Before scheduling a meeting, consider whether it is necessary to accomplish your goals. Invite only essential personnel, and always draw up an agenda of items to be covered and distribute it in advance. Finally, communicate start and end times for the meeting as a whole and each agenda item, and stick to the agenda to the best of your ability. Be Proactive in Reducing Gossip: An office subject to constant gossip will ultimately suffer from poor morale and lower productivity. To stem the chatter, managers should communicate with employees regularly about issues that affect the company, their departments, and their individual positions. This will foster an environment of trust and transparency, and diminish the appeal of the rumor mill. Digital Distractions: While electronic communication has revolutionized how we work, it also has the capacity to impair our efficiency. For instance, computers help us work faster, but also make it easy for employees to “check out” during the workday with online shopping, entertainment, or social media. To ensure that technology does not become an impediment to productivity, employers should establish email, internet, and social media use policies, and train employees on each of these. For more employee management tips, check out our Human Resources section. Maximum Individual Mandate Payment for 2017 Announced The IRS has released the 2017 monthly national average premium for a bronze-level health plan offered through the Health Insurance Marketplace, which is used to determine the maximum individual mandate penalty. New Guidance According to the new IRS guidance, the monthly national average premium for qualified health plans that have a bronze level of coverage and are offered through the Health Insurance Marketplace in 2017 is: $272 per individual (up from $223); and $1,360 for a family with five or more members (up from $1,115). The guidance is effective for taxable years ending after December 31, 2016. Calculating the Payment The Affordable Care Act’s “individual mandate” provision requires every individual to have minimum essential health coverage for each month, qualify for an exemption, or make a penalty payment when filing his or her federal income tax return. The annual penalty amount is either a percentage of an individual’s household income in excess of the tax return filing threshold or a flat dollar amount, whichever is greater. The maximum penalty amount is capped at the cost of the national average premium for a bronze level health plan available through the Marketplace. At this time, the 2017 inflation adjustment for the flat dollar amount penalty has not been announced. Visit our section on the Individual Mandate (Individual Shared Responsibility) for more information on the individual mandate. How to Make Your Job Posting Stand Out Filling a job vacancy is a big task. Unfortunately, you get only one chance to make a first impression, and the job posting is often your very first contact with a potential employee. But how do you make your job posting stand out above the rest? Watch the video below to learn five fast tips to make your job posting stand out. For more helpful recruitment tips, check out our Recruitment & Hiring section.

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Monthly Newsletter by Summit Insurance Advisors

August 2017

USCIS Releases New Form I-9 U.S. Citizenship and Immigration Services (USCIS) has released a new version of Form I-9, Employment Eligibility Verification. By September 18, 2017, employers must use only the new version. Compliance Dates for New Form I-9 The new Form I-9 features a revision date of July 17, 2017. While employers may continue using a Form I-9 with a revision date of November 14, 2016 through September 17, 2017, as of September 18, 2017, employers must use only the new version. Changes to Form I-9 The following revisions have been made to the List of Acceptable Documents section of the new Form I-9: The Consular Report of Birth Abroad (Form FS-240) has been added to List C. Employers completing Form I-9 on a computer are now able to select Form FS-240 from the drop-down menus available in List C of Section 2 and Section 3. All the certifications of report of birth issued by the U.S. Department of State (Form FS-545, Form DS-1350, and Form FS-240) are now combined into selection C#2 in List C. All List C documents have been renumbered except the Social Security card. For example, the employment authorization document issued by the U.S. Department of Homeland Security on List C has changed from List C #8 to List C #7. The new Form I-9 can be downloaded here. For more information on complying with the employment eligibility verification requirements, please visit our Form I-9 section. Summer’s Here and So is Spear Phishing Cyber attacks and resulting data breaches often begin with a spear-phishing email. Spear phishing differs from regular email phishing in its use of extensive research to target a specific audience, which allows the spear phisher to pose as a familiar and trusted entity in its email to a mark. Spear phishers seek a company’s valuable information—such as credentials providing access to customer lists, trade secrets, and confidential employee information—and some of their methods include: Directing email recipients to fake (but authentic-looking) websites that ask for information like account numbers, passwords, or other credentials; and Inducing recipients to click on links or attachments that download malware onto the recipient’s computer. The malware often allows the phisher to steal passwords and sensitive data by, for example, tracking keystrokes. The IRS offers the following tips to protect against spear phishing: Educate all employees about phishing in general and spear phishing in particular. Use strong, unique passwords with a mix of letters, numbers, and special characters. Also, remember to use different passwords for each account. Never take an email from a familiar source at face value, especially if it asks you to open a link or attachment, or includes a threat about a dire consequence that will result if you fail to take action. If an email contains a link, hover your cursor over the link to see the web address (URL) destination. If it’s not a URL you recognize, or if it’s an abbreviated URL, don’t open it. Poor grammar and odd wording are warning signs of a spear-phishing email. Consider calling the sender to confirm the authenticity of an email you’re unsure of, but don’t use the phone number in the email. Use security software that updates automatically to help defend against malware, viruses, and known phishing sites. Check out our Employee Records and Files section for more on how to protect confidential employee information. 5 Guidelines for Protecting Employees from Heat Stress With the dog days of summer under way, it is critical that employers recognize the hazards of working in hot environments and take steps to reduce the risk to workers. Consider taking the following actions that can help protect employees: Provide heat stress training.Topics you may wish to address include worker risk, prevention, symptoms, treatment, and personal protective equipment. Schedule hot jobs for the cooler part of the day. The best way to prevent heat illness is to make the work environment cooler. Monitor weather reports daily and reschedule jobs with high heat exposure to cooler times of the day. When possible, routine maintenance and repair projects should be scheduled for the cooler seasons of the year. Provide rest periods with water breaks. Provide workers with plenty of cool water in convenient, visible locations in shade or air conditioning that are close to the work area. Avoid alcohol and drinks with large amounts of caffeine or sugar. Monitor workers who are at risk of heat stress. Workers are at an increased risk of heat stress when wearing personal protective equipment, when the outside temperature exceeds 70°F, or while working at high energy levels. Establish a routine to periodically check workers for signs and symptoms of overexposure. Acclimatize workers by exposing them for progressively longer periods to hot work environments. Allow workers to get used to hot environments by gradually increasing exposure over at least a 5-day work period. The U.S. Occupational Safety and Health Administration (OSHA) suggests beginning with 50% of the normal workload and time spent in the hot environment, and then gradually building up to 100% by the fifth day. Our section on Safety & Wellness includes additional tips for maintaining a safe and healthy workplace. MLR Rebates Due to Plan Sponsors by September 30 The Medical Loss Ratio (MLR) rules under Health Care Reform require an issuer to provide rebates if its medical loss ratio (the amount of health insurance premiums spent on health care and activities to improve health care quality) falls short of the applicable standard during a reporting year. Each year’s rebates must be provided by issuers to policyholders (typically the employer that sponsors the plan) by September 30 of the following year. Employer Distribution The MLR rules provide that issuers must pay any rebates owed to persons covered under a group health plan to the policyholder, who is then responsible for distributing the rebate to eligible plan enrollees. In general, there are several ways rebates may be distributed to plan enrollees, including: A rebate check in the mail; A lump-sum reimbursement to the same account that was used to pay the premium if it was paid by credit card or debit card; or A direct reduction in future premiums. In addition to the above methods, employers may also apply the rebate in a way that benefits employees. Check out our section on Medical Loss Ratio (MLR) Rebates & Employer Responsibilities to learn more. Distracted Driving is Risky Business We’ve all heard the messages: Distracted driving is dangerous, and sadly, responsible for thousands of deaths a year. With motor vehicle accidents being one of the leading causes of workplace fatalities, distracted driving can also be risky business. Learn what you can do as an employer to discourage distracted driving by your employees in the video below. For more safety tips, please visit our Safety & Wellness section.

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OSHA Not Currently Accepting Electronic Submissions of Form 300A Information The federal Occupational Safety and Health Administration (OSHA) has announced that it is not accepting electronic submissions of information from 2016 Forms 300A at this time. As a result, OSHA has proposed extending the July 1, 2017 date by which certain employers are required to electronically submit these forms pursuant to its recent “Electronic Recordkeeping Rule” toDecember 1, 2017. ‘Electronic Recordkeeping Rule’ Explained The Electronic Recordkeeping Rule, generally effective as of January 1, 2017, requires certain employers to electronically submit injury and illness data to OSHA that they are already required to record on their OSHA Forms 300A. Under the rule, the following entities were required to make these submissions by July 1, 2017: Establishments with 250 or more employees in industries covered by OSHA’s recordkeeping requirements. Establishments with 20-249 employees in certain high-risk industries. Click here to read OSHA’s announcement. Note: Establishments located in OSHA “State Plan” states should check with their state plans for the implementation date of the new requirements in their state. To read more about OSHA’s recordkeeping requirements, please visit our Safety & Wellness section.

How to Keep Your Employees Motivated This Summer The warm weather and eagerly anticipated outdoor activities of summer may take a toll on your workers’ concentration. If you’re noticing a lack of focus among your employees during this time of year, consider the following ideas to help keep them motivated: Encourage your employees to step outside for at least 15 minutes each day. Exposure to natural sunlight can prevent workers from feeling confined to the office during the warm summer months. Holding business meetings outside may also help to boost workers’ morale. Change things up! Employees may become more motivated when their jobs are more challenging and interesting. Consider lateral moves to build your workers’ skill levels and knowledge base. Create opportunities for casual interaction. A company sports team, a family day, or an outdoor after-hours social event can keep your employees engaged and build camaraderie in the workplace. Consider flexible working arrangements. Arrangements such as flextime or staggered work hours may allow employees to enjoy summer activities and attend to family obligations, while coming to work refreshed. It’s a good idea for employers to work with a knowledgeable employment law attorney when creating policies on flexible working arrangements, to ensure policies and practices are in compliance with the law and do not unlawfully discriminate against certain employees. Our section on Motivating Employees features additional strategies to help you motivate your employees during any time of year.

HHS Releases HIPAA Cyber-Attack Checklist The Department of Health and Human Services (HHS) Office of Civil Rights (OCR) has released a quick-response checklist briefly describing the steps that HIPAA-covered entities (including medical and dental offices) and their business associates should take in response to a cyber-related security incident. Steps include: Executing the entity’s response and mitigation procedures and contingency plans,such as immediately fixing any technical or other problems to stop the incident; Reporting the crime to other law enforcement agencies, which may include state or local law enforcement, the Federal Bureau of Investigation (FBI), and/or the Secret Service; Reporting all cyber-threat indicators to federal and information-sharing and analysis organizations (ISAOs), including the Department of Homeland Security and the HHS Assistant Secretary for Preparedness and Response (any reports should not include protected health information); and Reporting the breach to the OCR as soon as possible, but no later than 60 days after the discovery of a breach affecting 500 or more individuals, and notifying affected individuals and the media unless a law enforcement official has requested a delay in the reporting. Note: OCR considers all mitigation efforts taken by the entity during any particular breach investigation. Such efforts include the voluntary sharing of breach-related information with law enforcement agencies and other federal and analysis organizations. Click here to read the entire cyber-attack checklist. Please visit our HIPAA section for more on the law’s requirements.

Are Summer Interns Subject to Minimum Wage and Overtime Pay? Employers who have hired summer interns should keep in mind that the U.S. Department of Labor (DOL) has stated that private sector internships are most often considered “employment” subject to the federal Fair Labor Standards Act’s (FLSA) minimum wage and overtime rules. The Test for Unpaid Interns There are some circumstances under which individuals who participate in for-profit private sector internships or training programs may do so without compensation. The determination of whether an internship or training program meets this exclusion depends upon all of the facts and circumstances. The DOL uses the following six criteria that must be applied when making this determination: The internship, even though it includes actual operation of the facilities of the employer, is similar to training which would be given in an educational environment; The internship experience is for the benefit of the intern; The intern does not displace regular employees, but works under close supervision of existing staff; The employer that provides the training derives no immediate advantage from the activities of the intern, and on occasion its operations may actually be impeded; The intern is not necessarily entitled to a job at the conclusion of the internship; and The employer and the intern understand that the intern is not entitled to wages for the time spent in the internship. If all of the factors listed above are met, an employment relationship likely does not exist under federal law, and the FLSA’s minimum wage and overtime provisions do not apply to the intern. This exclusion is narrow, because the FLSA’s definition of “employ” is very broad. Note: Be sure to check your state wage and hour laws for applicable requirements. When both the FLSA and a state law apply, the employee is entitled to the most favorable provisions of each law. Our Employee Pay section features information on other common federal wage issues.

How to Write a Good Job Description Job descriptions are an essential part of hiring and managing employees. In addition to helping you recruit and hire the right candidates, these written summaries serve as a key basis for outlining performance expectations, job training, job evaluation, and career advancement. Learn how to write a good description by watching the video below. For more recruitment tips, check out our Recruitment & Hiring section.

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PCORI Fees Due to IRS No Later Than July 31

Fees to fund the Patient-Centered Outcomes Research Institute (PCORI) are due to the IRS no later than July 31, 2017 from employers who sponsor certain self-insured health plans, including health reimbursement arrangements (HRAs) that are not treated as excepted benefits.

How to Pay PCORI Fees
Employers that sponsor certain self-insured health plans must report and pay the required PCORI fees via IRS Form 720, Quarterly Federal Excise Tax Return. For plan years ending between January 1, 2016 and September 30, 2016, the fee for an employer sponsoring an applicable self-insured plan is $2.17 multiplied by the average number of lives covered under the plan. For plan years ending between October 1, 2016 and December 31, 2016, the fee is $2.26 multiplied by the average number of lives covered under the plan.

For more information on PCORI fees, visit our PCORI Fees for Self-Insured Plans section.

2018 Health Savings Account Limits Released

The IRS has announced the 2018 inflation-adjusted amounts for Health Savings Accounts (HSAs).

Annual Contribution Limitation
For calendar year 2018, the annual limitation on HSA deductions for an individual with self-only coverage under a high deductible health plan is $3,450 (up from $3,400 for 2017). The annual limitation on HSA deductions for an individual with family coverage under a high deductible health plan is $6,900 (up from $6,750 for 2017).

High Deductible Health Plan Amounts
For calendar year 2018, a “high deductible health plan” is defined as a health plan with an annual deductible that is not less than $1,350 for self-only coverage or $2,700 for family coverage, and annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) that do not exceed $6,650 for self-only coverage or $13,300 for family coverage.

Click here to read the IRS announcement on these amounts.

Be sure to check out our Health Savings Accounts section for more on HSAs.

New OSHA Training Requirements Now Effective

Under the U.S. Occupational Safety and Health Administration’s (OSHA) recent General Industry Walking-Working Surfaces and Fall Protection Standards final rule, employers are now required to ensure that workers who use personal fall protection and equipment are trained about fall and equipment hazards, including fall protection systems.

New Training Requirements
Under the recent final rule, employers whose employees use personal fall protection equipment and work in other specified high hazard situations must provide employee training as to fall hazards, including fall protection systems. Specifically, employees must be trained by a qualified person and must be trained in at least the following topics:

• The nature of fall hazards in the work area and how to recognize them;
• The procedures to be followed to minimize those hazards;
• The correct procedures for installing, inspecting, operating, maintaining, and disassembling the personal fall protection systems that the employee uses; and
• The correct use of personal fall protection systems including, but not limited to, proper hook-up, anchoring, and tie-off techniques.

In addition, the final rule requires employers to train each employee on equipment hazards. This required training includes training as to the proper care, inspection, storage, and use of certain equipment (including, but not limited to, dockboards and rope descent systems) before an employee uses the equipment.

Both the fall and equipment hazard trainings must be presented to each employee in a manner that the employee understands. In addition, employers must retrain an employee when the employer has reason to believe the employee does not have the understanding and skill required by the initial training.

For additional information on the final rule and its training requirements, please click here.

To read more about worker safety and health, please visit our Safety & Wellness section.

IRS Offers Tips on Preparing for Natural Disasters

With hurricane season approaching, the IRS is offering advice to those impacted by storms and other natural disasters. The following tips may help businesses prepare for such events:

• Use electronic records. Businesses may have access to bank and other financial statements online. If so, their statements are already securely stored there. Businesses can also keep an additional set of records electronically by scanning tax records and insurance policies onto an electronic format. Businesses may also want to download important records to an external hard drive or USB flash drive.
• Document valuables. Take time- and date-stamped photos or videos of the contents of your business. These visual records can help prove the value of lost items, which can help with insurance claims or casualty loss deductions on a tax return. Businesses should store these records in a safe place.
• Contact the IRS for help. Businesses that fall victim to a disaster may call the IRS disaster hotline at 866-562-5227 for special help with disaster-related tax issues.
• Get copies of prior year tax records. If a business needs a copy of its tax return, it should file IRS Form 4506, Request for Copy of Tax Return. While the usual fee per copy is $50, the IRS is expected to waive this fee if a business is a victim of a federally declared disaster. For information that shows most line items from a tax return, call 1-800-908-9946 to request a free transcript. Alternatively, businesses may file IRS Form 4506T-EZ, Short Form Request for Individual Tax Return Transcript, or IRS Form 4506-T, Request for Transcript of Tax Return.

The IRS offers many resources to help employers plan for and recover from disasters, including IRS Publication 584-B, Business Casualty, Disaster, and Theft Loss Workbook, and web pages devoted to preparing for a disaster and tax relief in disaster situations.

Visit our Planning for Workplace Emergencies section for more on how to protect your business from natural disasters.

Newsletter provided by:

Summit Insurance Advisors
11350 McCormick Road, Executive Plaza III,, Hunt Valley, MD 21031
(410) 584-9600
jb@sumfi.com
http://www.summitinsurnceadvisors.com

The content herein is provided for general information purposes only, and does not constitute, legal, tax, or other advice or opinions on any matters. This information has been taken from sources which we believe to be reliable, but there is no guarantee as to its accuracy.

© 2017 HR 360, Inc. – All rights reserved

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‘Pay or Play’ Penalty and Affordability Amounts Announced

The IRS has updated its existing Q&As on the Affordable Care Act’s employer shared responsibility (“pay or play”) requirements to reflect adjustments to the pay or play penalty and affordability amounts. Those adjustments are as follows:

• For calendar year 2017, the applicable per-employee dollar penalties of $2,000 and $3,000 are adjusted to $2,260 and $3,390, respectively.
• For plan years beginning in 2017, the affordability threshold for purposes of both the pay or play affordability safe harbors and the premium tax credit provisions is 9.69%.

The Q&As also address what counts as an “offer of coverage” for purposes of pay or play compliance. Click here to view the Q&As in their entirety. Check out our Pay or Play section for step-by-step guidance, worksheets, and calculators that can help employers understand whether they will be subject to a penalty, and how to calculate it.

Redesigned Green Cards Impact Form I-9 Compliance

U.S. Citizenship and Immigration Services (USCIS) has announced a redesign to the Permanent Resident Card (“Green Card”) and the Employment Authorization Document (“EAD”). USCIS is expected to begin issuing the new Green Cards and EADs on May 1, 2017.

Redesigned Green Cards The new Green Cards and EADs will:

• Display the individual’s photos on both sides;
• Show a unique graphic image and color palette:
  • Green Cards will have an image of the Statue of Liberty and a predominately green palette; and
  • EADs will have an image of a bald eagle and a predominately red palette;
• Have embedded holographic images; and
• No longer display the individual’s signature.

Also, Green Cards will no longer have an optical stripe on the back.

What Employers Need to Know Employers should be aware of the following regarding the redesigned Green Cards and EADs:

• Both the existing and the new versions of Green Cards and EADs remain acceptable for purposes of Form I-9 and E-Verify compliance.
• Both the existing and the new Green Cards and EADs will remain valid until the expiration date shown on the card.
• Some older Green Cards, which do not have an expiration date, remain valid.
• Certain EADs held by individuals with Temporary Protected Status and other designated categories have been automatically extended.
• Some Green Cards and EADs issued after May 1, 2017 may still display the existing design format, as USCIS will continue using existing card stock until current supplies are depleted.

Check out our section on Form I-9 for more information on complying with employment eligibility verification requirements.

Avoiding Employee Misclassification Under the FSLA

In order for the federal Fair Labor Standards Act’s (FLSA) minimum wage and overtime pay requirements to apply to a worker, the worker must be an “employee” of the employer, meaning that an employment relationship must exist between the worker and the employer. The FLSA defines “employ” as including to “suffer or permit to work,” representing the broadest definition of employment under the law, as it covers work that the employer directs or allows to take place. Applying the FLSA’s definition, workers who are economically dependent on the business of the employer, regardless of skill level, are considered to be employees. On the other hand, independent contractors are workers with economic independence who are in business for themselves.

While the U.S. Department of Labor (DOL) finds that most workers are employees under the FLSA, in order to make the determination of whether a worker is an employee or an independent contractor, the DOL uses the multi-factor “economic realities” test, which focuses on whether the worker is economically dependent on the employer or in business for him or herself. Each factor of the “economic realities” test is outlined below.

• Is the Work an Integral Part of the Employer’s Business? If the work performed by a worker is integral to the employer’s business, it is more likely that the worker is economically dependent on the employer. A true independent contractor’s work, on the other hand, is unlikely to be integral to the employer’s business.
• Does the Worker’s Managerial Skill Affect the Worker’s Opportunity for Profit or Loss? This factor should not focus on the worker’s ability to work more hours, but rather on whether the worker exercises managerial skills and whether those skills affect the worker’s opportunity for both profit and loss.
• How Does the Worker’s Relative Investment Compare to the Employer’s Investment? The worker should make some investment (and therefore undertake at least some risk for a loss) in order for there to be an indication that he or she is involved in an independent business. The worker’s investment should not be relatively minor compared with that of the employer. If the worker’s investment is relatively minor, that suggests that the worker and the employer are not on similar footings and that the worker may be economically dependent on the employer.
• Does the Work Performed Require Special Skill and Initiative? A worker’s business skills, judgment, and initiative, not his or her technical skills, will aid in determining whether the worker is economically independent.
• Is the Relationship Between the Worker and the Employer Permanent or Indefinite? Permanency or indefiniteness in the worker’s relationship with the employer suggests that the worker is an employee. However, a lack of permanence or indefiniteness does not automatically suggest an independent contractor relationship. The key is whether the lack of permanence or indefiniteness is due to operational characteristics intrinsic to the industry or the worker’s own business initiative.
• What is the Nature and Degree of the Employer’s Control? The employer’s control should be analyzed in light of the ultimate determination of whether the worker is economically dependent on the employer or truly an independent businessperson. The worker must control meaningful aspects of the work performed such that it is possible to view the worker as a person conducting his or her own business.

Our Independent Contractors section includes more information on how to correctly determine worker classification.

President Trump Signs Repeal of OSHA’s “Volks Rule”

President Trump has signed into law House Joint Resolution 83, which repeals the “Volks Rule,” a U.S. Occupational Safety and Health Administration (OSHA) rule which imposed on employers certain continuing obligations to make and maintain accurate records of recordable injuries and illnesses. The rule previously became effective on January 18, 2017

OSHA Recordkeeping Regulations OSHA’s recordkeeping regulations require employers to record information about certain work-related injuries and illnesses on an OSHA 300 Log. Employers must enter each recordable injury or illness on the OSHA 300 Log, as well as on a supplementary OSHA 301 Incident Report, within 7 calendar days of receiving information that a recordable injury or illness has occurred. At the end of each calendar year, employers must create, certify, and post annual summaries of the cases listed on their 300 Logs for the prior calendar year. Generally, employers must retain their OSHA Logs, Incident Reports, and annual summaries for 5 years following the end of the calendar year that they cover.

If an employer initially fails to record a recordable injury or illness on the OSHA 300 Log or the corresponding OSHA 301 Incident Report, the employer still has an ongoing duty to record that case; as long as an employer fails to comply with the ongoing recording duty, there exists an ongoing violation of OSHA’s recordkeeping requirements. OSHA can cite employers for such recordkeeping violations for up to 6 months after the 5-year retention period expires.

‘Volks Rule’ Explained OSHA’s “Volks Rule,” which became effective on January 18, 2017, amended OSHA’s recordkeeping regulations to state that:

• If an employer failed to record an injury or illness within 7 days, the obligation to record continued on past the 7th day, such that each successive day where the injury or illness remained unrecorded constituted a continuing “occurrence” of the ongoing violation.
• Under the rule, an employer could not avoid the five-year maintenance requirement by failing to make the record in the initial 7 days; rather, the obligation to make the record, for both the OSHA 300 Log as well as the OSHA 301 Incident Report, continued throughout the 5-year maintenance period even if the employer failed to meet its initial obligation.

‘Volks Rule’ Repealed On April 3, 2017, President Trump signed into law House Joint Resolution 83 (H.J. Res. 83), which declares the “Volks Rule” to no longer have force or effect.

To read more about worker safety and health, please visit our section on Safety & Wellness.

Firing a Problem Employee

Firing an employee is never easy. As unpleasant as any layoff or termination situation is, however, handling one with a problem employee makes the task even more challenging. Check out our Discipline & Termination section for more helpful tips.

Newsletter provided by:

Summit Insurance Advisors
11350 McCormick Road, Executive Plaza III,, Hunt Valley, MD 21031
(410) 584-9600
jb@sumfi.com
http://www.summitinsurnceadvisors.com

Please Note: The information and materials herein are provided for general information purposes only and are not intended to constitute legal or other advice or opinions on any specific matters and are not intended to replace the advice of a qualified attorney, plan provider or other professional advisor. This information has been taken from sources which we believe to be reliable, but there is no guarantee as to its accuracy. In accordance with IRS Circular 230, this communication is not intended or written to be used, and cannot be used as or considered a ‘covered opinion’ or other written tax advice and should not be relied upon for any purpose other than its intended purpose.

The information provided herein is intended solely for the use of our clients and members. You may not display, reproduce, copy, modify, license, sell or disseminate in any manner any information included herein, without the express permission of the Publisher. Kindly read our Terms of Use and respect our Copyright.

© 2017 HR 360, Inc. – All rights reserved

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How to Correct Form 1094 & 1095 Errors

To avoid potential noncompliance penalties, employers should confirm the accuracy of all Affordable Care Act (ACA) information returns and correct any errors as soon as possible with both the IRS and their employees.   Errors on Forms 1094-C and 1095-C Forms 1094-C and 1095-C are used by applicable large employers to satisfy their reporting obligations. To correct information on the paper version of the original Authoritative Transmittal Form 1094-C, employers should take the following steps:

• Prepare a new authoritative Form 1094-C including the correct information
• Enter an “X” in the CORRECTED checkbox at the top of the form
• File the standalone corrected authoritative Form 1094-C with the IRS

If correcting information on the paper version of a Form 1095-C that was previously filed with the IRS, employers should:

• Prepare a new Form 1095-C
• Enter an “X” in the CORRECTED checkbox at the top of the form
• File the corrected Form 1095-C, along with a non-authoritative Form 1094-C (DO NOT mark the CORRECTED checkbox on the Form 1094-C), with the IRS
• Furnish the employee a copy of the corrected Form 1095-C (note that different rules apply for an employer that is eligible to use the Qualifying Offer Method)

For more information on correcting errors on Forms 1094-C and 1095-C, see the 2016 Instructions for Forms 1094-C and 1095-C. Section 7.1 of Publication 5165 provides instructions for making corrections to Forms 1094-C and 1095-C filed electronically.   Errors on Forms 1094-B and 1095-B Forms 1094-B and 1095-B are used by self-insuring employers that are not considered applicable large employers, and by other parties that provide minimum essential health coverage. If a Form 1095-B filed with the IRS on paper contains an error, the employer should file a corrected return as follows:

• Fully complete a new Form 1095-B
• Enter an “X” in the CORRECTED checkbox at the top of the form
• File the corrected Form 1095-B, along with a transmittal Form 1094-B, with the IRS
• Furnish a copy of the corrected Form 1095-B to the person identified as the responsible individual

For more information on correcting errors on Forms 1094-B and 1095-B, see the 2016 Instructions for Forms 1094-B and 1095-B. Section 7.1 of Publication 5165 provides instructions for making a correction to Forms 1095-B filed electronically.   For more on employer information reporting requirements, check out our section on Information Reporting.

2017 Values for Employer-Provided Vehicles Released

The IRS has released the maximum vehicle values for 2017 that taxpayers need to determine the value of personal use of employer-provided vehicles under the IRS’s special valuation rules.   2017 Maximum Vehicle Values

• The maximum value of employer-provided vehicles first made available to employees for personal use in calendar year 2017, for which the vehicle cents-per-mile valuation rule provided under IRS Regulation section 1.61–21(e) may be applicable, is $15,900 for a passenger automobile, and $17,800 for a truck or van.
• The maximum value of employer-provided vehicles first made available to employees for personal use in calendar year 2017, for which the fleet-average valuation rule provided under IRS Regulation section 1.61–21(d) may be applicable, is $21,100 for a passenger automobile, and $23,300 for a truck or van.

Click here to read the IRS release on the 2017 maximum vehicle values.   To learn more about the tax consequences of various employer-provided fringe benefits, visit our Fringe Benefits section.

USCIS Updates Form I-9 Handbook

U.S. Citizenship and Immigration Services (USCIS) has released an updated M-274, Handbook for Employers, which provides guidance for complying with the requirements of Form I-9, Employment Eligibility Verification.   Updated Handbook Among other things, the updated handbook provides information and answers on the following topics:

• Completing Form I-9;
• Retaining Form I-9;
• Acceptable documents for verifying employment authorization and identity; and
• Unlawful discrimination and penalties for prohibited practices.

Click here to access the updated handbook.   For more information on complying with employment eligibility verification requirements, please visit our section on Form I-9.

3 Tax Recordkeeping Tips for Employers

Keeping good records not only makes tax filing easier and faster, but it can also help you monitor the progress of your business, prepare your financial statements, and support items reported on your tax returns. Here are three simple tips from the IRS to help you get organized: 1. Save Certain Business Records The following are some of the types of records you should keep:

• Gross receipts are the income you receive from your business. You should keep supporting documents that show the amounts and sources of your gross receipts.
• Purchases are the items you buy and resell to customers. Your supporting documents should show the amount paid and that the amount was for purchases.
• Expenses are the costs you incur (other than purchases) to carry on your business. Your supporting documents should show the amount paid and a description showing that the amount was for a business expense.
• Assets are the property, such as machinery and furniture, that you own and use in your business. You need records to compute the annual depreciation and the gain or loss when you sell the assets.

2. Keep Employment Tax Records The following information should be available for IRS review:

• Your employer identification number (EIN);
• Amounts and dates of all wage, annuity, and pension payments;
• Amounts of tips reported;
• The fair market value of in-kind wages paid;
• Names, addresses, social security numbers, and occupations of employees and recipients;
• Any employee copies of Forms W-2 that were returned to you as undeliverable;
• Dates of employment;
• Periods for which employees and recipients were paid while absent due to sickness or injury and the amount and weekly rate of payments you or third-party payers made to them;
• Copies of employees’ and recipients’ income tax withholding allowance certificates;
• Dates and amounts of tax deposits you made;
• Copies of returns filed;
• Records of allocated tips; and
• Records of fringe benefits provided, including substantiation.

3. Store and Organize Your Records Business owners should generally keep all employment-related tax records for at least 4 years after the date that the tax becomes due, or after the tax is paid, whichever is later. The length of time you should keep other documents depends on the action, expense, or event which the document records.   You can review our section on Employee Records and Files for information on other federal recordkeeping responsibilities for employers.

Hiring and Managing Seasonal Employees

With the summer hiring season approaching, employers should begin thinking about how best to hire and manage seasonal employees. Employers who do not dedicate time to these critical steps risk having to face disgruntled employees, unhappy customers, and even legal violations. To learn some best practices for hiring and managing seasonal employees, please watch the video below.

To learn how to attract top talent to your company, check out our Recruitment & Hiring section.

Newsletter provided by:

Summit Insurance Advisors 11350 McCormick Road, Executive Plaza III,, Hunt Valley, MD 21031 (410) 584-9600 jb@sumfi.com http://www.summitinsurnceadvisors.com

Please Note: The information and materials herein are provided for general information purposes only and are not intended to constitute legal or other advice or opinions on any specific matters and are not intended to replace the advice of a qualified attorney, plan provider or other professional advisor. This information has been taken from sources which we believe to be reliable, but there is no guarantee as to its accuracy. In accordance with IRS Circular 230, this communication is not intended or written to be used, and cannot be used as or considered a ‘covered opinion’ or other written tax advice and should not be relied upon for any purpose other than its intended purpose.

The information provided herein is intended solely for the use of our clients and members. You may not display, reproduce, copy, modify, license, sell or disseminate in any manner any information included herein, without the express permission of the Publisher. Kindly read our Terms of Use and respect our Copyright.

© 2017 HR 360, Inc. – All rights reserved

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Handling Employee Attendance During Bad Weather

Snow and slippery conditions during the winter months may make it difficult for your employees to travel to work. Consider the following guidelines that can help your company be prepared when bad weather strikes.

1. When an employee misses work due to bad weather conditions, whether the employee is entitled to be paid for the absence may depend on the employee’s exempt or non-exempt status.

• Under the federal Fair Labor Standards Act (FLSA), employers are not required to pay non-exempt employees for hours they did not work, including when the office is closed due to bad weather.
• Exempt employees generally must be paid their full salary amount if they perform any work during a workweek. However, an employer that remains open for business during a period of bad weather may generally make deductions, for full-day absences only, from the salary of an exempt employee who chooses not to report to work because of the weather. Deductions from salary for less than a full-day’s absence are not permitted.
  • Note: If the business is closed for the day as a result of inclement weather, the employer may not deduct the day’s pay from the salary of an exempt employee. The general rule is that an employer who closes operations due to a weather-related emergency or other disaster for less than a full workweek must pay an exempt employee the full salary for that week, if the employee performs any work during the week. This is because deductions may not be made for time when work is not available.

2. Some states require employers to pay employees for showing up even if no work is available or there is an interruption of work and the employee is sent home.

• Although payment for time not worked may not be required for non-exempt employees under federal law, some states do require that employees be paid for a minimum number of hours for reporting to work, even if there is no work that can be performed (such as when the office is closed) or the employee is sent home early, for instance, due to an impending storm.
• Often called “reporting time pay,” these laws may apply to specific industries (e.g., manufacturing) or certain employees only, so it is important to check with your state labor department for requirements that may apply to your company before implementing any policy.

3. Plan ahead to let your employees know what is expected of them and to help minimize disruption to your business.

• Make it a priority to notify all of your employees, both exempt and non-exempt, of your company’s policy regarding employee attendance and pay during periods of inclement weather. Your policy should include information on how your employees can find out whether the office is open or closed, such as by email, radio broadcast, calling in to hear a recorded message, or other methods that all employees can access. Be sure to apply your policy consistently and fairly to all employees.
• It’s also prudent to remind employees to use their best judgment and not to put their safety at risk when it comes to traveling to work during or after a storm. If possible, see if you can arrange for employees to work remotely from home on days when the weather makes travel dangerous.

For more issues related to employee compensation, including guidelines for determining the exempt or non-exempt status of your employees, visit our section on Employee Pay.

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Tax Filing Season Begins January 23

The Internal Revenue Service (IRS) has announced that tax season will begin Monday, January 23, 2017. The filing deadline to submit 2016 tax returns is Tuesday, April 18, 2017.

The IRS will begin accepting electronic tax returns on January 23, 2017. Many software companies and tax professionals will be accepting tax returns before January 23 and then will submit the returns when IRS systems open. The IRS will begin processing paper tax returns at the same time. According to the IRS, there is no advantage to filing tax returns on paper in early January instead of waiting for the IRS to begin accepting e-filed returns.

April 18 Filing Deadline

The filing deadline to submit 2016 tax returns is Tuesday, April 18, 2017, rather than the traditional April 15 date, as a result of a weekend and a District of Columbia holiday.

 

Certain Small Employer HRAs Exempt From ACA Market Reforms

A new law allows certain small employers–those with fewer than 50 full-time equivalent employees who do not offer a group health plan–to offer new “qualified small employer health reimbursement arrangements” to reimburse employees for qualified medical expenses, including individual health insurance premiums, for years after December 31, 2016. The law also includes a notice requirement for these new HRAs.

Qualified Small Employer HRAs

Qualified small employer health reimbursement arrangements (HRAs) are exempt from the ACA’s market reforms. To be considered a qualified small employer HRA, the arrangement generally must:

•Be funded solely by an eligible small employer without salary reduction contributions;

•Provide, after an eligible employee provides proof of coverage, for the payment or reimbursement of qualified medical expenses (which generally includes individual health insurance premiums) incurred by the employee or his or her family members;

•Limit annual payments and reimbursements to $4,950 per employee or $10,000 per family (these amounts are prorated when coverage is for less than the entire year); and

•Be provided on the same terms to all eligible employees.

Note: Large employers and employers who offer a group health plan are not eligible to offer qualified small employer HRAs.

Notice Requirement

An employer funding a qualified small employer HRA for any year must provide a written notice to each eligible employee that includes the following information:

•A statement regarding the maximum dollar amount of payments and reimbursements that may be made for the year with respect to the employee (the “permitted benefit”);

•A statement that the employee should provide information regarding his or her permitted benefit to any Health Insurance Marketplace to which the employee applies for advance payment of the premium tax credit; and

•A statement that if the employee is not covered under minimum essential coverage for any month, the employee may be subject to the individual mandate penalty for such month and reimbursements under the HRA may be includible in gross income.

Effective for years beginning after December 31, 2016, the notice generally must be provided no later than 90 days before the beginning of the year in which the HRA is funded–or, if an employee is not eligible to participate in the arrangement as of the beginning of such year, the date on which the employee is first eligible.

Check out our section on Health Reimbursement Arrangements (HRAs) for more.

 

IRS: Opt-Out Arrangement Rules To Be Finalized ‘At A Later Time’

In July 2016, the IRS released a proposed rule addressing how opt-out arrangements–arrangements whereby an employer offers its employees a cash payment in exchange for declining coverage under an employer-sponsored plan–are to be taken into account for purposes of determining whether the coverage is affordable under certain provisions of the Affordable Care Act. While the IRS anticipated finalizing this rule prior to the end of 2016, the IRS has announced that it expects to finalize such guidance “at a later time.”

Latest Opt-Out Arrangement Guidance

Until final regulations are applicable, employers can rely on the opt-out arrangement guidance provided in IRS Notice 2015-87 and the proposed rule. That guidance generally provides that, for purposes of “pay or play” and the corresponding information reporting provisions, employers are not required to increase an employee’s required contribution by the amount of an opt-out payment as long as payment was not made as part of a “non-relief-eligible opt-out arrangement.” In general, a non-relief-eligible opt-out arrangement is an unconditional opt-out arrangement (an arrangement providing payments conditioned solely on an employee declining coverage under employer-sponsored coverage and not on an employee satisfying any other meaningful requirement related to the provision of health care to employees, such as a requirement to provide proof of coverage through a plan of a spouse’s employer) adopted after December 16, 2015.

Note: Opt-out arrangements conditioned on an employee obtaining individual market coverage could operate as an impermissible employer payment plan that may be subject to a $100 per day excise tax per applicable employee ($36,500 per year, per employee) under the federal tax code.

Follow our Health Care Reform section for the latest Affordable Care Act updates.

 

5 HR Compliance Resolutions for 2017

The new year is a great time to take stock of your company’s compliance with important federal, state, and local labor law requirements. Keep these resolutions in mind to help start your company off right in 2017:

1Give your poster wall a thorough check-up. Make sure all of your workplace posters are up-to-date and the correct size. Check with your state labor department for any industry-specific poster requirements that may apply to your business. Note that certain localities may also have posting requirements.

2Stay on top of notice requirements. From summary plan descriptions (SPDs), to COBRA- and FMLA-related notices, employers are required under various laws to provide employees with certain information about their benefits and responsibilities. Confirm that your employee communications are accurate, consistent, and in compliance with applicable law.

3Keep up with record keeping. In addition to being a good business practice, employers are required to maintain certain types of employee records in order to comply with applicable law. Verify that your record keeping procedures address any requirements related to confidentiality and how long to keep records.

4Review policies and procedures. Be sure your company policies and procedures comply with applicable labor laws related to employee leave, equal employment opportunity, sexual harassment, worker safety, and other requirements.

5Confirm that your workers are classified properly. Misclassifying employees as independent contractors can result in costly legal consequences. Also remember that an employee’s exempt or nonexempt status is based on his or her compensation and specific job duties. It’s a good idea to review job descriptions on a regular basis (at least annually) as well, as tasks and requirements may change. However, neither job titles nor job descriptions determine the exempt or nonexempt status of an employee.

Our HR Compliance Quick-Check includes more tips for staying on track with compliance this year.

 

State Minimum Wage Rates Set to Increase

The minimum wage will rise in a number of states in 2017. Unless otherwise noted, the following minimum wage rates (per hour) are scheduled to become effective on January 1, 2017:

•Alaska: $9.80

•Arizona: $10.00

•Arkansas: $8.50 for employers with 4 or more employees

•California: $10.50 for employers with 26 or more employees (for smaller employers, the rate remains $10.00)

•Colorado: $9.30 ($6.28 for tipped employees)

•Connecticut: $10.10

•District of Columbia: $12.50, beginning July 1, 2017 ($3.33 for tipped employees)

•Florida: $8.10 ($5.08 for tipped employees)

•Hawaii: $9.25

•Maine: $9.00, beginning January 7, 2017

•Maryland: $9.25, beginning July 1, 2017

•Massachusetts: $11.00 ($3.75 for tipped employees)

•Michigan: $8.90 ($3.38 for tipped employees)

•Missouri: $7.70 ($3.85 for tipped employees)

•Montana: $8.15

•New Jersey: $8.44

•New York: $9.70, beginning December 31, 2016 ($11.00 for employers in NYC with 11 or more employees; $10.50 for employers in NYC with 10 or fewer employees; $10.00 for Long Island & Westchester; $10.75 for fast food employees outside of NYC; $12.00 for fast food employees within NYC)

•Ohio: $8.15 ($7.25 for employees at certain smaller companies, and for 14- and 15-year-olds; the wage rises to $4.08 for tipped employees)

•Oregon: $10.25, beginning July 1, 2017 ($11.25 for employees working within the urban growth boundary of a metropolitan service district; $10.00 in non-urban counties)

•Rhode Island: $3.89 for tipped employees (for non-tipped employees, the $9.60 minimum wage rate remains unchanged)

•South Dakota: $8.65 ($4.325 for tipped employees)

•Vermont: $10.00 ($5.00 for certain service or tipped employees)

•Washington: $11.00

Be sure to comply with any city or other local wage requirements (which may be higher than the state or federal minimum wage) that may apply to your business.

For more information on state minimum wage laws, please visit our State Laws section, click on your state, and select “Minimum Wage” in the left-hand navigation menu.

Newsletter provided by:

Summit Insurance Advisors

11350 McCormick Road, Executive Plaza III

Hunt Valley, MD 21031

(410) 584-9600

jb@sumfi.com

www.summitinsurnceadvisors.com

Please Note: The information and materials herein are provided for general information purposes only and are not intended to constitute legal or other advice or opinions on any specific matters and are not intended to replace the advice of a qualified attorney, plan provider or other professional advisor. This information has been taken from sources which we believe to be reliable, but there is no guarantee as to its accuracy. In accordance with IRS Circular 230, this communication is not intended or written to be used, and cannot be used as or considered a ‘covered opinion’ or other written tax advice and should not be relied upon for any purpose other than its intended purpose.

The information provided herein is intended solely for the use of our clients and members. You may not display, reproduce, copy, modify, license, sell or disseminate in any manner any information included herein, without the express permission of the Publisher. Kindly read our Terms of Use and respect our 

Copyright. © 2017 HR 360, Inc. – All rights reserved

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