man in hospital bed contemplating future

New Expiration Date for Certain FMLA Notices is July 31, 2018

2018-07-09
Human Resources

Model Notices Previously Expired on June 30, 2018

The U.S. Department of Labor’s Wage and Hour Division (WHD) has extended the effective date of the following model FMLA notices through July 31, 2018:

Previously, these model notices expired on June 30, 2018. No other changes have been made to these notices besides their effective date.

For further guidance regarding these notices, please contact the WHD directly at 1-866-487-2365.

newborn infant baby girl foot with hospital tag

Massachusetts Adopts Paid Family and Medical Leave Program

2018-07-03
Human Resources

Law Requires Employer Contributions

Massachusetts has adopted a paid family and medical leave program, which will be funded by a payroll tax that becomes effective July 1, 2019. Employees can begin taking paid family and medical leave under the program in 2021. A summary of the program is below.

Which employers are covered? Employers with 1 or more employees
Which individuals are eligible for leave? Employees who meet financial eligibility requirements for unemployment insurance (earned at least $4,700 during the last 4 completed calendar quarters, and 30 times the weekly benefit amount they would be eligible to collect)
Which life events qualify for leave?
  • The birth of a child;
  • The need to care for a family member with a serious health condition; and
  • The employee’s own serious health condition.
For how long can leave last?
  • Up to 12 weeks in a year for the birth of a child or to care for a family member with a serious health condition.
  • Up to 20 weeks in a year for the serious health condition of the employee.
  • If an employee elects to use leave for more than one life event, 26 weeks in a year at most.
Who pays for the paid leave? Both the employer and the employee. The leave program will be funded by a 0.63% payroll tax split between employers and employees that becomes effective July 1, 2019.

Additional requirements and exceptions apply. Click here to read the law.

mother with toddler daughter visiting smiling doctor

2019 ‘Pay or Play’ Affordability Percentage Set at 9.86%

2018-06-27
Human Resources

Percentage Up from 2018

Under the employer shared responsibility (“pay or play”) provisions of the Affordable Care Act, applicable large employers—generally those who had 50 or more full-time employees (including full-time equivalent employees)—may be subject to a penalty if they do not offer affordable coverage that provides minimum value to their full-time employees and their dependents. For plan years beginning in 2019, the Internal Revenue Service has announced that coverage will generally be considered affordable if the employee’s required contribution for the lowest cost self-only health plan offered is 9.86% or less of his or her household income for the taxable year. For plan years beginning in 2018, the applicable percentage is 9.56%.

Given that employers are unlikely to know an employee’s household income, they may use a number of safe harbors to determine affordability, including reliance on Form W-2 wages.

team of employees in office high fiving in center of conference table

New Rule Eases Formation of Association Health Plans

2018-06-19
Human Resources

Rule Permits Associations Based on Industry or Geography

The U.S. Department of Labor (DOL) has issued a new rule that allows employers to join together as a single group to offer group health insurance coverage to employees, working owners (including those without other employees), and their spouses and dependents as part of an “association health plan.” The rule allows association health plans to be formed on the basis of industry or geography, such as by state, city, county, or multi-state metropolitan area.

The new rule subjects association health plans to the nondiscrimination rules currently applicable to large group coverage under the Health Insurance Portability and Accountability Act (HIPAA), as amended by the Affordable Care Act (ACA). These rules prohibit discrimination based on a health factor or within groups of similarly situated individuals, but do generally permit plans to impose different eligibility provisions and costs based on bonafide employment-based classifications, such as full-time versus part-time status.

team of professionals going over finances with check book to record

Understanding IRS ‘Pay or Play’ Penalty Letters

2018-06-14
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Employers Have Opportunity to Respond Before ‘Pay or Play’ Penalty Assessment

The Internal Revenue Service (IRS) is currently issuing Letter 226-J to certain applicable large employers (ALE)—generally those with at least 50 full-time employees, including full-time equivalent employees, on average during the prior year—it believes owe a penalty for failing to comply with the Affordable Care Act’s employer shared responsibility provisions (“pay or play” provisions). In conjunction with Letter 226-J, employers will receive Form 14764, which they can use to respond to Letter 226-J. Employers who submit Form 14764 to the IRS will generally receive one of 4 letters back:

  • Letter 227-J, which acknowledges receipt of Form 14764 and the employer’s agreement to pay the penalty;
  • Letter 227-K, which acknowledges receipt of Form 14764 and shows that the penalty has been nullified;
  • Letter 227-L, which acknowledges receipt of Form 14764 and shows that the penalty has been revised; or
  • Letter 227-M, which acknowledges receipt of Form 14764 and shows that the penalty amount did not change.
interviewer and interviewee shaking hands post-interview process

Connecticut Adopts Salary History Inquiry Ban

2018-06-07
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New Law Effective January 1, 2019

Effective January 1, 2019, a new law generally prohibits Connecticut employers from inquiring about a prospective employee’s wage and salary history unless it is voluntarily disclosed. Notably, the law does not prohibit an employer from inquiring about other elements of a prospective employee’s compensation structure as long as such employer does not inquire about the value of the elements of such compensation structure.

Click here to read the full legislation.

storm clouds overlooking city with lightning

6 Tips for Protecting Your Business Against Natural Disasters

2018-06-05
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FEMA Guidance on Protecting Company Documents and Equipment

As this week’s severe storms have demonstrated, natural disasters can happen suddenly at any time. It is prudent to take special precautionary steps to protect your company in the event of a natural disaster. The following actions are recommended by the Federal Emergency Management Agency (FEMA):

  1. Protect Business Records. Determine which on-site records, files, and materials are most important to normal business operations; consider their vulnerability to damage during different types of disasters (such as floods and hurricanes) and take steps to protect them (i.e., regularly back up vital electronic files and store copies in a secure off-site location).
  2. Know What Insurance Will Cover. Make sure you are aware of the details of your flood insurance and other hazard insurance policies, specifically which items and contents are covered and under what conditions. Check with your insurance agent if you have questions about any of your policies.
  3. Develop An Emergency Action Plan. Assign disaster mitigation duties to your employees. For example, some employees could be responsible for securing storage bins and others for backing up computer files and delivering copies to a secure location.
  4. Obtain Cost Estimates. Estimate the cost of repairing or replacing each essential piece of equipment in your business. Your estimates will help you assess your vulnerability and focus your efforts.
  5. Maintain Written Inventories. For both insurance and tax purposes, you should maintain written and photographic inventories of all important materials and equipment. The inventory should be stored in a safety deposit box or other secure location.
  6. Perform Building Evaluations. Periodically evaluate the building envelope to make sure that wind and water are not able to penetrate the building. Perform regular maintenance and repairs to maintain the strength of the building envelope.

The cost of these measures will depend on the size and contents of your business, the nature of the potential hazards, and the effort required to ensure proper protection.

 

view through car windshield on stormy road and rain

Protect Your Organization This Hurricane Season

2018-06-01
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Tips on Preparing Your Business for a Natural Disaster

With the start of peak Atlantic hurricane season this month comes the risk of losing essential business records, files, and other materials to floods or damaging winds.

To reduce your damage costs and hasten your return to normal business operations, follow the following tips from the Federal Emergency Management Agency (FEMA):

  1. Confirm your insurance:  Review the details of your flood and other hazard insurance policies, paying close attention to which items are covered and under what conditions. If you have questions, contact your insurance agent.
  2. Back up essential files:  Regularly back up important electronic files (such as billing and payroll records and customer lists), and keep backup copies in a secure, off-site location. Copies of important papers (business plans, legal documents, etc.) should also be stored securely off-site.
  3. Consider the location of equipment susceptible to damage:  Raise computers above flood level, move heavy objects to low shelves, and secure any equipment that could move or fall during a natural disaster.
  4. Take inventory:  For insurance and tax purposes, maintain written and photographic inventories of all important materials and equipment, and store the inventory in a safety deposit box or other secure location.
  5. Perform regular building maintenance and repairs:  Periodically evaluate your building to make sure wind and water are not able to penetrate it.

Develop an emergency action plan to protect your employees and business during a disaster in advance to better prepare your business.

lightning storm with purple sky over city

IRS Offers Tips To Help Businesses Prepare For Natural Disasters

2018-05-29
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Using Electronic Records and Documenting Valuables Encouraged

With hurricane season underway, 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. They can also keep an additional set of records electronically. One way is to scan tax records and insurance policies onto an electronic format. Businesses may want to download important records to an external hard drive, USB flash drive or burn them onto CDs or DVDs. Be sure to keep duplicates of records in a safe place. For example, store them in a waterproof container away from the originals. If a disaster strikes your business, it may also affect a wide area. If that happens, it may be impossible to retrieve the records that are stored in that area.
  • 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. They may help with insurance claims or casualty loss deductions on a tax return. Businesses should also store these 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. The usual fee per copy is $50. However, 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 webpages devoted to preparing for a disaster and tax relief in disaster situations.

first-person view of people enjoyed the beach on a summer day

Top 5 Forms for Summer Hires

2018-05-25
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Forms Every Employee Should Fill Out Day 1

An employee’s first day at a summer job can be very stressful for both the employee and employer. While trying to set up the employee with his or her parking pass, email account, and other necessities, employers should also remember that completing the following forms is just as important.

  1. Form I-9: Under federal law, employers are required to verify the identity and employment authorization of each person they hire by completing and retaining Form I-9, Employment Eligibility Verification. Newly hired employees must complete and sign Section 1 of Form I-9 no later than the first day of employment. Click here to download Form I-9.
  2. Federal Form W-4: An employee must complete federal Form W-4 in order for the employer to withhold the correct federal income tax from the employee’s pay. Click here to download federal Form W-4.
  3. State Form W-4: In states with a state income tax, an employee must complete a state Form W-4 (or its equivalent) in order for the employer to withhold the correct state income tax from the employee’s pay. To obtain a state Form W-4, contact your state’s taxation department.
  4. Basic Employment Information Sheet: Employers should keep certain basic information about each of their employees on file, including their address, phone number, and emergency contact. Click here to download a Basic Employment Information Sheet.
  5. Direct Deposit Authorization Form: It is now easier than ever for an employer to directly deposit an employee’s paycheck into his or her bank account. Such deposits, however, must be specifically authorized by the employee. Click here to download a Direct Deposit Authorization Form.
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