There are so many payroll laws which recently have been passed that will have a significant impact on an employers bottom-line. The three laws that are most asked about are the following:
The Occupational Safety and Health Administration (OSHA) recently came out with 2 significant changes:
- OSHA raised the amount of money they can collect in fines from businesses, which have gone up 78% or up to $124,709 per fine, effective as of August 1st 2016
- New OSHA electronic reporting requirements that will be effective Jan 2017 (300, 300A, 301).
Under the Fair Labor Standards Act (FLSA), a federal law which establishes minimum wage, overtime pay eligibility, recordkeeping etc, this major change will be effective December 1st, 2016:
- The FLSA overtime change will apply to you if you have any employees who are paid on a salary basis and for whom either of the following statements is true:
- Their salary falls between $23,660 and $47,476 per year and they meet the job duties exemption requirements.
- Their salary falls between $100,000 and $134,004 per year and they meet the Highly Compensated Employee (HCE) job duties exemption requirements.
Under the Affordable Care Act the Employer Mandate (Offering of Health Care Coverage to Full Time Employees) has been fully implemented in 2016. As for the affordability requirements, the threshold of affordability for the plan has been raised to 9.66% of the employee’s total household income. Below is a list of the most notable penalty changes in 2016:
|Description||Old Penalty Amount||New Penalty Amount|
|Penalty for filing incorrect returns (per return)||$100||$250|
|Penalty for incorrect returns if corrected within 30 days (per return)||$30||$50|
|Penalty for incorrect returns if corrected by August 1st
|Penalty for intentionally disregarding to file timely and correct returns||$250||$500|
|Maximum penalty per calendar year||$1,500,000||$3,000,000|
|Maximum penalty per calendar year if corrected within 30 days||$250,000||$500,000|
|Maximum penalty per calendar year if corrected by August 1st||$500,000||$1,500,000|
If you have any questions or concerns about this don’t hesitate to contact us.
Source: Adapted from ADP Client Information by Taylor Schlenker 9/19/2016