Sander & Associates, P.A

Home » Consulting » NEW PAYROLL LAW CHANGES AFFECTING EMPLOYERS

NEW PAYROLL LAW CHANGES AFFECTING EMPLOYERS

Archives

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:

OSHA

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).

FLSA

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.

ACA 

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

(per return)

$60 $100
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


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: