Massachusetts private employers and their HR teams are trying their best to obtain info and prepare, as MA joins a short (but growing), list of states providing employees with paid family and medical leave benefits on January 1, 2021. While this date may not seem to be looming around the corner, the effective date for the new payroll tax that will be funding these benefits is July 1st of 2019.
Without further clarity promised until the proposed regulations are released (no later than March 31, 2019), HR Pros and Business Owners are looking for all options and avenues available to illuminate this program and the responsibilities that must be met to comply.
Let your employees know: now is the time to take full advantage of employer health flexible spending arrangements (FSA) during 2019.
FSAs provide employees a way to use tax-free dollars to pay medical expenses not covered by other health plans. Because eligible employees need to decide how much to contribute through payroll deductions before the plan year begins, many employers are offering their employees the option to sign up for an FSA now for participation that begins in 2019.
Interested employees wishing to contribute during the new year must make this choice again for 2019, even if they contributed in 2018. Self-employed individuals are not eligible.
As a business owner or Payroll/HR professional, there's a lot to review at this time of year in order to make sure you close out your 2018 payroll and tax data without errors or corrections. And a review of any Third-Party Sick Pay (abbreviated 3PSP) is probably (hopefully!) on your list.
Year-end deadlines are rapidly approaching - December 27 is the last day to post 2018 payroll data to meet filing deadlines. If any of your employees were issued sick pay by a third party (usually an insurance company) in 2018, take a look at these three steps to help you avoid last-minute payroll and tax adjustments.
There are many good reasons to look into an applicant’s background. Before you decide to trust applicants with your business’ money, equipment and reputation, you should be sure that their history doesn’t indicate they’ll take advantage of that trust. Moreover, you make a substantial investment in a new worker’s training and compensation. As with any investment, you want to make sure you’re not wasting that investment.
Fact is, not everyone can be trusted. When polled by executive search firm Ward Howell International, 17 percent of 501 executives surveyed said their new hires had misrepresented job qualifications. What’s more, applicants with especially scary skeletons in their closets aren’t likely to tell you about them. Finally, state laws require you to perform background checks on applicants for certain positions, especially ones dealing with children or the elderly.
One of the biggest political developments last year was the passage of Tax Reform. In addition to changes to credits, deductions, and business tax rates, the tax reform law changes the way employers calculate wage withholding for their employees.
For this reason, the IRS has released an “early release draft” of the 2019 IRS Form W-4, which incorporates a number of changes resulting from tax reform as well as the new withholding requirements. The agency has also updated their website with information on how tax reform effects taxpayers and businesses.
A recent compromise between the business community and advocacy groups in the Bay State has resulted in “Grand Bargain” compromise legislation that the Governor signed into law at the end of June.
There are three major items that significantly affect Massachusetts employers: an increase in the state minimum wage to $15.00 per hour, a sales tax compromise, and the creation of a new state paid family and medical leave program.
The law provides a complete legal defense for employers that have conducted a good-faith and reasonable self-audit of its pay practices. The employer must complete the self-audit within the three year period prior to the initiation of a claim. To use this defense, the employer must demonstrate that, as a result of the self-audit, reasonable progress has been made toward eliminating any wage differentials based on gender for comparable work.
CheckWriters has built a pay equity evaluation tool into our platform which will help employers in Massachusetts conduct a self-audit in order to determine whether your organization is paying men and women the same.