The New 2018 IRS Payroll Tax Withholding Tables

The New 2018 IRS Payroll Tax Withholding Tables

The Internal Revenue Service has released Notice 1036, which updates the income-tax withholding tables for 2018 reflecting changes made by the tax reform legislation. This is the first in a series of steps that IRS will take to help improve the accuracy of withholding following major changes made by the new tax law. The updated withholding information shows the new rates for employers to use during 2018. Employers should begin using the 2018 withholding tables as soon as possible, but not later than Feb. 15, 2018. Many employees will begin to see increases in their paychecks in February to reflect the new law. The time it will take for employees to see the changes in their paychecks will vary depending on how quickly the new tables are implemented by their employers and how often they are paid — generally weekly, biweekly or semi-monthly. The new withholding tables are designed to work with the Forms W-4 that workers have already filed with their employers to claim withholding allowances. “The IRS appreciates the help from the payroll community working with us on these important changes,” said Acting IRS Commissioner David Kautter. “Payroll withholding can be complicated, and the needs of taxpayers vary based on their personal financial situation. In the weeks ahead, the IRS will be providing more information to help people understand and review these changes.” The new law makes a number of changes for 2018 that affect individual taxpayers. The new tables reflect the increase in the standard deduction, repeal of personal exemptions and changes in tax rates and brackets. For people with simpler tax situations, the new tables...
CA Passes Salary History Ban

CA Passes Salary History Ban

AB 168 passed into law on October 12, 2017, amending the California Fair Pay Law by prohibiting all California employers from inquiring into an applicant’s salary history starting January 1, 2018. Specifically, under the new law, all California employers are required to follow these rules during the hiring process: Employers cannot use (rely on) the salary history information of an applicant when determining whether to offer employment to an applicant or Employers cannot use (rely on) the salary history information of an applicant when determining what salary to offer an applicant. Employers cannot seek salary history information, including compensation and benefits, about an applicant. Upon reasonable request, employers must provide the pay scale for a position to an applicant applying for employment. It is important to note that the law does not prohibit an applicant from voluntarily disclosing salary history information to a prospective employer. If an applicant voluntarily and, without prompting, discloses salary history information to a prospective employer, the law does not prohibit that employer from considering the voluntarily disclosed salary history information. Next step for employers California employers should review this new law and provide training to those people involved in the hiring process about the new requirements, as these new requirements impact the interview process.  In addition, all California employers should review their job applications and verify that any inquiries regarding prior salary history or wage rates are removed from the application before January 1st. This information was written by Laurian Rutterbush and shared on https://blog.eplaceinc.com....
CA Minimum Wage Increase January 1, 2018

CA Minimum Wage Increase January 1, 2018

January 1, 2018, will bring about another minimum wage increase in California. This change is due to Law SB3 which increases the California minimum wage to $15.00 per hour for large employers by the year 2022. Firms with 25 or fewer employees must meet this minimum pay rate by 2023. Once this rate of $15.00 per hour is reached, rates will then increase up to 3.5 percent (rounded to the nearest 10 cents) in relation to inflation. Below is the chart that shows the minimum wage schedule through 2023. If you have employees exempt from overtime, you’ll have to make sure their wages are adjusted, if necessary, due to this change. California labor law requires that anyone not subject to overtime must earn at least twice the minimum wage. Review your pay scale for any employees currently classified as non-exempt. This will help you keep track of whether or not an employee is to receive overtime pay. It’s also important to make sure you have posted the new labor law poster which reflects this new rate. If an employee’s rate of pay will increase on January 1, they must receive notice from the employer by January 7. However, this notice is not required if the change is reflected on a timely itemized wage statement given no later than January 7. Remember that if you are in the City of Los Angeles or unincorporated cities under county jurisdiction, there is a different pay scale which must be followed as it goes into effect at a faster rate than the state minimum wage. Effective Date Employers With 26 or more Employees Employers...
Federal and CA Medical Leave Laws

Federal and CA Medical Leave Laws

Are you aware of the local and national laws regarding medical leave for your employees? An article from Swipeclock.com, written by Annemaria Duran, provides us with knowledge on businesses can stay in compliance with different levels of employment laws. In the United States three main levels of employment law can apply to employers simultaneously. Locally, businesses may have to comply with city or county employment law. In addition every state has labor laws and the United States Department of Labor oversees employee to employer relationships. In the case of Family or Medical leave, this sometimes means that employers have to be aware of multiple laws. While often these laws appear to duplicate requirements, in reality, these laws often create variations of requirements for compliance. Owners, managers, and HR departments are often not aware of the variations and inadvertently break these leave laws. Here is a little information on both the federal and California leave requirements: United States Family Medical Leave Act The Family Medical Leave Act (FMLA) was put into law in 1993. The law oversees companies across the United States. FMLA applies to employers who have at least 50 employees within a 75 mile radius. Their employees who have worked at least 1 year and 1,250 hours in the last year are eligible for FMLA leave. FMLA provides up to 12 weeks of leave for family or medical purposes. In specific circumstances, employees can take up to 26 weeks of protected leave. Employees are able to take leave to bond with new children, care for ill family members, or take care of their own serious illness. Family members...
How to Account for Loss when Disaster Strikes: Part 2

How to Account for Loss when Disaster Strikes: Part 2

In today’s post we will be discussing how your company’s payroll should be handled if you should find yourself in the midst of disaster. To refresh your memory on our discussion last week on accounting for loss and property damage, click here to visit last week’s blog post: http://bit.ly/2g7DZxQ. Calculating Payroll If your business closes or brings in additional employees during a disaster, carefully review federal law, your local laws and your employment agreements to determine whether you’re legally obligated to pay your employees. Who Must Be Paid Under the Fair Labor Standards Act (FLSA), you may be required to pay exempt, salaried employees during a temporary closing. In that circumstance, you may require your employees to use their paid leave time but may not refuse to pay them if they have no available leave time. Under federal law, nonexempt employees are generally only paid according to the time they worked and are therefore not legally entitled to pay during a closing. However, your local laws or your employment agreement may require you to pay employees who were originally scheduled to work during your closing. If you require employees to remain on-site during a disaster, you must pay them for all time during which they are not permitted to leave. This includes overtime pay if it otherwise applies. Late Payments If a disaster delays processing paychecks, you should make issuing them one of your first priorities. Willfully failing to pay your employees in a timely manner is a violation of the FLSA and may also violate state laws. While you might be excused from penalties during a power outage or...
LA Minimum Wage Increase July 1

LA Minimum Wage Increase July 1

If you are an employer in the city of Los Angeles, or unincorporated areas of LA County, are you aware of the increasing minimum wage? Due to legislation passed that took effect July 1, 2016 raising earnings over 6 years, the minimum wage is set to increase July 1, 2017. Anyone who works at least two hours in a one-week period within unincorporated areas of Los Angeles County is entitled to the minimum wage for the hours worked. The employee’s employment status, where they live, or where your business is headquartered does not determine the minimum wage that applies. To find out if work done is in an unincorporated area of L.A. County, enter the address at the County Registrar-Recorder’s website or call DCBA. These rates are the same for the City of LA and are applicable to non-profit organizations as well. For specifics on who is exempt and disclosure requirements, visit www.dcba.lacounty.gov/wageenforcement or contact (800)593-8222. Please note, failing to meet all requirements surrounding the implementation of the wage increase can result in fines. We have listed them below for your convenience, with a brief explanation on how they can be applied. Violation Fine Amount                               Failure to post notice of the Los Angeles Minimum Wage rate and Sick Time Benefits- Municipal Code Section 188.03.A. Up to $500 Failure to allow access to payroll records – Municipal Code Section 188.03.B. Up to $500 Failure to maintain payroll records or to retain payroll records for four years – Municipal Code Section 188.03.B. Up to $500 Failure to allow...

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