Proposed Changes to Exempt Status

The DOL released proposed changes to the Exempt Status wage test recently. The current regulations state an employee must pass the Salary and Duties tests to be considered an exempt employee. The salary basis test today requires the base salary of an employee to be at least $23,600. The proposed changes for the salary basis test are to raise that amount to $50,440. That is a 113% increase that will more than likely be effective 1-1-2016.

Other proposed changes include increasing the HCE salary levels, determining if non-discretionary bonuses should be included in calculating the standard salary, and provisional changes to the Executive, Administrative and Professional workers classifications. The increase to the salary test also will include annual automatic increases based on the Consumer Price Index.

If you would like to read more about this, visit the proposed rule-making site for the DOL here.

The DOL is accepting comments through September 4, 2015, all employers are encouraged to share their opinions about these proposed changes here.

Important Date:

August 1, 2015  - Minnesota increased minimum wage to $9.00 for large employers and $7.25 for small employers.   

Need a guide to each state? Find it here 

Contact Us:

If you have questions regarding the information provided in this post, you can contact us at 800-880-4015, or email us at info@abg-mn.com.

ACA Reporting Requirements for Control Groups

Control Groups & 2016 Reporting Requirements We’ve heard so much recently about the ACA, ObamaCare, Heath Care Reform, or whatever you choose to call it. Today, this law states that if you are an employer that is fully insured and have under 50 FTE’s, you don’t need to file. If you are self-insured, you have to file regardless of your FTE count. But did you know that if you are a member of a control group, you could be required to file forms 1094 and 1095 in 2016? No? Let us break it down for you. In the eyes of the IRS, a control group is considered a single employer. So, if you are a member of a control group (classified below) and collectively have 50 or more FTE's, you will be required to file these forms without facing a penalty from the IRS. In most cases, if you are a control group, you are probably aware of it. But are you set up and prepared to file your forms 1094/1095? If you answered no, contact us today to learn what ABGNCS can offer. If you answered yes but still want our help, we are here for you to take the worry away.  CONTROL GROUP DEFINED A control group, as classified under §414(c) of the IRS Code, exists when any two or more entities are connected through ownership. There are three types of control groups: 1) Parent-subsidiary, 2) Brother-sister, and 3) a combination of the above. A parent-subsidiary controlled group exists when one or more chains of corporations are  connected through stock ownership with a common parent corporation. In addition, 80% of  the stock of each corporation is owned by one or more corporations of the group, and the  parent corporation must own 80% of at least one other corporation. A brother-sister controlled group is a group of two or more corporations, in which five or fewer common owners (a common owner must be an individual, a trust, or an estate) own, directly or indirectly, a controlling interest of each group and have “effective control” (generally more than 50% of stock). A combined group consists of three or more organizations that are organized as follows: Each organization is a member of either a parent-subsidiary or brother-sister group; At least one corporation is the common parent of a parent-subsidiary, and; Is also a member of a brother-sister group. CONTACT US To learn more about how ABGNCS can support you in your reporting requirements, contact us at 800-880-4015, or email us at info@abg-mn.com.

How to Ease the Burden of Multi-State Withholding.

Many employers have multi-state withholding and unemployment taxes. As workplace dynamics continue to develop and change, more employers will be faced with managing withholding for several states. Here are a few tips from our payroll team to help you navigate the addition of multiple states. 

There are several items to consider when thinking about whether you may need to add another state. The most common reasons include:

·         Base of operations

·         Employees working from home

·         Employees who are residents of a neighboring state

Adding States Can be a Challenge

Adding a new state requires research into the laws governing state withholding and unemployment, as well as additional taxes such as local, county, and school district. This can be difficult and time consuming. There is no one size fits all for adding new states. The laws can vary a great deal.

Employers must apply for tax accounts in order to be assigned an account number, deposit schedule, unemployment rate. These accounts should be set up prior to the first withholding and/or accrual of any taxes.

We're Here to Help

As part of our commitment to take the worry away, we are here to do the research and assist you by getting the right information. 

Employers should communicate with their payroll account manager to make sure that set up is accurate and timely for both the taxation and affected employees.  This communication allows your account manager to carefully review the changes to assure accuracy. It also reduces the chance for errors on quarterly reports.

Any Other Questions? 

I am also available to answer any questions that you may have regarding payroll taxation items. I won’t always have the answer, but I am always willing to find it for you. I appreciate the opportunity to serve you.

The Author: Kathy Krebsbach, FPC

Payroll Tax Compliance Specialist

abgncs.com/payroll

KKrebsbach@abg-mn.com

Disclaimer: This blog is of an informative nature and should not be taken as advice. Please work with the appropriate parties for those services.

5 Things to Consider When Switching Payroll Providers

Processing payroll for your company is one of the most important tasks your organization manages from week to week, and it needs to be completed on time and accurately! That is why there are many things to ponder when you're considering switching payroll providers. Here are five things to think about before choosing a new payroll provider:

1.   How does implementation work? This is going to be the first time that your company and the new provider work together. You're getting to know each other and how you both do business. You will want to make sure that there is a main point of contact to reach out to with questions that you have, who will be a able to provide a quick response. It is also important that the provider has a implementation process to make sure that the project stays on track. Make sure to inquire about the amount of work you are responsible for and how much the payroll provider is handling.

2.   Who will handle payroll processing? It is  important to have someone to reach out to when you need assistance, especially when dealing with a new software solution. In most cases it is nice to have a dedicated person to work with so that you're not training the person each time you call. Be sure to ask the question of who will be processing your payroll, and how will you be able to contact that person. Your time is valuable and you don’t want to get stuck on the phone trying to get through to a real person.

3.   What additional services do they offer? Make a list of "must haves". This could be an Employee Self Service Option, WC Pay As you Go Insurance, HRIS system, remote access to the software, or an HR resource, and the list could go on. Once you have a list, you can compare the options that each provider has and really drill into what is important to you. In addition to the list, are there some services that the provider is able to offer that would help make your life easier? Make sure you ask questions about features that help streamline your payroll process. Also think in terms of the big picture. Is it possible they could provide other benefits including health savings or retirement services? Would it make everyone's lives easier to bundle some of these services? 

4.   How does pricing work? Every payroll processing company has their own pricing structure and a different approach to including or excluding additional services. Make sure you understand what's included and which services will cost you additional money. A quick list of things to ask about is:

a.  How is the tax filing charged? What if there are amended    returns needed?

b.  Reporting -- what reports are included and what reports are additional? Can you write your own, if so is this an additional charge? How will you get your reports? 

c.  What is included in the payroll processing charge? 

d.  Is there a charge for Employee self service?

e.  Is there a charge for additional administrator access to their system?

5.   What do they offer for tax filing services? It is important to ensure that the provider you choose offers everything you need for tax filing, this includes federal, state and any local tax deposits as well as quarterly and annual forms. 

Let us take some of the weight off your shoulders. 

Keep in mind that it is also important that the payroll provider fits the needs of your business and is able to grow with you. If you are interested in payroll services, Alliance Benefit Group North Central States, Inc. would be happy to provide information and offer guidance during your evaluation. 

The Author: Alysha Frie, FPC

Payroll Sales Consultant
abgncs.com/payroll
afrie@abg-mn.com

Disclaimer: This blog is of an informative and educational nature, and should not be considered legal, financial or operational advice. Please contact the appropriate parties for those services. Thank you.

Identifying Full-Time Employees in Accordance With the Affordable Care Act

Effective January 1, 2015 the Affordable Care Act (ACA) imposes a penalty on large employers that do not offer minimum health insurance coverage to all full-time employees and their dependents. 

So, how do you determine who is a full-time employee? A full-time employee is an employee who was employed on average at least 30 hours of service per week. 

To determine an employee’s hours of service, an employer must count:

• Each hour for which the employee is paid, or entitled to payment, for the performance of duties for the employer; and
• Each hour for which an employee is paid, or entitled to payment, by the employer on account of a period of time during which no duties are performed due to vacation, holiday, illness, jury duty, military leave or leave of absence.

Alliance Benefit Group North Central States, Inc. offers reports that are designed to calculate the number of full-time equivalent employees to help employers be in compliance with the ACA. This calculation is based on employee status, pay frequency and hours pulled from payroll for a selected period of time.

The Affordable Care Act does not require businesses to provide health benefits to their workers, but larger employers face penalties if they don’t make affordable coverage available. Enforcement of these penalties will begin in 2015, so if you would like to start receiving these reports or would like to learn more about them, please contact your Payroll Administrator.

The Author: Joan Wichmann

Payroll Manager

abgncs.com/payroll

JWichmann@abg-mn.com

Disclaimer: This blog is of an informative and educational nature, and should not be considered legal, financial or operational advice. Please contact the appropriate parties for those services. Thank you.