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  • Oct 08 / 2017
What's New

DACA Guidance to Employers in California, New York City

The California Labor and Workforce Development Agency (LWDA) is informing employers that President Trump’s decision to end the federal Deferred Action for Childhood Arrivals (DACA) program does not require employers to immediately re-verify work authorization documents [LWDA, Press Release, 9-6-17]. In addition, New York City has provided information for workers affected by DACA that indirectly provides some guidance for employers.

Work Authorization Does Not Need to be Re-Verified in California
LWDA Secretary, David M. Lanier said, “With the announcement to phase out the DACA program, the California LWDA and its partner departments affirm the action does not require an immediate re-verification of work authorization documents for DACA recipients. Any action or attempt by employers to re-investigate or re-verify work authorization documents in order to retaliate against any immigrant worker is unlawful in California.” It is unclear what will happen when an employee’s work authorization expires.

New York City Provides Information on Employment Verification
The New York City Mayor’s Office of Immigrant Affairs has posted information for “dreamers” (individuals working in the country under the DACA program) affected by the DACA decision that may also be helpful to employers. According to the agency, employment authorization cards are valid until expiration, unless terminated or revoked individually. While social security numbers (SSNs) do not expire, if a worker no longer has work authorization, the SSN will no longer be valid for an E-Verify employment authorization check.

Courtesy of APA

  • Oct 08 / 2017
What's New

OCSE Revises Standard Child Support Withholding Order

The federal Office of Child Support Enforcement has released a revised version of the standard child support withholding order, Income Withholding for Support order/notice. Employers and other income withholders are directed to continue to honor previous forms for new income withholdings until August 31, 2018. The new version of the form has an “OMB Expiration Date” of August 31, 2020.

  • Oct 08 / 2017
What's New

USCIS Releases Revised Form I-9, Instructions

U.S. Citizenship and Immigration Services (USCIS) released a revised Form I-9, Employment Eligibility Verification, and updated the Instructions for Form I-9. Employers must begin using the new version (dated July 17, 2017) by September 18, 2017. Until then, either the revised version or the version dated November 14, 2016, may be used. The new form and instructions are available on USCIS’s Form I-9 website.

  • Sep 17 / 2017
What's New

APA Helps Stop California Student Loan Garnishment Bill

By Alice P. Jacobsohn, Esq.

In a win for APA, a California bill (S.B. 16) that would have tied student loan garnishment calculations to state and local minimum wage rates was voted down in a state Assembly vote of 38 to 24 in June, although the bill sponsor was given leave to try again later in this session to get the bill passed. APA’s lobbying effort began last February when it informed the Legislature that the proposed calculation method was inherently unfair to California residents.

In a letter to lawmakers, APA’s Government Relations Task Force (GRTF) Subcommittee on Child Support and Other Garnishments stated, “APA supports fairness in the wage garnishment process that emphasizes a reasonable approach for employees without unduly increasing the administrative burden on employers. As payroll professionals, we appreciate provisions that help the employees we pay, but we also ask lawmakers to recognize that, in the case of a garnishment, employers are third parties to a legal dispute.”

Read more:   http://www.americanpayroll.org/paytechonline-wider/government-corner/

  • Sep 10 / 2017
What's New

California, Virgin Islands Apply for Benefit Cost Rate Add-on Waiver

California and the Virgin Islands have applied to the U.S. Department of Labor (DOL) for a Benefit Cost Rate (BCR; sometimes referred to as Benefit Cost Ratio) add-on waiver by the, deadline. California and the Virgin Islands are on the DOL’s updated list of potential Federal Unemployment Tax Act (FUTA) credit reduction states for 2017 [DOL, Potential 2017 Federal Unemployment Tax Act (FUTA) Credit Reductions, rev. July 2017]. States had until July 1, 2017, to apply for a waiver.

What Is BCR Add-on?
The BCR add-on is in addition to the 0.3% per year FUTA credit reduction (see The Payroll Source®, p. 7-8). The additional tax varies by state and is based on a complex calculation. The calculation compares the average benefits that have been paid out by the state, the taxable wages, and the average tax rate on taxable wages in the state.

Outstanding Loans
California and the Virgin Islands continue to have outstanding Federal Unemployment Account (FUA) loans, and, therefore, will likely be subject to a 2017 FUTA credit reduction. The credit reduction was also predicted in the spring, with the potential total credit reduction remaining 2.1% for California and 3.2% for the Virgin Islands unless it receives the BCR waiver.

Note that California may not have been subject to the BCR add-on for 2017. The calculation is based on the difference between a state’s average total Unemployment Insurance (UI) benefits paid over the past five years and the state’s average UI tax rate in the previous year. The calculation, using estimated wages, came out to zero for California because its average tax rate was greater than its average UI benefits for the past five years. However, the state applied for the waiver, “just in case.”

Deadline For Credit Reduction
The final determination of FUTA credit reductions will not be made until the November 10, 2017, repayment deadline.

Pay News Now will continue to monitor any updates to the FUTA credit reductions.

Courtesy of American Payroll Assoc.

 

  • Sep 04 / 2017
What's New

Court Invalidates DOL’s Overtime Rule

Following up on its preliminary order issued last November, a Texas federal district court has ruled that the DOL’s rule, which would have increased the minimum salary threshold for exempt “white collar” employees from $455 to $913 per week, is invalid. In its final order, the court said that the higher salary level impermissibly undercut the effectiveness of the duties test. The court also found that the mechanism that would have adjusted the salary level for inflation was invalid. The current salary threshold and duties test remain in effect.

  • Apr 02 / 2017
What's New

IRS Releases 2017 Form 941, Schedule B, Schedule R, and Instructions

The 2017 Form 941, Employer’s Quarterly Federal Tax Return, Schedule B, Schedule R, and their instructions have been released by the IRS. Form 941 has been updated to allow eligible employers to claim the qualified small business payroll tax credit for increasing research activities.

 

 

 

 

  • Apr 02 / 2017
What's New

ACA Replacement Legislation Withdrawn

On March 24, the American Health Care Act (AHCA), which would have repealed and replaced many provisions of the Affordable Care Act (ACA), was removed from consideration by the Republican leadership in the House of Representatives. The proposed legislation contained several payroll-related provisions. It is unclear whether Congress will attempt further changes to the ACA. Employers should continue to comply with the requirements of the ACA.

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