September Compliance Updates: EEO-1 and Year-End

Good News for EEO-1 Reporting

Good news all around for EEO-1 reporting requirements. Not only is the new deadline for reporting March 31, 2018, the EEOC also announced last month an immediate stay of the previously announced EEO-1 pay reporting requirements. The new requirements would have added new pay data reporting for certain employers with 100 or more employees.

To prepare for your March reporting, check the following:

  • Job Titles: Make sure they are assigned to the appropriate EEO-1 job groups within your HR system. This will simplify your reporting and prepare you better in the event the pay data requirement goes into effect
  • Pay Practices: Ensure they are applied fairly without regard to protected status or gender.

More information can be found on the EEOC website.

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New I-9 Form Now In Use

As of September 18, the new I-9 Form is now in use. It has an expiration date of August 31, 2019, and only applies to new hires. Changes to the form include:

  • Subtle changes to the form’s instructions
  • Slight wording changes
  • Renumbering of all List C documents except the Social Security Card
  • Streamlined certification process for certain foreign nationals

Employers can reference the new 15-page set of instructions for the form, as well as an updated Handbook for Employers on the USCIS website to ensure compliance.

New FLSA Overtime Rule Dismissed

A Texas judge has officially quashed the proposed FLSA overtime rule changes originally scheduled to roll out in December of 2016. Furthermore, the Department of Labor (DOL) has also dropped its appeal and is reevaluating options for a proposed new rule with feedback from its request for information (RFI) issued in July.

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2018 State UI Wage Base Updates

Some states have begun to announce their 2018 State UI wage bases:

  • California - $7,000 (unchanged)
  • Colorado - $12,600
  • Louisiana - $7,700 (unchanged)
  • Montana - $32,000
  • South Dakota - $15,000 (unchanged)
  • Vermont - $17,600
  • Wisconsin - $14,000 (unchanged)

For more information and updates, visit our SUTA Wage Bases page.

2018 Minimum Wage Rate Updates

The following states will have minimum wage rate increases in 2018:

  • Florida - $8.25
  • Montana - $8.30
  • New Jersey - $8.60
  • Ohio - $8.30
  • South Dakota - $8.85

Federal contractors will also see an increase in minimum wage to $10.35 for 2018. For more information and updates, visit our Minimum Wage Rates page.

Truncated Social Security Numbers on W-2s

The IRS has proposed a plan that would allow employers to shorten social security numbers on Forms W-2s in an effort to prevent identity theft. The proposal would allow for truncated taxpayer identification numbers (TTINS) to be created where the first five numbers of the Social Security number would be replaced with asterisks. This TTIN would be printed on employee copies of Forms W-2, not on W-2s that are submitted to the Social Security Administration.

This latest proposal is part of an effort launched by the IRS to combat the increasing cases of identity theft.

Paid Sick Leave in Rhode Island

A bill to provide paid sick and safe leave time is expected to be signed into law by Rhode Island’s governor. The Healthy and Safe Families and Workplaces Act would become effective July 1, 2018. The bill would allow workers to take up to three earned sick days in 2018, four days in 2019, and five days in 2020.

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Final Paychecks Before Year-End Processing

As year-end processing draws closer, don’t forget to handle final paychecks that have not cleared former employees’ banks. To resolve unclaimed paychecks, take the following steps:

  • Attempt to make contact with a former by sending a letter with a return receipt.
  • Follow your company’s policy for dealing with lost or unclaimed checks. If there isn’t a policy in place, make sure to establish one to prevent duplicate payments to employees.
  • If the former employee cannot be located, check with your state’s unclaimed property website for guidelines on how to handle unclaimed property by state.

Remember to always send Forms W-2 to an employee’s last known address. If a W-2 is returned by the post office, file and store it for four years. Make sure to check federal, state, or local rules for retaining documents to ensure compliance.

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