October 17, 2016

Salary Data Information Required in EEO-1 Reports (article)

The Equal Employment Opportunity Commission (EEOC) requires certain employers and federal contractors to annually report information about its employee population.  The purpose of the Employer Information Report or EEO-1 report is to collect data on an employer or contractor’s work force relating to race, ethnicity and gender in 10 occupational categories to ensure compliance with Title VII of the Civil Rights Act of 1964. 


The EEOC recently announced changes to the EEO-1 report which will require employers employing 100 or more employees entities to include summary pay data on the form.  The employer is required to count and categorize employees by EEO-1 job category, and then by sex and ethnicity or race, as reflected on the most recent EEO-1.  Then, employees must be counted during a "workforce snapshot period" between October 1 and December 31 each year in accordance with one of the 12 pay bands.  Pay bands are based on an employee’s earnings reported in the Form W-2, box 1.  The number of employees is then tallied in each pay band by sex and ethnicity or race.  Employers would then report the total number of hours worked that year by the employees in each pay band.


While federal contractors and subcontractors employing 50 - 99 employees are not required to report summary pay data, these entities must continue to report the number of employees by job category, and then by sex and ethnicity or race. Federal contractors and subcontractors employing fewer than 50 employees do not file EEO-1 reports.


More information about the revised EEO-1 report, including the new proposed form, a Fact Sheet for Small Business, and a series of questions and answers are available on EEOC’s website.


The information contained in this article is provided as general guidance and may be affected by changes in law or regulation. This article is not intended to replace or substitute for accounting or other professional advice. Please consult a CBIZ professional. This information is provided as-is with no warranties of any kind. CBIZ shall not be liable for any damages whatsoever in connection with its use and assumes no obligation to inform the reader of any changes in laws or other factors that could affect the information contained herein.   

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