HCM Insights December 2023

Upcoming Holidays

In celebration of the holidays, CBIZ HCM offices will be closed on Monday, December 25, and Tuesday, December 26, 2023, as well as on Monday, January 1, 2024. To guarantee the timely posting of employee direct deposits, please be aware that you should process payroll at least two CBIZ business days (by 2:00 p.m. EST) prior to your check date to allow the appropriate time for delivery of your checks and reports.

Important Payroll Deadlines

 Holiday & Year-End Shipping Reminder

It's the holiday season, which is the busiest time of year for our payroll couriers. Given the potential for inclement weather and holiday disruptions, we advise you to process payroll a day or two in advance to ensure timely delivery. Please note that the bank draft dates will not be affected if you process payroll early.

Tips to Prevent Payroll Fraud

Protecting your employees' payroll funds is crucial, and it's essential to be cautious against scammers who use various tactics to reroute the funds to themselves. One such tactic is the prepaid debit card ploy. However, with a few simple steps, you can stay ahead of the hackers and safeguard your business against such fraudulent activities.

Employers Affected by FUTA Credit Reduction 

Two states and one U.S. Territory have been assessed a Federal Unemployment Tax Act (FUTA) credit reduction for employers in 2023. This means that the usual credit against the full FUTA tax rate will be reduced, resulting in higher tax rates for employers who pay wages subject to unemployment insurance (UI).

Find out if your business will be affected by the FUTA credit reduction.

NACHA Operating Rules & Guidelines

The National Automated Clearing House Association (NACHA) manages the development, administration, and governance of the ACH Network in the United States. The following information is provided to update CBIZ clients about several recent and upcoming changes made by NACHA to its Operating Rules and Guidelines. The rule changes noted below are those considered to have a potential impact on CBIZ clients based on the nature of the transactions CBIZ initiates today on their behalf. Rule changes that were outside the scope of the services CBIZ provides to clients have not been included in the summary.

Implemented Revisions to the NACHA Operating Rules & Guidelines

Data Security Requirements – became enforceable June 30, 2023 – NACHA issued rules to supplement the previous ACH Security Framework data protection requirements to explicitly require large organizations to render deposit account information unreadable when stored at-rest electronically, which were effective June 30, 2021, and June 30, 2022 (depending on originator volumes). Enforceability has been expanded in 2023.

Micro-entries Phase 2 – effective March 17, 2023 – Expanded prior guidelines to include reasonable fraud detection requirements. CBIZ HCM does not currently directly utilize micro-entries.

Upcoming Revisions to the NACHA Operating Rules & Guidelines

NACHA is currently reviewing responses to ‘requests for comment’ around various risk management topics. The earliest possible effective dates proposed thus far are March 2024 for changes in relation to reversals and requests for returns and September 2024 related to timeliness of response to unauthorized debits. However, NACHA has approved no official changes at the date of this publication. CBIZ HCM has provided feedback on various proposals up for consideration and will continue to monitor and react to published guidance.

New Minimum Wage Rate for 2024

Navigating payroll can be a daunting task, especially when it comes to following employment eligibility, wage, and tax regulations. These laws can be complex and differ from state to state, with various requirements that can easily trip you up. Likewise, minimum wage adjustments happen quite frequently. Many states have already announced their intentions to raise the minimum wage, posing even more obstacles for businesses. To keep you in the loop, we've compiled a comprehensive list of states planning to increase their minimum wage in 2024.

2024 State Unemployment Tax Rates 

Many state unemployment tax agencies have begun mailing 2024 state unemployment insurance (SUI) tax rates as well as filing frequency changes to employers. Once you receive this information, please forward it to the CBIZ Payroll Tax Team. 

SUI Rates Available - November - December 2023

Alaska, Arkansas, California, Colorado, Delaware, District of Columbia, Florida, Idaho, Illinois, Iowa, Indiana, Kansas, Kentucky, Louisiana, Maine, Minnesota, Missouri, Montana, Nebraska, Nevada, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Dakota, Texas, Utah, Virginia, West Virginia, and Wisconsin

Please note that Georgia employers will need to obtain their rates online beginning mid-November 2023.

SUI Rates Available - January 2024

Arizona, Connecticut, Hawaii, Maryland, Massachusetts, Michigan, Mississippi, New York, Rhode Island, South Carolina, Washington, and Puerto Rico

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The information contained in this HCM Insights is not intended to be legal, accounting, or other professional advice, nor are these comments directed to specific situations. This information is provided as general guidance and may be affected by changes in law or regulation. This information is not intended to replace or substitute for accounting or other professional advice. You must consult your own attorney or tax advisor for assistance in specific situations. 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.