HCM Insights January 2022

HCM Insights January 2022

Upcoming Holiday

President's Day

MLKThe upcoming President’s Day Holiday falls on Monday, February 21, 2022.  While CBIZ HCM offices will be open this day, this is a Federal Reserve Bank Holiday, and payroll draft dates may need to be adjusted. 

Important Payroll Deadlines

Check Date

Check Processing Date

Tuesday, February 22, 2022

Thursday, February 17, 2022   

Wednesday, February 23, 2022   

Friday, February 18, 2022

 

As always, your CBIZ HCM team is here to help should you have questions. We appreciate your continued partnership, and we wish you and your business the best of health. Please contact your payroll services team if you have any questions.


Click here to access the CBIZ 2022 Holiday Schedule

 

Payroll Prep for Inclement Weather

2022 Holidays

The only thing predictable about Mother Nature is that she will strike when we least expect it. Take, for example, the unseasonable tornadoes that hit several states in December, displacing families, leveling towns, and impacting businesses, only weeks before the holidays. Tornados are not the type of weather one expects in December, but it just goes to show us that we should prepare for the unpredictable. With the official beginning of the winter season, we typically dig out our winter coat and make sure our ice scraper is on hand. But, now also may be the time to take a few steps to keep your payroll processes running smoothly during the winter season.

Process Payroll Early

With unpredictable winter weather, there is an increased risk of weather-related shipping delays. We encourage you to consider processing payroll one or two days earlier than usual.

Go Paperless 

If your organization would benefit from going paperless and you are interested in using direct deposit or pay cards, please do not hesitate to reach out to your CBIZ service team to discuss this in more detail.

Communicate

Remind your employees about policies related to inclement weather, such as safety, attendance, and pay. You should have an established communication method to inform your employees of potential office closures or processing delays.


 

IRS Increases Mileage Rates

HCM_automobile

On December 27, 2021, the Internal Revenue Service issued the 2022 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes. Rates increased for miles driven for business use and for medical or moving purposes but remained the same for charitable organizations.



Beginning on January 1, 2022, the standard mileage rates for the use of a car (also vans, pickups, or panel trucks) will be as follows:

  • 58.5 cents per mile driven for business use (up 2.5 cents from the rate for 2021)
  • 18 cents per mile driven for medical or moving purposes for qualified active-duty members of the Armed Forces, (up 2 cents from the rate for 2021)
  • 14 cents per mile driven in service of charitable organizations, the rate is set by statute and remains unchanged from 2021

According to an IRS press release, “The standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile.”


For more details visit IRS.gov and view IRS Notice 22-03.

 

HR Technology Trends  

HCM_female_office_computer

Human Resources (HR) professionals are finding new ways to automate tasks and thereby freeing up more time in their day. Many companies start using automation to identify top candidates and then use other advanced technologies for onboarding, payroll, time and attendance, and much more. Here is a quick look at some HR Technology Trends.  



Onboarding  

Whether new hires complete their onboarding paperwork remotely or onsite, technology can improve accuracy and speed up the process. With paperless onboarding, companies can send the offer letter electronically, along with any new hire paperwork. To take it a step further, information obtained during onboarding can easily flow into payroll systems allowing storage in a secure digital personnel file.  

Employee Self-service Portals  

HR departments conduct many complex and sensitive administrative tasks—and it’s easy for errors to happen with manual data entry.  One way to increase accuracy is to allow employees access to update their information. More and more employers have empowered their employees by providing quick and secure access to pay and other important information. Going beyond the desktop portal and thanks to the advancement of mobile applications, staff members can update their information on-the-go using a mobile app. Employers and HR professionals can also leverage self-service tools to communicate time-sensitive information like employee benefits changes and company holidays.  

Learning Management Systems  

Educating employees effectively and efficiently has always been a challenge. One might suggest that training is more difficult in the pandemic-driven remote work environment. Plus, professionals are looking for new ways to deliver learning for the new age of millennial learners. Learning management systems (LMS) have adapted to these challenges, and companies can reap the benefits. Many LMS platforms navigate new employees through the onboarding process. Standardized training can educate employees about the organization, informing them of policies and expectations. Role-based personalized courses can be assigned, making it easier for the new hire to get up to speed. Technology can also play a role in employee career paths by providing personalized, self-paced courses while managing employee development plans.  

Some organizations may experience HR cost savings when they embrace technology for the workplace, along with successful business results. Consider how these trends might motivate your organization and employees to adopt new technology that is intuitive and accessible. Technology doesn’t remove the human aspect from HR, but it can certainly enhance it. When HR departments use technology to create efficiencies, they can shift their focus from administrative tasks to actual employees. 


Download the CBIZ Onboarding Scorecard to see how your onboarding process measures up.

 

2022 State Unemployment Tax Rates 

Many state unemployment tax agencies have begun mailing 2022 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 2021

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 2021.

SUI Rates Available - January 2022

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

 

Email Your 2022 SUI Rates to CBIZPayrollTax@cbiz.com

 

Minimum Wage Updates

Minimum WageOn New Year's Day, the minimum wage increased in Arizona,  California, Colorado, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, New Jersey, New Mexico, Ohio, Rhode Island, South Dakota, Vermont, Virginia, and Washington. Minimum wage changes had already taken place in Connecticut, Florida, and New York.  

 

Minimum Wage Change Effective August 1, 2021

Connecticut

  • Hourly minimum wage $13.00 (up from $12.00)
  • Tipped worker hourly minimum for wait staff $6.38 and $8.23 for bartenders

Minimum Wage Change Effective September 30, 2021

Florida

  • Hourly minimum wage $10.00 (up from $8.65)
  • Tipped worker hourly minimum: $6.98 based on a tip credit of $3.02

Minimum Wage Change Effective December 31, 2021

New York

  • Hourly minimum wage New York City Employers and New York City fast-food workers: $15.00 (unchanged)
  • Hourly minimum wage Nassau, Suffolk, and Westchester counties: $15.00 (up from $14.00)
  • Hourly minimum wage for fast-food workers in the remainder of the state: $13.20 (up from $12.50)

Minimum Wage Changes Effective January 1, 2022

Arizona

  • Hourly minimum wage: $12.80 (up from $12.15)
  • Tipped Employee hourly minimum: $9.80 (up from $9.15) based on a tip credit of $3.00

California

  • Employers with at least 26 employees hourly minimum wage: $15.00 (up from $14.00)
  • Employers with fewer than 26 employees hourly minimum age: $14.00 (up from $13.00)

 Colorado

  • Hourly minimum wage: $12.56 (up from $12.32)
  • Tipped Employee hourly minimum: $9.54 (up from $9.30) based on a tip credit of $3.02. 

Delaware

  • Hourly minimum wage: $10.50 (up from $9.25)
  • Tipped Employee hourly minimum: $2.23

Illinois

  • Hourly minimum wage: $12.00 (up from $11.00) 
  • Tipped Employee hourly minimum: $7.20 (up from $6.60) 

Maine

  • Hourly minimum wage: $12.75 (up from $12.15) 
  • Tipped Employee hourly minimum: $6.38 (up from $6.08) based on a tip credit of $6.38 (up from $6.08).

Maryland

  • Employers with at least 15 employees hourly minimum wage: $12.50 (up from $11.75)
  • Employers with no more than 14 employees hourly minimum wage: $12.20 (up from $11.60)
  • Tipped Employee hourly minimum $3.63 (no change)

Massachusetts

  • Hourly minimum wage: $14.25 (up from $13.50) 
  • Tipped Employee hourly minimum: $6.15 (up from $5.55) based on a tip credit of $7.95.

Michigan

  • Hourly minimum wage: $9.87 (up from $9.65) 
  • Tipped Employee hourly minimum: $3.75 (up from $3.67) based on a tip credit of $6.12 (up from $5.98) 

Minnesota

  • Large employers hourly minimum wage Indexed for Inflation: $10.33 (up from $10.08)
  • Small employers hourly minimum wage Indexed for Inflation: $8.42 (up from $8.21)

Missouri

  • Hourly minimum wage: $11.15 (up from $10.30)
  • Tipped Employee hourly minimum: $5.575 (up from $5.15) Note: Employers of tipped employees must pay tipped employees at least 50% of the minimum wage, plus any amount necessary to bring the employee's total compensation to a minimum of $11.15

Montana

  • Hourly minimum wage Indexed for Inflation: $9.20 (up from $8.75)

New Jersey

  • General hourly minimum wage: $13.00 (up from $12.00)
  • Seasonal employers and small employers with no more than five employees hourly minimum wage: $11.90 (up from $11.10)
  • Agricultural employers hourly minimum wage: $10.90 (up from 10.30)
  • General Tipped Employee hourly minimum: $5.13 based on a tip credit of $7.87 

New Mexico

  • Hourly minimum wage: $11.50 (up from $10.50)
  • Tipped Employee hourly minimum: $2.80 (up from $2.55) 

Ohio

  • Hourly minimum wage: $9.30  (up from $8.80) Note: Applies to businesses with annual gross receipts of at least $342,000
  • Tipped Employee hourly minimum: $4.65 (up from $4.40)  Note: Applies to businesses with annual gross receipts of at least $342,000

Rhode Island

  • Hourly minimum wage $12.25 (up from $11.50)
  • Tipped Employee hourly minimum: $3.89 (no change) 

South Dakota

  • Hourly minimum wage: $9.95 (up from $9.45)
  • Tipped Employee hourly minimum: $4.975 (up from $4.725) 

Vermont

  • Hourly minimum wage: $12.55 (up from $11.75)
  • Tipped Employee hourly minimum: $6.28 (up from $5.88) 

Virginia

  • Hourly minimum wage: $11.00 (up from $9.50)
  • Tipped Employee hourly minimum: $2.13 (no change) 

Washington

  • Hourly minimum wage: $14.49 (up from $13.69)

 

Visit The Department of Labor website to view a state resource map with minimum wage laws.

 

 

 

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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.