HCM Insights June 2021

HCM Insights June 2021

Upcoming Holiday

Independence Day

Memorial DayOn Independence Day we pause and take time to celebrate the founding of this country and the sacrifices that were made so that we may enjoy freedom. In observance of Independence Day, CBIZ HCM offices will be closed on Monday, July 5, 2021,to allow our employees time off for the holiday. Since Monday, July 5, 2021, is a Federal Reserve Bank Holiday, payroll bank draft dates may need to be adjusted.


Important Payroll Deadlines

Check Date

Check Processing Date

Tuesday, July 6, 2021

Thursday, July 1, 2021

Wednesday, July 7, 2021        

Friday, July 2, 2021

 

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 2021 Holiday Schedule

 

Minimum Wage Updates


As of May 1, 2021, minimum wage changes took place in Virginia. Several other states are scheduled to increase the minimum wage in the coming months. The District of Columbia, Nevada, and Oregon are set to increase the minimum wage in July. Then in August and September, an increase in the minimum wage is expected in Connecticut and Florida.


Changes Effective May 1, 2021

Virginia
  • Hourly minimum wage: $9.50 (up from $7.25)
  • Tipped employees hourly maximum tip credit: $7.37 (up from $5.12), based on a minimum cash wage of $5.13.

Changes Effective July 1, 2021

District of Columbia
  • Hourly minimum wage: $15.20 (up from $15.00) 
  • Tipped employee hourly minimum: $5.05 (up from $5.00) based on a tip credit of $10.15
Nevada
Hourly minimum wage:
  • $9.75 if qualifying health benefits are not offered (up from $9.00)  
  • $8.75 if qualifying health benefits are offered (up from $8.00)
Oregon
  • Standard hourly minimum wage: $12.75 (up from $12.00)
  • Portland metro hourly minimum wage: $14.00 (up from $13.25)
  • Nonurban counties hourly minimum wage: $12.00 (up from $11.50)

Changes Effective August 1, 2021

Connecticut
  • Hourly minimum wage: $13.00 (up from $12.00)  
  • Wait staff tipped employee tip credit: $6.62 (up from $5.62) based on a direct or cash wage of $6.38
  • Bartenders tip credit: $4.77 (up from $3.77) based on a direct or cash wage of $8.23

Changes Effective September 30, 2021

Florida
  • Hourly minimum wage: $10.00 (up from $8.65) 
  • Tipped employee hourly minimum: $6.98 (up from $5.63) based on a tip credit of $3.02.

 

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

 

HR Solutions For Your Organization

HR_Solutions

Over the past year, the number of changes to labor laws at the federal and state levels has been daunting. Updates were made to minimum wage rates, paid sick leave, and discrimination laws, to name a few. No matter the size of your business, keeping up with these changes can be challenging, but there are affordable resources available to help.


CBIZ HR Solutions offers businesses a comprehensive online portal where they can go any time to find reliable answers to HR questions. Along with expert advice and guidance in employment laws, this online resource provides organizations with tools that help strengthen their HR management strategy and lessen the HR burdens that can put businesses at risk.

Other Features

    • Live and Online Assistance with Certified HR Advisors
    • Thousands of Templates, Tools, and Checklists
    • Employee Handbook Builder
    • Job Description Builder
    • HR Compliance Library
    • COVID-19 Resources

 

 

Hurricane Preparedness

Employee Retention Tax CreditJune 1 marked the beginning of the hurricane season. Those living in coastal areas may take the start of hurricane season more seriously than those living inland. But as we all have seen in recent years, it is not just coastal areas that need to prepare for a hurricane or other natural disasters. Natural disasters know no boundaries or seasons, they can strike at any time, and that's why businesses need to remain prepared for these types of events.

 

Now is as good a time as any to dust off your disaster plan and make preparations. Statistics show that fifty-two percent of businesses have experienced at least one disruptive event in the last five years, and sixty-two percent do not have an emergency plan in place. To help you get started, check out a quick list of things you can do to prepare your business for hurricane season.

When Weather Events Strike We are Here to Help

We_are_here If your business is impacted by weather, contact us to discuss how we can help. There is always a chance that a storm could cause shipping delays. We are ready to assist you if you decide to process a payroll a few days early. If your area is impacted by a storm and you have questions about the status of a recent payroll, please do not hesitate to reach out. We are ready and available to help you prepare for changing weather conditions. As always, your CBIZ HCM Team is here if you have any questions.

 

 

Employee Engagement

Rates

As many companies are currently looking for talented individuals to add to their team, all organizations face the ongoing challenge of employee retention. Some companies are working to maneuver this delicate balance in the midst of a tight labor market for many industries. Organizations that have focused on employee engagement are reaping the benefits of their hard work. Yet, the percentage of employees that indicate they feel engaged at work is only 33%, according to a Gallup poll. The numbers may be a clear indication that there is much room for improvement.

Statistics show that employees who feel engaged with their work are less likely to leave an organization. Other benefits included an increase in productivity, efficiency, and profits.  Employee engagement looks different for each organization. Yet, one common factor seems to be focusing on the needs of the employee.


For more insights on the importance of employee engagement, download our CBIZ guidebook - Creating a Company Culture Centered on Employee Engagement.

 

2022 Health Savings Account Limits 

CBIZ Small Business Employment Index

The IRS recently announced an increase in the max amount that participants may contribute to a Health Savings Account (HSA) in 2022. Individuals can contribute $3,650 which is up from $3,600 in 2021 and families can contribute up to $7,300 up from $7,200 in 2021. Those who are over the age of 55 still have the option to contribute an additional $1,000 per year, as the catch-up amount is not subject to the adjustment for inflation.

 

IRS Changes At A Glance

Health Savings Account
2022 Individual 2022 Family 2021 Individual 2021 Family
HDHP Annual Deductible $1,400 $2,800 $1,400 $2,800
HDHP Annual
Out-of-Pocket Limit
$7,050 $14,100 $7,000 $14,000
Contribution Limit $3,650 $7,300 $3,600 $7,200

 

Expected Benefit

Health Reimbursement Arrangements (EB-HRAs)

2022 2021
Cap on the annual amount of payments and reimbursements $1,800 $1,800