HCM Insights November 2022

HCM Insights November 2022

Upcoming Holidays

Thanksgiving

ThanksgivingIn observance of the Thanksgiving Holiday, CBIZ HCM offices will be closed on Thursday, November 24, 2022, and Friday, November 25, 2022. Also, Thursday, November 24, 2022, is a Federal Reserve Bank Holiday, which means payroll draft dates may need to be adjusted. (Note: we will send the last bank file for the holiday week on Wednesday, November 23, 2022.)


Important Payroll Deadlines

Check Date

Check Processing Date

Friday, November 25, 2022

Tuesday, November 22, 2022     

Monday, November 28, 2022    

Wednesday, November 23, 2022

 

Christmas & New Year's Day

Happy HolidaysCBIZ HCM offices will be closed on Friday, December 23; Monday, December 26; and Monday, January 2, 2023.  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

For a payroll check date of December 26-27, it is important to process payroll on or before Wednesday, December 21, as the last bank file for the holiday week will be sent on December 22.
For a payroll check date of January 3-4, it is important to process payroll on or before Thursday, December 29.

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.

 

You can now access the CBIZ 2023 Holiday Schedule

 

 Holiday & Year-End Shipping Reminder

Happy Holidays

The holiday season is here, which means it’s the busiest time of year for our payroll couriers! Between the holidays, current shipping delays, and the possibility of inclement weather this time of year, we encourage you to process payroll one or two days earlier than usual to help keep things running on time. Please note that there will be no impact on bank drafts in the event payrolls are processed early. 



All payrolls must be submitted by 2:00 p.m. EST two days prior in order to guarantee expected shipment dates.

 

Tips to Prevent Payroll Fraud

HCM_year-end You can never be too careful when taking steps to protect your employees’ payroll funds. There are many scams that others use to attempt to reroute payroll funds to themselves, one of which is a prepaid debit card ploy.

When hackers use this tactic, they send an email to a payroll professional from what appears to be the employee’s actual email address, usually personal email, requesting that the direct deposit is changed to deposit funds onto a prepaid card. For the tactic to work, the payroll professional must change the direct deposit information in the system without verifying the change with the employee, which can result in losses to the employee or the organization.

 

Maintain a Defensible Stance for Your ERTC Claim To Avoid IRS Pitfalls

Minimum WageMaintaining a strong workforce is essential for any business. The Employee Retention Tax Credit (ERTC) can help offset labor costs companies incurred while struggling to keep business running during the COVID-19 outbreak. However, due to more than two years of changes and updates, ERTC eligibility requirements and tax credit calculations are complex. Inaccurate filings — or taking a risky stance — can lead to severe consequences from the IRS.


 

2022 Payroll & HR Year-End Checklist

Mask

In the craze of year-end, it can be easy to overlook Human Resources (HR) processes. We will have more details coming your way soon. But to help you get started, we put together a year-end checklist for you to consider.

REMINDER: Once you receive the employer’s state unemployment tax rate for the upcoming year, send the information to CBIZ. (Email:cbizpayrolltax@cbiz.com | Fax: 540-343-5279 | Mailing Address: 2797 Frontage Road NW, Suite 2000, Roanoke, VA 24017)

 

NACHA Operating Rules & Guidelines

NACHA

The National Automated Clearing House Association (NACHA) manages the development, administration, and governance of the ACH Network in the United States. NACHA recently changed its Operating Rules and Guidelines and will have additional changes in March 2023. Below you will find excerpts from information posted directly on the NACHA website. For a more in-depth discussion of the rules changes noted below, please refer to the NACHA website.


Note: The rules changes mentioned 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. Rules changes outside the scope of the services CBIZ provides to clients are not included in the summary below.

Implemented Revisions to the NACHA Operating Rules & Guidelines

Same-Day ACH Limits effective March 18, 2022 – The limit for Same Day ACH transactions is expected to increase from $100,000 to $1,000,000.

Supplementing Data Security Requirementseffective June 30, 2022 – NACHA has 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.

Micro-entries effective September 16, 2022 – Defines micro-entries as ACH credits and offsetting debits of less than $1 used for the purposes of account validation and requires that they be identified as “ACCTVERIFY” in the ACH file.

Third-Party Sender Roles & Responsibilities effective September 30, 2022 – Clarifies roles and responsibilities of Third-Party Senders in the ACH network, addresses Nested TPS relationships, and adds requirements related to risk assessment by TPS.

Upcoming Revisions to the NACHA Operating Rules & Guidelines

Phase 2 of Micro-entries Regulation - expected to be effective March 17, 2023 – will involve “commercially reasonable fraud detection.”

These excerpts were taken from information posted directly on the NACHA website.  

 

2023 Retirement Limits & Social Security Adjustments

 

Tax Rates

The Internal Revenue Service recently announced information on defined benefit and defined contribution plan limits for 2023. Additionally, the Social Security Administration recently announced a Social Security wage base adjustment for 2023.

 

In Your State

Minimum Wage Updates

Minimum WagePayroll is complicated, and the laws that govern employment eligibility, wages, and taxes are complex. Laws vary from state to state, and so does the minimum wage. Even before rising inflation, many states were on track to raise their minimum wage. To help companies stay abreast of the minimum wage changes, we’ve put together a list of states that have announced an increase to their minimum wage. Keep in mind that other states plan to boost their minimum wage later in 2023.


2023 State Unemployment Tax Rates 

Many state unemployment tax agencies have begun mailing 2023 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 2022

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 2022.

SUI Rates Available - January 2023

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

 

Email Your SUI Rates to CBIZPayrollTax@cbiz.com

 

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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.