Upcoming Holidays

Columbus Day

The upcoming Columbus Day Holiday falls on Monday, October 10, 2022.  While CBIZ HCM offices will be open this day, this is a Federal Reserve Bank Holiday, and payroll draft dates will need to be adjusted.

Important Payroll Deadlines

Top HR Challenges in 2022

The workplace has been changing faster than anyone could have predicted. A nationwide labor shortage, skyrocketing inflation, technological advancements and social movements have all played a role. To make matters more complex, many of these shifts occurred suddenly, leaving HR professionals with little time to prepare.

In this article, we explore several workplace challenges that these rapid changes created — and in some cases, exposed. From attraction and retention to compliance, discover the key issues that HR professionals have had difficulty keeping up with.

Employers Affected by Lower ACA Affordability Percentage

According to Internal Revenue Service (IRS) Revenue Procedure 2022-34, the ACA affordability percentage for 2023 is set at 9.12%, marking the lowest rate since the inception of the ACA employer mandate. This latest affordability is marginally lower than 2022’s 9.61%, meaning that employees will be required to pay a smaller percentage towards their monthly medical premiums.

The employer shared responsibility provision came into play with the passage of ACA, giving applicable large employers (ALEs) the option to offer affordable minimum essential coverage or potentially owe an employer shared responsibility payment to the Internal Revenue Service (IRS).  ALEs wishing to avoid paying the penalty (Pay for Play Penalty) must ensure their coverage is in line with the ACA affordability percentage.

Ghost Employee Payroll Fraud

ghost employees can financially impact your business in several ways, including affecting your payroll. if the proper checks and balances are not in place, a former worker could continue to receive a paycheck, or even a current employee could set up a fake account in the payroll system. while this is not common, employees have been known to engage in such scams.

having proper off-boarding procedures that ensure former workers are removed from payroll in a timely manner can help keep your payroll from being affected by ghost employee fraud. also, confirm if every employee is legitimate and if their pay rate is accurate.

In Your State

California Ruling on Missed Meal Breaks

The California Supreme Court ruled that the wages an employer must pay employees if they work during their meal break should be calculated using the employee’s regular rate of pay. This payment constitutes wages for California’s final pay and itemized wage statement requirements. The ruling means that employers must report these payments on employee wage statements. The failure to do so can lead to significant penalties, and we have some actions you may need to take in response to the ruling.

Action Needed

1. A separate earning code is needed to record wages paid for missed meal or rest breaks. Contact your CBIZ service team to have the earning code added to your payroll and/or time-keeping system. 
2. Wages for missed meal or rest breaks should be calculated at the employee’s regular rate of pay. 
3. There is no specific guidance on the calculation for overtime; however, the language provided by the California DIR appears to encompass this as part of the calculation.

Employers are responsible for compliance with pay regulations. Please reach out to CBIZ with assistance in making any changes needed.

We’ve gathered more information about the California ruling on Missed Meal Breaks.

Additional State Specific Update

Click on blue text for more details 

Colorado - Paid Sick Leave Law & Public Health Emergency

Hawaii - Retirement Savings Act

New York - Paid Vaccine Leave

Minimum Wage Updates

Changes Effective September 30, 2022

Florida

• Hourly minimum wage: $11.00 (up from $10.00) 
• Tipped employee hourly minimum: $7.98 (up from $6.98) based on a maximum tip credit of $3.02.

Changes Effective October 1, 2022

Hawaii

• Hourly minimum wage: $12.00 (up from $10.10) 

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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.