Publication: APA Compliance Update - May 18,2016
Exempt Employee Salary Threshold Goes From $455 to $913 Per Week on December 1
Today, the U.S. Department of Labor released the final rules governing which executive, administrative,
and professional employees (white collar workers) are exempt from the Fair Labor Standards Act's minimum wage and overtime
pay protections. The DOL last updated these regulations in 2004.
Effective December 1, 2016, the final rule raises the salary threshold to $913 a week or $47,476 a year (up from $455 a
week or $23,660 a year).
The final rule focuses primarily on the
salary and compensation levels needed for white collar workers to be exempt. Specifically, the rule:
• Sets the standard salary level at the 40th percentile
of weekly earnings for full-time salaried workers in the lowest-wage Census Region (currently the South).
the total annual compensation requirement needed to exempt highly compensated employees (HCEs) to the annualized value of
the 90th percentile of weekly earnings of full-time salaried workers, or $134,004 (up from $100,000).
a mechanism for automatically updating the salary and compensation levels going forward. Future automatic updates to the thresholds
will occur every three years, beginning on January 1, 2020.
employers to use nondiscretionary bonuses and incentive payments (including commissions) to satisfy up to 10% of the standard
salary level. The amounts must be paid on a quarterly or more frequent basis, but there is a provision allowing a "catch-up"
payment to be made during the first pay period of the next quarter.
not change any of the existing job duty requirements to qualify for an exemption. Both the standard duties tests and the HCE
duties test remain unchanged. The final rule, which is scheduled to be published in the Federal Register on May 23, is available for preview. Additional information is available on the DOL's website.
For more coverage, see the June issue of PAYROLL CURRENTLY.
How will the increased salary requirement
impact your organization, and what steps should you take to ensure compliance? Find out when you attend APA's webinar What Do the New Overtime Rules Mean for Payroll? The
webinar will be held on June
10 and will also be offered on demand. Registration information
will be available on APA's Payroll Webinars website soon!
Publication: APA (October 2015)
Payroll Professionals Can Leverage Robert Half’s Salary Guide
everyone in a payroll position would like to earn more money. But how much more can you reasonably expect today? You may also
be wondering what the in-demand skills and certifications are in your field — and how you can you find the answers to
Payroll positions are among the 10 hot jobs
featured in the current Salary Guide, with starting pay anticipated to rise an average of more than 4 percent in
2016. The sampling that follows shows some sample positions and their U.S. salary ranges,
representing the expected base compensation for professionals who are just joining a new company at any level:
Payroll manager, large company:
$61,000 to $95,500 (4.7 percent increase)
· Payroll coordinator, large company: $44,500 to 60,500 (4.7
· Payroll clerk, midsize company: $35,500 to $48,250 (4.7 percent increase)
Payroll manager, small company:
$43,000 to $61,500 (4.5 percent increase)
Since salary ranges vary according to
geography as well as job title and company size, you can use our Salary
customize the data for your ZIP code.
want to see credentials.Want other ways to
increase your earnings? A relevant certification can help you add 5 to 15 percent
to many standard salary ranges, according to the Salary Guide. Professionals with a certified payroll professional (CPP) designation, for example, have a competitive edge when getting hired.
In-demand skills open
managers look for applicants who are proficient in Microsoft Office, especially Excel, Word and Outlook. It’s
also important to have at least a working knowledge of payroll systems such as SAP HR, ADP
Tax, UltiPro, Kronos, NetSuite and Intuit. And with more software residing in the cloud, gaining experience in online platforms
For more salary and hiring details, download
information could help make 2016 the year you advance your payroll career.
Accountemps, a Robert
company, is the world’s first and largest specialized staffing firm for temporary accounting, finance and bookkeeping
professionals. Accountemps has more than 340 locations worldwide. More resources, including online job search services and
can be found at accountemps.com.
06/25/15 - Supreme Court Says ACA Tax Credit Scheme Applies in All
By a vote of 6-3, the U.S. Supreme Court has upheld the tax credit provisions
of the Affordable Care Act (ACA) – codified in IRC §36B. The question addressed by the Court in this case was whether
the ACA's tax credits – intended to make health insurance more affordable – are available in states that have
a federal Exchange (where people can shop for insurance, usually online) rather than a state Exchange. The amount of the credit
depends in part on whether the taxpayer has enrolled in an insurance plan through "an Exchange established by the state."
At this point, said the Court, "16 states and the District of
Columbia have established their own Exchanges; the other 34 states have elected to have HHS [the Department of Health and
Human Services] do so." Also, the IRS has published regulations making §36B tax credits available on both state
and federal Exchanges. Four individuals living in Virginia, which has no state Exchange, challenged the IRS rule.
Saying that the meaning of the disputed language was ambiguous, the Court looked at the overall statutory scheme and
concluded that the disputed tax credit scheme was meant to apply everywhere. "Section 36B allows tax credits for insurance
purchased on any exchange created under the Act. Those credits are necessary for the federal Exchanges to function like their
state Exchange counterparts, and to avoid the type of calamitous result that Congress plainly meant to avoid."
The Court's decision means that all the compliance requirements related to the ACA's employer shared responsibility
and reporting provisions remain in place for 2015 and heading into 2016 [King v. Burwell, No. 14-114 (U.S. Sup. Ct., 6-25-15)].
For more coverage, see the next issue of PAYROLL CURRENTLY, due July 3.
House Passes Mobile Workforce Bill
Bill Would Simplify Employer's Tax Withholding
By William Dunn, CPP
On May 15, the U.S. House of Representatives passed the Mobile Workforce State Income Tax Simplification Act
of 2011 (HR 1864). If enacted, the bill will simplify the tax obligations of workers who travel out of state on business by providing a
30-day threshold under which no taxes will be assessed on income earned in that other state.
The bill will also
simplify the obligations of employers who will not need to withhold taxes of other states for short-term assignments lasting
30 days or less per year. Employees working in another state for more than 30 days will be subject to taxation on all income
earned in that other state.
APA supports the bill and its effort to reduce the administrative burden placed on employers, employees, and
Currently, most businesses with employees who travel out of state on short-term assignments do not
comply with the withholding requirements of the other states, raising the risk of severe penalties. Many, if not most, employees
are ignorant of the fact that they may have a tax obligation in that other state.
While most states
do not aggressively seek to collect the taxes of business travelers, New York happens to hold a particularly hard line on
the issue. If the bill passes, the state is expected to lose more revenue than all other states combined from its inability
to tax short-term business travelers.
of Labor has developed a series of online advisors that help employees and employers understand their rights and responsibilities
under federal employment laws such as pay and overtime, workplace poster requirements, health benefits, and more.
NY Changes Personal Income and
MTA Payroll Tax Rates-
9, New York Governor Andrew Cuomo signed a tax reform bill into law that will create new personal income tax (PIT) rates and
brackets, effective for wages paid on or after January 1, 2012.
Obama Signs Payroll Tax Cut Extension
On February 22, President
Obama signed the Middle Class Tax Relief and Job Creation Act of 2012 into law (Pub. L. 112-96), extending the 4.2% employee
social security tax rate for wages paid through December 31, 2012.
APA Updates Comments on Temporary Payroll Tax Cut Continuation Act-
APA earlier this year submitted
updated comments to Congress on P.L 112-78, the Temporary Payroll Tax Cut Continuation Act of 2011. The APA requested member
feedback on two questions:
*If required, how much time is needed to reprogram payroll systems to allow for two
different employee social security rates (6.2% and 4.2%) in the same year?
*If the extension is only temporary again,
would it be easier to implement the change if it ended at the end of a quarter (March 31, June 30, September 30) or a non-quarter
ending month (i.e. April 30, May 31)?
Read APA's comments.