With a new year come new changes and updates to payroll requirements. 2019 is quickly approaching, so - like last year - we compiled the following list of items that may initiate some payroll changes in your organization. You might start thinking about these and take action sooner than later.
Fourth quarter has begun, and January 1 of 2019 will be here before we know it. In 2017, the Washington State legislator passed the Family Leave Act (FLA) which provides up to 12 weeks (18 weeks in some limited circumstances) of paid family and medical leave in a 12-month period for eligible employees beginning in 2020. Eligible employees are those that have been employed by the employer for 12 months (which do not need to be consecutive months) and work a minimum of 820 hours in a qualifying period prior to the leave. The FLA will be monitored and administered by the Employment Security Department.
Not all compensation is as simple as an hourly wage or a set salary. Following are some pay types that may cause questions and confusion.
Piece Rate Pay
What is “piece rate” pay? This is an alternative system of pay that may benefit both the employer and the employee. Employees are paid based on the per unit of quality work completed rather than an hourly rate. This approach has the dual advantages of helping to increase productivity while providing employees with rewards for extra effort. This form of pay is commonly used in construction and agriculture.
Sage Software will only be updating Sage 100 version 2018 and Sage 100Cloud version 2018 to accommodate the new, statewide Oregon Transit Tax, which goes into effect on July 1 of this year. As we mentioned in our preview last month, the Transit Tax is 0.1% of each and every Employee’s Withholding Wage, is to be reported quarterly, and is reported on a separate form that is not part of the Oregon OQ Quarterly filing. For Sage Payroll clients on versions 2014, 2015, 2016, or 2017 (or even older versions!), we’ve had to be creative to accommodate the new tax. For clients using Sage Payroll version 2018, you’ll receive the update automatically through the new 2018 Tax Engine at month end.
In addition to the (hopefully) sunny days of summer, July 1 of this year brings with it a host of legislative changes that will impact employers and their employees. Here are three of the most critical employment changes that you'll want to know about.
In mid-January we released a blog asking if the new tax tables mean more money for people's paychecks. In that post, we reported that The Tax Cuts and Jobs Act, which was passed by the federal government in December, resulted in changes including increased standard deductions, removal of personal exemptions, increased child tax credit, and revisions to tax rates and income brackets effective for 2018. We also let you know that the IRS was working on updating the income tax withholding calculator and the Form W-4.
With a new year come new changes and updates to payroll requirements. 2018 is quickly approaching, so we have compiled the following list of items that may initiate some payroll changes in your organization. You might start thinking about these and take action sooner than later.
The Department of Labor website explains that the Fair Labor Standards Act (FLSA) “establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments.”
We recently published a blog post addressing Oregon minimum wage increases that went into effect on July 1. That post discusses increases that are scheduled to continue until the year 2022. These types of payroll concerns can be a huge administrative burden for your workforce in terms of keeping track of the increased amounts and effective dates; not to mention implementing the changes across all employees that are affected.