Some employers reward and recognize high performers with a bonus, especially during the holiday season. If you award bonuses, here are some overtime and tax rules to consider:

President Biden has announced that federal contractors and subcontractors will have until January 18, 2022 to ensure that all covered employees are fully vaccinated for COVID-19.

The Centers for Medicare & Medicaid Services (CMS) has issued an emergency rule that requires COVID-19 vaccination for workers at healthcare facilities that participate in Medicare and Medicaid programs.

The Biden administration has announced its Final Rule directing federal contractors to pay their workers a $15 minimum wage starting next year.

The Final Rule, effective January 30, 2022, establishes standards and procedures for implementing and enforcing the minimum wage protections of Executive Order 14026 (Order). Additionally, it sets forth an anti-retaliation provision, a prohibition against waiver of rights, and a severability clause. Finally, the Final Rule specifies procedures related to complaint intake, investigations, remedies, and administrative enforcement proceedings.

To avoid unnecessary year-end delays one of the most important things you can do for your company is verify SSN’s for your employees. Reviewing this information will ensure that you and your employees receive correct W-2’s. For your convenience ADP will automatically generate a report of new hires, with 12 months of service or less after your first payroll in November is processed. This report is called the I-44 Year End SSN Verification Report.

If you need time to preview your tax reports and Forms W-2/1099, make previous quarter adjustments to your payroll, or even want to request Direct Mail service; you can request ADP to place your company codes on a ‘Print Hold’.

If your company is set up with Qualified Pension and if you have some employees without year-to-date wages and have the Qualified Pension indicator marked as “Yes”; then those employees will receive a blank Form W-2, with the Retirement plan box checked.   

If your state sends you a notice that your unemployment insurance rate or deposit frequency is changing in 2022 please let us know! It is important to keep this information up to date so the correct deposits are made for your company. Failure to do so could cause ADP to file with incorrect rates and frequencies resulting in an underpayment or overpayment of taxes and rejected filings by the agency.

More than 20 states and 30 local minimum wage rates are scheduled to increase on January 1, 2022. Below is a summary of these changes and guidelines to help you comply with your minimum wage requirements.