Sunday, January 28, 2024
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Federal Compliance Update
The U.S. Department of Labor (DOL) has published a final rule that will change the test for determining whether a worker is an employee or independent contractor under the Fair Labor Standards Act (FLSA). The final rule takes effect March 11, 2024. Here are some key points to know about the new test.
The new test
The DOL uses an "economic realities" test to determine whether workers are considered employees and therefore covered by the FLSA and entitled to minimum wage, overtime, and other wage and hour protections. Effective March 11, 2024, the test will:
- Return to a totality-of-the-circumstances economic reality test, where no single factor or group of factors is assigned any predetermined weight; and
- Consider six factors (instead of five), including the investments made by the worker and the potential employer.
Wednesday, January 3, 2024
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Federal Compliance Update
On Dec. 14, 2023, the Internal Revenue Service issued Notice 2024-08 announcing that the standard mileage rate, effective Jan. 1, 2024, for use of an automobile to obtain medical care is 21 cents per mile.
Wednesday, January 3, 2024
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Federal Compliance Update
On Dec. 14, 2023, the Internal Revenue Service issued via Notice 2024-08 the 2024 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, moving, and charitable purposes.
Thursday, December 28, 2023
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Federal Compliance Update
Earlier this year, we communicated advising of SECURE Act 2.0 requirements for Long-Term, Part-Time (LTPT) employees. We have now updated the 'Next Steps' process, and you can find those updates below in this Insights and Solutions article. The following features are now available to assist with identification of, and maintenance for, LTPT employees based on these requirements:
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Viewing an employee’s LTPT Indicator in MyResource®
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You can view an employee’s LTPT identifier by navigating to HR > Employee Custom Fields > Secure Act Retirement > Long-Term Part-Time
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B = LTPT EE – Block ER Match
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L = LTPT EE
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If your company utilizes ADP® Retirement Services, the “Long-Term Part-Time Employee” status will automatically be updated.
Note: If your company does not utilize ADP Retirement Services you must contact your ADP service team if you wish to exclude LTPT employees from receiving 401(k) match contributions, as existing match calculations will need to be updated to ensure this exclusion.
Please contact your ADP® Service Representative if you wish to exclude LTPT employees from receiving 401(k) match contributions, as existing match calculations will need to be updated to ensure this exclusion.
Below please find the previous information sent on this topic with additional details added to the paragraph in red.
Monday, December 4, 2023
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Federal Compliance Update
On Nov. 9, 2023, the Internal Revenue Service (IRS) announced via Revenue Procedure 2023-34 the dollar limitation for 2024 on employee salary reductions for contributions to health flexible spending accounts; the monthly limitation regarding the aggregate fringe benefit exclusion amount for transportation in a commuter highway vehicle and any transit pass; and the maximum amount that can be excluded from an employee’s gross income for the amounts paid for qualified adoption expenses furnished pursuant to an adoption assistance program.
Thursday, November 2, 2023
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Federal Compliance Update
California has enacted Senate Bill 525 (SB 525) which establishes a tiered minimum wage rate system for healthcare workers.
Thursday, November 2, 2023
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Federal Compliance Update
The Chicago City Council has voted to phase out the tip credit that employers are currently allowed to use when paying tipped employees. Historically, Chicago allowed employers to pay tipped employees at a rate below the city's minimum wage, provided the tips received bring the worker’s earnings to at least the full minimum wage.
Thursday, November 2, 2023
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Federal Compliance Update
On Nov. 1, 2023, the Internal Revenue Service (IRS) announced via Notice 2023-75, the cost-of-living adjustments applicable to dollar limitations for pension plans and other items for tax year 2024.