Changing business size?
Changing payroll regulations.
Learn about the regulatory requirements for businesses at different stages.
When your employee head count fluctuates, you run the risk of encountering some
serious pitfalls if you don’t adhere to the right regulations and compliance
Wondering what’s coming around the corner if you’re growing? Take a look at some of the major payroll requirements your business will face, and find out how our payroll and HR services can help.
For the first time since 2004, there are updated regulations and earnings thresholds for overtime pay.
You need to correctly classify employees as exempt or non-exempt and calculate the right amount of overtime pay required by these new regulations.
- Back-pay requirements
- Civil money penalties
- Criminal prosecution
- Finding out which employees will be affected by the changes
- Deciding what changes to make regarding compensation amounts, hours worked, etc.
Heartland offers live, on-demand HR support.
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The Consolidated Omnibus Budget Reconciliation Act requires that certain employers offer health insurance continuation to employees, former employees and dependents who’ve lost group health coverage due to specific events.
- IRS penalties of $100 a day, per beneficiary
- Civil lawsuits
- Legal fees and cost of proving compliance
- Giving written notification about COBRA to all covered employees and dependents
- Maintaining records showing compliance
- Notifying the group health plan about a qualifying event within the specified time period
Applies to companies that currently offer a group health plan and had 20 or more employees on at least 50% of the typical business days in the last calendar year. A part-time employee is counted as a fraction of an employee.
The Affordable Care Act is the health care reform law that went into effect in 2010.
Your payroll records contain the hours and other information businesses must provide to the IRS for ACA compliance.
- Significant per-employee fines
- Withholding and reporting an additional percentage of employee wages or compensation that exceeds $200,000
- Reporting the value of coverage on each employee’s W-2
Heartland can help you meet ACA requirements.
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The Family and Medical Leave Act allows employees to take paid or unpaid, job-protected leave for specified reasons, while continuing to receive health insurance coverage under the same terms.
Businesses that are subject to FMLA have to create and preserve specific records.
- Payments to the employee for any compensation or benefits loss due to the violation
- Displaying required information about FMLA
- Making sure employees know their eligibility status
Affirmative action programs are required by law for certain employers who work with the federal government or who are using the program as a remedy for past discrimination.
- Significant fines
- Exclusion from working on government contracts
- Maintaining adequate records that can be presented in case of an audit
EEO Survey Filing
The Equal Employment Opportunity Survey Filing is a compliance survey that gathers employment data related to ethnicity, race, gender and job category.
Employment data has to come from a single pay period within specified months of the current year.
- Being compelled to file your Equal Employment Opportunity Survey Filing by a U.S. District Court
- Potential legal fees
- Correctly filing the report by the annual deadline
You’re also required to file a report if you’re owned by, affiliated with or controlled by a company with 100+ employees. In certain cases, companies with 50+ employees also have to file.
Keep in mind that this is just a fraction of the information you need to stay compliant with these regulations. And this list is by no means comprehensive, so you may have to follow additional federal, state and local rules.
Navigating these regulations on your own is complicated and making a mistake can be costly. But you can save time and prevent errors by working with payroll and HR professionals. Heartland’s experts can spot issues before they arise and make sure you stay compliant as you approach each new phase of growth.
Have questions about any of these regulations?
Looking for more information?
U.S. Department of Labor – Final Rule: Overtime Update
U.S. Department of Labor – Wages and Hours Worked: Minimum Wage and Overtime Pay
U.S. Department of Labor – An Employer's Guide to Group Health Continuation Coverage Under COBRA
Centers for Medicare & Medicaid Services – COBRA Continuation Coverage Questions and Answers
Internal Revenue Service – Audit Techniques and Tax Law to Examine COBRA Cases
Internal Revenue Service – Questions and Answers for the Additional Medicare Tax
Internal Revenue Service – Form W-2 Reporting of Employer-Sponsored Health Coverage
U.S. Department of Labor – Fact Sheet #28D: Employer Notification Requirements under the Family and Medical Leave Act
Electronic Code of Federal Regulations
U.S. Department of Labor – Affirmative Action
FordHarrison – AA/OFCCP
EEO Survey Filing
U.S. Equal Employment Opportunity Commission – Legal Basis for Requirements
U.S. Equal Employment Opportunity Commission – Small Business Requirements