Payroll update: the overtime rule and other changes
Have you been keeping up with the latest changes in payroll reporting and other requirements? Here's an update.
*The overtime rule is on hold. The new overtime rule issued by the Department of Labor earlier this year that was to take effect on December 1 has been temporarily put on hold. The future of the rule is uncertain.
*Extended due date for health insurance forms. The IRS extended the due date for providing two health insurance information forms to employees. Under the 30-day extension, you have until March 2, 2017, to give your employees Form 1095-B, Health Coverage, and Form 1095-C, Employer-Provided Health Insurance Offer and Coverage. The due dates for filing these forms with the IRS remain unchanged: February 28 for paper forms, and March 31 for electronic files.
*Federal unemployment tax. According to the Department of Labor, only employers in California and the U.S. Virgin Islands will have to pay a higher rate of federal unemployment tax on Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return, for 2016. The net federal unemployment tax rate for employers in other states remains at the reduced rate of 0.6%.
Contact us for more information about these and other payroll changes.