Updates On Required IRS Tax Forms Due For Sacramento Employers

What IRS Tax Forms Are Due For Sacramento Employers (Plus Updates On Minimum Wage & Federal Overtime Regulations)

Applicable Large Employers (ALE’s); 50 or more full-time employees OR any size employer with self-insured insurance programs must file forms 1094-b or 1094-c with forms 1095-b or 1095-c with the IRS. Due dates for 2016 are May 31st for paper filers and June 30th for electronic filers (250 or more information returns require electronic filing).

If you have not provided your employees with the applicable 1095-b or 1095-c forms, do so immediately. There are heavy penalties and these were due March 31, 2016. As demonstrated above, employers with 25 or fewer employees will have a one-year delay in implementation.

Sacramento Minimum Wage Update: 3.5% Annual Increase Starting 2023

Beginning in 2023, the minimum wage will be adjusted annually based on the lesser of 3.5% or the calculated US Bureau of Labor Statistics nonseasonally adjusted the US Consumer Price Index for Urban Wage Earners and Clerical Workers.

How Can Employers Prepare For Minimum Wage Increases?

Employers will need to project and prepare for the wage adjustments dependent upon their employee count. Projecting and preparing must include various areas of employment, some of which may easily be overlooked: Exempt Classifications: Qualified exempt employees must meet a variety of requirements; one requirement is to make a minimum monthly salary of at least two times the minimum wage for full-time employment. At the $11.00 minimum wage, that will be an annual salary of $45,460 and at the $15.00 minimum wage, an annual salary of $62,400.

Federal Overtime Regulations

This amount will adjust annually with the increase in the minimum wage. There are some varying rules for some California professional exemptions; computer professionals, inside and outside Sales. Also at this time, employers need to be prepared for the proposed Federal Overtime regulations. When these are approved, employers will likely have only a short window to modify and comply with.

If approved as they stand today, the Federal Overtime would require that there be a minimum wage base of $50,440 per year for every exempt position.

As always, it is critical for employers to remain current and review the classification of each position regularly.

These include:

  • Tools and Equipment: Under some wage orders, employers may require employees to provide their own hand tools and equipment customarily required by the trade or craft. To impose such a requirement, an employer must pay the employee at least twice the current minimum wage.
  • Wage Gap: Some employers may have a business need to address the closing wage gap between positions within the company. Workers Comp. Premiums and Taxes: Workers comp. premiums and payroll taxes are tied to wages. It will be important for companies to budget for resulted increases.
  • Overtime Premiums: Overtime premiums must be paid time and one-half of the hourly rate.
  • Minimum Wage/Travel Time/On Call pay: All employees must be paid the proper minimum wage anytime work is performed. In true California fashion, things are ever-changing and all employers must keep informed

There are some important items to note, effective April 1, 2016.

  • The Fair Employment and Housing Act (FEHA) has been amended, effective April 1, 2016, and as a result the following must be applied;
  • Discrimination, harassment and retaliation policies should be reviewed and updated to ensure they meet the criteria specified in the FEHA amendments. It will be mandated as of 4/1/16 that employees receive compliant discrimination, harassment and retaliation policies upon hire so be sure you are providing a compliant and updated handbook timely. You can also comply by posting a copy of the policies with the employment posters. If 10% or more of your staff speak a language other than English, the policies will have to be translated and provided in that language.
  • An updated employment poster for Pregnancy; “Your Rights and Obligations as a Pregnant Employee”. You can line out or remove your former pregnancy poster.
  • The current form I-9 expires on 3/31/16; however, the new version has not yet been released. Employers are directed to continue to use the current version until another is released. The new version of Form I-9 is going to allow for electronic completion and is a much longer document.

Elmore HR Consulting Is Here To Help

Navigating the employer policies and requirements is a full-time job. Consider hiring an HR Ninja in Sacramento handle all the paperwork, filing and employee management that comes along with owning a business. We’ll make sure your current and in compliance with state and federal regulations and requirements. Request a free evaluation for HR services today!