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Compliance Year-End Checklist

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Q4 is here and with the approaching Year-End reconciliation and filings upon us, it is easy to forget to stay current with your new year requirements! To ensure your first payroll and reporting periods of 2020 are correct, it is recommended to review the following.

 

State Minimum Wage Updates

 

Federal Minimum Wage


The current federal minimum wage is $7.25 per hour and has not increased since July 2009. However, some states, cities, and counties have a higher minimum wage rate. When the state, city or county minimum wage rate is higher than the federal rate, employers are required to pay workers the higher amount. 

 

 

Minimum Wage for Federal Contract Workers

The Department of Labor published a notice in the Federal Register to announce that, beginning January 1, 2020, the Executive Order 13658 minimum wage rate, which generally must be paid to workers performing work on or in connection with covered federal contracts, will be increased to $10.80 per hour. Additionally, beginning January 1, 2020, tipped employees performing work on or in connection with covered federal contracts generally must be paid a minimum cash wage of $7.55 per hour.

 

State Minimum Wage Rates

Data from the Economic Policy Institute indicates that 29 states and D.C. have a minimum wage higher than the federal minimum wage including Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, New Jersey, New Mexico, New York, Ohio, Oregon, Rhode Island, South Dakota, Vermont, Washington, Washington D.C., and West Virginia. 5 states have not adopted a minimum wage: Alabama, Louisiana, Mississippi, South Carolina & Tennessee.

 

State-by-State Minimum Wage Updates for 2019 and Beyond

 

In 2019, and beginning in 2020, a number of states’ minimum wage rates will increase. The below chart summarizes the rates that increased for certain states at any time during 2019, including all state changes that will become effective next year in 2020.

 

  • Delaware & Connecticut both enacted late-year increases effective 10/1/2019

 

  • Most state minimum wage increases that occur in 2020 become effective January 1. However, CT (9/1/2020), D.C. (7/1/2020), & OR (7/1/2020) are effective beyond the new year

 

 

 Greater than Federal MW (effective 2019)   Greater than Federal MW (effective 2020) Less Than or Equals Federal MW of $7.25
AK $9.89 AK $10.19 (1/1/2020) GA
AR $9.25 AR $10.00 (1/1/2020) IA
AZ $11.00 AZ $12.00 (1/1/2020) ID
CA $12.00* CA $13.00* (1/1/2020) IN
CO $11.10 CO $12.00 (1/1/2020) KS
CT $11.00 CT – $12.00 (9/1/2020) KY
DC $14.00 DC $15.00 (7/1/2020) NC
DE $9.25 DE – TBD* ND
FL $8.46 FL $8.56 (1/1/2020) NH
HI $10.10 HI – TBD* OK
IL $8.25 IL $9.25 (1/1/2020) PA
MA $12.00 MA $12.75 (1/1/2020) TX
MD $10.10 MD $11.00 (1/1/2020) UT
ME $11.00 ME $12.00 (1/1/2020) VA
MI $9.45 MI $9.65 (1/1/2020) WI
MN $9.86* MN $10.00* (1/1/2020) WY
MO $8.60 MO $9.45 (1/1/2020) PR
MT $8.50 MT $8.65 (1/1/2020)  
NE $9.00 NE – No Change  
NJ $10.00 NJ $11.00 (1/1/2020)  
NM $7.50 NM $9.00 $11.00 (1/1/2020)  
NV $8.25 NV $9.00 (1/1/2020)  
NY $11.10 NY $11.80 (1/1/2020)  
OH $8.55 OH $8.70 (1/1/2020)  
OR $11.25 OR $12.00 (7/1/2020)  
RI $10.50 RI – TBD*  
SD $9.10 SD $9.30 (1/1/2020)  
VT $10.78 VT $10.96 (1/1/2020)  
WA $12.00 WA $13.50 (1/1/2020)  
WV $8.75 WV – TBD*  

 

*CA $11.00 less than 26 Employees. $12.00 more than 26 Employees ‘19 / $12.00 < 26 & $13.00 > 26 in ‘20

*MN $9.86 large employers $500,000+, $8.04 <$500,000 ’19 / $10.00 large employers $500,000+, $8.15 <$500,000 ’20

* TBD = Pending legislation

 

 

Updating State Minimum Wage Rates in Avionté

 

Updating State Minimum Wage Rates is a simple process through AviontéCLASSIC and Avionté Bold Back Office Admin Tools. The following route will lead to the Locality/Country page to make these system updates: Admin Tools > Employer > Locality/Country. Click here to view the Knowledge Base Article for more information.

 

Add or Edit a Locality 

 

  1. Click the Locality/Countrytab in the Supplier section of Admin Tools.
  2. Click the Localitytab in the upper-left part of the screen. The window will display data for any currently-selected locality in the list.
  3. If you are adding a new locality, click Add New. The fields in the lower portion of the window will be cleared for entering new data (as shown below).
  4. Make changes to the following fields as needed:                                                                                                              
    • Country: Choose the country from the list. This list displays only those countries that have been set up through the Country Code tab. Note that when you switch countries, the field that follows changes from State to Province, and vice versa.
    • State or Province: Select the state or province to assign to this locality.
    • Note: Add any notes to provide additional information.
    • Minimum Wage: Enter the known minimum wage for this locality.                                                                            
  1. Click Save to add or update the locality. If adding, the newly-entered locality displays in the upper grid.

 

 

State Unemployment Insurance & Workers’ Compensation

 

SUI Rate Changes

Many tax, payroll and account rates are updated on an annual period – whether it be calendar year or your fiscal year.  Here are a few rates housed within Avionte that should be reviewed at the beginning of each new year.

 

State Unemployment: Your company’s 2020 unemployment rates get set for you as early as November in some states. It is best practice to end date your old rate, and add a new rate for the 01/01/2020 to 12/31/2020 period in the Admin Tools > Employer > Tax > Tax tab. Remember, do NOT delete the old rate for 2019 or update the 2019 data with 2020 rates.

 

  1. To enter a new tax rate, click the Add New button on the Tax Rate tab.
  2. In the Tax Rate Details group box (lower-left corner of the window), set the fields as follows:                                         

 

Field Description Additional Information
Tax name Select the appropriate tax. To quickly find a particular tax, begin entering the first few characters of the tax name if known and press, Enter.
Tax Percentage Enter the tax rate percentage. This rate is set by your state's unemployment office.
Start/End Date Start/end date for the SUI tax given by the state. They’re usually a year in duration and the SUI tax will be calculated during payroll from the start date till the end date specified in these fields.

 

                             

  1. Click Save once the fields are complete. The tax is displayed in the upper grid.
  2. The taxes that appear in the grid can be filtered by using the Filter By drop-down menu which appears in the upper-right corner of the windows. Only those taxes that are active during the date selected in the drop-down calendar will appear in the grid.

 

For more further information regarding SUI Tax rate setup, please find our article on the Knowledge Base, here.

 


Workers’ Compensation Rates

Workers Compensation Codes: Depending on the Workers Compensation policy your company has, your rates may update on a calendar or account renewal period.  Again, it is best practice to end date your old rate, and add a new rate in the Admin Tools > Employer > WC Code tab.

 

mceclip2.png

 

Update a Wc Code

 

  1. Highlight the Wc Code in the Wc Code grid. The details of the highlighted Wc Code are displayed in sections below.
  2. In the Wc Code Detail section, adjust the Description, Country, State, and Processing Method to adjust those values for the chosen Wc Code. 
  3. Change a Wc Code rate: In the Rate section, enter the new rate in a new line, and enter the effective start date and end date for the new rate.
  4. Click the Save button in the lower-right corner to save changes. The new values will be displayed in the Wc Code grid.

 

 

mceclip0.png

 

 

Additional Items to Review before Year-End

 

  • Accrual Plans: Many of the state and city-level accrual laws get updated at the year and half-year (July 1st) mark. It would be especially beneficial to review the new Sick Leave laws enacted all over the country throughout 2019, to see if you have any updates that need to be made to your accrual plans for 2020.  The parameters for your active accrual plans can be reviewed in the Admin Tools > Employer > Accrual Plan tab.                                                               
  • Certifications: As many employee and client documents expire throughout the year, the new year is a great time to review any out-of-date certifications you may have on file. The Expiring Employee Certification counter in AviontéCLASSIC is a great resource to review to gather a list of documents you may need re-submitted.

 

 

Keep 'In the Know' leading up to 2020 by ensuring you are subscribed to the Avionté Tip of the Week Newsletter! Click here to subscribe.


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