The Equal Employment Opportunity Commission (EEOC) announced on September 29, 2016 the approval of a revised EEO-1, beginning with the 2017 report to collect summary pay data from employers, including federal contractors and subcontractors with 100 or more employees.

 

Background:

 

On January 29, 2016, the Equal Employment Opportunity Commission (EEOC) announced plans to revise the annual EEO-1 report; which will include pay data by gender, race and ethnicity. The proposed changes will require employers with 100 or more employees, including federal contractors and non-contractors to collect and report pay data annually.

 

The EEOC and the Office of Federal Contract Compliance Programs (OFCCP) at the DOL are working jointly to improve enforcement and compliance with federal pay discrimination laws.

 

On July 13, 2016 the EEOC published a revised proposal to collect pay data through the Employer Information Report (EEO-1), which took into consideration public comments that were received by the department after the initial proposal to revise the EEO-1 report was published. The EEOC adopted some specific suggestions from those commenters in order to simplify the proposed pay data collection reporting for employers.The 2016 EEO-1 reporting deadline of September 30, 2016 was unchanged and was reported on the current EEO-1 reporting form, not the newly revised form.

 

Summary of the Approved Revisions:

• The reporting deadline for all EEO-1 filers will change to March 31st of the year that follows the EEO-1 report year (currently September 30th). This is a change to calendar year reporting and would push the 2017 EEO-1 form due date to March 31, 2018 and the W-2 wage based data from the previous year would be reported. This translates to an 18 month “break” for EEO-1 filers after submitting the 2016 EEO-1 form. This is the most significant change as it will allow employers to use actual W-2 data from the tax year.

 

•Clarifies employers must provide Box 1 W-2 earnings received between January 1 and December 31 of the relevant calendar year.

 

Hours Worked To Be Counted Based on Employer Records: 

• For non-exempt employees: FLSA already requires employers to keep records of hours worked, employers use these records to identify the number of hours worked.

• For FLSA exempt employees, employers may either:

• Report 20 hours per week for each part-time employee and 40 hours per week for each full-time employee; or

• Report actual number of hours worked by exempt employees, full- or part-time, if they prefer to do so.

 

New Elements:

• Summary pay data – employers report total number of full-time and part-time employees during the year for each of the 12 pay bands listed for each EEO-1 job category.

• Aggregate hours worked data – employers will tally and report number of hours worked in that year by all employees in each pay band.

 

Revision of the Employer Information Report (EEO-1)

 

Employers who will be required to report this new data, should become familiar will the revisions now; view a sample of the proposed EEO-1 form.The EEOC has a webpage to provide links to the fact sheet, Q&A and the revised proposed report.The instruction guide can be found here, Revised EEO-1 reporting instruction booklet.

Paylocity will continue to monitor the EEOC communications and will provide additional information when the revised EEO-1 Report is made available in a finalized version.

 

Thank you for choosing Paylocity as your Payroll Tax partner. Should you have any questions please contact your Paylocity Account Manager.

 

This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.