AT A GLANCE

The EEOC requires federal contractors and employers with more than 100 employees to file EEO-1 Reports.

This year, this includes Component 2 Pay Data which includes reporting based on pay band and job category, as well as hours worked, ethnicity, and gender.

The filing portal opens on July 15, 2019.

The report is due by September 30, 2019.

Paylocity is developing a report to assist employers with this requirement.

Please review the information below to learn more about the employer requirements and for suggestions on what employers can do now to prepare to file the pay data report.

INTRODUCTION

On July 11, 2019, the EEOC provided the electronic data file specifications used to complete the online EEO-1 Component 2 Pay Data Report. At this time, Paylocity is working diligently to develop the EEO-1 Component 2 Pay Data Report and make it available to our clients. Paylocity will provide an update once the report is available.

Additionally, the EEOC released FAQs regarding the EEO-1 Component 2 pay data, found here, as well as more resources related to the 2017 and 2018 Component 2 Pay Data filing, here.

EMPLOYER REQUIREMENTS

Subject employers are required to file the 2017 and 2018 pay data through the online portal. The online portal will be available to employers beginning on July 15, 2019.

Employers are required to file for both 2017 and 2018 if they had more than 100 employees or are subject to file under federal law. The measurement period is between October and December of each year. The agency will not provide pre-population of historical data on the report from the 2017 or 2018 EEO-1 Component 1 report that was filed earlier this year in May. Employers are required to report aggregated data by pay band and job category for compensation as reported on the W-2, as well as hours worked, gender, and ethnicity.

Employers who have multiple establishments must file a report for the headquarters and each establishment with 50 or more employees, and an establishment report or establishment list for locations with less than 50 employees.

The compensation data report must be filed online on or before the September 30, 2019 deadline.

HOW TO PREPARE

Employers can prepare to file the EEO-1 Component 2 Pay Data Report by reviewing their current employees’ configurations and confirming that employees are assigned an EEO class, gender, and ethnicity. If an employee has not previously indicated their ethnicity or gender, an employer is permitted by the EEOC to perform a visual survey of the employee or to use prior employment records to assign an ethnicity or gender to the employee.

Clients can run the “EEO and Equal Pay Data Review Report” to assist in the preparation of employee data. This is not the report that will be filed at the agency level.  EEO reports are part of the Standard Reports List in HR & Payroll. Please see Peak article “PCTY-76563 Review EEO Data for Component 2 Reporting” for additional information.

Thank you for choosing Paylocity as your Payroll Tax and Human Capital Management partner.

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.