Regulatory Roundup: December 2019

In mid-December, the Department of Labor (DOL) announced the final Regular Rate rule under the Fair Labor Standards Act (FLSA) to clarify what employee benefits can be excluded from an employee’s regular rate of pay. This, in addition to the FLSA’s earlier announcement on the Final Overtime Rule, means employers must evaluate and audit current compensation practices to determine whether salary adjustments need to be made to meet the new thresholds, and whether they need to make changes to employees’ exempt statuses.

Reviewing current benefit offerings and compensation prior to the rule’s effective date (Jan. 1 for the Overtime rule; Jan. 15 for the Regular Rate rule) has put pressure on employers to make the necessary adjustments, not to mention ensuring compliance with state wage and hour laws. Fortunately, Paylocity’s Compensation Management tool can help you evaluate your organization’s current compensation plans to make more-informed decisions. We also offer a number of reporting and dashboard analytics tools to give you an in-depth analysis on organizational trends and help you uncover labor costs and spending-related insights.

2019 has been a busy year for HR compliance and tax. Utilizing tools such as our Compliance Dashboard can help you manage the latest requirements, including those coming your way in 2020. Bookmark our blog and be sure to come back every month for Regulatory Roundups of tax and compliance alerts you need to know. To see past alerts and to stay up-to-date on the latest changes, bookmark our News page and follow our social channels on Facebook, LinkedIn, and Twitter for urgent updates.

2019 Review

• Year-End Review 2019

New Laws and Rulings

• Reminder: New Tax Laws Coming into Effect in 2020
• Fifth Circuit Court of Appeals Issues Ruling in ACA Case

Federal Forms and Filings

• States Use of Federal Form W-4
• IRS Releases Final Version of 2020 Form W-4
• IRS Publishes 2019 ACA Reporting Forms and Due Dates

Wage, Hour, & Labor

• California Labor and Workforce Development Agency Release Additional AB5 Resources
• DOL Announced Final Rule Regular Rate Under FLSA

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.