Government

DOL Releases Final Overtime Rule – Effective January 1, 2020

On September 24, 2019, the United States Department of Labor (DOL) released its final rules for establishing the amounts required to be earned by an employee in order for that employee to be exempt from the Fair Labor Standards Act (FLSA) overtime requirements. Effective January 1, 2020, the amounts required to be earned by an employee for that employee to be exempt from the FLSA overtime requirements will be $684 per week or $35,568 annually (up from $455 a week or $23,660 a year). For bi-weekly, the salary threshold changes to $1,368, for employees paid on a semi-monthly basis it’s $1,482, and $2,964 for employees paid monthly. The new total annual compensation requirement for a Highly Compensated Employee (HCE) will be increased to $107,432 from the current level of $100,000. The ...

Duluth, Minnesota enacts paid sick leave ordinance effective January 2020

On January 1st, 2020 all employers with five or more employees must provide Earned Sick and Safe Time (ESST) to their employees working in Duluth. ESST is a law in Duluth that allows for employees to have access to paid time off work. ESST can be used by employees in order to care for themselves or a family member in situations involving illnesses, injuries, physical or mental health conditions, domestic violence, sexual assault, or stalking. Earned Sick and Safe Time Resources Duluth employers and employees can visit the ESST Resources pages for employee notice posters, educational materials, tracking tools, links to various government programs, and additional resources Earned Sick and Safe Time Administrative Rules The Earned Sick and Safe Time ordinance grants the Duluth City Clerk’s Of...

Minneapolis Wage Theft Prevention Ordinance

On August 8, 2019, the Minneapolis City Council passed the Wage Theft Prevention Ordinance, creating new requirements for Minneapolis employers and giving the Minneapolis Department of Civil Rights enforcement power.  The ordinance will take effect on January 1, 2020. The City’s ordinance goes further than the state wage theft law by requiring employers to include an employee’s current balance of available sick and safe time hours on all earnings statements. The ordinance also requires the following on pre-hire notices, in addition to state requirements: the date when employment begins, a notice regarding sick and safe time rights, a statement that tip sharing is voluntary under state law (where applicable) and relevant overtime policies The City has posted additional information and preli...

MN Wage Theft Law – July 1

Wage theft occurs when employers do not pay their workers what is owed for the work they have performed. It’s estimated up to 40,000 Minnesota workers pursue complaints of wage theft each year. Legislation was passed in May 2019 that will invest $3.1 million in new funding over the next two years in the Department of Labor and Industry’s enforcement of the state’s wage and hour laws. New “Wage Statement” Requirement and Additional Record keeping The new law creates a new “wage statement” that must be provided to employees in writing at the start of employment.  Employees must sign the wage statement and employers are required to keep a copy and provide a new notice if there are any changes. Also, updates include several new record keeping requirements for Minnesota employers as well as add...

IRS News: 2019_06

►UPCOMING WEBINARS Check Webinars for Small Businesses for upcoming webinars. May 30             Qualified Business Income Deduction (199A) June 6              Foreign Earned Income Exclusion June 13            U.S. Taxation of Employees of Foreign Governments & International Organizations June 19            U.S. Territories – Self Employment Tax June 27            Tax Residency Status ►IRS VIDEO PORTAL The following IRS webinar is now archived and available for viewing in the IRS Video Portal: Topic: Filing is The Thing to Do, Even if You Have a Balance Due Aired:   Thursday, April 4, 2019 Note: The full transcript is provided as closed captioning The Power Point is posted for downloading under the “Slides PDF” link. ►NEWS Small Business Week National Small Business Week was May...

IRS News: 2019_05

►NEWS Done with taxes this year? Use 2018 return to get 2019 withholding right • Millions of taxpayers filed a 2018 tax return in the last few weeks, making now a prime time for everyone to consider whether their tax situation came out as they expected. If it didn’t, they can use their recently finished 2018 return and the IRS Withholding Calculator to do a Paycheck Checkup and adjust their withholding. Don’t fall for myth-leading information about tax refunds • Now that the April tax-filing deadline has come and gone, many taxpayers are eager to get details about their tax refunds. When it comes to refunds, there are several common myths going around social media. • Here are five of these common myths: o Myth 1: Getting a refund this year means there’s no need to adjust withholding for 20...

USDOL: Notice of Proposed Rulemaking (Overtime Regulation Update)

The U.S. Department of Labor (Department) announced a Notice of Proposed Rulemaking (NPRM) that would make more than a million more American workers eligible for overtime. Under currently enforced law, employees with a salary below $455 per week ($23,660 annually) must be paid overtime if they work more than 40 hours per week. Workers making at least this salary level may be eligible for overtime based on their job duties. This salary level was set in 2004. This new proposal would update the salary threshold using current wage data, projected to January 1, 2020. The result would boost the standard salary level from $455 to $679 per week (equivalent to $35,308 per year). The Department is also asking for public comment on the NPRM’s language for periodic review to update the salary threshol...

FAQ: How long to keep tax records? 

Safekeeping tax records helps for future filing, amended returns, audits WASHINGTON — With the tax filing season quickly approaching, the Internal Revenue Service wants taxpayers to understand how long to keep tax returns and other documents. This is the seventh in a series of reminders to help taxpayers Get Ready for the upcoming tax filing season. The IRS has recently updated its Get Ready page with steps to take now for the 2019 filing season. The IRS generally recommends keeping copies of tax returns and supporting documents at least three years. Employment tax records should be kept at least four years after the date that the tax becomes due or paid, whichever is later. Tax records should be kept at least seven years if a return claims a loss from worthless securities or a bad debt de...

IRS News: 2018_10

IRS NEWS FOR PAYROLL AND HUMAN RESOURCES October 2018 ►UPCOMING WEB CONFERENCES IRS Web Conference – Understanding the Basics of Virtual Currency – is Now Available on Demand. IRS Web Conference – Understanding the Basics of the Dark Web – is Now Available on Demand. Please check Webinars for Small Businesses for upcoming webinars. ►TAX REFORM IRS statement on Form W-4 • Following feedback from the payroll and tax communities, the Treasury Department and the IRS will incorporate important changes into a new version of the Form W-4, Employee’s Withholding Allowance Certificate, for 2020. The 2019 version of the Form W-4 will be similar to the current 2018 version. A new draft version of the W-4 for 2019 will be available in the coming weeks. • The IRS will continue w...

IRS News: 2018_08

IRS tells taxpayers to do a “paycheck checkup” After filing tax returns, many people put taxes far out of their mind. However, the IRS urges these taxpayers to visit the Withholding Calculator on IRS.gov and do a “paycheck checkup.” Doing so will help them make sure their employers are withholding the correct amount of taxes from their paychecks. The Tax Cuts and Jobs Act was passed last year, and it included many tax law changes. Taxpayers who calculate their tax payments throughout the year in order to receive a refund at tax time should check to see how the new tax law affects them. A “paycheck checkup” can help taxpayers apply the new law changes to their situation. Here are some of the changes that affect taxpayers who received a refund this year, but also many other people: • The law...

IRS News: 2018_06

IRS NEWS FOR PAYROLL AND HUMAN RESOURCES ►TAX REFORM Law change affects moving, mileage and travel expenses  The IRS provided information to taxpayers and employers about changes from the Tax Cuts and Jobs Act that affect: move related vehicle expenses; un-reimbursed employee expenses; and, vehicle expensing. Two-income families, taxpayers working multiple jobs should check withholding amount The IRS urges two-income families and those who work multiple jobs to complete a “paycheck checkup” to verify they are having the right amount of tax withheld from their paychecks. Save www.irs.gov/taxreform as a favorite. ►OTHER NEWS Tips for Taxpayers Who Need to Amend a Return Taxpayers who discover they made a mistake on their tax returns after filing can file an amended tax return to correct it. ...

IRS News: 2018_05

IRS NEWS FOR PAYROLL AND HUMAN RESOURCES May 2018  ►UPCOMING WEB CONFERENCES  National Small Business Week Webcasts Wednesday, May 2 Pay Now? Pay Later? Can’t Pay? Thursday, May 3 Small Biz Resources @ Your Fingertips Friday, May 4 Pay Check Check-Up  ►TAX REFORM IRS urges ‘Paycheck Checkup’ for key groups; tax withholding may need adjustment Following the recent tax law changes, it’s especially important for certain people to use the Withholding Calculator on IRS.gov to check if they are having the right amount of withholding. Among the groups who should check their withholding are people who: Belong to a two-income family. Work two or more jobs or only work for part of the year. Have children and claim credits such as the Child Tax Credit. Have older dependents, including children age 17...

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