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Stay informed (and in compliance) with these updates.
You’re constantly being inundated with information,requests, updates and news. And, it can be hard to sift through all the noiseand find the information that is the most important to your janitorial orsecurity business. Tax, payroll and human resources updates are some of thethings you should pay attention to, regardless of what industry you’re in. Itcan be even more important, and challenging, for service contractors such asjanitorial or security companies to stay connected to the ever-changing tax andpayroll compliance landscape. Depending on the size of your business, you couldbe dealing with a distributed workforce across multiple states with a smallback-office team to support them, which only leads to further potential taxcomplexities.
The legislation and requirements gathering process can bedifficult for employers, because of the many government agencies that areinvolved. Here are some key compliance updates and trends you should have onyour radar, as well as some additional resources worth keeping an eye on.
Human Resources
Supreme Court Expands ADEA’s Application
What happened
The U.S. Supreme Court has extended the reach of the AgeDiscrimination in Employment Act (ADEA) to all states and localities,regardless of their size, in a unanimous decision that will make it harder fortowns to lay off older workers. Previously, employers who had fewer than 20employees were excluded from the reach of ADEA.
Why does this matter to you?
Changes like this reach across the United States and are especiallyimportant for small businesses. It also means that individual supervisors couldbe found liable as they are considered agents of the employer. Ensuring thatall managers and supervisors are aware of the law when it comes todiscrimination of any kind can help prevent your company from potentiallawsuits down the road.
401(k) and IRA Contribution Changes for 2019
What happened?
The Internal Revenue Service (IRS) announced the cost ofliving adjustments for employees who participate in a 401(k) plan from $18,500to $19,000 and annual contributions to an IRA from $5,500 to $6,000.
Why does this matter to you?
These increases need to be communicated to your employees sothey can take advantage of the tax benefits available to them if you offer a401(k) program. While many of the limitations stayed unchanged for 2019, it’scritical you stay informed, so you can keep your distributed workforceinformed.
Payroll
IRS Withholding Calculator
What happened?
The IRS encourages everyone to use the WithholdingCalculator to perform a quick “paycheck checkup.” The WithholdingCalculator helps you determine whether you need to give your employer anew Form W-4, Employee'sWithholding Allowance Certificate. You can use your results from theCalculator to help fill out the form and adjust your income taxwithholding. Special Note for 2019: If you follow therecommendations at the end of this Calculator and change your withholding for2018, the IRS reminds you to be sure to recheck your withholding at the startof 2019. This is especially important if you reduce your withholding sometimeduring 2018. A mid-year withholding change in 2018 may have a differentfull-year impact in 2019. So, if you do not file a new Form W-4 for 2019, yourwithholding might be higher or lower than you intend. To help protect againsthaving too little withheld in 2019, we encourage checking your withholdingagain early in 2019.
Why does this matter to you?
Ensuring you have the proper amount being withheld iscritical for both yourself as an individual and for your employees. This iseven more important this year because of recent changes to the tax law for2018. Help your employees be prepared for tax season by training your HumanResources team on how to talk to employees about the Withholding Calculator andencouraging employees to use it.
This list highlights some of the U.S. tax and payrollcompliance updates. Please continue to use industry resources such asthe Society forHuman Resource Management (SHRM) and the American PayrollAssociation (APA) to stay updated on all tax related compliancechanges. TEAM is dedicated to ensuring our software solutions meet theever-changing compliance needs of our customers. While we’re committed tokeeping you informed, it’s important to do your own research, and consult yourown legal and tax advisors when necessary, too.
