Why You Should Pay Attention to Compliance Updates

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 noise and find the information that is the most important to your janitorial or security business. Tax, payroll and human resources updates are some of the things you should pay attention to, regardless of what industry you’re in. It can be even more important, and challenging, for service contractors such as janitorial or security companies to stay connected to the ever-changing tax and payroll compliance landscape. Depending on the size of your business, you could be dealing with a distributed workforce across multiple states with a small back-office team to support them, which only leads to further potential tax complexities.

The legislation and requirements gathering process can be difficult for employers, because of the many government agencies that are involved. Here are some key compliance updates and trends you should have on your 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 Age Discrimination in Employment Act (ADEA) to all states and localities, regardless of their size, in a unanimous decision that will make it harder for towns to lay off older workers. Previously, employers who had fewer than 20 employees were excluded from the reach of ADEA.

Why does this matter to you?

Changes like this reach across the United States and are especially important for small businesses. It also means that individual supervisors could be found liable as they are considered agents of the employer. Ensuring that all managers and supervisors are aware of the law when it comes to discrimination of any kind can help prevent your company from potential lawsuits down the road.

401(k) and IRA Contribution Changes for 2019

What happened?

The Internal Revenue Service (IRS) announced the cost of living adjustments for employees who participate in a 401(k) plan from $18,500 to $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 so they can take advantage of the tax benefits available to them if you offer a 401(k) program. While many of the limitations stayed unchanged for 2019, it’s critical you stay informed, so you can keep your distributed workforce informed.


IRS Withholding Calculator

What happened?

The IRS encourages everyone to use the Withholding Calculator to perform a quick “paycheck checkup.” The Withholding Calculator helps you determine whether you need to give your employer a new Form W-4, Employee’s Withholding Allowance Certificate. You can use your results from the Calculator to help fill out the form and adjust your income tax withholding.  Special Note for 2019:  If you follow the recommendations at the end of this Calculator and change your withholding for 2018, the IRS reminds you to be sure to recheck your withholding at the start of 2019. This is especially important if you reduce your withholding sometime during 2018. A mid-year withholding change in 2018 may have a different full-year impact in 2019. So, if you do not file a new Form W-4 for 2019, your withholding might be higher or lower than you intend. To help protect against having too little withheld in 2019, we encourage checking your withholding again early in 2019. 

Why does this matter to you?

Ensuring you have the proper amount being withheld is critical for both yourself as an individual and for your employees. This is even more important this year because of recent changes to the tax law for 2018. Help your employees be prepared for tax season by training your Human Resources team on how to talk to employees about the Withholding Calculator and encouraging employees to use it.

This list highlights some of the U.S. tax and payroll compliance updates. Please continue to use industry resources such as the Society for Human Resource Management (SHRM) and the American Payroll Association (APA) to stay updated on all tax related compliance changes. TEAM is dedicated to ensuring our software solutions meet the ever-changing compliance needs of our customers. While we’re committed to keeping you informed, it’s important to do your own research, and consult your own legal and tax advisors when necessary, too.