Tech Flex: August, 2017 Volume VIII

Transcription

1 Tech Flex: August, 2017 Volume VIII 1

2 Tech Flex: February, 2018 Volume II Topics Covered In This Issue Benefits: 2017 Version of Publication 502 Released by IRS IRS Releases 2017 Version of Publication 503 Leave: New York Modifies Information on Paid Family Leave Employee Contributions Puerto Rico Enacts Paid Leave for Employees Suffering from Catastrophic Illness Payroll: IRS Issues Guidance Concerning 2018 Forms W-4 IRS Releases 2018 Publication 15 Addition to Nonresident Alien Employees Wages Increased Alaska Repeals Subminimum Wage Portland, Maine Announces Increase to Minimum Wage Santa Fe, New Mexico Increases Minimum Wage Time and Labor: 2017 EEO-1 Survey Open for Reporting Part of New York City Fair Workweek Law on Hold New York City Passes New Law Allowing Requests for Temporary Schedule Changes 2

3 Tech Flex: February 2018 Volume II VERSION OF PUBLICATION 502 RELEASED BY IRS The Internal Revenue Service (IRS) has released the latest version of Publication 502, which describes what medical expenses are deductible by taxpayers on their 2017 federal income tax returns. This publication provides guidance on what qualifies as a medical expense under Code 213(d), and thus helps identify the expenses that may be reimbursed or paid by health flexible spending accounts (health FSAs), health savings accounts (HSAs), or health reimbursement arrangements (HRAs), or covered on a taxfavored basis under other group health plans (e.g., an employer-sponsored medical plan). In addition, Publication 502 explains the itemized deduction for medical and dental expenses that a taxpayer can claim on Schedule A (Form 1040) and discusses what expenses, and whose expenses, a taxpayer can and cannot include in figuring the deduction. It also explains how to treat reimbursements and how to figure the deduction and informs taxpayers on how to report the deduction on their tax return and what to do if taxpayers sell medical property or receive damages for a personal injury. Under the What s New Section, the 2017 Publication 502 states as follows: Medical and dental expenses. Beginning January 1, 2017, you can deduct only the part of your medical and dental expenses that exceed 10% of your adjusted gross income (AGI). The 7.5% rate available for certain taxpayers has expired, however, at the time this publication went to print, Congress was considering legislation that would extend the 7.5% rate. To see if this legislation was enacted, go to IRS.gov/Pub502. Standard mileage rate. The standard mileage rate allowed as operating expenses for a car when you use it for medical reasons is 17 cents a mile. For a copy of Publication 502 (Medical and Dental Expenses (for preparing 2017 Returns), please click on the link provided below: IRS RELEASES 2017 VERSION OF PUBLICATION 503 The Internal Revenue Service (IRS) published Publication 503 for use in preparing 2017 tax returns, which describes the tests a taxpayer must meet in order to claim the credit for child and dependent care expenses and explains how to calculate and claim the credit. The 2017 version of Publication 503 provides the following Reminders : Taxpayer identification number needed for each qualifying person. You must include on line 2 of Form 2441, Child and Dependent Care Expenses, the name and taxpayer identification number (generally the social security number) of each qualifying person. You may have to pay employment taxes. If you pay someone to come to your home and care for your dependent or spouse, you may be a household employer who has to pay employment taxes. Usually, you aren't a household employer if the person who cares for your dependent or spouse does so at his or her home or place of business. For a copy of Publication 503 (Child and Dependent Care Expenses (for 2017 Returns), please click on the link provided below: 3

4 Tech Flex: February 2018 Volume II 4 NEW YORK MODIFIES INFORMATION ON PAID FAMILY LEAVE EMPLOYEE CONTRIBUTIONS As previously reported, New York Governor Andrew Cuomo, on April 4, 2016, signed into law legislation as part of the state budget that provides the nation s first 12- week paid family leave policy. The New York benefits will be phased-in beginning in 2018 at 50 percent of an employee s average weekly wage, capped to 50 percent of the statewide average weekly wage, and fully implemented in 2021 at 67 percent of an employee s average weekly wage, capped to 67 percent of the statewide average weekly wage. For more information on the New York Paid Family Leave program, please click on the link provided below. The New York Paid Family Leave legislation requires that by June 1, 2017 and on September 1 each year after, the Department of Financial Services (DFS) must publish the maximum employee contribution that an employer is authorized to collect from each of its employees to fund Family Leave Benefits. On June 1, 2017 the DFS announced that the weekly contribution rate for Paid Family Leave Benefits is 0.126% of the employee s weekly wage (capped at New York State s current average weekly wage of $1,305.92). The DFS announcement stated in part as follows: the Superintendent has determined that the premium rate for Family Leave Benefits and the maximum employee contribution for coverage beginning January 1, 2018 shall be 0.126% of an employee's weekly wage up to and not to exceed the statewide average weekly wage. Consequently, the maximum contribution according to the DFS announcement would be $1.65 per week per employee as 0.126% of $1, is $ rounded to $1.65 For a copy of the DFS announcement, please paste the following into your browser: New York also provided guidance that deductions from employee wages to pay for the 2018 coverage period may commence on July 1, CHANGE TO NEW YORK EMPLOYEE CONTRIBUTION INFORMATION: Removal of Weekly Cap Requirement: Previously the New York website had indicated that the employer was not allowed to deduct from an employee s pay in excess of $1.65 per week as follows: Employers may deduct the premium cost for the Paid Family Leave insurance policy from employees through a payroll deduction or choose to cover the cost themselves. The maximum employee contribution in 2018 is 0.126% of an employee s weekly wage capped at 0.126% of the annualized New York State Average Weekly Wage. 4

5 Tech Flex: February 2018 Volume II 5 That language has been modified to replace the weekly limit with an annual cap amount as follows: How much do employees pay? The 2018 payroll contribution is 0.126% of an employee s weekly wage and is capped at an annual maximum of $ If an employee earns less than the New York State Average Weekly Wage ($ per week), they will have an annual contribution amount less than the cap of $85.56, consistent with their actual weekly wages. For example, in 2018, if an employee earns $27,000 a year ($519 a week), they will pay 65 cents per week. With the removal of the weekly cap requirement and the insertion of an annual cap, an employer may take 0.126% of the first $67,905 wages an employee earns to meet the $85.56 annual cap for the 2018 coverage period. $67,905 X = $ New York has now also provided a calculator to show an employee s weekly contribution rate that demonstrates that weekly limit requirement has been eliminated. For example, if you enter $3,000 as your gross pay, you will receive the following results: PAID FAMILY LEAVE Weekly Payroll Deduction Your weekly Paid Family Leave payroll deduction is estimated to be $3.78 (If you are paid bi-weekly, double this amount to see what will be taken out of your paycheck.) Note: Your actual deduction may vary from pay period to pay period, depending on your gross weekly pay. In 2018, the annual maximum deduction per employee is $ To access the calculator please click on the link provided below: Clarification on Premiums Paid in 2017 for 2018 Coverage The New York FAQ states as follows: Why did some employers begin taking deductions in July? Deductions were permitted to begin on July 1, Early deductions allowed employers to collect funds in advance to pay the Paid Family Leave premium when it becomes due in However, whether employers start collecting on January 1, 2018 or earlier, the deductions are still subject to the same maximum employee contribution level. Consequently any premiums paid by an employee in 2017 will be credited toward the employee s 2018 annual cap. For example, if an employee s 2018 annual cap is $85.56 and $20.00 was deducted in 2017, only $65.56 could be deducted from the employee s pay in relation to New York Paid Family Leave in

6 Tech Flex: February 2018 Volume II 6 For access to the New York employee contribution information please paste the following into your browser: PUERTO RICO ENACTS PAID LEAVE FOR EMPLOYEES SUFFERING FROM CATASTROPHIC ILLNESSES The Governor of Puerto Rico recently signed into law Act No. 28 ( Act ), entitling all employees, including temporary employees, to take up to six days of paid leave per year if they suffer from a catastrophic illness. To be entitled to this leave, employees must have worked for their employer for at least 12 months, and have worked an average of 130 hours per month during the previous 12- month period. The Act takes effect on February 20, Catastrophic illnesses are defined as those listed in the Health Insurance Administration of Puerto Rico Special Coverage (HIAPRSC), which currently includes: Acquired Immunodeficiency Syndrome (AIDS); Tuberculosis; Leprosy; Lupus; Cystic Fibrosis; Cancer; Hemophilia; Aplastic Anemia; Rheumatoid Arthritis; Autism; Post Organ Transplant; Scleroderma; Multiple Sclerosis; Amyotrophic Lateral Sclerosis (ALS); and Chronic Kidney Disease in levels 3, 4 and 5. Other highlights of the Act include: To use this special leave, the employee must have exhausted his/her sick leave. The six-day special paid leave may be used in each calendar year and may not be accrued or carried over to the next calendar year. If the employee resigns or is terminated, the special paid leave, or any remaining days, will not be paid out to the employee upon his/her termination. The use of this special paid leave will be considered time worked for purposes of accrual of all employee benefits. At the request of the employee, the employer must allow the use of the special paid leave either through split, flexible or intermittent schedules. No employer may consider the use of this special paid leave as a negative factor in an employee s performance evaluation, or otherwise take adverse action against employees for taking this leave, such as by reducing their hours, reclassifying their position, or changing their shifts. An employer may require its employees to obtain a medical certificate from a health professional who offers medical treatment for the catastrophic illnesses, to certify that the employee is indeed diagnosed with a catastrophic illness and continues to receive medical treatment. The request for medical information must, at a minimum, comply with the Health Insurance Portability and Accountability Act s (HIPAA) privacy and confidentiality protections. The Act empowers the Secretary of Labor and Human Resources of Puerto Rico to investigate, receive and file complaints as well as to impose penalties on employers that violate its provisions. 6

7 Tech Flex: February 2018 Volume II 7 The Act establishes that an employer faces a fine of up to $2,000 if it prevents an eligible employee from entitlement to the benefits of the special paid leave. IRS ISSUES GUIDANCE CONCERNING 2018 FORMS W-4 On January 28, 2018, the Internal Revenue Service (IRS) issued Notice to offer guidance to employers concerning Forms W-4, Employee s Withholding Allowance Certificate, establishing claims of exemption, in light of the Tax Cuts and Jobs Act (P.L ) and the delayed publication of the 2018 Form W-4. Background The Tax Cuts and Jobs Act (the Act) made significant changes to tax rates, deductions, tax credits, and withholding calculations, beginning in The IRS released Notice 1036 (Rev. January 2018), Early Release Copies of the 2018 Percentage Method Tables for Income Tax Withholding, on January 11. However, the IRS does not expect to release a revised 2018 Form W-4 and instructions until late February. Generally, employers are required to disregard employee claims of exemption from withholding that are not reestablished on a new Form W-4 by February 15. Notice extends, until February 28, the effective period of Forms W-4 claiming exemption from withholding for 2017, and permits employees to claim exemption from withholding for 2018 by annotating and signing a 2017 Form W-4. The Notice provides procedures for claiming exemption from withholding for 2018, using the 2017 Form W-4. In light of the delayed Form W-4, Notice also suspends the requirement that employees must provide a revised Form W-4 within 10 days of any change to their tax status that would reduce the allowances to which they are entitled. Notice also provides that the optional flat withholding rate for supplemental wage payments is 22 percent, and provides that, for 2018, withholding pensions, annuities, and other deferred income, when no withholding certificate is in effect, is based on treating the payee as a married individual claiming three withholding allowances. The IRS is currently working on revising Form W-4 to reflect the changes made by the Act, such as changes in available itemized deductions, increases in the child tax credit, the new dependent credit, and the repeal of dependent exemptions. As a result, the 2018 Form W-4 may not be released until after February 15, The Act does not mandate that employees furnish new Forms W-4 for The IRS notes that For employees with simpler tax situations, the new tables are designed to produce the correct amount of tax withholding. The revisions are also aimed at avoiding over- and under-withholding of tax as much as possible. The IRS is expected to release an online withholding calculator on reflecting changes made by the Act, to help employees determine whether they should update their withholding allowances in response to the Act or changes in their personal circumstances in The Notice describes the procedures by which employees may claim exemption from withholding for 2018 using the 2017 Form W-4. (These procedures expire 30 days after the 2018 Form W-4 is released.) An employee may claim exemption from income tax withholding if the employee certifies on Form W-4 that (1) the employee incurred no liability for income tax for the preceding taxable year; and (2) the employee anticipates that he or she will incur no liability for income tax for the current taxable year. Forms W-4 furnished to the employer claiming exemption from withholding for a taxable year are effective up to and including February 15 of the following year, and an employer may continue to rely on employees' Forms W-4 7

8 Tech Flex: February 2018 Volume II 8 claiming exemption from withholding until February 16 of the following year. Since the IRS may not release the 2018 Form W-4 until after February 15, Forms W-4 claiming exemption from withholding for 2017 may be treated as effective through February 28, The 2017 Forms W-4 claiming exemption from withholding for 2017 are not effective for wage payments made after February 28, Employees may claim exemption using the 2017 Form W-4 until 30 days after the 2018 Form W-4 is released, by striking 2017 in the text on Line 7 of the Form W-4 and entering 2018 in its place and signing the form in 2018, or by entering Exempt 2018 on Line 7 of the 2017 Form W-4 and signing it, or by signing the 2017 Form W-4 without modification, if the employer establishes a procedure under which an employee signs and furnishes the 2017 Form W-4 in 2018 to certify both that the employee incurred no income tax liability for 2017 and that the employee anticipates that he or she will incur no income tax liability for 2018 and thus claims exemption from withholding for Any method substantially similar to these approaches that conveys in writing an employee's intent to certify his or her exemption from withholding for 2018 is acceptable. Employers with electronic systems for administering Forms W-4 withholding allowance certificates are permitted to modify their electronic systems to conform with these options. Lastly, under Internal Revenue Code (IRC) Section 3405, the payor of certain periodic payments for pensions, annuities, and other deferred income generally is required to withhold from the payments as if they were wages unless an individual elects not to have withholding apply to the periodic payment. The withholding election generally is made using Form W-4P, Withholding Certificate for Pension or Annuity Payments. Under the law in effect before 2018, IRC Section 3405(a)(4) provided that, in the case of a payee entitled to periodic payments with respect to which a withholding certificate has not been furnished, the amount to be withheld from each such payment shall be determined by treating the payee as a married individual claiming 3 withholding exemptions. The Act amended IRC Section 3405(a)(4) to provide that the withholding rate when no withholding certificate is furnished shall be determined under rules prescribed by the Secretary. The Notice provides that for 2018, the rules for withholding when no withholding certificate is furnished with respect to periodic payments under IRC Section 3405(a) will parallel the rules for prior years and be based on treating the payee as a married individual claiming three withholding allowances. For details, see IRS Notice at the following link: IRS RELEASES 2018 PUBLICATION 15 The Internal Revenue Service has released Publication 15 (a/k/a Circular E) Employer s Tax Guide for use in Publication 15 explains an employer s tax responsibilities and contains the final 2018 federal income tax percentage method and wage bracket withholding tables, important updates for 2017, and employer instructions for payroll and non-payroll tax withholding. Some of the highlights of the 2018 Publication 15 are as follows: 2018 federal income tax withholding. Publication 15 includes the 2018 Percentage Method Tables and Wage Bracket Method Tables for Income Tax Withholding. The 2018 withholding tables incorporate changes to the individual tax rates based on tax legislation enacted on December 22, 2017 (P.L ). Employers should implement the 2018 withholding tables as soon as possible, but not later than February 15, Continue to 8

9 Tech Flex: February 2018 Volume II 9 use the 2017 withholding tables until you implement the 2018 withholding tables. The new withholding tables are designed to work with the Forms W-4, Employee's Withholding Allowance Certificate that your employees previously gave you. To help employees determine their withholding, the IRS is revising the withholding tax calculator available at IRS.gov/W4App. The IRS anticipates that this calculator will be available by the end of February. Encourage your employees to use the withholding calculator to determine if they should give you a new Form W-4 for The IRS is also working on revising Form W-4 for The calculator and revised Form W-4 can be used by employees who wish to update their withholding in response to the new law or changes in their personal circumstances in 2018, and by workers starting a new job. Until a new Form W-4 is issued, employees and employers should continue to use the 2017 Form W-4. For more information, go to IRS.gov/NR1036. An employee who experiences a change of status that causes a reduction in the number of withholding allowances isn't required to give his or her employer a new Form W-4 until 30 days after the 2018 Form W-4 is released. An employee that has a reduction in the number of withholding allowances solely due to changes from P.L isn't required to give his or her employer a new Form W-4 during 2018 but may do so at any time. Employees may use the 2017 Form W-4 to report changes to withholding allowances until 30 days after the 2018 Form W-4 is released. New employees may continue to claim allowances on the 2017 Form W-4 until 30 days after the 2018 Form W-4 is released. Employees who submit new Forms W-4 for 2018 using the 2017 Form W-4 don't need to resubmit a 2018 Form W-4 when the 2018 Form W-4 is released. Exempt Form W-4. Generally, an employee may claim exemption from federal income tax withholding because he or she had no federal income tax liability last year and expects none this year. To continue to be exempt from withholding in 2018, an employee must give you a new Form W-4 by February 28, However, the 2018 Form W-4 may not be available before February 28, Employees may claim exemption from withholding for 2018 using the 2017 Form W-4 until 30 days after the 2018 Form W-4 is released. The 2017 Form W-4 must be (1) edited by striking "2017" in the text on line 7 and entering "2018" in its place, (2) completed by entering "Exempt 2018" on line 7, or (3) not edited but signed in 2018 and submitted under procedures established by the employer for the employee to certify entitlement to exempt status for 2018 by using the 2017 Form W-4 to claim exemption from withholding for In addition to 1 3 above, the employee can use any substantially similar method to 1 3 that clearly conveys in writing the employee's intent to certify his or her exemption from withholding for Employers that have established electronic systems for furnishing withholding allowance certificates may change their electronic systems to substantially conform with the options discussed above. If the employee doesn't give you Form W-4 by February 28, 2018 begin withholding based on the last Form W-4 for the employee that didn't claim an exemption from withholding or, if one wasn't furnished, then withhold tax as if he or she is single with zero withholding allowances. Employees who claimed exemption from withholding for 2018 using the 2017 Form W-4, as discussed above, don't need to resubmit a 2018 Form W-4 when the 2018 Form W-4 is released. Withholding allowance. The 2018 amount for one withholding allowance on an annual basis is $4,150. Withholding on supplemental wages. If an employee receives $1 million or less of supplemental wages during the calendar year, and such wages are either paid separately from regular wages or identified separately from regular wages (if made in the same payment), the flat percentage method of withholding on such wages during the 2018 calendar year is 22%, decreased from 25% in

10 Tech Flex: February 2018 Volume II 10 If an employee receives in excess of $1 million of supplemental wages during the calendar year, and the supplemental wages are either paid separately from regular wages or identified separately from regular wages (if made in the same payment), the amount of supplemental wages the employee receives in excess of $1 million is subject to withholding at a rate of 37%, decreased from 39.6% in The IRS defines supplemental wages in part as follows: Supplemental wages are wage payments to an employee that aren't regular wages. They include, but aren't limited to, bonuses, commissions, overtime pay, payments for accumulated sick leave, severance pay, awards, prizes, back pay, retroactive pay increases, and payments for nondeductible moving expenses. Backup withholding. P.L lowers the backup withholding rate to 24% from 28%. Moving expense reimbursement. P.L suspends the exclusion for qualified moving expense reimbursements from your employees income beginning after December 31, 2017, and before January 1, However, the exclusion is still available in the case of a member of the U.S. Armed Forces on active duty who moves because of a permanent change of station. The exclusion applies only to reimbursement of moving expenses that the member could deduct if he or she had paid or incurred them without reimbursement. Social security and Medicare tax for The social security tax rate is 6.2% each for the employee and employer, unchanged from The social security wage base limit is $128,400.The Medicare tax rate is 1.45% each for the employee and employer, unchanged from There is no wage base limit for Medicare tax. Social security and Medicare taxes apply to the wages of household workers you pay $2,100 or more in cash wages for Social security and Medicare taxes apply to election workers who are paid $1,800 or more in cash or an equivalent form of compensation in Disaster tax relief. Disaster tax relief was enacted for those impacted by Hurricane Harvey, Irma, or Maria. Additionally, the IRS has provided special relief designed to support employer leave-based donation programs to aid the victims of these hurricanes and to aid the victims of the California wildfires that began October 8, For more information about disaster relief, including the treatment of amounts paid to qualified taxexempt organizations under employer leave-based donation programs, see Pub For a copy of the 2018 Publication 15 please click on the link provided below: 10

11 Tech Flex: February 2018 Volume II 11 ADDITION TO NONRESIDENT ALIEN EMPLOYEES WAGES INCREASED Under the payroll rules for nonresident employees, employers are required to calculate federal income tax withholding on wages under a special procedure. Before applying the wage withholding tables, they must add to the wages of nonresident employees an amount that varies by pay period to offset the assumed standard deduction that is incorporated into the wage tables. These amounts do not affect income for Form W-2 purposes, Social Security or Medicare (FICA) wages or taxes, or wages for federal unemployment tax (FUTA) liabilities. Please Note: Nonresident alien students from India and business apprentices from India are not subject to this procedure. The amount that an employer must add to an employee s wages for calculating income for tax withholding purposes in 2018 has increased from the amount required in 2017 as follows: Payroll Period Add Additional 2018 Add Additional 2017 Weekly $ $44.20 Biweekly $ $88.50 Semimonthly $ $95.80 Monthly $ $ Quarterly $1, $ Annually $7, $1, Daily or Miscellaneous (each day of payroll period) $30.20 $8.80 For more information please see the 2018 Publication 15 page 22 (link below) ALASKA REPEALS SUBMINIMUM WAGE Effective February 16, 2018, Alaska Administrative Code is repealed and persons with disabilities must be paid at least the Alaska minimum wage which is currently $9.84 per hour. Up until February 15, 2018 Alaska law permitted persons with disabilities to be paid a subminimum wage. Alaska Administrative Code now repealed states in part as follows: (c) The commissioner will, in the commissioner's discretion, approve a wage lower than that established under AS , if the commissioner determines from the information provided in the application, that the person would otherwise be deprived of employment opportunity. With the exception of very extreme cases where the person is so seriously impaired that the person is unable to engage in competitive employment, that rate will not be less than 50 percent of the minimum wage established under AS

12 Tech Flex: February 2018 Volume II 12 For a copy of the Alaska Online Public Notice announcing the upcoming repeal of Alaska Administrative Code please click on the link provided below. PORTLAND, MAINE ANNOUNCES INCREASE TO MINIMUM WAGE The City of Portland, Maine has announced that effective July 1, 2018, the minimum wage will increase from to $10.68 per hour to $10.90 per hour. The service employee (tipped employee) cash wage will remain at the current level of $5.00 per hour. A service employee is someone who regularly receives more than $30 a month in tips. For a copy of the announcement please click on the link provided below. SANTA FE, NEW MEXICO INCREASES MINIMUM WAGE The City of Santa Fe, New Mexico has announced that effective March 1, 2018; the living wage rate in Santa Fe will increase from $11.09 to $11.40 per hour. All employers required to have a business license or registration from the City of Santa Fe must pay at least the living wage rate to employees for all hours worked within the Santa Fe city limits. All employees, including temporary and part-time workers, must be paid this rate. Tipped employees may be paid a minimum cash wage of $2.13 per hour if tips are sufficient to bring the employee s hourly wage to $11.40 per hour. If tips are not sufficient, the employer must make up the difference. For a copy of the announcement please paste the following into your browser: march_ EEO-1 SURVEY OPEN FOR REPORTING On January 24, 2018, the Equal Employment Opportunity Commission opened the 2017 EEO-1 survey. All private employers with 100 or more employees and federal government contractors or first-tier subcontractors with 50 or more employees and a contract/subcontract of $50,000 or more are required by law to file the EEO-1 report. The EEO-1 report includes employment data for these employers broken down by race/ethnicity, gender and job categories. The 2017 report is due on 3/31/2018. The data in the report must be from a payroll period in the 4th calendar quarter of Employers are reminded that the EEOC is not collecting the detailed information on employee hours and pay that had been proposed under the previous administration. On August 30, 2017, the Office of Management and Budget stayed the implementation of the proposed Form EEO-1, except for the new March 31 filing deadline. Accordingly, the 2017 report format and data file specifications are the same as those used in Additional Information: There is a new url to access the logon to the EEOC Online Filing System: 12

13 Tech Flex: February 2018 Volume II 13 The EEOC has updated the NAICS codes in their reporting system. Employers are encouraged to ensure they are using the most accurate NAICS code for their establishments. Clients should be on the lookout for an blast from the EEOC to the individual company contacts. The provides instructions on changing the password for the 2017 report. If the company contact has changed, the User s Guide provides instructions for updating the EEOC with new company contacts. The EEOC has posted new material on their website for the 2017 EEO-1 Report. This includes a new User Guide and How-To Guide for filing the 2017 EEO-1 report. These materials provide detailed instructions on using the Online Filing System. PART OF NEW YORK CITY FAIR WORKWEEK LAW ON HOLD New York City implemented a sweeping series of laws in November 2017, collectively called the Fair Workweek Law. This legislation was intended to provide certain workers in the retail and fast food sectors with new workplace rights and protections. One piece of the Fair Workweek Law is a measure that would require fast food employers to permit employees to authorize the payment of a portion of employees wages to registered and approved nonprofit organizations. The deduction portion of the law also requires affected employers to deduct, collect and remit the portion of employees wages to those organizations. Days before the Fair Workweek Law was set to take effect, two industry groups, the National Restaurant Association and the Restaurant Law Center, filed a lawsuit against New York City, arguing that the deduction portion of the Fair Workweek Law amounted to a violation of the First Amendment Rights of employers, by forcing employers to take action that could be perceived as associating with and funding organizations that they do not support. Further, they argued that the deduction portion of the law was preempted by the federal National Labor Relations Act, since it purports to afford New York City the authority to determine what is and is not a labor organization, as well as several related arguments under federal labor law. Based upon the ongoing legal challenge, New York City has agreed to a temporary stay of enforcement of the deduction portion of the Fair Workweek Law. Pursuant to an agreement between the plaintiffs and the City and agreed upon by the Court, enforcement of the deductions portion of the law is stayed until the sooner of a court ruling on this issue, or March 30, The matter will continue to be argued in the Court. ADP is monitoring the situation for future developments. 13

14 Tech Flex: February 2018 Volume II 14 NEW YORK CITY PASSES NEW LAW ALLOWING REQUESTS FOR TEMPORARY SCHEDULE CHANGES On January 19, 2018, New York City s City Council adopted a regulation that will allow employees to request up to two schedule changes per year for certain qualifying, personal events. Unlike the other series of scheduling laws passed in New York City, this provision applies to all employees, not just those in the retail or fast food sectors. The new law will take effect on July 18, The law requires employers to grant two temporary schedule changes to employees, amounting to up to one business day each, in each calendar year. To be eligible under the law, the request must be for a qualifying person event. These events include: A caregiving emergency; A legal proceeding or hearing for subsistence benefits A circumstance that would qualify for use of safe time or sick time under the recently-amended Earned Safe and Sick Time Act ( ESSTA ). The measure suggests that the following options may be used as a way to accommodate an employee s request for a temporary scheduling change: Using paid time off; Working remotely; Swapping or shifting work hours; or Using short-term unpaid leave. Employees must request the change as soon as possible, but the request need not be in writing. The employer may permit the employee to use two business days for one request, in which case the employer need not grant a second request. An employer who receives such an initial request shall respond immediately, but need not put such initial response in writing. As soon as is practicable, and no later than 14 days after the employee submits the request in writing, the employer must provide a written response, which may be in electronic form if such form is easily accessible to the employee. The written response must include the following information: Whether the employer will agree to the temporary change to the work schedule in the manner requested by the employee, or will provide the temporary change to the work schedule as leave without pay, which does not constitute a denial; If the employer denies the request for a temporary change to the work schedule, an explanation for the denial; and How many requests and how many business days the employee has left in the calendar year after taking into account the employer s decision contained in the written response. Employers may only deny requests for temporary schedule changes under this law if the employee has already used their two requests for the given calendar year, or if one of the following exemptions applies: The employee is covered by a valid collective bargaining agreement that waives the provisions of the law, and addresses temporary changes to work schedules; The employee has been employed by the employer fewer than 120 days; The employee works fewer than 80 hours in NYC in a year; or 14

15 Tech Flex: February 2018 Volume II 15 The individual is engaged in performing certain types of work in the theater, film, or TV industry. Employees who make schedule change requests, including requests not covered by the law, may not be subjected to retaliation for doing so. ADP does not make any representation or warranty that the information contained in this newsletter, when used in a specific and actual situation, meets applicable legal requirements. This newsletter is provided solely as a courtesy and should not be construed as legal advice. The information in this newsletter represents informational highlights and should not be considered a comprehensive review of legal and compliance activity. Your legal counsel should be consulted for updates on law and guidance that may have an impact on your organization and the specific facts related to your business. **Please note that the information provided in this document is current as of the date it is originally published.** 15