There are a number of things that employers and their employees should be aware of for 2018. While the start of a new year can be a sluggish transition for some, for others it can be a storm of activities involving meetings, deadlines and the establishment of goals. Regardless of which spectrum you fall under, below are payroll and tax info for this year that you need to know.
22 states (which includes both the Virgin Islands and District of Columbia), will raise their minimum wage in 2018. It is important for employers to do their research to find out if their location applies, especially if they operate in multiple states.
17 states are expected to raise the taxable wage amounts for unemployment taxes. 8 states will lower their base of taxable wages. Therefore, employers will need to refer to a tax guide in order to find out what, if any, new rules apply to them.
The IRS has provided a guidance which will extend deadlines for the distribution of 1095 forms from 2017 (B/C) which will be from the 31st of January until March 2nd of 2018. Those filing 1094 or 1095 forms through paper will have a due date of February, 28, 2018, while those who are filing these forms electronically will have a due date of April 2nd, 2018.
In October of 2017 the administration of Social Security revealed that the wage base for 2018 will increase, from $127,200 in 2017 to $128,400 in 2018, which is an additional $1200.
The travel and transport rate for business usage of a vehicle has been set at 54.5 cents per mile in 2018. This is an increase from 53.5 cents which was the mileage rate for 2017.
The majority of states have a deadline of January 31st for W-2 form filing. Despite this, other states such as New Jersey, Hawaii, West Virginia, Oklahoma and New Mexico instead have a deadline of February 28th to file the W-2 Form, so employees in these states will get additional time to fill out and submit them.
President Trump signed his Jobs Act and Tax Cuts this past December, and while details regarding it are still developing, what is known so far is that many of the personal exemptions were removed, while standard deductions were doubled. The IRS, for its part, has stated that it expects to release withholding guidance for implementation of the recent tax reform law later this month. This means that for most employers the new rules will go into effect in February.
When implementing time and labor management systems, it is important to have a clear plan as well as a qualified project manager who can oversee it. Due to the growing adoption of solutions which are cloud based, deploying these systems has become much easier in recent years. Below are some recommendations which will streamline the process further.
From the beginning of system implementation until the end, third party consultants can assist you in making a transition which is seamless. This is because they will often give advice which is unbiased, show your employees how to adapt to the new system and help with the most critical aspects of the transition.
Prior to beginning the transition, setup a formalized plan for communication that will show employees what they can expect, the timeline for when certain changes will occur, and information regarding training and where the employees can seek help. Employees should always be given sufficient time to adjust, and the more transparency you have, the smoother the transition will be.
The Information Technology department will be indispensable when it comes to switching to the automated system. As such, you should work closely with them from the outset. They have considerable knowledge regarding the technical aspects along with a vision on how the system will benefit everyone.
People are usually resistant to change, and it is your employees who will be most heavily affected by the transition. As a consequence, their input should be taken into consideration. Too many organizations allow the decision making to be left completely to management and executives, without considering what employees think. Discussing the changes with them, answering any questions they have, and using some of their ideas will boost their morale and make the transition easier.
Implementation must have the support of everyone in the organization, from the executives to rank and file employees. Employees must be assured that the company leaders both understand and support the transition that is being made, and by speaking openly about it, this can have a tremendous impact on how well the process is received. Most employees will require a bit of help during the transition, so they must receive adequate training while getting all the support they need.
One thing that should be noted about labor management systems is that no two implementations are exactly alike, and some are far easier than others. In the end, the most ideal implementations are those where both client and vendor have a flexible approach along with contingency plans for when things go wrong. By doing this and following the other recommendations listed above, you will end up with a system that increases your efficiency, productivity and profitability.
2018 is here, and with it are trends which will shape the human resources landscape. Every business, irrespective of industry, should want to keep abreast of these new developments, and below are the hottest HR trends which you should expect and prepare for this year and beyond.
A lot of recruiting processes are already automated, and this phenomenon will expand in 2018. This is the result of Human Resources software which will be merged with AI in a manner that will allow applications which have passed the filtering phase to be reviewed, and in some cases the AI will be advanced enough to interview candidates itself. Artificial Intelligence is expected to save time while eliminating discriminatory behavior, which will save companies large sums of money while reducing their legal liability. Additionally, ranking systems can be placed within interviews that are conducted digitally.
The one size fits all worldview will end in 2018, largely because employees want to be seen as individuals, where their distinct skills, goals and needs are considered by their employers. Businesses that understand and respond to this trend accordingly will attract the top talent that their industry has to offer. Companies will further benefit by boosting productivity, reducing the costs and time needed for training, and enhancing their succession plans. Employees who have work schedules and tasks which are compatible with their needs will have superior morale which will result in them accomplishing more.
More companies are recognizing the importance of a workforce which is tight knit, so expect collaborative efforts to be emphasized this year. However, this doesn’t necessarily imply greater face time, since many of the most successful companies are performing collaborative projects remotely without team members needing to meet face to face. HR software in particular will play a key role in digital collaboration and will foster stronger relationships and teamwork.
Upskilling is a new word which means training and developing the skills of workers who are already employed by an organization. This trend is the result of more companies wanting to use their existing workforce to enter open positions, while providing them with promotions and additional training. Fewer new hires are expected to join the workforce over the next few years, prompting employers to rely on those who already work for them.
Remote training is not new, but will continue to expand and advance in 2018 and beyond. International offices will no longer be restricted to Fortune 500 and 1000 companies, and a growing number of small businesses will also open their doors overseas. Remote training will require state of the art webinar and digital training video, and many companies are already starting to incorporate virtual reality tools that place candidates or employees in simulated environments where they can learn the tools of their trade.