We have comfortably navigated into 2016, and it is important to become familiar with the various laws that will be going into effect this year. Some of these laws are federal, while others involve specific states such as New York and California. Only by knowing what’s coming on the horizon can you properly prepare to address the changes that will affect both employers and employees.
2016 will see a bunch of labor laws, and understanding the most important of these laws will ensure that your business is within compliance, which will help it avoid penalties and fees. Depending on the state in which your business operates, you may have few changes to worry about, while business owners operating in other states may have to deal with a whole host of regulations. Virtually every business in the U.S. will be affected to some degree by these compliance changes in 2016.
Affordable Care Act
Last year, President Obama changed the ACA expansion for the definition of small group employers. Known as the PACE act, individual states are now able to determine how small group employers will be defined. Those who own businesses which employ fewer than 50 people won’t be affected by the PACE act, but those with more than fifty workers will need to research the ruling for their individual state to see what must be done.
The President also created a bill which postponed the Cadillac Tax, and instead of beginning in 2018, it will start in 2020. Because this tax has been delayed, there is little employers need to do for the time being. The IRS also provided a deadline extension for the Affordable Care Act, which is at least sixty days. Employers should use this additional time to make sure they are within compliance.
Fair Pay Laws
These laws have been established in New York and California, and are designed to enhance the pay of female workers. The details for each state may differ, but in California, signs must be put up which notify employees of the law in a place where they can easily see it.
Various cities and states across the country are raising the minimum wage. Employers who have employees that work by the hour will need to check the laws in their area to determine what the new wages are, if any. Rhode Island is one such state that will increase its minimum wage, along with New York.
The HSA, or Health Savings Account, is a tool that allows employees to put aside their earnings in a way where they can later be used to pay for healthcare. Although the individual contribution this year remains the same, the rate for families has increased from $6,650 to $6,750. This means that employers who offer a Health Savings Account will need to notify their employees about this change, and alter their accounts as needed.
If you need professional help in coping with these HR & healthcare insurance compliance changes, you can make use of our TRAXBenefits system to help you stay on top of things. Give us a call at TRAXPayroll today and learn more!