Payroll Alerts

2017 New Jersey Minimum Wage - 1/1/2017

Effective January 1st 2017, the New Jersey mininum wage is increased to $8.44 from $8.38 in 2016.

2017 Social Security Base - 1/1/2017

Effective January 1st 2017, the social security wage base is increased to $127,200.00 from $118,500.00 in 2016.

2017 New Jersey Unemployment Minimum Wage - 1/1/2017

Effective January 1st 2017, the New Jersey unemployment wage base is increased to $33,500.00 from $32,600.00 in 2016.

2017 Philadelphia Unemployment Minimum Wage - 1/1/2017

Effective January 1st 2017, the Pennsylvania unemployment wage base is increased to $9,700.00 from $9,500.00 in 2016.

Philadelphia Mandatory Sick Leave Law - 05/13/2015

Effective May 13, 2015 the Philadelphia Mandatory Sick Leave Law.

2015 Social Security Base - 1/1/2015

Effective Jan 1, 2015 the social security base will increase from $117,000 to $118,500. Medicare will not change.

New Jersey Minimum Wage - 1/1/2015

Effective Jan 1, 2015 the minimum wage in NJ will increase from $8.25 to $8.38.

New Jersey Unemployment Minimum Wage - 1/1/2015

Effective Jan 1, 2015 the minimum amount of wages one can earn for unemployment in NJ will increase from $145 to $165 per week.

401k contribution limits - 1/1/2015

Effective Jan 1, 2015 the 401K amount that can be contributed increases from $17,500 to $18,000 annually. The catch up amount increases from $5,500 to $6,000 annually.

Simple 401k contribution limits - 1/1/2015

Effective Jan 1, 2015 for the simple 401K the amount increases from $12,000 to $12,500 annually. The catch up increases from $2,500 to $3,000 annually.

2014 Social Security Base - 1/1/2014

Effective January 1, 2014, the new social security base will be $117,000.00. Medicare will remain the same.

2014 New Jersey Minimum Wage - 1/1/2014

Effective January 1, 2014, the minimum wage for New Jersey will be $8.25 per hour.

New Health Insurance Marketplace Coverage Options and Your Health Coverage - 10/1/2013

Download the FLSA with Plans or FLSA without plans.

New Jersey Security and Financial Empowerment Act (SAFE Act) - 10/1/2013

Chris Christie signs New Jersey Security and Financial Empowerment Act (New Jersey SAFE Act) into law. Read the summary here.

Affordable Health Care Act

The Obama administration has delayed several key requirements of the affordable can act until 2015. Specifically penalties for large employers that do not provide health care coverage to their full time employees. (A.K.A.Employer Shared Responsibility payments) will not apply until 2015. Your employer is required by the U.S. Department of Labor to provide you with the enclosed notice.

Revised I-9 Immigration Form - 5/8/2013

United States Citizenship and Immigration service (USCIS) released a new I-9 form. Employers must use the revised version when hiring new employees. Any employee prior to this date does not have to fill out a new I-9.

End of Employees' Social Security Reduction - 1/1/2013

The employees' portion of social security will return to the original withholding of 6.2%

New Regulation on Medicare Withholding - 1/1/2013

Employers will be required to with hold an additional 0.9% medicare tax for those employees earning an excess of $200,000 per year

MW 400 Employer Obligation - 3/29/2012

Beginning December 7, 2011 New Jersey employers will be required to provide to all newly hired employees at the time of hiring a copy of form MW 400 Employer Obligation to Maintain and Report Records. The MW400 must be (1) given at the time of hiring as part of the Hiring Package or (2) delivered via email to the employee.

Employee Rights - 3/29/2012

In an effort to increase employees’ awareness of their rights under the National Labor Relations Act (“NLRA”), the National Labor Relations Board (“NLRB”) issued a final ruling on August 25, 2011 which imposes a new posting requirement for employers subject to the NLRA. Specifically, the rule requires that employers post and maintain in a conspicuous place within the workplace a notice setting forth employee rights under the NLRA, contact information for the Board, and information concerning enforcement procedures. Covered private sector employers must post the notice by April 30, 2012. Posters must be at least 11 inches by 17 inches in size, and placed where they can be readily accessed by employees:

Retirement Plans - 3/15/2012

For those focused on saving for retirement, the recent increase in the defined contribution plan limits are great news. For defined contribution plans like 401(k) and 403(b), the maximum employee deferral has increased by $500 this year to $17,000, (up from $16,500 in 2011). The “catch-up” contribution for participants age 50 and older remains unchanged at $5,500 for tax year 2012.

 

IRA contribution limits

The annual contribution limits for individual retirement accounts (IRAs) remain unchanged. Individuals age 50 or older before the end of 2012 may contribute up to $6,000 to a traditional or Roth IRA. You can split contributions between a traditional and a Roth IRA, but the combined limit is $6,000. Note that your annual income determines eligibility for a Roth IRA. See irs.gov for additional details.

And don’t forget that there’s still time to make 2011 IRA contributions. You have until April 17, 2012!

Lower Social Security Tax Withholding Rate - 3/15/2012

Under the Middle Class Tax Relief and Job Creation Act of 2012, enacted yesterday, workers will continue to receive larger paychecks for the rest of this year based on a lower social security tax withholding rate of 4.2 percent, which is two percentage points less than the 6.2 percent rate in effect prior to 2011. This reduced rate, originally in effect for all of 2011, was extended through the end of February by the Temporary Payroll Tax Cut Continuation Act of 2011, enacted Dec. 23.

Required To Report In 2012 With More Than 250 W-2s - 3/15/2012

Reporting the employer paid insurance on employee W-2s is voluntary for all employers for 2011 and small employers for 2012. However, employers with more than 250 W-2s for tax year 2012 will be required to report the employer paid insurance amounts on all employees’ W-2s, due to the Affordable Care Act.

In general, the amount reported should include both the portion paid by the employer and the portion paid by the employee whether or not it was pre-tax. In the case of a health FSA, the amount reported should not include the amount of any salary reduction contributions.

The cost of these health care benefits will be reported in Box 12 of the Form W-2, with Code DD. It is listed for informational purposes only, and is not taxable