July 2016
Stay Current Newsletter
ANCHOR1IRS Data Match Program Guide 

Last month in our Newsletter we talked about the Data Match program; employers are required to complete the Data Match report within 30 days of receiving the Data Match Personal Identification Number. This month we're providing a guide to assist you with completing the form. 

ANCHOR2ACA Returns Information 

While the deadline to electronically file Affordable Care Act (ACA) information returns with the IRS passed on June 30, 2016, the  ACA Information Returns (AIR) system used to electronically file those returns, as well as the ability to complete required system testing, will remain up and running.  

Rejected, 'Accepted with Errors,' and Late Filings

Employers whose filings were rejected by the AIR system have 60 days from the date of rejection to submit a replacement and have the rejected filing treated as timely filed. In addition, employers whose filings received an "Accepted with Errors" message may continue to submit corrections after June 30, 2016.   
Employers unable to submit all required ACA information returns by June 30, 2016 should still file their returns after the deadline. Filers that missed the June 30, 2016 deadline will generally not be assessed late filing penalties if the reporting entity has made legitimate efforts to register with the AIR system and to file its information returns, and it continues to make such efforts and completes the process as soon as possible. In addition, consistent with existing information reporting rules, filers that are assessed penalties may still meet the criteria for a  reasonable cause waiver from the penalties.  

Article reprinted with permission from HR360.com

ANCHOR3Question of the Month

Q. How does an ALE determine whether or not a newly hired variable hour employee should be offered benefits? 

A.  The answer depends on how the applicable large employer (ALE) is measuring its regular or ongoing workforce. If the employer uses the monthly method to track its ongoing employees, it would offer a variable hour employee benefits within 90 days and by the first of the fourth month after an employee averaged 30 hours a week or more, and for every month after that the employee was full time.
If the ALE uses the measurement and lookback method for its ongoing employees, it can use the special "initial measurement period" option for newly hired variable hour employees.
To use the variable-hour look-back option:
  • An "initial measurement period" of three to 12 months must be chosen
  • The stability period must be the same length as the stability period for ongoing employees
    • For new employees determined to be full-time, it must:
      • be at least as long as the initial measurement period
      • be at least six months long
    • For new employees determined not to be full-time, it must not:
      • be more than one month longer than the initial measurement period
      • exceed the remainder of the standard measurement period, plus any associated administrative period, in which the initial measurement period ends
Example: Because XYZ Company uses a 12-month stability period for ongoing employees, it must use a 12-month stability period for new hires. XYZ chooses an initial measurement period of 12 months for new variable hours and seasonal employees. Sally is hired May 10, 2015. Sally works in the after-school program, so she will work a few hours a day during the school year and as many as 50 hours per week during school vacations. She is on-call if the school closes due to bad weather. XYZ tracks Sally's hours from May 10, 2015, to May 9, 2016, and determines she averaged 32 hours per week during that time. Sally is offered coverage as of June 1, 2016. XYZ does not owe a penalty for Sally during the entire 12-month initial measurement period, even though it was more than the three-month period generally allowed and she actually averaged more than 30 hours per week because of this special option for variable employees.
Note: If an employer uses a three-month measurement period and needs to use a six-month stability period because the employee is full-time, the next measurement period (plus administrative period) must be adjacent to the end of the stability period.

ANCHOR4Department of Labor Changes 

In less than six months the new rule updating the regulations governing which executive, administrative, and professional employees are entitled to the minimum wage and overtime pay protections of the federal Fair Labor Standards Act (FLSA) will be in effect.  

Click here for full details on our HR Done Right blog. 

If you are a member of the Sacramento Metro Chamber don't miss attending the August Arden Arcade Business Council Meeting! HR Consultant Julie Worley will be speaking on the new changes and updates in HR and how to stay compliant. 
ANCHOR5From FMLA/CFRA to the Labor Code: Understanding 
the Tangled Web of Leave Laws and How They Apply to You

SEAC Event: Tuesday, August 23, 7:30-12:30PM
Location: Sacramento State Alumni Center 
 6000 J Street, Sacramento, CA 95819

The cost for members is $90, $125 for non-members.

SEAC is a not-for-profit employer advocacy group that helps educate employers about relevant employment issues and related legal concerns. BDR CEO Laurie Rood serves on the Board and a number of our clients are members and find the workshops and seminars very valuable. For more details about SEAC and to register for this event, click the link below.

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