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But wait – we’re not done with 2024 yet! Here are some things to know about year-end reporting:
Accessing Year-End Forms
Last month’s newsletter provided instructions for employees to electronically consent to receiving year-end forms through the portal for both HCMToGo and Mize Connect. See below for additional instructions on how employees can access those forms:
Viewing W-2s and 1095s from the HCMToGo app
Viewing W-2s and 1095s from Mize Connect
Forms will be mailed to terminated employees as well as those who have not consented to electronic delivery. Forms W-2 will be mailed by January 31, 2025 and Forms 1095 will be mailed by February 28, 2025.
If you need to access year-end forms from 2.0 or the Report Center, click here for instructions.
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Questions? Reach out to Ann Hobart at ahobart@mizecpas.com. | |
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Changes to Affordable Care Act (ACA) Reporting
Two recent bills signed by President Biden in December change ACA reporting requirements.
Applicable large employers (ALEs) are required to file a return with the IRS that reports certain information about health care coverage that the employer offered or did not offer to each eligible employee. Until now, ALEs were required to also provide a copy of that report to each individual included on the return.
Effective for calendar years after 2023, employers may furnish Form 1095-C, Employer-Provided Health Insurance Offer and Coverage to individuals by request only. Employers must notify employees in a manner that is clear, conspicuous, and accessible. Once a request has been made, the employer must respond the later of January 31 of the year the form was required to be furnished or 30 days after the request.
Further, employers can provide ACA reports electronically if the employee has consented to receive electronic reporting. The employee can revoke the request in writing.
And lastly, if an employer is unable to obtain the tax identification number of an individual included on the return, the employer may use the individual’s full name and date of birth.
The due date for providing 2024 ACA forms to employees is March 3, 2025.
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Send Us Those Notices!
When you receive tax payment frequency change notices (or any other government notices), please send them to your payroll processor as soon as possible so we can get your payments scheduled correctly. Neglecting to do so could result in late payment penalties and interest liabilities on your account with the respective tax jurisdiction.
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Federal and Bank Holidays for 2025
Sometimes these holidays can catch you by surprise! Here’s a list of the 11 dates for this year so you can look ahead to work around your normal payroll (or mail) schedule:
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| New Years Day | January 1 | | Martin Luther King Jr Day | January 20 | | President’s Day | February 17 | | Memorial Day | May 26 | | Juneteenth National Independence Day | June 19 | | Independence Day | July 4 | | Labor Day | September 1 | | Columbus Day | October 13 | | Veterans Day | November 11 | | Thanksgiving Day | November 27 | | Christmas Day | December 25 | | |
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New Mileage Rates for 2025
The IRS has announced that the business standard mileage rate beginning January 1, 2025 will be 70¢ per mile, up from 67¢ per mile in 2024. This rate applies to electric, hybrid, gasoline, and diesel vehicles. This rate can be used to compute expense reimbursements for employees who use their own cars for business purposes or for determining the amount added to an employee’s income for the personal use of a company car.
The 2025 standard mileage rate for medical or moving purposes remains at 21¢ per mile, and for driving for charitable purposes remains at 14¢ per mile.
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New Form W-4 for 2025 . . . and When is an Employee Exempt from Tax Withholding?
Form W-4 has been updated for 2025 with some minor changes to the tax tables for the new year. If an employee has multiple jobs and has not submitted a new Form W-4 since 2019, it’s recommended that they do so now.
The IRS recommends that employees use the Tax Withholding Estimator to determine the most accurate withholding amount.
Employees can claim “Exempt” from withholding for 2025 if both of these items apply:
- The employee had no federal income tax liability in 2024; and
- The employee does not expect to have any federal income tax liability in 2025.
If an employee claims “Exempt,” they must submit a new Form W-4 by February 15 each year in order to maintain that status.
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Lots of new state laws took effect January 1, 2025, and we want to be sure you’re aware of what affects your organization: | |
Colorado
Beginning January 1, 2025, the state’s salary threshold to determine whether an employee can be exempt from overtime will be $56,485 per year (up from $55,000 per year). The threshold for highly compensated employees is now $127,091 (up from $123,750), and the exemption for highly technical computer related employees increased to $34.07 per hour, up from $33.17 per hour.
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Connecticut
On January 1, 2025, employers with 25 or more employees will be subject to the state’s paid sick leave law. The employer threshold will go down to 11 on January 1, 2026, and down to 1 on January 1, 2027. Details on the state’s paid sick leave law can be found by clicking here.
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Delaware
Effective January 1, 2025, covered employers must start contributing payroll deductions to fund the Delaware Paid Family and Medical Leave program, with the first contributions due April 30, 2025. More details can be found here.
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Hawaii
The temporary disability insurance weekly wage base increased to $1,441.72 effective 1/1/25. The employee contribution remains a maximum of .5% of weekly earnings up to the wage base. The maximum employee contribution is $7.21 per week up to $374.92 per year.
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Illinois
Child Labor - New child labor laws go into effect January 1, 2025 including the hours minors are allowed to work and prohibited occupations. Details can be found here and here.
Job Postings - Employers with at least 15 employees must include pay information in job postings beginning January 1, 2025.
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Louisiana
Form L-4, Employee’s Withholding Certificate, has been updated to reflect the state’s new 3% flat personal income tax rate and the increased standard deductions. The Louisiana Department of Revenue advises employers to have all their employees submit the new form.
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Maine
Beginning January 1, 2025, the state’s salary threshold to determine whether an employee can be exempt from overtime will be $845.21 per week ($43,951 per year), up from $816.35 per week or $42,450.20 per year.
Beginning January 1, 2025, employers must begin making contributions to the Maine paid family and medical leave (PFML) program. The program applies to employers with 15 or more employees who are paid in at least 20 weeks in the year. The contribution rate is 1% of employee wages, with up to half of the contribution amount deducted from employees. Employers with fewer than 15 employees are only required to contribute .5%, which can be fully deducted from employee wages.
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New York
Beginning January 1, 2025, employers are required to provide 20 hours of paid prenatal leave during any 52-week calendar period. This prenatal leave is in addition to regular paid sick leave already required by law. Paid prenatal leave is provided at the beginning of an employee’s pregnancy or related to the pregnancy. Unused leave is not required to be paid out to the employee upon termination. More information is available here.
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Electronic Pay Solutions
Employees like to get paid on time. Sometimes that’s harder than it might seem. With delivery issues, severe weather, and wildfires frequently in the news and maybe even your backyard, getting paychecks to employees can be difficult. That’s where electronic payroll solutions like direct deposit and pay cards can be a great solution.
Electronic pay solutions can also save you money. The costs of both printing and delivery are going up, which increases your payroll fees. With direct deposit and pay cards, employees can access their pay stubs and year-end Forms W-2 and 1095 online through the Mize payroll portal.
Read more about the benefits of electronic pay from our Insights blog by clicking here.
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On-Demand Pay
Tapcheck is an on-demand pay provider, empowering employees to take control of payday. Seamlessly integrated with payroll systems, Tapcheck boosts retention, productivity, and financial wellness—at no cost to employers and with no change to payroll.
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