Welcome to the July issue of the Mize Payroll Newsletter! There are always changes in the world of payroll and HR, and it’s important to stay up to date on what’s happening. Here’s news you can use this month:

Federal News

New accommodations for pregnant workers

The Pregnant Workers Fairness Act (PWFA) took effect on June 27, 2023, for companies with at least 15 employees. It requires employers to make reasonable accommodations for known limitations related to pregnancy, childbirth, or related medical conditions. More information is available from the Equal Employment Opportunity Commission website by clicking here.

PUMP Act

The PWFA comes on the heels of the PUMP Act, which went into effect at the end of 2022 and covers accommodations for nursing mothers. More information about the PUMP Act can be found on the Department of Labor website by clicking here.

Form I-9 physical document review is now required

Employers who may have used pandemic-era provisions for reviewing I-9 documents remotely must begin doing physical inspections of those documents as of July 31, 2023. Employers have until August 30, 2023, to complete physical document inspections for employees whose documents were inspected remotely during the temporary rules. More information is available from the USCIS website by clicking here.

Don’t be misled by ERTC scams

The IRS warned employers to be cautious about aggressive marketing by companies claiming to offer large tax credits under the Employee Retention Tax Credit. “Aggressive promoters present wildly misleading claims about this credit,” said IRS Commissioner Danny Werfel. “They can pocket handsome fees while leaving those claiming the credit at risk of having the claims denied or facing scenarios where they need to repay the credit.” While the ERTC is a legitimate credit, employers must satisfy specific requirements in order to be eligible. If you have questions about your company’s eligibility, contact your Mize tax professional for guidance.

EEOC-1 data collection

In our June newsletter, we told you the EEOC had not yet determined a date for data collection. Since then, they have announced that the 2022 Employer Information Report Component 1 data collection will occur this fall, but no specific date has yet been set. We’ll keep you updated as more specifics become available.

State By State Updates

Arkansas

Withholding tables have been adjusted as of June 1, 2023. In addition, the supplemental wage rate has been reduced from 4.9% to 4.7%.

District of Columbia

Effective July 1, 2023, the District’s minimum wage level increased from $16.10 per hour to $17. A workplace poster can be downloaded here. In addition, the minimum cash wage for tipped employees increased to $8 per hour.

Minnesota

Paid sick leave begins January 1, 2024, and provides paid leave for employees who are sick, to care for a sick family member, or to seek assistance if an employee or their family member has experienced domestic abuse. Employees accrue one hour of paid sick leave for every 30 hours worked, up to a maximum of 48 hours for the year.

Paid family leave will begin on January 1, 2026. The program will provide paid time off when a serious health condition prevents an employee from working, time to care for a family member or a new child, for certain military-related events, or for certain personal safety issues. It will be funded by contributions of 0.7% of each employee’s taxable wages, .35% of which can be deducted from employee pay. More information will be forthcoming as the deadline draws nearer.

Nevada

Effective July 1, 2024, earned wage access vendors doing business in Nevada must be licensed. Vendors already conducting business in the state as of January 1, 2023, have until December 31, 2024, to obtain a license.

North Dakota

Withholding tables were updated in May 2023 but effective for wages starting January 1, 2023.

Oregon

Employees can begin applying for paid leave on September 3, 2023. While contributions have been ongoing since January 2023, employees have not yet been able to access their paid leave bank. Paid Leave Oregon allows employees to take time off for the following purposes:

• To care for and bond with a child following the child’s birth or adoption
• To recover from a serious health condition
• To care for a family member’s serious health condition
•  If the employee or family member experiences domestic violence, sexual assault, or harassment

More information about the program can be found on the Paid Leave Oregon website.

Independent contractors – Effective 1-1-24, entities that hire independent contractors for more than 20 days will be required to submit a report to the state. Companies can use Form W-9, Request for Taxpayer Identification Number, and Certification to report the required information.

Utah

New withholding tables have been issued for Utah effective June 1, 2023.

Washington

Washington Cares LTC payroll tax withholding – Effective July 1, 2023, employers are required to begin withholding 0.58% of a covered employee’s gross wages for long-term care (LTC) insurance.

Reporting of child support lump sum payments – Effective July 23, 2023, employers are required to report lump-sum payments for child support purposes. An employer that receives an income withholding order that includes a provision for payment toward child support arrears must notify the Division of Child Support (DCS) or the federal Office of Child Support Services (OCSS) before making any lump-sum payment of more than $500. Furthermore, the employer is not allowed to distribute the remaining amount of the lump sum payment before 15 calendar days after reporting the lump sum payment or the date upon which authorization is received from the DCS, whichever is earlier. The DCS will respond within 14 calendar days after receiving notice from the employer.

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