By Lisa Anderson, CPP
Welcome to 2018! Your Board has been hard at work over the last month updating the Bylaws and preparing the 2018-2019 budget. We have so many great things planned for 2018, so hold on tight and don’t let go – DAPA will get you where you need to go!
Committee Volunteers – We are preparing for our Membership drive in February and still have a few openings on that committee.
Education is busy preparing the classes for 2018. Be on the lookout for some newly added class offerings to help those preparing to sit for the Spring FPC/CPP. Remember, if you passed your FPC or CPP in 2017, please notify Education before our March Awards night; we have a very special presentation for all new FPC/CPPs [email protected].
Remember: Awards night is almost here! March 8, 2018, is just around the corner – so save the date. Know your onions - the cat’s out of the bag, so grab your hotsy-totsy and join us at our blind pig for some giggle water while we celebrate your accomplishments; This sound like the berries to me! Don’t take any wooden nickels; register today.
Brush up on your Speakeasy slang and don’t be a wet blanket.
Don’t forget: to receive RCH credits for the Monthly meetings, you will need to sign in on the attendance sheet as well as complete the post meeting survey. If you don’t receive the survey email, contact [email protected]
Participation – This is YOUR chapter, and we want your participation. Email [email protected] and let me know what think.
Keep reading…Our great Board has lots of new stuff heading your way
By Sheri Lewis, CPP
By Sheri Lewis, CPP
DALLAS CHAPTER AWARDS EVENT & VENDOR FAIR: Make plans to join us for our annual awards event and vendor fair on Thursday, March 8th. The event is scheduled at the Magnolia Hotel located at 6070 N. Central Expressway, Dallas 75206 from 6:00 p.m. to 10:00 p.m., with doors opening at 5:30 p.m. Our theme for the evening will be the Roaring 20’s so plan now to come as a flapper, gangster or as you are. No matter the dress, it will be fun. Tickets are priced at $45 for member and $55 for guest. We will have a buffet dinner and casino event in addition to our vendor fair and awards program. Our casino is sponsored this year by Rapid!. ADP is sponsoring our attendee gift, Ultimate Software is sponsoring our Photo Lounge, Global Cash Card is sponsoring the Social Hour and VACO is sponsoring our special entry item. This is an event you don’t want to miss!
ONE-DAY SEMINAR – TAX: We are busy planning a one-day Tax Seminar to be held at the Doubletree Hotel on March 21st. Bruce Phipps, CPP and Tommy Windsor, CPP will be leading the seminar. Be sure to check both your email and our website for more details as they become available.
By Martha Baxter
It’s so exciting to see our membership continue to grow. It’s very encouraging to see so many payroll professionals investing in their education and in their networking. It’s truly what makes us the “best” in our profession. DAPA Board of Directors has been hard at work planning for our upcoming year and we will have some dynamic opportunities as we go through 2018 together. We are excited for each of you and excited for our chapter.
Membership in DAPA does have its advantages. Where else can you belong to such an organization that brings you quality education, dynamic luncheon speakers and special recognition for all your efforts?
We are glad you have chosen DAPA and we will continue to ensure you have a voice in the future of your chapter.
Be sure you check out the two scholarships that are available to you. Folks, this is one of the best opportunities you have to get “free” education and invest in your continued payroll education for you and for your company.
We had 9 new members for the month of January. Welcome to the DAPA family!
Adrienne Barlow Asst Payroll Manager Mosaic Sales Solutions
Mandy Barron CPA John Eagle Dealerships
Lillian Deliz HR Coordinator Levi Strauss & Company
Melissa De Simone Payroll Specialist Advanced Jack Henry & Associates
Sireno Estoya, Jr Payroll Administrator Jack Henry & Associates
Samina Quraishi Payroll Admin. II Jack Henry & Associates
Shirley Krueger HR Generalist Orison Holdings, LLC
Raquel Harrison Payroll Specialist TD Industries Inc.
Ashley DuShane Contributor Payroll Analyst Sabre Global, Inc.
Stay tuned for more information about changes coming your way for 2018!
By Susan Warren, CPP
Our next community outreach campaign will serve Community Partners of Dallas. At Community Partners of Dallas, their mission is to ensure safety, restore dignity and inspire hope for the abused and neglected children served by Dallas County Child Protective Services. From their Rainbow Room emergency resource center with critically-needed items for children in the care of CPS, to their Storyline, a phone line that children can call 24 hours a day just to hear a story, Community Partners of Dallas served more than 20,000 children last year through their programs.
- $1000 provides 30 car seats for children
- $500 provides 10 cribs for children
- $125 provides three children with a backpack filled with age appropriate school supplies and new uniforms
- $50 provides a child with a duffel bag from the Rainbow Room filled with emergency supplies including clothes, hygiene products and a toy
- $25 provides a winter coat for a child
APA Dallas is going to change the lives of some children!
By Jeanne Jackson, CPP
WE HEAR YOU! Our member’s’ voices have been heard! You expressed an interest in Spring Classes to assist you with the upcoming spring testing period. The education department has put together an excellent “Mini Series” for you. Whether you are studying for the CPP or the FPC, these Mini Series are just perfect to assist in your 2017 test preparation or obtain recertification credits. Either way, please check out these new offerings. For additional information about dates, time, location and fees, please visit http://apadallas.com
Another change in education this year is the elimination of offering classes that run concurrently. We will, however, continue to offer classes at both La Quinta locations. All Spring classes will be held at the La Quinta Grand Prairie location and all Summer classes will be in Addison. Classes will be held on Saturdays and this year; all classes will be full day only. There will be more information regarding our regular class series in upcoming months.
If you have questions, please contact [email protected]
By Jeanne Jackson, CPP
This year DAPA is awarding scholarships to two of our members.
The Bonnie Brown scholarship awards $1000 of DAPA education classes and a copy of the 2018 Payroll Source to a deserving member. Eligible scholarship candidates must have less than 5 years of payroll experience and not obtained a payroll certification.
The Misty Roper scholarship gives $500 to a deserving member who has already attained either the FPC or CPP designation and has not previously won a DAPA Scholarship.
This is a great opportunity to get “free” money to further your payroll education. The deadline for scholarship submissions has been extended to 2/20/18 and winners will be notified by no later than 2/29/18. For more information on how to apply for these scholarships, please visit apadallas.com.
If you have additional questions, please contact [email protected]
IRS RELEASES 2018 TAX TABLES
On January 11, 2018, the Internal Revenue Service (IRS) issued Notice 1036, the “Early Release Copies of the 2018 Percentage Method Tables for Income Tax Withholding” to implement provisions included in the recently enacted Tax Cuts and Jobs Act (the Act), which was signed into law on December 22, 2017.effective on January 1, 2018
The 2018 withholding information shows the new rates for employers to use during 2018. According to Notice 1036, employers should begin using the 2018 withholding tables as soon as possible, but not later than February 15, 2018. Employers should continue to use the 2017 withholding tables until implementing the 2018 withholding tables. To help people determine their withholding, the IRS is revising the withholding tax calculator on IRS.gov. The IRS anticipates this calculator should be available by the end of February.
Important Clarification on Withholding Regarding Supplemental Wages
It is important to note that Notice 1036 clarified that for wages $1 million or less of supplemental wages during the calendar year, the flat percentage method of withholding on such wages during the 2018 calendar year is 22%, decreased from 25% in 2017. If an employee receives in excess of $1 millionof supplemental wages during the calendar year, the amount of supplemental wages the employee receives in excess of $1 million is subject to withholding at a rate of 37%, decreased from 39.6% in 2017.
IRS ISSUES STATEMENT ON TAX REFORM AND FORM W-4
As noted above, the Tax Cuts and Jobs Act (the Act), was passed by both the House and Senate on December 20, 2017, and was signed into law on December 22. The Act includes several significant changes that are relevant to employers for payroll, employment tax, and employee benefits purposes. The changes were generally effective on January 1, 2018. The Act repeals the deduction for personal exemptions which for 2017 was $4,050 per individual (i.e., employee, spouse, dependents) A pressing question was whether employees would be required to submit a new Form W-4 as a result of the elimination of personal exemptions under the Act. On December 26, 2017, the Internal Revenue Service made a statement indicating that employees would not need to submit a new Form W-4.
For more information check the IRS website at www.IRS.gov.
DUE DATE FOR FURNISHING IRS 2017 FORMS 1095-C EXTENDED; TRANSITION RELIEF FROM ACCURACY PENALTIES ALSO EXTENDED
The IRS announced on December 22, 2017, that it has extended the 2018 due date for Applicable Large Employers (ALEs) to furnish 2017 health coverage information forms to employees. ALEs now have until March 2, 2018 to provide Forms 1095-C to individuals, which is a 30-day extension from the original due date of January 31, 2018. No extension was provided for filing the forms with the IRS.
For more information, see IRS Notice 2018-06 on the IRS website www.IRS.gov.
IRS RELEASES 2018 AUTOMOBILE BUSINESS USE MILEAGE RATES
On December 14, 2017, the Internal Revenue Service issued via Notice 2018-03 in 2018 the optional standard mileage rates used to calculate the deductible costs of operating an automobile for business,
charitable, and moving purposes. As of January 1, 2018, the standard mileage rates for the use of a car (including vans, pickups or panel trucks) will be:
· 54.5 cents per mile for business miles driven
· 18 cents per mile driven for moving purposes
· 14 cents per mile driven in service to a charitable organization.
The standard mileage rates for business and moving purposes are based on an annual study of the fixed and variable costs of operating an automobile. The mileage rate for charitable miles is set by statute and remains at 14 cents per mile.
For more information on Notice 2018-03 check the IRS website www.IRS.gov.
POTENTIAL GOVERNMENT SHUTDOWN
The government shutdown ended on January 22nd, but another is potentially looming as the government is only funded until February 8th unless additional legislation is passed. What you need to know if the government shuts down again:
The federal government receives funding through a legislative process in which Congress enacts appropriations legislation. When Congress does not enact the necessary appropriations bills prior to the start of the fiscal year, legislative measures may be used to ensure that there is no lapse of funding for agency operations. One such mechanism is through the enactment of a “continuing resolution” — a process to fund the federal government, typically at previous years’ levels, for some or all federal agencies over a defined period of time. A continuing resolution may be used to fund the government for as little as a few days, up to an entire year.
Federal offices and their operations will generally be closed during the shutdown, including:
- Internal Revenue Service (IRS)
- Social Security Administration (SSA)
- Department of Labor
- Bureau of Labor Statistics (BLS)
NOTE: The shutdown at the IRS is also expected to impact phone support for Affordable Care Act (ACA) reporting, but for ACA Information Returns (AIR) submissions (replacements, corrections) the IRS system is expected to be operational; however, if a system issue occurs it is unknown if there will be maintenance available.
The U.S. Postal Service (USPS) and the Federal Reserve Bank (FRB) will remain open.
Some questions to ask your payroll service provider:
- Will electronic output be affected? i.e. Payments of agency notices, amendments, tax deposits, tax return filings, and other electronic output will continue to be submitted timely?
- Agencies will be unable to process paper documents during the closure. How will you handle this lapse once normal business operations resume?
U.S. DEPARTMENT OF LABOR ANNOUNCES CHANGE IN INTERN TEST
On January 5, 2018, the United State Department of Labor (“DOL”) announced that it would no longer adhere to the six-factor test originally adopted in 2010 to determine whether or not students can properly be considered interns under the Fair Labor Standards Act (“FLSA”). Many federal courts, including the Second and Ninth Circuit Courts of Appeal had previously rejected the DOL’s six-factor test, claiming that the test was “too rigid” and failed to properly consider the unique circumstances of each individual workplace relationship. One of the most controversial aspects of the former test was the element that the “employer that provides the training derives no immediate advantage from the activities of the intern; and on occasion its operations may actually be impeded.” This factor was considered by many to be very difficult for employers to meet. The DOL announced that it will now base determinations whether interns should be considered employees under the FLSA upon the “primary beneficiary” test, which has been adopted by many federal courts.
For additional information review DOL Fact Sheet #71 https://www.dol.gov/whd/regs/compliance/whdfs71.pdf
Alabama Releases 2018 Withholding Tables
The 2018 Alabama withholding tables were released Jan. 22 by the state revenue department. The four standard deduction schedules were combined into one table, but contain the same information as before. The withholding tables were revised to reflect changes because of the new federal tax law (Pub. L. 115-97).
Missouri Income Tax Withholding
Missouri revised its income tax withholding formula for 2018.
A zero percent tax bracket, which was introduced Jan. 9 when the formula most recently was updated, was removed, and the lowest income tax bracket, 1.5 percent, was adjusted accordingly to start at zero. No other changes were made to the formula. Further revisions are expected in February, the department said in a note accompanying the formula in Missouri Form 4282, Employer’s Tax Guide.
For more information check the Missouri DOR website: http://dor.mo.gov/
Oregon Releases 2018 Withholding Formula
The 2018 Oregon income tax withholding formula was released Jan. 19 by the state revenue department and takes effect Feb. 1.
The standard deduction is to increase to $2,215 from $2,175. The personal exemption is to increase to $201 from $197. The supplemental rate is to remain at 9 percent. The wage thresholds for the income tax brackets also were adjusted.
Idaho Legislature Approves Unemployment Tax Cut
Idaho employers could save $115 million over the next three years after the Legislature passed a bill to cut unemployment insurance taxes. Gov. Butch Otter (R) is expected to sign H.B. 335, which passed the House January 16 by a 69-0 vote and the Senate Jan. 23 by a 33-0 vote.
Most employers will see a 30 percent reduction in their unemployment tax, retroactive to Jan. 1, according to the bill and an accompanying fiscal note. The bill reduces the unemployment fund multiplier—a term in the algorithm used to calculate the tax—from 1.5 to 1.3.
MARYLAND SICK AND SAFE LEAVE BILL VETO OVERRIDDEN
Maryland Governor Larry Hogan vetoed the Maryland Healthy Working Families Act(Act) that would require employers with 15 or more employees to provide employees with earned sick and safe leave paid at the same wage rate as the employee normally earns.
The 2018 Maryland General Assembly legislative session has voted to override Governor Hogan's May 2017 veto of the Act by a vote of 88-52 in the House, and 30-17 in the Senate. Under Maryland law overridden vetoes become law and effective 30 days from the date of the final vote to override which is in this instance is 30 days from January 12, 2018.
For a copy of the Act click on the link provided below. http://mgaleg.maryland.gov/2017RS/bills/hb/hb0001E.pdf
New York Schedules Hearings on Tip Credit
A schedule establishing the date and location of public hearings to evaluate eliminating the tip credit in New York was announced January 25, 2018, by the New York Labor Department.
Gov. Andrew M. Cuomo (D) introduced a proposal Dec. 17, 2017, to eliminate the tip credit, which allows employers to pay workers a subminimum wage and said that Labor Commissioner Roberta Reardon would hold public hearings “to solicit input from workers, businesses, and others.”
The hearings “will be focused on the scope of the problem, including the hardships created by tipping, reasons for, and ramifications of eliminating the subminimum wage in impacted occupations (i.e., car wash worker, beautician, waiter, bartender, dog groomer, tow truck driver, wedding planner, tour guide, etc.) and recommendations for the potential elimination timelines and complicating factors,” the Jan. 25 news release said.
The 10 a.m. hearings are to be held March 12 in Syracuse, March 21 in Buffalo, April 20 at SUNY Farmingdale, April 25 in Watertown, and May 18 in Albany.
The hearings are to be held at locations yet to be determined in New York City the week of June 18 for non-hospitality industries and the week of June 25 for hospitality industries.
Registration and additional information is available online at www.labor.ny.gov/subminimum
WAVE OF CLASS ACTION LAWSUITS FILED UNDER ILLINOIS BIOMETRIC INFORMATION PRIVACY ACT
Employers using timeclocks that use employee finger or hand scanning technology to clock in and out may have heard about a recent surge of class action litigation asserting that such technologies are covered by the Illinois Biometric Information Privacy Act (“BIPA” or the “Act”). Since July 2017, more than 30 such lawsuits have been filed against employers operating in Illinois. In general, these cases allege that the defendant employers violated BIPA by failing to obtain written releases signed by their employees before collecting, storing and using biometric identifiers and information; as well as failing to make disclosures and have certain policies related to the use and storage of biometric identifiers and information. It was only in the late summer of 2017 that employers using finger scan and hand scan timeclocks began to be named in BIPA lawsuits. It is not yet resolved whether the timeclock finger and hand scan technology involves the collection, use or storage of “biometric identifiers” or “biometric information,” as those terms are defined in the statute. At the time of writing of this article, no court has yet held that BIPA applies to the use of such timeclocks. Further, it is not settled whether a plaintiff must have suffered actual injury in order to pursue a cause of action, or whether a technical violation of the statute even without an injury to the plaintiff, is sufficient.
Regulation in Other States
To date, the Illinois law includes the most expansive provisions applicable to the use of biometric data. A few other states, however, have laws governing the use of such data. A brief description of some of these laws is below.
Under New York law (New York State Labor Law Section 201-a), except as otherwise provided by law, no person, as a condition of securing employment or of continuing employment, shall be required to be fingerprinted.
Texas law (Tex. Bus. & Com. Code Ann. §503.001) requires that companies obtain consent before collecting biometric identifiers. It also imposes specific requirements on how such biometric identifiers may be stored, used and when it must be destroyed
Washington law (Wash. Rev. Code. Ann. § 19.375 et seq.) requires notice and consent before biometric identifiers may be collected in certain circumstances, and also imposes requirements related to the storage and maintenance of the identifiers. Other states, including Alaska, Connecticut, Massachusetts, Minnesota and New Hampshire are considering passing similar laws.
IRS.gov; DOL.gov; ADP Tech Flex; Bloomberg BNA