Payroll & Business Experts Blog

Act 32 affects every Pennsylvania employer and businesses with employees that work in Pennsylvania.  Learn exactly what Act 32 is, how it impacts PA businesses and what your employees need to know about how it could affect their local income tax withholding.  The good news is that if you work with a payroll services company, most of this is probably being handled for you.  It is important to check with your payroll provider before you take any action to make sure efforts are not being duplicated.

The Internal Revenue Service is holding a free, one-hour webinar on Monday, October 31st on the reporting requirements of employer-provided health care coverage on employee W-2 forms.  This webinar will discuss when and how to start reporting the cost of coverage on Form W-2, what changes employees would see on the form related to coverage reporting and what transitional relief would be available for certain employers and plans. 

As we have discussed in previous blog articles, the Affordable Care Act requires employers to report the value of the employer-provided health care coverage they provide on each employee’s annual W-2 form.  Below is an excerpt from this blog article providing details on which employers will be required to report the cost of health coverage on Form W-2 and when.

Recently, the Federal government has announced the 2012 Social Security taxable wage base and pension plan limits.

2012 Social Security Wage Base
The Social Security Administration (SSA) announced that the 2012 Social Security wage base will be $110,100, up from $106,800 where it has been set for the past three years.  As in prior years, there is no limit to the wages subject to the Medicare tax; therefore all covered wages are still subject to the 1.45% tax.  Of the estimated 161 million workers who will pay Social Security taxes in 2012, about 10 million will pay higher taxes as a result of the increase in the taxable wage base.

Throughout the year, we will develop news briefs to help you stay up-to-date with the most important news that could directly impact your business.  These articles contain snippets of news released from Federal and state government agencies.  News Brief #4 focuses on an amendment to California’s Fair Employment and Housing Act related to pregnancy disability leave and six states that have already announced their 2012 minimum wage rates.

In 2010, bswift launched a benchmarking study to determine the state of automation in benefits administration.  Specifically, the study sought to understand what opportunities for accuracy, efficiency and overall bottom line savings were being lost to under-automation of key processes. 

In 2011, bswift revisited the question of benefits administration automation to determine how far companies have come.  The 2011 study also examines another tactic companies are taking to confront the challenge of spiraling health care costs:  wellness programs.  The study indicates that an increasing number of employers are leveraging wellness programs and benefits automation to stimulate employee engagement and control health care costs.

The following is a guest blog post by Brendan Nicholls, Sales Manager at PrimePay.

In one of our August blog articles… Final Ruling on Controversial Employee Rights Notification… we reported that employers would be required to post the new employee rights notice as of November 14, 2011.

The National Labor Relations Board (NLRB) has postponed the implementation date for its new employee rights notice-posting rule until January 31, 2012 in order to allow for improved education and outreach to employers, particularly those who operate small and medium sized businesses. 

Nevada has now joined the ranks of several other states that limit cell phone usage while driving.  The new law, effective October 1, 2011, but not to be enforced until January 1, 2012, generally makes it unlawful to talk or text on a cell phone while driving without the use of a hands-free device.  Here are the details.

What the Law Prohibits
The new law makes it unlawful to type or read text messages, emails, or instant messages while driving a vehicle.  It also makes it unlawful to make or receive phone calls while driving unless the individual uses a hands-free device.  There appears to be an exception for entering in someone's phone number to initiate the call, but the law's language is not entirely clear, and there will likely be some disagreement over how it is enforced.

There are also exceptions to cover emergency situations and for police officers, firefighters, and ambulance drivers.  Also, for those who have cars from the future, there is an exception "if the motor vehicle is driven autonomously through the use of artificial-intelligence software."

The following is a guest blog post by Steve Jackson, Vice President, Benefit Services at PrimePay.

Giving your employees the ability to put away pre-tax dollars for medical and dependent care expenses is a huge value-add when it comes to the benefits package businesses offer.  A Flexible Spending Account (FSA) allows your employees to set aside a certain dollar amount from each payroll check and pay for qualified health care and dependent care benefits on a pre-tax basis.  During the year, employees can use this account to pay for medical expenses that are not covered by insurance.

While your employees realize an increase in their spending power and a substantial tax savings, Flexible Spending Accounts can also save your company thousands of dollars a year on FICA taxes.  When employees use tax-free dollars to pay for health care expenses through a flex account, your company saves about 8% (7.65% FICA match) on every dollar your employees contribute to the plan.  Depending on the size of your company, offering a pre-tax health care option to your employees can give your business its own substantial tax savings.