Doing Business in 2013: What You Need to Know
Posted on January 10, 2013
As 2013 begins, Paycor wants you to be informed of what potential regulatory changes may affect your business this year, from ramifications of “the fiscal cliff” to health care reform. Below are some of the major legislation and regulations to be aware of in 2013.
Expiring Tax Provisions: The payroll tax holiday expired at the end of 2012, meaning that the employee social security increases from 4.2% to 6.2%. In addition, The American Taxpayer Relief Act of 2012 introduced a plan to avoid the “fiscal cliff.” Among many provisions, it included:
* Raising taxes on individuals earning more than $400,000 and couples
earning more than $450,000, from 35% to 39.6%
**** Individuals earning less than $400,000 and couples earning less than $450,000 will not see a change to their income tax rate, but they will see minor withholding changes due to the change in the personal exemption allowance
* Extending employer-provided transportation and parking for another year
* Extending unemployment insurance for 2 million people for another year
Health Care Reform: As provisions from the Patient Protection and Affordable Care Act continue to be enacted, employers will see changes in reporting, tax and coverage requirements. In 2013, employers that filed 250 or more W-2s in the 2012 tax year are required to report the total cost of coverage on each employee’s W-2. Additionally, employees will be limited to contributing no more than $2,500 to their medical flexible spending accounts (FSA). Employers will also be obligated to withhold an additional Medicare tax from employees earning $200,000 or more.
Stricter Policy Enforcement: Several organizations are cracking down on compliance, including the Department of Labor, the National Labor Relations Board (NLRB) and the IRS.
* The Department of Labor and IRS will be making a more concerted
effort to prevent companies from misclassifying
as independent contractors.
* The NLRB will continue to assist labor unions and investigate employer policies at non-unionized companies, such as employment-at-will disclaimers and social media policies.
* The Department of Labor will move forward with its regulatory plans, including expanded military leave under the Family and Medical Leave Act (FMLA) and wage and hour enforcements in industries with tipped employees.
* Immigration will remain a major focus, and employers are likely to see more I-9 audits and worksite inspections, expanded use of E-Verify and a revised Form I-9.
Paycor keeps you up-to-date on payroll and HR compliance issues, and our applications are constantly updated to reflect changes. We take care of the chaos of compliance behind the scenes, so you can get back to the core of your business. Does your current provider stack up? Get in touch with us today.
Learn more about the recent compliance changes: print a quick guide.