Highlights from APA Congress: 4 Payroll Trends to Watch

Paycor associates recently attended the 31st Annual American Payroll Association (APA) Congress, where thousands of payroll professionals from across the nation met to attend educational workshops, network and discuss industry trends.

Arlene Baker, Paycor Corporate Trainer and recent recipient of the APA Citation of Merit, noted four key topics that dominated the conversation at APA Congress this year.

1. The Affordable Care Act
Not surprisingly, implications of the Affordable Care Act (ACA) were a major trend on everyone’s mind at this year’s APA Congress. Some of the key questions to address were how to handle the additional Medicare tax, W-2 health care reporting and FSA limits. APA Congress attendees also talked about how their organizations are preparing to implement aspects of the ACA. Action items included training employees, capping part-time hours and collaborating with HR to determine the best approach.

2. Employer verification of tax payments
There was much discussion at APA Congress about how employers should be proactive in verifying that their payroll provider has made tax payments on their behalf. Even though a payroll provider may assume some degree of liability, businesses are ultimately responsible for making sure their taxes are paid on time. A simple way for employers to ensure that payments are being made is to enroll in the Electronic Federal Tax Payment System (EFTPS).

For clients using Paycor’s tax-filing services, we assume liability for any tax errors—as long as the client has provided all necessary information. Even so, clients can receive a quarterly Tax Filing Client Activity Report showing all impounded funds, liabilities and payments made, so they can rest assured knowing their taxes have been filed timely.

3. E-Verify for Social Security Numbers
APA Congress featured some discussion on E-Verify, which can help employers ensure that employees’ Social Security Numbers (SSNs) are correct. This allows organizations to catch any SSN errors and verify their employees’ work eligibility.

4. Potential changes from the IRS
The IRS is discussing making several changes, including:

* Raising the federal unemployment insurance wage base to $15,000 and increasing the rate from 4.2% to 6.2%
* Changing Form 941 to eliminate COBRA
* Redesigning Form W-2 by 2015 to reflect ACA and third-party sick pay changes
* Implementing a student loan assistance program
* Overhauling Form 8027, a corporate return for industries with tipped employees, such as hospitality and restaurants

Arlene walked away from Congress this year feeling confident that Paycor will be prepared to help our clients handle any upcoming changes, saying, “We’re already on top of what’s happening. There are many proposals that are still not definite, but we are watching those closely.” As these trends develop further, Paycor is keeping a close eye on changes and help ensure our clients are ready to face any new challenges.

Learn more about how Paycor can help you stay current and compliant with tax and legislative changes: get in touch with us today.