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With a new year just around the corner, there are many trending topics that will impact employers, particularly those in New York, including the 2018 mileage rate and minimum wage, plus other payroll and HR issues that your business should be aware of.
Mileage Rate
Beginning on Jan. 1, 2018, the standard mileage rates for the use of a car (plus vans, pickups, and panel trucks) will be:
- 53.5 cents per mile for business miles driven (was 54 cents in 2017)
- 17 cents per mile driven for medical or moving purposes (was 19 cents in 2017)
- 14 cents per mile driven in service of charitable organizations
Minimum Wage
New York’s minimum wage is set to rise again on December 31, 2017. In New York City it will rise to $11, while most of the state will see it rise to $9.70. There are special rates for tipped employees and workers in the fast food industry.
New Form I-9
The U.S. Citizenship and Immigration Services (USCIS) recently announced that the new Form I-9 is available. Employers can continue to use the current form until January 21, 2018. After that date, the current form will no longer be valid and all employers must be using the new form. The new form will include a “smart” version of the form that can be completed online.
New W-2 Filing Deadline
Employers will need to file their employees’ W-2 forms much earlier next year than in previous years. The Protecting Americans from Tax Hikes (PATH) Act of 2015 includes a new W-2 filing deadline for 2016 forms. That deadline for submitting forms to the Social Security Administration (SSA) is January 31, 2018. It should be noted that this applies regardless of whether an employer submits paper forms or electronic ones.
EEOC Reports Must Include Pay Data
The Equal Employment Opportunity Commission (EEOC) has announced that large employers must include pay data on EEO-1 reports. Employers with 100 or more employees are required to submit summary pay data and total hours worked for the year as part of the annual EEO-1 report.
New York Pay Card & Direct Deposit Regulations
The New York State Department of Labor adopted final regulations governing permissible methods of wage payment, including payment through direct deposit and payroll debit cards. Effective March 7, 2018, the regulations require employers who use a form of payment other than cash or check, such as direct deposit and payroll debit cards, to obtain the employee’s informed consent to use such a method of payment.
New York Unemployment Insurance Rate Increase
The 2018 New York State taxable wage base per employee for Unemployment Insurance (UI) will increase from $10,700 to $10,900. For 2017, the lowest total UI Rate for NY is 2.1% and the highest UI Rate is 9.9% (2018 not currently published).
Affordable Care Act Reporting
2018 is the first year that employers with 50-99 full time equivalent employees are required to implement the ACA reporting requirements (those with 100+ employees were required to report last year). Penalties for non-compliance with the ACA reporting requirements will be assessed in 2018 based on 2017 data.
New York Paid Family Leave
Although not effective until January 1, 2018, employers should make note of any administrative and financial adjustments to their business practices and internal policies in order to comply with the new law. The family leave program will be funded by a payroll deduction of between $0.45 and $1 per week from each employee’s paycheck. It will become part of the deduction for New York State’s Temporary Disability Insurance, and it will not require a contribution from employers.
For more information on how GTM helps businesses stay compliant with and informed about wage and labor laws, contact us at (518) 373-4111.
