AB 1513 Safe Harbor Report Documentation Updated

Help documentation has been added for the AB 1513 Safe Harbor report.  This documentation will be updated when you download the latest version through the Check for Updates option.

To access the documentation press the F1 key from the AB 1513 Safe Harbor Report or go to Help > click on the Index tab > Search for AB 1513.

We will be recording an instructional video soon and will post it on the blog as soon as its ready!

Note 1: The AB 1513 Safe Harbor Report is a custom report for customers that are or may be taking the safe harbor provision in the AB 1513 to make restitution payments for missed break wages. You can contact Brian at Brian@DatatechAg.com for more information on the report and the cost.

Note 2: On Networks, the Help file must be accessed from your local drive/computer.  If your Help is not working contact our support department at Support@DatatechAg.com for instructions on how to copy your Help files to your local drive. 

 

Oregon Minimum Wage change July 1

Earlier this year Oregon passed an increase to the minimum wage, making it $9.75/hour as of July 1, 2016.  An updated state tax rate file with this new rate has just been made available.

You can download the new tax rate file by going to Payroll->Setup->State Tax Rate Tables.  Then click on the Get Updates… button at the bottom left corner of the window.  This will download the new tax rate file with the updated minimum wage rate information.  To install the new rates, click on the Add State… button, check the box next to “Oregon – Updated Rates” and click Ok.

Minimum Wage Verification

If you have piecework wages in a pay period that spans the end of June/beginning of July, the program will use the old minimum wage rate of 9.25 for any work performed up to 6/30.  For work performed on or after July 1, the new rate will be used to verify that the employee made minimum wage.

If you have hourly pay rates of 9.25 entered on employee accounts, you will either need to edit the pay rates or use the Payroll->Utilities->Employee File Utilities option to change pay rates on all accounts from 9.25 to 9.75.

Three Rates

Oregon is phasing in three different rates for different regions of the state.  When we provide updates, we will include the rural minimum wage rate (which is scheduled to increase to $12.50/hour by 2022).  For minimum wage verification purposes, if a different minimum wage rate applies to your company, you will need to manually edit the state tax rate file to reflect the applicable rate.

REMINDER – 1094-C Paper Deadline Approaching!

Fresno, Calif. – This is a reminder to all of our HRM software customers that the deadline for the paper filing of the 1094-C and 1095-C forms with the IRS expires on May 31, 2016.

In order to properly compile the 1094-C form in our HRM software, you will have to have already compiled, edited, reviewed and

printed your 1095-C paper copies, which were due to be mailed to each of your Full Time employees as of March 31, 2016.

 

If you haven’t already done so, please update your software to the latest version available and use the instructions found on our blog site, support videos, and Instructions for Forms 1094-C and 1095-C (2015) to create, edit and print your 1094-C and mail to the IRS immediately. All paper submissions must be postmarked no later than May 31, 2016. Please see the IRS Instructions for the correct mailing address for your submission.

AB 1513 Safe Harbor Report

Fresno, Calif. – Datatech held a webinar on the AB 1513 regulations recently, including new requirements for rest & recovery and other non-productive compensation, check stub requirements and safe harbor/affirmative defense provisions to prior wage claims.  You can view the entire webinar here:

Click the image to take you to the Special Webinars section of DatatechAg.com

Most of the areas covered in the webinar have previously been covered in Datatech’s blog. However, a new AB 1513 Safe Harbor report was previewed to attendees.  This report will help Datatech customers review and calculate Safe Harbor restitution payments on both the Actual Due and 4% methods. We’ve created a separate video from this portion of the webinar. You can view this edited Safe Harbor video here:

Click on the image to watch the Safe Harbor report portion of this webinar

The AB 1513 Safe Harbor report, as well as future enhancements to create checks and employee statements, are being added to customers that need it as a custom option.  For more information on the options available and costs, please contact Brian at brian@datatechag.com.

Please be aware that this report is limited in what it can provide depending on how you previously processed payroll and also limited to the period of time that you have been using Datatech software.

Please email Hannah at Hannah@DatatechAg.com for more information if you have questions on your specific situation.

 

 

 

California Small Employers Required to file DE9/DE9C Electronically

California is expanding requirements for electronically submitting tax returns, wage report and payroll tax deposits.  Starting in 2017, employers with 10 or more employees will be required to electronically file and pay.  The requirement will expand to all employers beginning in 2018. (Information on waivers for those unable to report electronically will be available in July.)

For more information go to:

http://edd.ca.gov/Payroll_Taxes/E-file_and_E-pay_Mandate_for_Employers.htm

http://edd.ca.gov/Payroll_Taxes/FAQ_-_E-file_and_E-pay_Mandate_for_Employers.htm

The Employment Development Department is encouraging all employers  to enroll now in e-Services for Business so they can start reporting online before this mandate begins.

Datatech will be adding the Electronic File option to the Quarterly State Report for all customers. (Previously this was only enabled if you purchased the Electronic Reporting option.)

You can watch the current videos on creating and uploading the electronic quarterly file at http://datatechag.com/support/quarterly/ (Note: the EDD made a minor change in their menu, we will be uploading a new video at the end of the 2nd quarter)

Datatech offers assistance with uploading your quarterly file for an additional service fee. However, due to the limited time available during the month of January, these appointments available are limited.  Therefore, we are emphasizing the EDD’s recommendation to start filing electronically in 2016. This way you can get assistance filing the 2nd and/or 3rd quarters and be comfortable doing the filing yourself in January.

Please contact the support department at support@datatechag.com for more information or to schedule an appointment at the end of the quarter.

 

 

 

1094-C Paper Filing Now Available

For those of you who are opting to print and mail your 1094-C and 1095-C forms, the latest update version 7.59.0.343 (or higher) available as of 05/13/2016 will allow you to create and print your 1094-C.

Follow this link to see a training video based on this blog post:

http://datatechag.com/support/hrms/annual/

The following are basic instructions to create the 1094-C:

Create Your 1094-C

Start by navigating to the ACA menu, Annual Reports Menu, and choosing the Enter/Print 1094-C Form option. You will see the window shown below with your company name and address already filled in.  The other entries generally correspond directly to the actual form.

 

Enter the Tax Year and then click on the tab labeled “Part III.” As shown in the next screen shot, you can then click on the Compile button in the lower right hand corner.

This will fill in the employee counts on Part III and the total number of forms on Parts I and II.  You will need to complete the rest of the entries for the form.

First, on the Parts I & II tab, fill in the contact name and phone number. Then select any check boxes that apply to your submission. You will need to be very familiar with the options and IRS instructions so that your form is filled in correctly. Enter your Submitter Name and Submission Date and then click on the Part III tab.

In most cases, you will want to have the All 12 Months box checked. It may not be checked if you have a non-calendar year plan (no offers were made), or didn’t offer insurance to at least 70% of your full time employees in one or more months.  (If you didn’t offer coverage to at least 70% of your employees in a month, this could trigger the “A” penalty.  For 2015, you are not penalized for the first 100 employees.  This means no penalty should apply if you had 100 or fewer employees in that month.)

You will also need to manually edit the Aggregated Group Indicator check box, if applicable. If you indicate that you were part of an Aggregated Group, then click on the Part IV tab and enter the Company Name(s) and EIN Number(s) of the Aggregated Group Members associated with your company. (See Screen Shot below)

Lastly, indicate “A” or “B” in the Section 4980H Transition Relief Ind. drop-down selection. Follow the IRS instructions to determine which code, if any, is applicable to your company.

If you are in an ALE Group, a 1094-C form should be filed for each ALE member.

When you are finished editing the form, click on the Print button to print your paper 1094-C form. Then combine the form with printed copies of your 1095-C forms and mail to the IRS, postmarked no later than May 31, 2016.

A video presentation of the above instructions is available on our Website in the Support Videos, Human Resource Management section, or by clicking here.

If you have questions about properly filling out the 1094-C, check the instructions provided by the IRS.  The following slideshow from LinkedIn may also be helpful:

1094-C: Reporting Requirements: A Step-by-Step Guide from Mario K. Castillo

 

New Document Management Teaser

Fresno, Calif- Hundreds of Datatech software clients are using our Human Resources Management software module to simplify and automate many HR functions. Now comes a new development from Datatech; our Document Management system to add scanned documents right to your employee files.

In this video, Datatech’s Training Manager Hannah Tarrats and Programmer Max Gomez demonstrate how our new Document Management software will simplify your HR requirements even more!

Click here to see the teaser.

We’re anticipating a July 1 rollout. If you’d like more information contact Jason in our HR Sales Department.

Rest & Recovery Review – New Day

Fresno, Calif. – Join Datatech for a webinar on May 17, 2016 at 2:00 PM PDT. Our first day registration was so successful that we’ve added a second day.

Register now! 

The follow link is provided to you to sign up on the ‘Go To Webinar’ registration page:

https://attendee.gotowebinar.com/register/490026318722281731

Due to the overwhelming number of questions still occurring regarding the AB 1513 regulations for rest & recovery and non-productive time, we decided to schedule webinars as needed for just this topic. This webinar will cover payroll entries, calculations, check stub requirements and possible future program enhancements.

The attendee limit per webinar is 100 connections. If the limit is reached another webinar will be scheduled.

After registering, you will receive a confirmation email containing information about joining the webinar.

We believe this webinar will answer your questions on this topic, but as always, if you have other questions we invite you to contact our Support Department by clicking here.

View System Requirements

Updates to Wage Codes for Check Stub Summary

This article is a continuation of https://blog.datatechag.com/2016/05/04/new-check-stub-requirements-under-ab-1513/

To make the Summary section of the payroll check stub easier to read and comply with AB 1513 the following program changes have been made.  These new options will be available at the end of the day, Friday May 6th, through the Check for Updates option.  No default settings/changes will be made for you.  You will need to modify each Wage Code to format your Summary Totals as specified below or as you wish to do so.

Combine Lines with Different Rates on the Summary

A new option has been added to the Wage Code Setup to Combine Line with Different Rates on Summary.  You should check-mark this option on your Minimum Wage and Guaranteed Wage Adjustment Wage Codes.  This will create one line in the summary section with a total wages for the Wage Code.  No hours will print since these are adjustments only.

Summary Desc/Summarize To

Two new options were adding for customizing the descriptions and how the Wage Codes get grouped together in the Summary Section:

• Summary Descr. & Summary Spanish Descr.

These two options allow you to enter the Description you want to appear in the Summary Section for English & Spanish check stubs.

• Summarize To:

This option allows you to link a Wage Code(s) to another for Summary Purposes.

Example:

A company has 4 wage codes for Non-Productive Time; NP (Non-Productive), N1 (Non Productive Wait Time), N2 (Non Productive Travel Time, and EX (Exercise Time).

1. The NP Code is setup with the Summary Descriptions:

2. The additional Wage Codes that need to be combined in the Summary section for a total of Non-Productive time would be linked to the NP code in the Summarize To selection:

The Combine Lines with Different Rates on Summary would NOT be checked.  Non-Productive Time at different rates are to be totaled by pay rate.

Additionally, an alternate description may be used for the Summary Description, versus the line item description.  For example, the line items may print the check description Break Tm, but the Summary section prints the official term Rest & Recovery:

Check Stub Result:

 

The top portion of the check stub will still itemize your payroll entries.  With the new options, the multiple wage codes for non-productive time are summarized into one entry with the total non-productive time hours and the minimum wage entries are summarized into one total.

Check Stub Length & Check Voucher Printing Options:

The above example is using a long check stub.  Many of Datatech’s customers have switched from two 3 1/2″ stubs to one long stub and no longer keeping a copy.  If you would like more information on modifying your check format, see the Help on the Custom Check Format utility on the Tools menu

Depending on the number of entries you have on a check, a long stub may still not have enough room to print all line items and the summary section.  To aid in printing payroll check vouchers, there is an option in the Check Printing settings to Print Check Vouchers for Overflow Check During Check Printing.

After selecting this option you can select the printer and/or tray for the vouchers.  If you have a printer with two trays, one can be assigned for checks and the other loaded and assigned to the vouchers.

If you have any questions on the above new features, please email Datatech’s support department at support@datatechag.com.

New Check Stub Requirements under AB 1513

Datatech customers typically print detail on employees payroll checks stubs, itemizing each payroll entry for the employee.  After reviewing the AB 1513 regulations, Datatech posed this question to the DIR: Do totals for Rest & Recovery and Other Non-Productive Time have to be totaled for the workweek if the detail is already included on the stub?  The answer was Yes.

Below is a recap of the wage statement requirements from California’s DIR (Department of Industrial Relations) website: http://www.dir.ca.gov/pieceratebackpayelection/AB_1513_FAQs.htm

Below the recap and in the following blog article, we’ll discuss existing check format options and new enhancements available for Datatech customers to comply with these regulations.

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Are there any new wage statement requirements under this law?

Yes.  New Labor Code section 226.2, subdivision (a)(2) provides that:

(2) The itemized statement required by subdivision (a) of [Labor Code] Section 226 shall, in addition to the other items specified in that subdivision, separately state the following, to which the provisions of Section 226 shall also be applicable:

(A) The total hours of compensable rest and recovery periods, the rate of compensation, and the gross wages paid for those periods during the pay period.

(B) Except for employers paying compensation for other nonproductive time in accordance with paragraph (7), the total hours of other nonproductive time, as determined under paragraph (5), the rate of compensation, and the gross wages paid for that time during the pay period.

As indicated in the language in italics above, an employer is not required to state the total hours of other nonproductive time, the rate of compensation, or the gross wages paid for that time, if the employer “in addition to paying any piece-rate compensation, pays an hourly rate of at least the applicable minimum wage for all hours worked,” as authorized by the “safe harbor” language in subdivision (a)(7).

The new wage statement requirements should be read in tandem with the current requirement under section 226, subdivision (a), that an itemized wage statement show “all applicable hourly rates in effect during the pay period and the corresponding number of hours worked at each hourly rate by the employee . . . .”  (§226(a)(9).)  To the extent there may be overlap between this provision and new section 226.2(a)(2) going forward, the requirements will be harmonized.  Employers will not be required to state the same information twice on the wage statement.

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Initially, Datatech was advising customers to enable the option “Summary by Type/Rate” in the Program Set up > Payroll > Check Printing options to comply with the new regulations.  This option prints a recap at the end of the stub or Check Voucher, totaling hours & wages by Wage Code and Rate.

There were two issues that arose with this option: 1) Minimum and Guaranteed wage adjustments were itemized individually by rate, so the summary could take quite a bit of room and 2) if there are multiple Wage Codes that are considered rest & recovery or non-productive time respectively, they need to be totaled together, which the current option didn’t do.

Here is a current Check Stub with the existing Summary by Type/Rate option:

Entries using the same Wage Code are combined into one total, therefore meeting the AB 1513 regulations. However, if there are multiple Wage Codes used that fall into the category of rest & recovery or non-productive time respectively, they would not be combined into a total in the current format.  Additionally, minimum wage and guaranteed wage entries would print on separate lines for each adjustment because the rates are different.

The next article will address these changes we’ve made to the Wage Code set up to resolve these issues.