Stay up to date with new laws, deadlines and important changes related to payroll, benefits, compliance, and general HR. Here’s your checklist for Q3 2024.

PAYROLL & TAX

File Quarterly Forms 941. Employers who withhold income taxes, Social Security tax, or Medicare tax from employees' paychecks or who must pay the employer's portion of Social Security or Medicare tax must file Form 941 by July 31, 2024.

Conduct an Internal Audit. Review employee payroll data to ensure accurate information such as the work location states, especially important for remote employees. Also, encourage employees to audit their pay stubs to ensure accurate federal and state tax withholdings.

COMPLIANCE

Review new DOL Employer Guidance for Using AI in the Workplace. Employers are responsible for complying with federal laws, even when using artificial intelligence (AI) in the workplace. The Department of Labor’s Wage and Hour Division (WHD) recently published a Field Assistance Bulletin (FAB), which includes guidance on using AI to track hours worked and calculate wages owed under the Fair Labor Standards Act (FLSA). The FAB also addresses the potential impact of AI on compliance with the FLSA’s protections for nursing employees and potential challenges regarding AI and compliance with the Family and Medical Leave Act (FMLA).

Review New Overtime Rule for Salary Threshold Increases. The DOL final rule raises the salary threshold for employees classified as exempt from overtime pay. Because more employees may be eligible for overtime pay, employers should audit exempt employees’ salary rates by July 1, 2024. Note that this rule may face multiple legal challenges, including the potential for injunctions delaying the effective date. Follow the DOL website to stay updated on potential legal developments.

Best Practice Tip: While reviewing salary thresholds, you may want to leverage this FLSA update to review and/or update job descriptions for all exempt employees to ensure requirements for the DOL “duties test” for an overtime exemption are met.

Prepare for Final Requirements Under PWFA. The EEOC’s Pregnant Workers Fairness Act (PWFA) requires covered employers to provide reasonable accommodations to qualified workers or applicants with limitations related to pregnancy, childbirth, or related medical conditions unless the accommodation will cause the employer an undue hardship. 

The new rule applies to all public and private employers with 15 or more employees and more broadly defines those covered and what conditions apply, different from current federal pregnancy regulations. Under the new rule, protections include, but are not limited to, all medical or mental conditions related to pregnancy or childbirth, whether new or pre-existing conditions affected by pregnancy or childbirth; this includes infertility/fertility treatments, miscarriage, and abortion.

While the PWFA only applies to accommodations, the EEOC also enforces additional laws that make it illegal to fire or discriminate against employees or applicants based on pregnancy, childbirth, or related medical conditions. Employers are also prohibited from requiring supporting physician documentation or blanket documentation.

The new rule goes into effect on June 18, 2024, and employers must provide accommodation without delay. Because legal developments with this new rule may change, follow the EEOC PWFA for the latest updates and more information about the employer's responsibilities.

Consult with Legal Counsel to Comply with the FTC Ban on Non-Compete Agreements. The Federal Trade Commission's (FTC) new rule bans all non-compete agreements and non-compete clauses.

Effective August 21, 2024, the rule prohibits any condition of employment that prohibits a worker from or penalizes a worker for seeking or accepting employment. The FTC ban includes any prior executed non-compete agreements or other agreements with non-compete clauses, making them unenforceable. An exception applies to employees classified as senior executives who have entered non-compete agreements/clauses before August 21, 2024. Consult with your legal counsel for guidance on compliance requirements. Because the FTC rule may face legal challenges, follow the FTC website to stay updated with the latest information.

➡️➡️READ MORE:  3 New Employment Laws That Could Impact Your Business

File ERISA Annual Report Form 5500. Applicable employers must report retirement plans, such as a 401(k), for every year the plan holds assets. In 2023, the Department of Labor (DOL) revised the requirements for auditing 401(k) financial statements. For plan years beginning on or after Jan. 1, 2023, applicable employers must count only those with account balances. The filing deadline is the last day of the seventh month following the end of the plan year or July 31 for calendar year plans. 

Submit Form VETS-4212 for Federal Contractors. Applicable employers with a contract or subcontract with the Federal Government must file an annual Form VETS 4212 to report affirmative action efforts in employing protected veterans. The VETS-4212 filing season begins Aug. 1, 2024, and the filing deadline is Sept. 30, 2024.

BENEFITS 

Submit PCORI Fees. The Patient-Centered Outcomes Research Trust Fund is a fee for issuers of specified health insurance policies and plan sponsors of applicable self-insured health plans that help fund the Patient-Centered Outcomes Research Institute (PCORI). The fee is calculated based on the average number of people covered under a specified health insurance policy. IRS Form 720 PCORI fees for 2023 are due July 31, 2024.

Review Your Employee Benefits Plan. With the annual renewal period approaching, check with your benefits broker for updates, deadlines, and any changes in reporting. Also, verify that all healthcare reform requirements are met.

How To Prepare For Renewals. Find out how your employee benefits plan compares with others nationwide by watching our new webinar, 2024 Benefits Benchmark Report. This FREE webinar covers the latest trends in employee benefits, and will help you make important decisions about your offerings. You'll learn: 

• • • • • • • • • • • How competitive your business is in the talent marketplace.
                    • How to design your benefits programs by analyzing current trends.
                    • How to assess your employees' needs and how this can impact your company's strategic objectives.
                    • How to increase employee retention by providing more relevant benefits solutions to your employees.

▶️Get ahead and get started by signing up HERE.  And if you need guidance, we're always here to help you find the right benefits for your employees and your business. Just give us a call at (800) 446-6567.

Review All Insurance Policies. Do you have all the right policies to protect your business? National Insurance Awareness Day is June 28, 2024, an annual reminder to review your insurance policies. Determine if changes in your work environment or staff work assignments may impact your current exposure and codes on your account. Also, check with your Workers’ Comp insurance broker to determine if you need to make any necessary adjustments to cover additional exposure, including remote workers. 

Encourage Employee Wellness. June is National Employee Wellness Month, an opportunity for employers to enhance existing wellness programs and encourage employees to take proactive steps to improve their physical, mental, and emotional well-being.

GENERAL HR 

Review State and Federal Guidance for Hiring Teens. Hiring teens can be a great option for small businesses that need additional help during the summer months. Before adding to your staff, review applicable federal and state guidelines and regulations regarding wages, hours, and permitted tasks, as well as employment laws on safety and health, discrimination, and benefits.

Need Help? We are here to help you stay up to date with a helpful one-page HR Checklist filled with important information related to payroll, benefits, compliance, and general HR. Depending on the type of business and industry, your checklist may be different and even more complex. If so, just contact us. By partnering with an IRS-certified PEO, you gain access to a team of experts to help you navigate the complexities specific to your business to help you stay compliant.

PLEASE NOTE: This information is for general reference purposes only. Because laws, regulations, and filing deadlines are likely to change, please check with the appropriate organizations or government agencies for the latest information and consult your employment attorney and/or benefits advisor regarding your responsibilities. In addition, your business may be exempt from certain requirements and/or be subject to different requirements under the laws of your state. (Updated June 12, 2024)

About Propel HR. Propel HR is an IRS-certified PEO that has been a leading provider of human resources and payroll solutions for 25 years. Propel partners with small to midsized businesses to manage payroll, employee benefits, compliance and risks, and other HR functions in a way that maximizes efficiency and reduces costs. Visit our new website at www.propelhr.com.