New York (Rochester) Local No.
Florida (Melbourne) Local No.

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Year End ’17 News Letter and 2018 Minimum Wages

Happy Holidays!

Our offices will be closed:

  • Thursday, Nov. 23 and Friday, Nov. 24, 2017 – Thanksgiving
    The week of Thanksgiving: Payrolls reported prior to noon on Wednesday will be processed for bank transactions as early as the next business day, Friday, November 24, 2017.
  • Friday, Dec. 22 and Monday, Dec. 25, 2017 – Christmas
    The week of Christmas: Payrolls submitted on Monday, December 25, 2017 will be processed on Tuesday. Payrolls submitted after 3:00 P.M. on Thursday, December 28 will not be processed until Tuesday, January 2, 2018, so do not wait until the last minute.
    Banks are closed on Monday, December 25, 2017.
  • Friday, Dec 29 and Monday, Jan 1, 2018 – New Years
    The week of New Year’s: Payrolls submitted on Monday, January 1, 2018 will be processed on Tuesday. Banks are closed on Monday, January 1, 2018.

BANKS CLOSED:

  • Thursday, November 24, 2017.
  • Monday, December 25, 2017.
  • Monday, January 1, 2018.

Please keep this in mind when submitting payrolls during these weeks. 2018 calendars will be sent with payrolls in December, 2017.

W-2’s and Social Security Numbers

If we notify you that we are missing any Social Security numbers for any individual that has 2017 wages please provide the SSN to us as soon as possible. Failure to report all SSNs will delay processing and delivery of the W-2’s for all employees.

You can expect to have your W-2’s by January 22, 2018, for distribution to your employees by January 31, 2018. Special consideration for early processing of W-2’s can be handled but we must be notified in writing via fax or email.

The 2017 W-2 fee will be included in a payroll billing period after January 12, 2018. The 2017 price for W-2 processing is $50.00 base fee + $5.00 per W-2.

Florida Minimum Wage Increase

Effective January 1, 2018 the Florida minimum wage will increase to $8.25 per hour with a minimum wage of at least $5.23 per hour for tipped employees, in addition to tips.

All employers are required to post a new minimum wage poster for all employees to see. Minimum wage posters can be printed here.

New York Minimum Wage Increase

Effective January 1, 2018 the Upstate New York minimum wage will increase as follows:
General Business to $10.40 per hour.
Fast Food Industry, fewer than 30 locations to $10.40 per hour.
Fast Food Industry, more than 30 locations to $11.75 per hour.
Food Service Industry, Tipped Employees $7.50 per hour, plus tips.

All employers are required to post a new minimum wage poster for all employees to see. Minimum wage posters can be printed from our website, when NYS makes them available.

CPA Payroll, Inc will automatically increase all employees’ rates to these minimum rates effective with the 1st pay day on or after Thursday, January 11, 2018 for all hours worked for that pay period. If you wish to pay employees at higher rates than the new minimum, or split the rates by days worked in the pay period, you will need to report your payroll to us with that particular information in detail.

State Unemployment Rate Notification – Florida

Sometime between December 1, 2016 and February, 2017 you can expect to receive notification of your 2017 State of Florida Unemployment Insurance Rate. Please forward that information to us to ensure accurate and timely collection and payment of this tax. (Email: payrolls@cpapayrollinc.com Fax: 1- 866-440-1473).

State Unemployment Rate Notification – New York

In February, 2018 you can expect to receive notification of your 2018 New York State Unemployment Insurance Tax Rate. The rate will be retro-active to January 1, 2018. Please forward that information to us to ensure accurate and timely collection and payment of this tax. (payrolls@cpapayrollinc.com or fax 866-440-1473).

New York State Paid Family Leave: Employer Facts

Effective January 1, 2018, nearly all private employers in New York State must secure Paid Family Leave coverage for their employees. Paid Family Leave coverage is funded by employee payroll contributions. It provides wage replacement and job protection to employees who need time away from their jobs to: Bond with a newly born, adopted, or fostered child, Care for a family member with a serious health condition, or Assist loved ones when a family member is deployed abroad on active military duty.

Employee Contribution:

Employers may collect the cost of Paid Family Leave through payroll deductions. The maximum employee contribution in 2018 shall be 0.126% of an employee’s weekly wage, up to the annualized New York State Average Weekly Wage.

Benefits:

In 2018, employees are eligible for up to eight weeks of paid leave at 50% of their average weekly wage (AWW), up to 50% of the New York State Average Weekly Wage (SAWW).

Find more information: https://www.ny.gov/programs/new-york-state-paid-family-leave

2018 Limits:

401k: Under 50: $18,500.00 Over 50: $24,500.00
SIMPLE: Under 50: $12,500.00 Over 50: $15,500.00
HSA Self: Under 55: $3,450.00 Over 55: $4,450.00
HSA Family: Under 55: $6,900.00 Over 55: $7,900.00

Social Security Wage Base Limit: $128,700.

Employer on the GO, Employee Self-Service, My Employer on the GO

If you are interested in submitting payroll electronically, making employee changes online, having an all-electronic and paperless payroll, printing payroll in your office, and/or accessing reports, including employee pay stubs online, please ask your payroll specialist about new options for Employer On The GO, Employee Self-Service, and My Employer on the GO.

Medical Premiums paid on behalf of Shareholders of an S-Corp

If your company pays Medical premiums on behalf of shareholders please report the 2017 totals prior to your last payroll of 2017. This information must be reported on the Shareholders’ W-2.

NEW: S-Corp Medical is now subject to FICA/Medicare and these taxes will be deducted, collected, paid when the S-Corp Medical amount is reported to us. In 2017 2% shareholders of the S-Corp should report the S-Corp Medical amount to us for the year, divided by the number of pay periods you will have in 2017. This will allow us to collect and pay the FICA/Medicare tax on this figure throughout the year as now required by law.

Third Party Sick Pay

If you have had an employee(s) out on Disability during 2017, please report that information to us prior to year-end, if possible. Most insurance companies notify you of each payment and will follow up with an annual statement prior to January 15, 2018. If you know you have Third Party Sick Pay to report please notify us prior to year-end even if you do not have the totals at the time.

Company Bonus Checks

Bonuses may be processed with a regular payroll but must be processed on a separate pay run if they are to be taxed differently than normal checks, or if the net pay is paid in a different format than regular checks (checks vs. direct deposit). Bonuses must be reported prior to December 31.

WebPay, Employer On The Go, Employer On Demand

If you are interested in submitting payroll, making employee changes, and/or accessing reports, including employee pay stubs online, please ask your payroll specialist about WebPay or Employer On The Go.

Have a Safe and Happy Holiday Season from everyone at CPA Payroll!

Please visit us at www.cpapayrollinc.com for more information and keep checking our new site for payroll news


PAYROLL NEWS

Information Regarding Non-Exempt Employee Time Tracking And Overtime Pay:

The enforcement of new overtime regulations that would have increased the minimum salary to $47,476 annually have been halted by a Federal Injunction.

NYS HAS PROPOSED THE FOLLOWING INCREASE TO THE MINIMUM SALARY FOR EXEMPT EMPLOYEES FOR BUSINESSES IN UPSATE NEW YORK: $37,830.00 ANNUALLY OR $727.50 PER WEEK, SUBJECT TO FINAL

ADOPTION BY NYS DEPARTMENT OF LABOR, AS OF 12/31/2016:

Employees who would not be considered executive, administrative, or professional employees are not exempt from overtime pay and should be paid on an hourly basis with an hourly rate of pay, and an overtime rate of 1.5 times their hourly rate for all hours worked over 40.00 hours per week.

Executive Employee:

  1. The employee’s primary duty must be managing the enterprise, or managing a customarily recognized department or subdivision of the enterprise.
  2. The employee must customarily and regularly direct the work of at least two or more other full-time employees or their equivalent.
  3. The employee must have the authority to hire or fire other employees, or the employee’s suggestions and recommendations as to hiring, firing, advancement, promotion or any other change of status of other employees must be given particular weight.

Administrative Employee:

  1. The employee must be compensated on a salary at a rate of not less than $727.50 per week.
  2. The employee’s primary duty must be the performance of office or non-manual work directly related to the management or general business operations of the employer or the employer’s customers.
  3. The employee’s primary duty includes the exercise and discretion and independent judgment with respect to matters of significance.

Professional Employee:

  1. The employee must be compensated on a salary of not less than $727.50 per week.
  2. The employee’s primary duty must be the performance of work requiring advanced knowledge, defined as work which is predominantly intellectual in character and which includes work requiring the consistent exercise of discretion and judgment.
  3. The advanced knowledge must be in a field of science or learning.
  4. The advanced knowledge must be customarily acquired by a prolonged course of specialized intellectual instruction.

Q. Who qualifies for overtime pay for work in excess of 40 hours per week?

A. Employees, whether you pay them salary or hourly, who earn less than $727.50 per week (or less than $37,830.00 per year) regardless of job duties. In addition:

  1. Employees who do not primarily perform duties of an executive, administrative or professional employee.
  2. First responders, licensed practical nurses and “blue collar” workers.

Q. Who is exempt from overtime?

  1. Employees who earn at least $37,830.00 per year, including $727.50 or more per week in salary, but not more than $100,000.00 annually, and who regularly and customarily perform one or more duties of an executive, administrative or professional employee.
  2. Employees defined as “highly compensated”. These are employees who earn more than $100,000.00 per year, including at least $727.50 per week in salary, and perform one or more duties of an executive, administrative or professional employee.
  3. Outside salespersons whose primary duties are to make sales or obtain contracts and who are regularly and customarily employed away from the employer’s place of business.
  4. Certain computer employees. For detail, see the DOL web site at www.dol.gov/fairpay.

Time Tracking

In order to remain in compliance with DOL regulations, all hourly employees are required to keep track of Time In, Time Out, and Break Time. This can be done with a time clock or written time sheet. Any shift of 8 hours requires a 30 minutes meal break. Employers are not required to pay the employee for the meal break.