Greater Los Angeles APA Chapter Presents: Year End 2015 Becky Harshberger bharshberger@ep.com 818-955-6016 desk

Agenda IRS and CA Updates for 2016 ACA update CA Changes & UI fund Insolvency All State UI outlook for 2016 Legislative Outlook for 2016 (Ok stop laughing) Communication Plan YE Checklist

Federal and CA updates for 2016 (check APA website for updates!) FICA Base (ER) $118,500 (6.2%)=$7,347.00 CA SDI $106,742 (0.9%) 401(k) $ 18,000 50+ $6,000 Mileage $ 0.575 (2015) Adoption Asst $ 13,460 Qualified Parking $ 255 Transit Pass $ 130 Health Flex $ 2,550

ACA: what payroll needs to know On January 1, 2015 employers averaging or expected to average 100 or more FT employees (or FT equivalents) will be subject to the coverage mandate. Payroll and HR will be dealing with data collection around: In 2016, the mandate drops to 50 FT or FT equivalents Reporting the cost of healthcare on a W2 (code DD)

ACA Forms New Forms W2 Box 12, Code DD 1095 A (provides information you need to complete Form 8962 Prem Tax Credit)-sent from Health Exchange 1095 B (states employee had minimum essential coverage…usually sent by employer) 1095 C (info on plans offer by ER and self insured info) 1094 A (these are the transmittals for the forms above) 1094 B 1094 C W2 Box 12, Code DD Form 1095-B is used to report certain information to the IRS and to taxpayers about individuals who are covered by minimum essential coverage and therefore are not liable for the individual shared responsibility payment.

This is just stating what was OFFERED, it will NOT match Box DD on a W2. It will be used by an individual to determine if they are eligible for a premium tax credit on their Form 1040.

This is the proof you (and your dependents) had coverage, used to complete your Federal Income Tax Return (IRS Form 1040) NOTE: Info does NOT match Box DD on a W2

CA SUI Fund still insolvent The Unemployment Insurance (UI) fund has a revised projected deficit of $5 billion by the end of 2016, according to a new report released by the Employment Development Department Sacramento has a number of groups interesting in changing UI wagebase and in ways to pay off the debt….

States still repaying FUI Trust Fund Loans Outstanding Loans from the Federal Unemployment Account. Balances as of September 03, 2015 are: California $5,633,937,812.74 Connecticut $102,098,642.43 Indiana $225,126,171.13 (just paid it off!) Ohio $874,835,016.53 Virgin Islands $72,204,422.99 Total $6,908,202,065.82

Legislative Outlook for 2016 Its an election year…. Mobile workforce bill gaining some traction HR2315 in the House S386 in the Senate 128 ‘co’ sponsors in House and Senate Payroll Fraud Prevention Act Identity Theft-accelerated W2s to SSA to Feb 15 Change in filing extension for W2s Join the APA Government Relations Task Force!

Communication Plan

Communication Plan To Joe/Jane Employee Update your W2 mailing address Date of last paycheck for 2015 When to expect W2 2016 W4’s (exempts) What to do if you think you’re W2 is wrong What to do if W2 is lost 2016 limits FICA CA SDI Mileage 401(K)….50+ catch up Flexible spending deadlines and new elections Memo distribution: email, common areas, website, stuffer, inner office mailer

Communication Plan Communication with AP for reportable reimbursements (those that initially didn’t go through payroll….taxable relocation, life insurance, exec perk’s…) Communication with Executives Make ‘em feel special, send them a separate letter of information, set up a particular person to deal with exec or exec tax preparer

Communication Plan for 2015 IRS and state changes happen through out the year, how effectively are you communicating them to employees?

Year End Checklist for you Create a checklist for your team that includes What you need Who is responsible for getting it to you The date you need it Ensure accountability with calendars and emails

Payroll Dept checklist Verify all stop pymts, voids and manual checks have been processed Schedule an out of sequence payroll for any adjustments in advance Schedule a bonus payroll! Recon 401(k) and the employer match, true up if needed 1099 processing? (if you are responsible for A/P) Backup your database (in-house systems)

Thank you for your attention! PS Plan your vacation now!!!