1. Year End 2015 Becky Harshberger bharshberger@ep.com 818-955-6016 desk

2.  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

3.  FICA Base (ER)$119,100? (6.2%)=$7,384.20  CA SDI$101,636? (1.0%)  401(k) $ 18,500 50+ $5,500  Mileage$ 0.575 (2015)  Adoption Asst$ 13,190?  Qualified Parking$ 250?  Transit Pass$ 130?  Foreign earned income exclusion $99,200?  CA supplemental rates?

4.  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: ◦ Control group aggregation (common ownership, add up to 100) ◦ FT time status (determined month to month, avg 30 hours /week or at least 130 hours in a month) fifty shades of grey in not a fun way…. ◦ Look back periods (measurement periods, ER picks 3 -12 months) if ee met FT status above, then coverage must b offered  In 2016, the mandate drops to 50 FT or FT equivalents  Reporting the cost of healthcare on a W2 (code DD)

5. Full-time Workers employed at least 130 hours per month FTE Those employed that did not work 130 hours a month. For ACA adding their total hours for the month (using up to 120 hours per employee) and divide this amount by 120.

7. Pay: Company chooses to pay the penalty tax of $2000 a year per employee instead of providing adequate and affordable healthcare coverage Play: Company chooses to offer compliant coverage, BUT that coverage is unaffordable to certain employees, the company will pay $3000 a year for each full time employee who obtains government subsidized coverage on the exchange

8. Adequate: The offered coverage must cover on an actuarial basis at least 60% of the value of benefits available under the plan. For example, if the plan covers 50% of hospitalization cost, it is NOT adequate.. Affordable: If the employee’s share of premiums does not exceed 9.5% of an employees household income. For example, if the FT EE earns $50k, the employee cannot pay more than $395.83 toward monthly premiums ($50k x 9.5%/12).

9.  New Forms ◦ 1095 A (provides information you need to complete Form 8962 Prem Tax Credit)-sent from Health Exchange ◦ 1095 B (states u had min essential coverage..From ER usually) ◦ 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 14, Code DD

10.  The Unemployment Insurance (UI) fund has a revised projected deficit of $7 billion by the end of 2015, according to a new report released by the Employment Development Department. ($5 Billion at the end of 2016)  Sacramento has a number of groups interesting in changing UI wagebase and in ways to pay off the debt….

11. 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  Ohio$874,835,016.53  Virgin Islands $72,204,422.99   Total$6,908,202,065.82

13. 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  201 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

14.  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

15.  IRS and state changes happen through out the year, how effectively are you communicating them to employees?

17. 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

18.  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)

19. 1. Gluttony – Fixing all dimensions of a YearEnd. 2. Lust – Intense or unrestrained craving for YearEnd features. 3. Sloth – Failing to do high quality work at all times. 4. Opaqueness – Obscuring the progress, quality or other attribute of a project. 5. Pride – Believing that we know everything to produce YE 6. Wastefulness – Misuse of critical resources 7. Myopia – Not seeing beyond your own work

20. Thank you for your attention