4 Updates IRS Deadline to Supply ACA Forms to Employees

In late December 2017, the IRS announced an extension for employer’s providing Affordable Care Act forms to employee’s.  As the future of the Affordable Care Act is still undecided, employers should be proactive in distributing and communicating information to the workforce.

Below are 4 updates for the ACA:

  1. Extension: The IRS extended the date to March 2, 2018 to distribute the 2017 forms to employees.  This is a 30-day extension to the regularly scheduled date of late January 2018.
  2. Penalty: “The IRS, which announced the extension December 22 in Notice 2018-06, also said it will not impose penalties on employers that can show that they made good-faith efforts to comply with the Affordable Car Act’s (ACA’s) information reporting requirements for plan year 2017.”[1]

Notice 2018-06

Information Reporting Requirements for Plan Year 2017

  1. IRS Filing Deadline: The due dates for filing 2017 returns with the IRS is not extended.  The due dates to file information returns with the IRS remain; February 28 paper filers and April 2 electronic filers.
  2. The Future and Beyond: “Although this is the third year that the IRS has granted transition relief for reporting, the notice states significantly that the IRS does not anticipate granting transition relief for 2018 or future years,” Jost pointed out. “This statement highlights the fact that, although the individual mandate penalty is repealed as of 2019, the reporting requirements that support it, as well as the employer mandate, remain in effect.”[2]

Affordable Care Act (ACA) Tax Provisions

Form 1095-B

Form 1095-C

As leader’s, we must be proactive in approaching the Affordable Care Act’s current and future legislation.  As the individual mandate penalty is repealed, the healthcare law is still the law of the land, for now.  Continue to watch for more changes in 2018 and 2019.  The ACA is complex, seek guidance if you are unclear on a path-forward.

Below is a link to the NYS Paid Family Leave Resources:

NYS Paid Family Leave Employer Webinar

PFL Resource Page

Model Language for Employer Material

[1] https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/irs-extends-aca-form-distribution-deadline.aspx

[2] https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/irs-extends-aca-form-distribution-deadline.aspx

5 Suggestions on Work-Life Balance

Many of us have vacation and time off scheduled throughout the holiday season.  Now as we enter into the mid-point of January, we strive to continue thinking about 2018 goals and objectives.  For many, finding the balance between our professional and personal commitments is an ongoing struggle. A few weeks ago, I discussed work-life balance in a leadership development training and reinforced the importance of prioritizing the balance.

Consider these 5 thoughts on work-life balance:

  1. Keep Non-Work Commitments: This is an important piece of prioritization and self-accountability.  Continue to keep non-work commitments and take the time to enjoy the events.  It is not always easy to do so.  However, it is necessary to avoid burnout from work and not enjoying friends, family, volunteering, etc.
  2. Take Vacation Time: Vacation is a perk that most organizations offer to employees.  It is there for a reason, to ensure all of us have time off and take the necessary time to refresh and reset from the stresses of work.  As leaders, we don’t always see the value in taking vacation or time off.  Set the example for your workforce and scheduled time off and avoid working during the vacation.  If possible, leave the electronics at home or avoid answering emails.  I’m the last person to give advice on this, but shutting it down is mentally refreshing.
  3. Learn to Shut It Off: This is reflecting the advice in thought #2, shut off the electronics but also shut down the thought(s) of work.  I know this isn’t easy for any of us to do. Leave work at work and focus on having fun and relaxing while you are on vacation or taking a few days off.
  4. Use Your Calendar: We all have hectic schedules, filled with meetings and commitments. Block time on your calendar to ensure you have the necessary work-life balance.  I have found in my schedule, if it is written down or on my calendar, the more likely I will commit to the balance.  Learning to prioritize plays a major role in blocking time and committing to the balance.
  5. Mental and Physical Fitness: Stress is all around us. Ensuring we are taking care of ourselves mentally and physically is necessary.  Schedule time to go to the gym, take a walk at lunch or meditate.  I workout early in the morning, I’ve found that it’s the best way to start the day.  When I don’t workout it does have an impact on my day.  Find the formula and routine that works for best for you.  Change is hard, but necessary.

As I explained to the the leadership group I met with those weeks ago; I am the last person that should be giving advice on work-life balance.  However, I recognize the importance of work-life balance and am making the necessary changes to ensure there is a balance and time to shut it down.  Commit to making the change(s) in 2018 and make it a priority.  Goal setting is a great start.  Let’s all meet our goals in 2018-one step at a time!

3 Changes in New York State and 3 to Watch in 2018

As we near the end of 2017 and begin planning for 2018, leaders need to be aware of upcoming changes and potential changes in New York State and at the federal level in 2018.  The law continues to evolve, which causes greater complexity for organizations throughout the country.  Proactive knowledge and planning will help any leader in managing through these significant changes.

Below are 3 upcoming changes in New York State:

  1. Executive and Administrative Exemption: The federal FLSA has an overtime threshold at $455 per week. In NY State (Southern Tier), the threshold for Executive and Administrative positions is $727.50 per week.  This will be increased to $780.00 per week after 12/31/17.  We could see changes to the federal FLSA in 2018, under the current administration, but no changes have been decided, currently.
  • $727.50 per week on and after 12/31/16
  • $780.00 per week on and after 12/31/17
  • $832.50 per week on and after 12/31/18
  • $885.00 per week on and after 12/31/19
  • $937.50 per week on and after 12/31/20[i]

https://labor.ny.gov/formsdocs/wp/Part142.pdf

  1. Minimum Wage Increases: Minimum wage will increase on 12/31/17, from $9.70 per hour to $10.40 per hour in the Southern Tier.  The rates vary in NYC and Long Island, but they also increase.  Watch for wage compression in your salary schedules.

https://www.ny.gov/new-york-states-minimum-wage/new-york-states-minimum-wage

  1. Paid Family Leave: This is a significant change throughout the state and will impact most organizations.  Ensure that your organization is prepared for the change on January 1, 2018.

Below are 3 potential changes to watch in 2018:

  1. NY State Call-In Pay Proposal: If passed, this law will be a significant change to the call-in pay, employees wearing a pager and scheduling laws in New York State.  This is currently a proposal and has not been finalized yet.  More to come in 2018
  2. Medical & Recreational Marijuana: Continue to watch for changing legislation in the state and at the federal level that could impact medical marijuana legislation.  These laws continue to evolve at the state level throughout the country.
  3. Salary History Requirements: These laws have changed in certain states and cities throughout the country.  We could see more change to these laws, locally and nationally.

Other changes to monitory; ban the box, federal exempt level changes, federal minimum wage, FMLA, healthcare, tax legislation, NLRA changes (significant changes proposed under the new administration) and immigration legislation.  Be proactive in your approach to these changes and ask for guidance if you are confused or unclear on expectations.  Enjoy a safe & Happy New Year!

[i] https://labor.ny.gov/formsdocs/wp/Part142.pdf

5 Thoughts on Sexual Harassment Investigations

Recently, we have seen a significant number of workplace sexual harassment allegations and legal claims in the media.  Many of these allegations have been ignored for years, if not decades.  As organizational leaders, we have an obligation to take harassment claims of any nature seriously and address these claims proactively.  Investigating sexual harassment allegations, bullying, retaliation, etc. and addressing these issues is never easy, but it is necessary.

Below is a summary of my 5 thoughts on sexual harassment investigations:

  1. Take it Seriously: As recent news has shown us that ignoring a problem and/or covering it up isn’t a solution to any employee relations issues or sexual harassment claim. Employees should feel comfortable discussing these allegations with a supervisor, manager, business owner or the human resources department and have the confidence that the system will not fail them.  Make time to listen and address any concerns that are brought to your attention.  The worst thing we can do is ignore it or that make statements, that we are too busy to listen and proactively deal with the situation.
  2. Ensure Confidentiality: Organizations must protect the confidentiality of employee claims to the best of its ability.  Within protecting confidentiality, we must also conduct a prompt and proactive investigation.  Explain to the party putting forth the allegations and all individuals involved in the investigation process, that all information gathered will remain confidential, to the extent possible for an effective investigation.  However, organizations cannot guarantee absolute confidentiality to any party involved in the investigation.
  3. Provide Interim Protection: “Separating the alleged victim from the accused may be necessary to guard against continued harassment or retaliation. Actions such as a schedule change, transfer or leave of absence may be necessary; however, complaints should not be involuntarily transferred or burdened.  These types of actions could appear to be retaliatory and result in a retaliation claim.  The employer and the accuser must work together to arrive at an amenable solution.”[i]  Reinforce policies and communicate proactively with the party that has put forth the allegations.
  4. The Investigator: The appropriate investigator is necessary to ensure credibility of the investigation. Investigators must have the ability to investigate objectively without bias and remain neutral.  The investigator should have no stakes in the outcome.  There should be no personal relationships with either party involved in the situation.  Investigators need investigation skills that include; previous investigatory experience and working knowledge of labor and employment laws.  They must be able to build rapport with the parties involved, have attention to detail (notes, questions, fact-finding and summarizing) and the right temperament to conduct the interviews.  Investigating allegations is not easy.  Patience, efficiency and fluid communication is necessary to be effective.
  5. Investigation Closure: Ensure that thorough notes are documented throughout the process, interviews are closed out and the investigation ends. Loop closing communication is necessary to ensure investigations are effective and impactful.  Leaving the alleging party with no closure can lead to additional issues.  This does not mean communicating discipline, training and/or termination impacts.

Throughout my career, I have conducted many workplace investigations, including; harassment, bullying, retaliation, workplace violence, threats and sexual harassment.  Investigations are never easy, but they are necessary.  Doing the right thing isn’t always easy, but it is necessary.  If you are unsure on investigating or recognize that an internal investigation will not be effective and impactful, bring in a third party to assist the organization throughout the process and seek the necessary guidance to protect your workforce and your organization.

[i] https://www.shrm.org/resourcesandtools/tools-and-samples/how-to-guides/pages/howtoconductaninvestigation.aspx