As we prepare for a new administration, let’s take a look at what we know, what will change and what 2017 may bring.
What we know and what will change:
- Affordable Care Act—Forms 1094-B and 1094-C and Forms 1095-B and 1095-C to employees—the disbursement date has been extended to March 2, 2017. The date for forms filed to the IRS on the AIR system is still March 31, 2017.
- New Overtime Rules, U.S. Department of Labor—The much-anticipated change in monetary wage payments to be considered exempt effective December 1, 2016 was put on hold by Federal Judge Amos L. Mazzant III from Texas on November 22, 2016.
- Compliance Due Dates—Many states have accelerated employer W-2 filings to January 31, 2017. Updated listings below.
|Electronic State W-2 Due Dates|
|State||Due Date||State||Due Date|
|AL||Jan. 31 (accelerated)||NC||Jan. 31 (accelerated)|
|AR||Feb. 28||ND||Mar. 31|
|AZ||Feb. 28||NE||Feb. 1 (accelerated)|
|CO||Jan. 31 (accelerated)||NJ||Last day of Feb.|
|CT||Jan. 31 (accelerated)||NM||Last day of Feb.|
|DC||Jan. 31 (accelerated)||NV||None|
|DE||Jan. 31 (accelerated)||NY||N/A|
|FL||None||OH||Jan. 31 (accelerated)|
|GA||Jan. 31 (accelerated)||OK||N/A|
|HI||Last day of Feb.||OR||Jan. 31 (accelerated)|
|IA||Jan. 31 (accelerated)||PA||Jan. 31 (accelerated)|
|ID||Jan. 31 (accelerated)||PR||Jan. 31 (accelerated)|
|IL||Feb. 15 (accelerated)||RI||Jan. 31 (accelerated)|
|IN||Jan. 31 (accelerated)||SC||Jan. 31 (accelerated)|
|KS||Last day of Feb.||SD||None|
|KY||Jan. 31 (accelerated)||TN||None|
|LA||Jan. 31 (accelerated)||TX||None|
|MA||Jan. 31 (accelerated)||UT||Jan. 31 (accelerated)|
|MD||Jan. 31 (accelerated)||VA||Jan. 31 (accelerated)|
|ME||Feb. 28||VT||Jan. 31 (accelerated)|
|MN||Feb. 28||WI||Jan. 31 (accelerated)|
|MO||Feb. 28||WV||Feb. 28|
|MS||Jan. 31 (accelerated)||WY||None|
- Several states have enacted minimum wage increases for 2017. Updated listings below.
|Minimum Wage Rates—2017|
|Taxing Authority||Minimum Wage||Taxing Authority||Minimum Wage|
|AK||$9.80 per hour, eff. 1-1-17||MT||$8.15 per hour in 2017 ($8.05 per hour in 2015 and 2016)|
|AL||N/A||NC||$7.25 per hour|
|AR||$8.00 per hour, eff. 1-1-16 (increases to $8.50 per hour, eff. 1-1-17)||ND||$7.25 per hour|
|AZ||$10.00 per hour, eff. 1-1-17||NE||$9.00 per hour, eff. 1-1-16|
|CA||$10.05 per hour, eff. 1-1-17||NH||$7.25 per hour|
|CO||$8.31 per hour, eff. 1-1-16 ($8.23 per hour in 2015)||NJ||$8.44 per hour, eff. 1-1-17|
|CT||$9.60 per hour, eff. 1-1-16 ($10.10 per hour, eff. 1-1-17)||NM||$7.50 per hour|
|DC||$11.50 per hour; $12.50 eff. 7-1-17||NV||$8.25 per hour ($7.25 per hour for employees who receive qualified health benefits)|
|DE||$8.25 per hour||NY||$9.70 per hour, eff. 1-1-17 (increasing on 12-31-16 to $11 per hour for NYC employers with 11 or more employees (large employers) and to $10.50 per hour for NYC employers with 10 or fewer employees). Rates scheduled to increase to $15 per hour for large employers on 12-31-18 and small employers on 12-31-19|
|FL||$8.10 per hour in 2017||OH||$8.15 per hour, eff. 1-1-17 ($8.10 per hour in 2015 and 2016)|
|GA||$5.15 per hour||OK||$7.25 per hour|
|HI||$8.50 per hour, eff. 1-1-16. Increases to: (1) $9.25 per hour, eff. 1-1-17; and (2) $10.10 per hour, eff. 1-1-18||OR||$9.25 per hour (eff. 7-1-16, increases to: $9.75 per hour everywhere except in non-urban counties, and to $9.50 per hour in non-urban counties)|
|IA||$7.25 per hour||PA||$7.25 per hour|
|ID||$7.25 per hour||RI||$9.60 per hour, eff. 1-1-16|
|IL||$8.25 per hour ($10 per hour for state contractors, subcontractors and prospective vendors, eff. 1-12-15)||SC||N/A|
|IN||$7.25 per hour||SD||$8.65 per hour, eff. 1-1-17 ($8.55 per hour in 2016)|
|KS||$7.25 per hour||TN||N/A|
|KY||$7.25 per hour||TX||$7.25 per hour|
|LA||N/A||UT||$7.25 per hour|
|MA||$10.00 per hour, eff. 1-1-16 and increases to $11.00 per hour, eff. 1-1-17||VA||$7.25 per hour|
|MD||$8.75 per hour; $9.25 eff. 7-1-17||VT||$9.60 per hour, eff. 1-1-16, increases to: (1) $10.00 per hour, eff. 1-1-17; and to (2) $10.50 per hour, eff. 1-1-18|
|ME||$9.00 per hour, eff. 1-1-17||WA||$11.00 per hour, eff. 1-1-17|
|MI||$8.50 per hour, eff. 1-1-16. Increases to: (1) $8.90 per hour, eff. 1-1-17; and (2) $9.25 per hour, eff. 1-1-18||WI||$7.25 per hour; opportunity employees may be paid $5.90 per hour|
|MN||Large employers (gross volume of sales of $500,000 or more are required to pay: $9.50 per hour, eff. Aug. 1, 2016 (previously $9.00 per hour).||WV||$8.75 per hour, eff. 1-1-16|
|MO||$7.70 per hour, eff. 1-1-17||WY||$5.15 per hour|
- Employers must use new Form I-9s by January 22, 2017.
- The following states have mandated paid sick leave (and several cities have their own specific requirements):
- Vermont (2017)
- Washington, D.C.
What 2017 MAY bring:
- E-Verify mandate—The new administration has indicated that they would like to see E-Verify mandatory for all new hires.
- Affordable Care Act—The ACA as we know today will change (specifics to be determined). Will 1095 forms cease? More than likely, and it’s unknown what will replace them.
- Tax reform is inevitable. Tables will change, but the timing is not certain.
- Truncated social security numbers on W-2s will be discussed in 2017 but, for now, the full social security number is still mandatory on all W-2s.
- The Uniform Nonresident Taxation bill should come to a vote in 2017—if passed, it would standardize the treatment of work/taxation in secondary states.
- More states will follow California with mandated retirement plans for employers.
One thing is certain—the 2018 Trump budget proposal, which will come out in early spring 2017, will be eye-opening. Make sure to watch for my upcoming reports on payroll impact.
No matter which way you lean politically, fasten your seatbelts! 2017 will be an interesting year.
This first appeared on the Thomson Reuters blog: https://tax.thomsonreuters.com/blog/accounting-audit-payroll/payroll/looking-forward-payroll-in-2017/
James Paille CPP is the Director of Operations for Thomson Reuters myPay Solutions. He has been an executive manager in the payroll service industry for more than 30 years, specializing in managing multi-location offices. Jim is President of the American Payroll Association as well as a member of the National Speakers Bureau and chair of the CPP Certification Review Panel. He holds a Bachelor of Science in Accounting from St. John Fisher College in Rochester, NY.