Latest Highlights

Washington State Governor, Jay Inslee, signed into law Substitute Senate Bill 5975 (S5975), which creates the Family and Medical Leave Insurance Program effective January 1, 2020. The Washington Employment Security Department (ESD) has launched a new website to provide guidance to employers, workers and healthcare providers on the new paid family and medical leave insurance program.

On January 2, 2019, Michigan announced that the effective date of the minimum wage increase to $9.45 per hour will be March 29, 2019. The minimum cash wage required to be paid to tipped employees will increase to $3.59 on this same date.

In September 2018, the Michigan legislature adopted as law a proposed ballot measure that would require employers to provide their employees paid leave to be used for “sick” and “safe” time purposes, and other reasons. The law has been amended. The law, now known as the Paid Medical Leave Act, requires covered employers to provide up to 40 hours of paid medical leave per year to eligible employees.

The 2017 Tax Cuts and Jobs Act (TCJA) created a new employer tax credit available to employers who provide paid family and medical leave to their employees. The tax credit applies to wages paid to qualifying employees between January 1, 2018, and December 31, 2019. The Internal Revenue Service has now released Form 8994, titled “Employer Credit for Paid Family and Medical Leave,” and instructions to be used by an employer when claiming the credit.

Below is a summary of compliance requirements that took effect recently or will take effect over the next few months. For more information on these topics, please see this month’s edition of the ADP Comprehensive Services Newsletter or the Comprehensive Services Newsletter Archive located at http://adpcomprehensiveservicesnewsletter.com/.

The Internal Revenue Service (IRS) has released Publication 15 (Circular E) Employer’s Tax Guide for use in 2019; Publication 15-A, Employer's Supplemental Tax Guide; and Publication 15-B, Employer's Tax Guide to Fringe Benefits.

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ADP would like to remind you that President's Day on Monday, February 18, 2019, is a bank holiday.  The Federal Reserve will be closed.