Regulatory concerns in 2020 are nothing to sneeze at and business owners should always know what they are and be read to address them. Businesses and their human resources departments need to stay on top of all regulatory compliance subjects, so their businesses keep in line and stay successful.
Presented for your knowledge and reference as the year continues to unfold are the biggest regulatory problems company’s need to be aware of and comply with in 2020:
Form W-4 Update
The tax cuts that came about in 2017 was due a new bill that passed called the Tax Cuts and Jobs Act of 2017. It required a change in the federal withholding method, resulting in a new Form W-4 for 2020. Completion of the form is required for all hires in 2020. Current employees are not mandated to fill out a new form for their employee withholdings, but they can select to amend their withholdings base on the new rules rolled out the act. Business owners must be ready to figure out employee withholdings with respect to new Form W-4 and the old Form W-4, plus they must make sure to be in compliance with the new 2020 withholding regulations that the act governs.
U.S. Department of Labor Final Overtime Rule
In the fall of 2019 during September the revised/updated Final Overtime Rule, which covers the federal regulations covering the employees that are due minimum wages and overtime pay covered by federal wage and hour laws, was announced by the U.S. Department of Labor. The law increased the “standard salary’ pay exemptions from the prior enforced level of $455 to $684 per week. This rule became effective on Jan. 1, 2020. For further knowledge about this act, please reference the U.S. Department of Labor website that covers the entire subject.
U.S. Department of Labor Final Overtime Rule
Employee classification is a hot button subject in 2020. It is being dealt with by the courts, and legislative bodies throughout the United States. The most controversial and well-known legislation being addressed in 2020 is the classification of rideshare workers. The issue being looked at is regarding if rideshare workers are independent contractors or if they are employees. This is a huge issue in California and is being looked at by several other state legislatures.
