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PrestigePEO Insights LITE Newsletter – January 2024

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The latest news relevant to you and your business

Help Your Employees Navigate their W-2!

PAYROLL

Help Your Employees Navigate their W-2!

Tax season is coming soon, and the intricacies of the W-2 form often leave many individuals puzzled. For this reason, the team has arranged an informative webinar session designed to assist you and your employees in navigating this process. Boost your confidence during tax season by participating in this session, where we’ll address common questions our HR team receives every January.

Topics discussed will include:

  • Frequently Asked Questions (FAQs) about the W-2
  • How to find your W-2 using PrestigePRO or the PrestigeGO mobile app

Join us on Wednesday, January 24th at 10:00 a.m. Register at the link below.

2024 W-4 Form Update

Please note: The IRS has recently released a new version of form W-4 for 2024. Please click here to see a quick reference guide to the changes.

Goal Setting for 2024

HR CORNER

Goal Setting for 2024

It’s that time of year when people have a renewed focus on the things that matter most. We often hear of New Year’s resolutions, which are the goals we establish for ourselves each year.  Resolutions are often accompanied by passion and excitement, fueling us to achieve them. Setting professional goals as part of your organization’s strategy to achieve targeted results can also be viewed in the same way we view our New Year’s resolutions and hopefully with as much enthusiasm.

The process of setting goals begins with the executive team. These leaders determine organizational goals based on company performance, industry growth, company growth, changes in the market, company strategy, and other factors.

Linking Employee Goals to Organizational Objectives

Executives are charged with communicating organizational goals and creating an understanding of these goals. Managers work with executives to develop an understanding of these goals, create departmental goals, and subsequently communicate the goals to their employees. Sharing organizational goals with employees creates a unified vision of what matters most to the organization.

Managers work together with employees to develop professional goals that enable employees to perform in their current positions more effectively. They can also develop stretch goals, which are more challenging goals used to support skills that may lead to promotion or enable employees to work on complex projects.

Goals following the SMART goal format for Specific, Measurable, Achievable, Relevant, and Timebound goals. These allow for the development of comprehensive goals that are more likely to be accomplished.

Regular follow-up allows employees and managers to track progress against the goals established for the year. Managers can do this weekly, monthly, and quarterly during one-on-one employee meetings and more formally during the annual performance evaluation conversation.

With a keen eye on accomplishing goals, your employees can be the impetus to moving your organization to the next level. After all, when the people in your organization achieve their professional goals, the organization benefits from the increased productivity and success this produces. If you have any questions about organizational goals, please reach out to your HR Business Partner.

Important Employee Retention Tax Credit (ERTC) Update

COMPLIANCE

Important Compliance Alerts

To ensure you’re up-to-date on compliance changes impacting your business, we have compiled this list of alerts. Note that certain alerts might pertain exclusively to clients with businesses or employees in specific states — each alert will indicate this. Read below for further details.

New York’s Proposed Ban on Non-Compete Agreements – Vetoed For Now

In December 2023, Governor Hochul vetoed a proposed ban on Non-Compete Agreements that was passed last summer by the New York State Assembly (A1278B).  The legislation would have amended the state’s labor law to prohibit non-compete agreements for all workers in the state, regardless of salary, with very few express exceptions. The legislation was heavily criticized by business groups. However, the bill may be reintroduced by the bill’s sponsor, Senator Sean Ryan, in the upcoming legislative session.

PrestigePEO is here to help.

We will continue to monitor any legislation that may be introduced and will provide updates as necessary. Please reach out to your HR Business Partner with any questions or concerns.

Oregon – Leave of Absence due to Active Service of the State

As of January 1, 2024, Oregon has expanded its definition of “Active Service of the State” for purposes of employee leaves of absence. It now means the regular employment position of an employee on a leave of absence for active state service will be considered vacant only for the period of the leave of absence. During this leave of absence, the employee will not be subject to removal or discharge from the position.

What employees are covered under this law?

The employees covered under the Leave of Absence for “Active Service of the State” are military personnel called into active state service by the Governor of the State.

What does it mean for the employer?

  1. The employer must grant the employee a leave of absence until release from active state service permits the employee to resume the duties of employment. The regular employment position of an employee on a leave of absence for active state service will be considered vacant only for the period of the leave of absence. The employee will not be subject to removal or discharge from the position because of the leave of absence.
  2. The employer is not required to pay wages or other monetary compensation to an employee during a leave of absence.
  3. The State of Oregon will continue coverage under an employer-sponsored health plan to an employee of the State of Oregon and any other individual provided coverage under the employee’s plan on the day before the date the employee goes on leave for a period not exceeding a total of 12 months during a leave of absence. An employer other than the State of Oregon may continue coverage under an employer-sponsored health plan to an employee and any other individual provided coverage under the employee’s plan on the day before the date the employee goes on leave during a required leave of absence.

PrestigePEO is here to help.

PrestigePEO is focused on supporting your business. If you have any questions regarding Oregon’s Leave of Absence law due to “Active Service of the State” or need to update your leave policies, please contact your HR Business Partner.

Updates to the Chicago Paid Leave and Paid Sick and Safe Leave Ordinance

On December 13, 2023, the Chicago City Council voted to delay the paid leave changes in the new Paid Leave and Paid Sick and Safe Leave Ordinance from January 1, 2024, to July 1, 2024.

This delay impacts the following provisions of the Ordinance:

  • Paid Sick Leave Accrual and Carryover: the current accrual rate of 1 hour for every 40 hours worked will remain in effect until June 30, 2024. The new paid sick leave accrual rate of 1 hour for every 35 hours worked will not take effect until July 1, 2024. The changes to the paid sick leave carryover provision will also take effect on July 1, 2024.
  • Paid Leave Accrual: Paid Leave Accrual will now begin on July 1, 2024, rather than January 1, 2024.
  • Medium Employer Partial Payout Extended: Under the new Ordinance, certain employers are required to pay the employee the monetary equivalent of all unused accrued paid leave upon an employee’s termination, resignation, retirement, other separation, or transfer outside of the geographic limits of the City, dependent on the employer’s number of covered employees. Medium employers (51-100 covered employees) would have been required to pay out up to 16 hours of paid leave on separation or transfer through December 31, 2024, and all unused paid leave upon separation or transfer on or after January 1, 2025. That date for full payout has been postponed by six months until July 1, 2025.
    • Small Employers: Employers with 1-50 employees are still not required to pay out unused Paid Leave upon separation or transfer.
    • Large Employers: Employers with more than 100 covered employees must still pay out all unused Paid Leave upon separation or transfer.

Additional changes:

  • Covered Employee: the definition of a Covered Employee for the new Ordinance now defines a covered employee as an individual who works at least 80 hours for an employer within any 120-day period while physically present within the City’s geographic boundaries. This replaces the previous threshold for coverage of at least two hours of work for an employer in any two-week period. The amending Ordinance also clarifies that once the 80-hour threshold is reached for coverage, the employee will remain a covered employee for the remainder of the time that the employee works for the employer.
  • Effective December 31, 2023:
    • Recordkeeping for Non-Covered Employees:The amending Ordinance requires that employers comply with the Ordinance’s recordkeeping requirements for employees whose regular work duties take place within the geographical boundaries of Chicago, even if those individuals do not meet the standard for a “covered employee” under the Ordinance and consequently are not entitled to paid leave or paid sick leave.
    • Changes to Posting Requirements: The new law requires Chicago employers to provide written employment policies to each covered employee in their primary language. Employers must also provide workers with a 14-day notice of any changes to employment policies.

PrestigePEO is here to help.

PrestigePEO is focused on supporting your business. If you have any questions regarding Updates to the Chicago Paid Leave and Paid Sick and Safe Leave Ordinance or updating your existing leave policies, please contact us.

Feedback

If you have an idea for a future newsletter, we’d love to hear from you! Additionally, if you’d like more information on our services or programs, we can certainly accommodate that as well. Email marketingteam@prestigepeo.com today!

*Please Note: While the information within this newsletter concerns various employment laws and regulations, be aware it is provided solely as general guidance so that you maintain compliance. It is not the equivalent of legal advice, nor does it serve as a substitute for advice of an attorney, if applicable.
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