RKL’s Workforce Strategies team is here to help you navigate the complexities of today's HR environment with the updates, reminders and insights you need to maximize your most important asset — your people. We value your feedback, so let us know what you think of this newsletter!
Important 2024 Reporting Year Changes to the Affordable Care Act (ACA)
On December 23, 2024, President Biden signed the Paperwork Burden Reduction Act (HR 3797) and the Employer Reporting Improvement Act (HR 3801). The passage of the Paperwork Reduction Act amends the ACA by no longer requiring employers to send 1095-B/1095-C forms to the covered individuals under their plan. Going forward, those forms are only sent when requested by the covered individual. To take advantage of this new requirement, employers must: 1) Provide employees with clear, conspicuous, and accessible notice that they may request a copy of Form 1095-B/1095-C; and 2) If the employee requests a copy, the employer must provide one by January 31 or 30 days after the request date, whichever is later.
Employees Receiving Tips: 2021 Dual Jobs Rule Removed from Regulations
On December 16, 2024, the Wage and Hour Division announced a Final Rule to remove the 2021 Dual Jobs Rule from the Code of Federal Regulations, reverting to pre-2021 standards following a U.S. Court of Appeals for the Fifth Circuit decision. The Fair Labor Standards Act (FLSA) governs minimum wage and overtime pay in the U.S., allowing a tip credit for tipped employees, which permits a lower wage if tips cover the gap to the full minimum wage. The 2021 updates to the FLSA's tip credit provision, which specified when the tip credit could be used for dual-role workers, were invalidated by the court ruling. The latest Final Rule aligns the regulations with the court's decision, maintaining the 1966 guidelines for applying the tip credit. More information is available here.
Compliance Update: IRS Mileage Rate Increase
The IRS announced a mileage rate increase in 2025 to 70 cents per mile. This is up three cents from the 67 cents per mile rate in 2024. The mileage rate, as well as other helpful payroll information, is available on RKL's 2025 Payroll Reference Guide.
2025 Employee Handbook Updates
Your employee handbook is a fundamental communication tool for outlining policies and expectations to employees to foster a well-organized and equitable workplace environment. To ensure legal compliance with the ever-changing employment laws and up-to-date policies, an annual review of your employee handbook is crucial. If you need help reviewing or rewriting your employee handbook, get in touch with RKL Virtual’s Workforce Strategies team.
There are several increased minimum wage laws that took effect on January 1st. The adjustment in wages is not limited to states alone; cities and counties have taken the initiative to raise their minimum wages even higher. Later in the year, more jurisdictions are expected to join this movement. While the federal minimum wage holds steady at $7.25, the Economic Policy Institute forecasts a significant shift towards a $15 per hour minimum wage for nearly half of all U.S. workers by 2027. Visit the National Conference of State Legislature State Minimum Wages for minimum wage by jurisdiction.
Are you Considering an Upgrade to Your Payroll System this Year?
The RKL Virtual team can guide you through the HR and Payroll System implementation process, making your day-to-day seamless. RKL client Altruix recently discussed their experience creating efficiencies and improving their processes with RKL's guidance.
