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President ’s Corner by Melanie Kelly

Volume 10, issue 2

The Payroll Tide 2nd Quarter 2016

Inside this issue::

President's

Message

1

Government

Update

2-5

Birthday’s and

HRAPA’s 15th

Anniversary

6

Upcoming Events

7

FPC/CPP Study

Group Info

8

Professional

Development

9

Community

Service & Prize

Winners

10

2016 Board

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Hello! Half the year is gone and what a busy year in the news it

has been: the Presidential Election, Great Britan breaking from the

European Union and of course the terrorists attacks. So much is hap-

pening that it is playing a huge part in how the economy is operating:

the stock market and gas prices are up and then down and our 401k’s,

what a shock.

We as payroll professionals need to stay calm and guide our employees to under-

stand that even though the market is greatly affected. It is very important to keep

saving and plan for those future retirements. That brings me to National Payroll

Week and how we can be instrumental in helping our employees to understand their

paychecks. Should you be looking for volunteer opportunities you can become a

Money Matters Volunteer. Money Matters volunteers have the opportunity to teach

teens about paychecks and how the taxes and deductions work. If you are interested

please see any one of the board members and we can help to get you signed up.

Remember that this year’s Virginia Statewide Payroll Conference in October will be

held in downtown Portsmouth. We will be the host chapter and will need assistance

with making sure our guests are comfortable and share the opportunities that Hamp-

ton Roads has to offer in the way of shopping, good food, and of course lots of fun.

So far this year, we have had some great meetings and our next three are

filled while great information to keep you on track with the latest payroll

news. Don’t forget we are supporting some celebrated Charities so please join us in

August, September and November.

I hope everyone has a safe and happy4th of July celebrating our countries Independ-

ence.

Enjoy your summer and stay cool! Melanie

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t Update Government Corner-News You Can Use

By: Melinee’ D. Cody, C.P.P.

Visit the HRAPA Government News website for more important legislation and regulation resources. To

stay abreast on the constant legislative and regulation changes you can subscribe to one or several of the

Resource Material listed on the Government News website.

IRS

Article provided by the IRS

Here’s What You Need to Do with Forms 1095-A, 1095-B and 1095-C You, your employees or your clients may receive one or more forms that provide information about 2015

health coverage. These forms are 1095-A, 1095-B and 1095-C. The following health care tax tips provide

some answers to common questions about these forms:

Form 1095-A: What you need to do with this form

Form 1095-B: What you need to do with this form

Form 1095-C: What you need to do with this form

For more information on these forms, see our Questions and Answers about health care information forms

for individuals.

IRS Pilot Program to Verify Forms W-2

On April 19, 2016, Commissioner John Koskinen said, The Internal Revenue Service plans to expand a

pilot program that added a verification code to Forms W-2. Due to the rise of identity thieves filing fake

returns with counterfeit W-2s, the pilot program was initiated in 2015 to verify the integrity of the data

submitted to the IRS. The number and types of Form W-2 issuers involved in the test are to be expanded;

Koskinen said they are looking to implement a special coded number to be added by payroll service pro-

viders in a box on the Form W-2 with a label “Verification Code”. When the individual use tax software

to prepare their returns they will have to enter this code form their Form W-2, when prompt.

The W-2 Verification Code (VC) ‘test and learn” pilot has been in production for Filing season 2016.

ADP, Ceridian, Intuit and Paychex implemented the VC field on approximately 2 million individual

Forms W-2 in a separate box labeled “Verification Code”. The IRS stated the code was not used in:

Paper-Filed Forms 1040

State and local returns

Data supplied to SSA

After all the returns were processed, the IRS obtained data from the Form W-2s with the VC code. This

will help them to determine whether the codes are useful in evaluating the integrity of W-2 information

submitted by taxpayers. The expansion of the Form W-2 Verification Code Pilot for filing Season 2017

will allow them to increase the number of W-2’s in the pilot from to at least 10% and up to 20% of total

W-2s. They are looking to increase the number of payroll service providers to include smaller sized is-

suers and include large federal organizations (e.g. NFC). In the long run they are hoping this pilot pro-

gram will be an efficient way to prevent identity thieves from filing fake returns with counterfeit W-2s.

State Child Support Agencies Make Use of Electronic System

On March 22, 2016 the Office of Child Support Enforcement’s said, a congressional deadline for states

and U.S. territories to use the Office of Child Support Enforcement's electronic income withholding order

system has mostly been met. Sherri Grigsby, OCSE manager of employer services said, By Feb. 29, the

nonparticipants were South Carolina, Guam and the Virgin Islands. October 2015 was the congressional

deadline was in October 2015.

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t Update Government Corner-News You Can Use

By: Melinee’ D. Cody, C.P.P.

The system allows employers to receive and respond to withholding orders, and electronically report

lump-sum payments and terminations. Grisby said at the American Payroll Associations Capital Summit,

preliminary reports indicated that $24.5 billion, or 75 percent of child support collections for fiscal year

2015, was collected through income withholding. Grigsby also stated, the office has responded to con-

cerns that state child support agencies may violate the Consumer Credit Protection Act if they require em-

ployers to withhold 100 percent from lump-sum payments. The law limits the total that may be withheld

from an employee's paycheck.

Form I-9

Employers must complete Form I-9 for newly hired employees to verify their identities and authorization

to work in the U.S.

Employers you may have noticed that the current Form I_9 expiration date is March 31, 2016. On March

31, 2016 the USCIS said, Employers should continue using Form I-9, Employment Eligibility Verifica-

tion, until further notice, the U.S. Citizenship and Immigration Services. Even though the Budget Office

control number shows the March 31, 2016 expiration deadline, current form continues to be effective un-

til further notice. The USCIS will provide updated information about a new version of Form I-9 after it

becomes available.

Department of Labor Made their Final Decision On May 18, 2016 the U.S. Department of Labor released the final rules governing which executive, ad-

ministrative, and professional employees (white collar workers) are exempt from the Fair Labor Standards

Act's minimum wage and overtime pay protections. Effective December 1, 2016, the final rule raises the

salary threshold from $455 a week or $23,660 a year to $913 a week or $47,476 a year. This means, em-

ployees who work make under $47,500 will now automatically qualify for time and half after working 40

hours.

This rule has a great effect on the salary and compensation levels needed for white collar workers to be

exempt. The change goes into effect on December 1, 2016. You can imagine this will affect scores of

working Americans, most notably those who are classified as “executive, professional, or administrative

employees.” Restaurant workers, fast food chefs, certain journalists, and other entry-level professionals

who burn the midnight oil, pushing 50 hours a week to make an impression will now reap the benefits. I

say it is about time.

This new ruling does come with consequences. Other backlash of this expansion to overtime may include

employers offering higher salaries, or cutting hours. No matter the consequence, four million Americans

will see some ripple, according to the Department of Labor. If you ask the Economic Policy Institute, that

number jumps to 12.5 million.

For more detail information, please go to the Federal Register website at https://www.federalregister.gov/

articles/2016/05/23/2016-11754/defining-and-delimiting-the-exemptions-for-executive-administrative-

professional-outside-sales-and. You can also visit the U.S. Department of Labor website and watch a re-

cording of an informational webinar on the Overtime Final Rule. Go to the following link, https://

www.dol.gov/whd/overtime/final2016/webinars.htm

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State Updates

What States are Taking the Plunge Lead in Increasing Minimum Wage?

California –whose current minimum wage is $10 per hour -made history on April 4 by becoming the first

state to pledge to a $15 minimum wage. The rate is set to increase incrementally until finally reaching $15

in January 2022 for companies with 26 or more employees. By January 2023, all California businesses will

offer $15.

In certain cities, the increase is happening at different times. Pasadena chose to increase its rate to $10.50

per hour this July. By July 2018, Pasadena will offer $13.25 per hour.

Governor Andrew Cuomo of New York also set plans to reach $15 per hour into motion April 4, with dif-

ferent stipulations than California. The rate will vary based on the location work is performed, with New

York City reaching $15 by December 2018. New York’s current amount per hour is $9. For a more infor-

mation at the breakdown for New York, go to https://www.governor.ny.gov/news/governor-cuomo-signs-

15-minimum-wage-plan-and-12-week-paid-family-leave-policy-law.

Alaska

Alaska Gov. Bill Walker (I) proposed the reinstatement of a state personal income tax on Jan. 21 his State

of the State address.

This comes on the cusps of falling oil prices. Alaska has not had a personal income tax since it was re-

pealed in 1980.

The reinstatement of a state income tax is part of a plan to diversify state revenue sources in response to

falling oil prices. The proposed state income tax would be tied to federal income tax at an amount of “less

than 1 percent of the gross income for the average Alaskan.

California

Parental Leave

San Francisco Mayor Signs Employer-Funded Paid Parental Leave Measure

April 6—San Francisco employers would be required to fund six weeks of paid parental leave for employ-

ees under an ordinance passed April 5 by the city's Board of Supervisors on the first of two readings.

Connecticut

On March 28, 2016, the federal labor department said, Connecticut repaid its federal unemployment loan,

and employers in the state are to not have a Federal Unemployment Tax Act credit reduction for 2016. For

a FUTA credit reduction to not be in effect for 2016, the state as of Nov. 10 still must not have a federal

unemployment loan balance.

Idaho

On June 22, 2016, Idaho State Tax Commission released revised 2016 Income Tax Withholding tables.

The annual allowance increased from $4,000 for 2015 to $4,050 for 2016. The rates did not change. The

tables came in effect in 2016. However, the employers do not to adjust the withholding for the months

prior to the tables being released.

Oklahoma

April 11, 2016 Gov. Mary Fallin (R) signed a bill stating the Oklahoma employers are to file annual recon-

ciliation returns with the state tax commission starting in 2017. Starting with tax year 2016 forms filed in

2017, the law (H.B. 2775) requires employers that withhold state income tax from employee paychecks to

submit an annual reconciliation return by Feb. 28th.

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Oregon

On April 4, 2016 Gov. Kate Brown (D) signed a law (S.B. 1587) requiring Oregon employers to add

more compensation information to employee pay statements.   The law's requirements, which are to

keep employees better informed about compensation, take effect Jan. 1, 2017.

Oregon already requires that statements include information on hour’s worked, net pay, gross pay and

deductions. The new law expands the amount of required information, including the number of regular

and overtime hours worked, pay rates, minimum wage allowances, payment date and the employer's

business identification or registry number.

The pay statement also is to indicate whether an employee is paid hourly, salary or by commission.

Under the law, contractors or subcontractors cannot intentionally pay wages less than the prevailing

rate.

Employers would be required to keep time and pay records for terminated employees for at least 60

days. Former employees are to receive a certified copy of the records within 45 days of a request.

South Carolina

On April 12, 2016 Gov. Nikki Haley (R) signed a bill that the filing of the annual reconciliation dead-

line for tax year 2016 forms filed in 2017 was moved up to Jan. 31 from the last day of February.

The new date to file Form WH 1606, South Carolina Withholding Fourth Quarter/Annual Reconcilia-

tion, and state copies of federal Form W-2, Wage and Tax Statement, conforms to the new federal

deadline for filing Forms W-2 with the Social Security Administration, also in effect for tax year

2016.

South Dakota

Effective July 1, 2016, employers that do not timely file quarterly unemployment tax or wage reports

or do not timely deposit unemployment tax can be assessed a penalty of $25 per month, up from the

previous monthly penalty of $5, for each delinquent report or tax deposit.

Vermont

Vermont has followed the footsteps of four other states that enacted paid sick leave laws: California,

Connecticut, Massachusetts and Oregon. Effective, Jan. 1, 2017,Vermont employers are to be re-

quired to provide at least 24 hours of paid sick leave a year to full-time employees, under a law (H.B.

187) signed by Gov. Peter Shumlin (D). Under the law, effective Jan. 1, 2019, the number of required

hours of paid sick leave a year would increase to 40.

Virginia

Virginia Governor Vetoes Local Minimum Wage Ban

On March 25, 2016, Gov Terry McAuliffe vetoed a bill Virginia cities and counties from passing local

wage and benefit requirements. Similar bills recently became law in Alabama, Idaho and North Caro-

lina.

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April Jennifer Mitchell - 5th Misty Seda-Morales - 6th Lisa Stevens - 14th Belinda Mullinax - 15th June Yvonne Smith - 7th Bristol Constance - 8th Jackie Kronstain - 9th Michele Salak - 30th

Birthday’s

We’re on the web

www.hrapa.com

HRAPA’s 15th Anniversary

During our April meeting we recognized our 15th anniversary as a Chapter

Member of the American Payroll Association. We toasted this momentous

occasion with sparkling cider and a beautiful cake made by our very own

Terri Weston.

It is a testament to our perseverance in a tough economy where there is

competing demand for limited resources, and it is also a signal of longevity,

which to many, signals integrity and strength. Celebrating this longevity in

our commitment to our dedication to provide education and the recogni-

tion of payroll as profession.

Celebrating 15 years of being the guiding light to your Payroll Success !!!

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Upcoming Events

HRAPA Night at Harbor Park with the Norfolk Tides!

August 27, 2016

7:05 pm

HRAPA members are getting ready to kick off National Payroll Week with a night at Harbor Park with the Norfolk Tides!!

Bring money and tickets to the June 9th meeting. For more information, contact Terrie Weston via email at

tweston@titanamerica.com

Registration is now OPEN!!!

Visit www.vspc-apa.com for more details.

2017 APA Congress

From Nashville to Florida

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HRAPA FPC/CPP Study Group

We have a full house this summer with our summer FPC/CPP Study Group. There are 14 dedi-

cated payroll professionals who have elected to give up their free time on Saturday’s to study for 9

weeks. We come from a diversified payroll background so this study group will be very interesting

and enlightening. Some of these individuals are taking the study group as a means to refresh their

knowledge and get their RCH’s, a few are brand new to payroll and looking to get some more in-

sight into their new profession while the rest are gearing up to take their FPC or CPP exams this fall.

Wish us luck as we take this 9 week journey together in our pursuit to further our knowledge in

our chosen profession—Payroll !!!

Michele Salak,

Education Chair

The Hampton Roads Chapter of the American Payroll Association

would like to wish each of our members a wonderful Summer.

Please take time off to enjoy your family and friends and refresh your soul before we

start the next season of Year End that will soon be upon us.

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How to Ace Your New Job’s 90-Day Trial Period

The interview process can be grueling when you’re looking for a new job in payroll, and once you land that position,

it can be tempting to relax and let your professional guard down a bit. But that would be a mistake. In fact, it’s cru-

cial to make a good impression in the first 90 days after you start a new job: More than half (54 percent) of chief fi-

nancial officers (CFOs) interviewed for a recent Robert Half survey said they give workers in a new role less than

three months to prove themselves.

In other words, now’s the time to really wow your new boss. As you settle into your new job, here are six ways to

make the grade:

1. Arrive at work early, and well-rested. Try to get to your desk at least 15 minutes ear ly dur ing the first few

weeks so you can prepare for any unfamiliar tasks and get a handle on your day. It’s more important than ever, too,

to get plenty of rest in the evening; if you come to work tired, you’ll likely struggle to learn your new job.

2. Ask for help. In payroll, the tiniest mistake can result in huge financial er rors and unhappy clients. If

you’re in doubt about policies or processes, seek out assistance or clarification from colleagues. To make sure you’re

on the right track, set up a weekly check-in with your manager for feedback.

3. Do it their way. Even if you prefer the way things got done in your old firm, it’s impor tant to learn your

new employer’s methods and procedures thoroughly before suggesting any changes. That way, your critiques will be

seen as constructive, rather than unhelpful criticism.

4. Save any special requests for later. Supervisors typically want to assess an employee’s performance on the

job for a while before they agree to a remote work arrangement or flexible schedule. Prove that you’re a reliable em-

ployee by completing tasks on deadline and with a positive attitude, for a reasonable amount of time, before you ask

for anything outside the norm.

5. Show your gratitude. When you’re under stress, it’s easy to forget to say “thank you.” But make sure to tell

your new colleagues how much you appreciate it when they guide you through new processes, give you directions to

the best lunch spots or offer advice on the most efficient ways to complete routine tasks at your new job.

6. Get social. Your boss isn’t the only person you need to impress at your new job. You should also star t

building your in-house network. Getting to know your colleagues not only improves your happiness at work; it can

also help you better understand your role in the company.

The first few months in a new job can be intimidating for any payroll professional. With a little extra effort, you’ll

prove yourself and make a great lasting impression.

Accountemps, a Robert Half company, is the world’s first and largest specialized staffing firm for temporary ac-

counting, finance and bookkeeping professionals. Accountemps has more than 325 locations worldwide. More re-

sources, including online job search services and the Accountemps blog, can be found at accountemps.com.

# # #

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Community Service

At our April meeting we collected donations for the SPCA Supply Drive ( pet food, treats, paper towels,

newspapers, etc) and anything else pet related. We collected much needed items for Cats and Dogs.

At our June meeting we collected donations and $128 cash for the Ronald McDonald House. Vickie

Kennedy is the Housing Manager and she is pictured with the goods we dropped off.

At our August meeting we will be collecting Blankets for the Homeless. This worthy cause is to help

those in our community who are for whatever reason in need of help. This cause distributes blankets and

lunches along with other desperately needed items to people in our community living on the streets be-

cause they cannot get into shelters. For more information on this worthy cause please go to

http://www.blanketsforthehomeless.org/

Prize Winners

The ladies listed below are some of our winners from previous payroll meetings. Just an-other reason why you should be a member of the Hampton Roads American Payroll Associ-ation Chapter. Not only do you gain knowledge on leading payroll issues and get to network with some awesome people, you get a chance to win some cool prizes too. Melanie Kelly, CPP - Community Service Winner Darlene Wallace - Door prize Terri Weston - Door prize Lisa Miller - Door prize Angela Ives - Free Meeting Registration

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2016 HRAPA BOARD

President: Melanie Kelly, CPP mkelly@suminet.com

President Elect:

Vice President: Melinee Cody, CPP mcody@pensoft.com

Treasurer: Jacqueline Kronstain, CPP jkronstain@cvi.canon.com

Secretary: Lisa Stevens lisa.stevens@checkeredflag.com

Membership: Cynthia Johndrow cynthia.johndrow@accountemps.com

NPW Chair: Terri Weston, FPC tweston@titanamerica.com

Community Service: Terri Weston, FPC tweston@titanamerica.com

Education: Michele Salak, CPP michele.salak@L-3Com.com

Newsletter: Michele Salak, CPP michele.salak@L-Com.com

Speaker Chair: Melinee Cody, CPP mcody@pensoft.com

Advisor: Melinee Cody, CPP mcody@pensoft.com

Web Master: Melinee Cody, CPP mcody@pensoft.com

Proclamations/Sponsor Chair: Stephanie Parker, CPP sparker@cits.canon.com

Consider serving in one of these vacant Board positions. Contact any one of the people above to volunteer.