On February 12, 2024, the IRS released Rev. Proc. 2024-14 to provide the adjusted excise tax amounts under the Affordable Care Act’s Employer Shared Responsibility provisions (also known as the ACA Pay or Play Penalty) for 2025.
For background, employers with more than 50 full-time employees (including full-time equivalent employees) are subject to the ACA Pay or Play Penalty under Section 4980H of the Internal Revenue Code (the “Code”). Employers subject to ACA Pay or Play may be liable for a penalty if they do not offer minimum essential coverage to a sufficient number of full-time employees, or if minimum essential coverage is offered to the required number of full-time employees, but that coverage is not affordable.
2025 Adjusted Penalty Amounts
During this episode of Myra’s Minutes, we discuss ways to navigate the confusing world of insurance benefits and claims with AAG on your side.
You can view this short video here.
All OSHA 300A logs must be posted by February 1st in a visible location for employees to read. The logs need to remain posted through April 30th.
Please note the 300 logs must be completed for your records only as well. Be sure to not post the 300 log as it contains employee details.
The 300A log is a summary of all workplace injuries, including COVID cases, and does not contain employee specific details. The 300A log is the only log that should be posted for employee viewing.
Please contact our office if you need a copy of either the OSHA 300 or 300A logs.
The holidays aren’t all parties and presents or candy canes and champagne. For workers, this time of year—brimming with looming end-of-year deadlines, financial and social obligations, and more—can cause a serious decline in mental well-being.
Research shows the majority of U.S. workers (61%) say their mental health is negatively impacted during the holiday season, with 44% feeling more stressed than usual and 17% reporting a decline in their overall well-being. That’s on top of the high levels of stress and burnout workers are already experiencing. According to recent study conducted by Aflac, well over half of U.S. employees (57%) are experiencing at least a moderate level of burnout.
One of the reasons why burnout and workplace stress intensifies during the holiday season is because of the pressure to meet year-end deadlines during a shortened work month. Additional family, financial and personal obligations also exacerbate burnout symptoms and workplace stress at the end of the year.
That heightened stress will likely make its way into the office—creating not only unproductive and unhealthy employees, but also ones who may not feel valued by their employer and are therefore more likely to leave.
That’s why, experts said, it’s in employers’ and HR leaders’ best interest to address the issue by touting available benefits, helping manage workloads and rethinking holiday celebrations, among other steps.
Employers and HR leaders need to help address this time of high stress and anxiety because first and foremost, employees are people first and workers second. High stress and anxiety can lead to burnout, illness and more. As for the employer piece, intense stress and anxiety can result in poor productivity, errors, lower morale and engagement, and more.
Here are 10 ways to help, according to HR and benefits experts.
1.Remind employees about financial education offerings to assist them with holiday budget concerns. Many employees are already stressed about finances—long-lasting high inflation has pushed financial wellness to an all-time low for many so the holidays, which are associated with gifts, extra commitments and travel that drive up spending, can cause greater stress for employees.
A September survey by Paycom found that three in four Americans say they must make accommodations to afford increased holiday expenses, including having side hustles or seasonal jobs, taking on credit card debt or payday loans, and saving throughout the year.
Many organizations offer financial wellness programs for employees, so HR leaders may want to send out information about available resources that employees can access to help with budgeting, saving and more.
Organizations should also look at their pay processes and make sure employees are paid on time and correctly for any end-of-year bonuses, regular salary and overtime hours.
2. Check in about workload—especially regarding end-of-year deadlines. The end of the calendar year is especially busy for many employees, and in some sectors, it might even be the busiest time of the year. “As the end of the year approaches, employees are trying to finalize budgets, wrap up projects, meet goals and tie up loose ends,” said Jennifer Moss, author of The Burnout Epidemic: The Rise of Chronic Stress and How We Can Fix It (Harvard Business Review Press, 2021). That’s why it’s vital that managers talk with employees about their workload and try to come up with solutions together about how to manage it, she said.
From now until the end of the year, managers should frequently check in with employees so they feel seen and heard.
Managers can say something like, “I want to check in to see how you’re doing. It’s such a hectic time of year and stress can become more intense than usual. How are you? How can I best support you?” Employers should be open to hearing their workers’ concerns—maybe they need more flexible schedules right now; maybe they need additional help—perhaps tapping resources from other departments who have lighter workloads this time of year.
3.Think about mental health help. HR and benefits leaders would be well-served to ramp up communication about mental health tips, as well as resources available through the company. HR leaders might want to send messages to employees to encourage them to take advantage of wellness programs such as employee assistance programs.
4.Encourage employees to take paid time off (PTO)—and actually step away from work. Utilizing PTO is vital in helping employees take a breather, recharge and come back to the office ready to work and be productive. The majority of workers (65%) admit to working on their days off to solve time-sensitive deliverables or to support their manager or other co-workers who ask questions or require their response.
Employers should reassure workers they don’t have to work on their days off. Bosses should lead by example and not check emails while they’re out of the office to set the message of truly unplugging. In turn, this means when they know their workers are on personal time or holiday time out of the office, bosses should not reach out to their direct reports and expect them to respond.
By having bosses do this, they can put a worker’s mind at ease. They can feel that their boss truly supports their taking time off without any negative ramifications. It can also help alleviate the stress and anxiety workers feel to constantly work 24/7 during a time of year that’s intended for people to slow down and pause.
In the long term, advocating for employees to enjoy time off can help strengthen retention and boost productivity when they return to work after a break feeling recharged.
5.Talk about health concerns and good practices. COVID-19, flu, RSV (respiratory syncytial virus) and other illnesses are spreading rapidly right now, which can be a stressor for employees—especially those who work in an office near other people or have a holiday party to attend. HR leaders might want to tell their workforce about potential ways to combat virus spread and encourage them to use PTO or to work remotely when they’re sick to “help avoid spreading illness, which can increase stress”.
Likewise, it might be a best practice to not make an office holiday party mandatory to ease concerns of workers who might be concerned about catching COVID-19 or other illnesses.
6.Consider offering a companywide break. PTO is helpful, but a companywide break—when a company shuts down most of its operations and allows employees to take the same time off can be a big help in reducing employee stress.
It also appears to be a growing trend, especially around the holidays: According to Sequoia Consulting Group, an HR consulting and services company based in San Francisco, 35% of companies give employees the week between Christmas and New Year’s Day off.
While this may take significant planning, employers can get ready to do it next year.
7.Give employees a choice when it comes to holiday gatherings. Holiday parties can be fun and a great morale booster—but they can cause stress for workers already stretched thin with lots of commitments or for any employee who would prefer to skip out on big events due to illness concerns.
Check in with your people to find out if they are still on board with the big holiday party or if they want to do something else this year. Go with the majority, but if there are people who might feel left out, offer a different option. Organizations should ensure that events are accessible by having spaces that consider employees with disabilities. Neurodiverse employees, for instance, may need spaces that respect sensory sensitivities.
It can appear tone-deaf if employees are feeling constantly under-resourced and exhausted from burnout, and the cost of the holiday party could have paid for those resources. Just because it comes out of another budget, it doesn’t mean employees won’t notice.
8.Offer opportunities to volunteer or give back. Giving back and helping others during this time of year may boost employees’ feelings of happiness. Employers can offer employees an opportunity to volunteer or participate in charitable giving. Employers can also consider offering workers a day of PTO to volunteer for a cause they are passionate about.
Offering employees an opportunity to give back to their communities can also bolster a sense of community and well-being.
9.Remember that employee situations are unique. The holidays can be a joyful time of year for many people, but they can be especially rough for many others.
The holidays can be hard for people—particularly if they are attached to grief. It may feel like the pandemic is in the rearview, but the catastrophic impacts are still felt by many, especially at this time of the year. Also, the holiday season can feel exclusive for anyone who doesn’t celebrate it. Plus, loneliness is at an all-time high during the holiday season, which can make people feel even more excluded. Employers need to be sensitive to the unique experiences everyone is going through.
Employers and HR leaders could benefit from training managers to recognize the signs of high stress and anxiety among their workforces. These signs include but are not limited to absenteeism, irritability, lack of concentration and lower work quality, as well as withdrawn behaviors.
10.Celebrate employees during the holidays. Some employers give gifts to employees—from larger things such as an end-of-year bonus and extra PTO to smaller things such as a gift card or other present. But gifts are not the only way to celebrate employees. Recognizing their contributions, even with a letter or in-person praise, can boost employee confidence.
Celebrating employees during the holidays—in large and small ways—is important. It doesn’t have to be an extravagant holiday party; simply thanking employees for their efforts over the past 12 months can help to build morale.
The Internal Revenue Service (IRS) recently released draft instructions for preparing, distributing and filing 2023 Forms 1094-B/C and 1095-B/C. These instructions largely mirror guidance the IRS has published in previous years, except that the electronic filing threshold has been reduced from 250 forms to 10 forms aggregate.
For 2022 filing, employers could mail their Forms 1094 and 1095 to the IRS if their submission included fewer than 250 forms. For ACA filing for 2023 and future years, employers that cumulatively submit at least 10 forms to the IRS, including W-2s, 1099s, ACA forms 1094/1095, and other common form series, the employer must now file all of those forms electronically.
For example– if you are an employer who issues five Forms W-2 for 2023, four 1095-B forms for 2023, and one 1094-B Form for 2023, this is a sum collectively of 10 total forms and this employer must file all of these forms electronically with the IRS when its due in 2024.
This change result from a final regulation the IRS issued earlier this year that officially reduced the electronic filing threshold for many forms.
Employers that have historically submitted their Forms 1094/1095 to the IRS by paper will need to consider overall how many forms they will be filing with the IRS (not just Forms 1094/1095) in 2024 to determine whether they can continue to file via paper. Even if your carrier prepares you with paper copies of your 1094/1095 forms as a courtesy for submission to the IRS, you will still need to evaluate if you need to file those electronically in 2024.
Ultimately the 10 form aggregate threshold will necessitate electronic filing for nearly every employer. Anyone who has traditionally paper filed their ACA forms to consider contracting with a vendor or speak with their payroll company to see if they can confidentially e-File on their behalf in 2024.
The IRS guidance regarding the filing threshold is available online at https://www.govinfo.gov/content/pkg/FR-2023-02-23/pdf/2023-03710.pdf
The IRS has released Revenue Procedure 2023-34 confirming that for plan years beginning on or after January 1, 2024, the health FSA salary reduction contribution limit will increase to $3,200.
The adjustment for 2024 represents a $150 increase to the current $3,050 health FSA salary reduction contribution limit in 2023.
What About the Carryover Limit into 2025?
The indexed carryover limit for plan years starting in calendar year 2024 to a new plan year starting in calendar year 2025 will increase to $640.
Other Notable 2024 Health and Welfare Employee Benefit Amounts
Did you know that 88% of Americans report feeling stressed at some point during the holidays. During this episode of Myra’s Minutes, we share tips on how to battle holiday induced stress this season.
You can view this short video here.
As a courtesy, Fisher & Phillips LLP has provided a checklist of items to consider when revising your employee appearance policy and dress code – an especially timely topic given the evolving nature of employer expectations in this area.
Evolving Workplace Expectations and Standards
Pandemic prompted changes. Many workplaces have become more casual in recent years, and the COVID-19 pandemic accelerated this movement. Employers and co-workers alike probably don’t mind when a cat, dog, or child occasionally makes an appearance in a Zoom call, and they accept that many employees on those calls are wearing sweatpants with their camera-ready dress shirt. Moreover, many employers that want workers to return to the office have offered a variety of incentives, including a relaxed dress code.
What does this mean for your appearance standards?
These changes should motivate you to think about how to strike a balance between employee comfort and the standards of professionalism for your particular company culture and industry. Every workplace is different, but in general, you should consider the following questions:
| _____ | Will you create a general policy simply requiring employees to look professional and well-groomed? Or do you want to be more specific? |
| _____ | Will you require customer-facing employees to dress more professionally or formally than those who only interact with co-workers — whether in person or on camera? |
| _____ | Will you create a separate policy for Zoom meetings that may be more relaxed than your in-person appearance policy? |
| _____ | Do you want to be more specific about what attire is unacceptable in the office or on Zoom? For example, are jeans and a t-shirt allowed? What about baseball caps, sleeveless shirts, or hooded sweatshirts? Just be sure to review such policies for compliance with the workplace laws discussed in more detail below. |
Hairstyle equity. In addition to pandemic-related changes over the last few years, calls for social justice led many jurisdictions to pass laws combating workplace racial bias based on hairstyle. In fact, 19 states and many localities have passed a version of the CROWN Act, which prohibits employers from discriminating against employees and job applicants based on natural or protective hairstyles. Natural hair has not been treated with chemicals that alter color or texture — such as bleach or straightener. Protective hairstyles — such as braids, locs, twists, or bantu knots — tuck the ends of the hair away to protect from sun, heat, and other damage.
Racial discrimination based on hairstyles is a part of everyday life for many Black adults, according to a study by the CROWN Coalition — which was founded by Dove, National Urban League, Color of Change, and Western Center on Law and Poverty. Moreover, a 2019 Dove CROWN study found that Black women were 1.5 times more likely to be sent home from work because of their hair and 30% more likely to be made aware of a formal workplace appearance policy than their co-workers.
In light of laws banning hairstyle bias and to align with your efforts to be inclusive, you’ll want to consider the following about your appearance policy:
| _____ | Is the policy fairly and equitably applied to hairstyles regardless of race and ethnicity? |
| _____ | Are your policies culturally and ethnically inclusive? |
| _____ | Do you require employees to appear professional and well-groomed without creating hairstyle standards that unfairly restrict natural or protective hairstyles? |
| _____ | Are your standards based on a bona fide occupational qualification (BFOQ) that is reasonably necessary to the normal operation of your business or enterprise? For example, certain employees who work with food may have to wear hair or beard coverings or tie their hair back for safety and hygiene reasons. |
Reasonable accommodations and other legal considerations. While the COVID-19 pandemic and new CROWN Act requirements may prompt you to update your appearance policy and dress code, don’t forget to review your standards for compliance with other established workplace laws. Consider the following questions:
| _____ | Do you have a process in place to review accommodation requests? You may need to explore reasonable accommodations based on an employee’s religious practice or medical condition. |
| _____ | For example, does your policy ban hats and other head coverings? If so, you may need to accommodate a Muslim employee who wears a hijab. |
| _____ | Do you have a policy banning facial hair? If so, you may need to accommodate an employee with a skin condition — like Pseudofolliculitis Barbae — or a religious reason for growing a beard. |
| _____ | If an accommodation does not seem right due to your unique business needs, have you discussed with your employment law counsel the possibility of an undue hardship exception for the business? |
| _____ | Is your appearance policy gender-neutral? Without identifying a BFOQ, you shouldn’t create policies that cause greater burdens for employees of one gender than another. |
| _____ | Further, have you considered refraining from setting different standards based on gender altogether unless there’s a BFOQ — particularly in light of the 2020 SCOTUS decision in Bostock v. Clayton County? In that case, the Supreme Court held that Title VII of the Civil Rights Act shields workers from discrimination based on gender identity. |
| _____ | Have you considered all applicable state and local laws that may specifically address gender identity and workplace policies? |
| _____ | Does your policy align with the latest guidance from the National Labor Relations Board (NLRB)? Be sure to consistently enforce any rules prohibiting employees from wearing clothing with logos, political statements, or social justice messages. |
| _____ | Are you aware of the NLRB’s current position on employees wearing union insignia — on items such as buttons and t-shirts? An employer needs to show special circumstances that justify its actions when it interferes with its employees’ right to display such insignia. |
| _____ | Are there any safety concerns that should be reflected in your dress code? You may want to relax your appearance policy, but you should still consider whether to continue following some rules for safety reasons — either as a best practice or because it’s required by law. |
| _____ | For example, will you require certain workers to wear closed-toe shoes? Are there Occupational Safety and Health Administration (OSHA) rules that you need to follow for certain jobs? If so, you’ll want to ensure compliance. |
| _____ | Did you review your policies with legal counsel? Because so many evolving areas of law may impact your employee appearance policy and dress code, it’s a good idea to have experienced legal counsel review your standards for compliance before communicating any updates to your employees. |
Conclusion
Recent workplace shifts mean that it’s time to review your employee appearance standards and dress code to ensure they are fair and inclusive, as well as compliant with the latest legal developments. Keep in mind that consistency is key.
Reminder- Florida’s minimum wage will increase to $12.00 per hour on September 30, 2023. The direct wage for tipped employees will also increase to $8.98 per hour. Be sure to update your minimum wage poster(s) before September 30, 2023. Please let us know if you need copy of the updated poster(s).