2012 Compliance Guide

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We’ve developed an easy guide summarizing what your organization needs to know to stay compliant in 2012. The guide includes a summary of several regulations that take effect as well as important legal issues on the horizon.

Regulations that Take Effect

Below are several major regulations and initiatives will took effect during the first few months of 2012.

Legal/HR Issue

Description of Regulation

Effective Date

2012 Income Tax Withholding Tables

Provides income tax withholding tables for 2012 here.

Immediately

Unemployment Benefits

Extends unemployment benefits temporarily through February 29, 2012.

Immediately

Tax Cuts

Extends current tax cuts temporarily through February 29, 2012.

Payroll system changes must be made by January 31, 2012

Social Security Withholding

Continues reduction in withholding rate to 4.2% (from 6.2%) temporarily through February 29, 2012. If an employer over-withholds in January, they need to make offsetting adjustments to employees’ pay by March 31, 2012.

January 1, 2012

 

Social Security Wage Base

Increases the Social Security Old Age Survivor's and Disability Insurance (OASDI) taxable wage base for 2012 from $106,800 to $110,100.

January 1, 2012

Minimum Wage

 

Raises minimum wage in Ohio to $7.70 per hour for non-tipped employees and $3.85 per hour for tipped employees.

January 1, 2012

Mileage Rates

Continues standard mileage rate of 55.5 cents per mile for business miles driven and 14 cents per mile driven in service of charitable organizations. Raises standard mileage rate to 23 cents per mile for medical or moving purposes.

January 1, 2012

Retirement Plan Limits

Raises the 2012 limit on the exclusion for elective deferrals in 401(k), 403(b), and 457(e) plans to $17,000, up from $16,500. For changes to other pension plan limits, click here.

January 1, 2012

W-2 Benefits Reporting

 

Requires employers who have an employer-sponsored group health plan to report the cost of coverage under their plan. This requirement goes into effect for some employers this year.

January 1, 2012

Health Benefits Summaries

Requires group health plan sponsors to create and distribute a Uniform Summary of Benefits and Coverage and Uniform Glossary.

Extended from March 23, 2012; pending notice of new effective date

NLRB Posting Notice

Extends deadline for posting notice regarding employees rights under the National Labor Relations Act.

April 30, 2012

 

Legal Issues on the Horizon

The following table summarizes several major legal issues that could lead to greater scrutiny and more regulations for employers in 2012.

Legal/HR Issue

Description of Issue

Tax cuts and job creation

Congress will determine whether to extend tax cuts through the rest of 2012 by late February. These cuts, along with the Jobs Bill which has been proposed, will aim to expand job creation and support businesses.

Constitutionality of health care reform

In 2012, the Supreme Court will be ruling on whether the health care reform law is constitutional due to conflicting rulings from lower courts, which could affect a number of provisions that take effect in 2013 and 2014.

Protection of unemployed individuals

Bills have been proposed at both state and federal levels to protect unemployed individuals from discrimination in the hiring process, and may gain ground in 2012.

Protection from retaliation

There has been notable interest in ensuring that employees are protected from employer retaliation when they file a complaint or cooperate with an investigation under federal law.

Improving hiring of disabled workers

The government will continue proactive efforts and attempts to improve the hiring of disabled workers and reduce discrimination against the disabled.

Clarification on FLSA and classification

The government will seek revisions to the FLSA for certain jobs, most notably workers who provide in-home services to the elderly and infirm. It will also continue to regulate misclassification of employees.

Retirement plan reform

The government is interested in ensuring that employees are saving adequately for their retirement and are exploring a number of options including additional disclosures, making investment advice more available, implementing automatic contributions, and restructuring tax deductions.

Regulating use of cell phone while driving

This past fall, OSHA and the Department of Transportation began an initiative to combat the leading cause of worker fatalities – motor vehicle crashes – and reduce distracted driving. Condoning/incenting texting while driving is in violation of OSHA, and use of a cell phone while driving may soon be as well.

User-friendly applications

The Department of Labor is leading a number of efforts to create user-friendly applications, interfaces, and tools for employers, job seekers, and other users to more easily use the information it provides.

E-Verify

In 2012, more states will likely require the use of E-Verify to determine employment eligibility.

If your organization needs more assistance, guidance, or detail with regard to these or other compliance-related issues, here are several additional resources and services, provided by ERC, which you can consult:

  • HR University: A series of workshops for HR professionals which includes a session on Employment Law Fundamentals and compliance best practices.
  • Supervisory Series: A series of workshops for supervisors which includes a session on Employment Law that provides supervisors with tools to help them maintain compliance.
  • HR Help Desk: Contact hrhelp@yourerc.com to ask any HR or compliance-related question and receive answers, guidance, and research. Service offered to ERC members only.