HR Compliance

When does my employer need to send out my W2?

Federal law requires all employers to send employees W-2 statements for all wages earned. These W-2 statements can be sent in either paper or digital form and must be received by employees no later than January 31 of the following year.

What is FMLA?

The Family and Medical Leave Act (FMLA) is a federal law requiring covered employers to provide employees with job-protected and unpaid leave for qualified medical and family reasons. Qualified medical and family reasons include: personal or family illness, family military leave, pregnancy, adoption, or the foster care placement of a child.

Am I eligible for FMLA?

An FMLA eligible employee is an employee who has been employed with their current employer for at least 12 months, has worked at least 1,250 hours over the past 12 months, and works at a location where the company employs 50 or more employees within 75 miles.

Is my employer required to provide vacation/PTO time?

The Fair Labor Standards Act (FLSA) does not require employers to provide payment for time not worked, such as vacations/paid time off (PTO), or sick time. These are additional benefits that an employer can provide.

How does unemployment insurance work?

Unemployment insurance is a state-operated insurance program that provides unemployment benefits to eligible workers who are unemployed through no fault of their own and meet other eligibility requirements of state law. Please visit your specific state unemployment website for more information.

What are the benefits of an Employee Assistance Program (EAP)? What can it do for me?

An Employee Assistance Program (EAP) is an employee benefit program that assists employees with counseling and work-life balance, legal and financial resources. Many EAPs also provide learning and development opportunities as well. Resources are geared toward both professional and personal matters. The EAP is confidential (your employer will not know which employees have used the EAP) and available 24/7.

What are the required documents for completing section 2 of Form I-9? 

The U.S. Citizenship and Immigration Services’ website has a complete list of acceptable documents for completing Section 2 of the Form I-9. Click here to go to this website.

Why do I have to complete an application if I already submitted a resume for a job position?

You may be required to complete an application even though you already submitted your resume, because information that is required to complete a background check is typically missing from your resume.

What is performance management?

Performance management involves ongoing conversations between a manager and an employee to help ensure goals are being met and the individual is performing to the standards of the job. At times, an employee may be asked to sign a warning/corrective action form.  The signature does not mean that the individual agrees with the content on the warning but is acknowledging that the conversation took place and the employee is receiving a copy of the document.

Define exempt status on Form W-4?

To qualify for exempt status on a Form W-4, you must have had no tax liability for the previous year and must expect to have no tax liability for the current year. The exempt status is only valid for the calendar year in which the employee filed.

 

401K

What is a 401(k) plan?
A 401(k) plan is an employer-sponsored retirement savings plan that allows employees to contribute a portion of their paychecks into an investment account. There are certain tax advantages to contributing to a 401(k) plan.

What is the difference between Pre-tax and Roth 401(k) contributions?

Pre-tax 401(k) contributions reduce an employee’s taxable income in the year they are contributed, whereas Roth 401(k) contributions do not reduce the employee’s taxable income in the year they are contributed.  On the reverse side, Pre-tax 401(k) contributions, and the gains on those contributions, increase the employee’s taxable income in the year the money is withdrawn from the 401(k) account.  Roth 401(k) contributions, and the gains on those contributions, do not increase the employee’s taxable income in the year the money is withdrawn from the 401(k) account.

What is IL Secure Choice?

IL Secure Choice is a state-sponsored retirement program that allows employees to save for retirement through a Roth Individual Retirement Arrangement (IRA).  This program is currently in the pilot phase. It will begin phase 1 for employers with 500+ employees in November 2018, phase 2 for employers with 100-499 employees in July 2019, and phase 3 for employers with 25-99 employees in November 2019.

What is a Multiple Employer 401(k) plan?

A Multiple Employer 401(k) plan allows a number of unrelated employers to adopt to a single 401(k) plan.  This method provides a cost effective way of managing risks related to sponsoring a 401(k) plan.  This also provides the adopting employers with access to advantageous pricing on investments and administrative services.

What does it mean to be a fiduciary?
Fiduciaries act on the behalf of the 401(k) participants and their beneficiaries. As such, they have strict standards and important responsibilities. These responsibilities include: following the plan documents; diversifying plan investments; acting solely in the interest of plan participants to provide benefits; paying only reasonable plan expenses; and carrying out their duties prudently.

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