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HomeArchived E-NewslettersDeluxe Payroll Newsletter – August 2014

Deluxe Payroll Newsletter – August 2014

August 24, 2017

Did You Know?

I-9 and E-Verify easily verify employment:

The fast, easy free web-based E-Verify electronic system has a partnership between the U.S. Department of Homeland Security (DHS) and the Social Security Administration (SSA) allowing an employer to verify newly hired employees. What is interesting is that it works seamlessly with form I-9. An employer must complete form I-9 when the employee begins work and can enter form I-9 information into E-Verify for a new hire no later than the third business day after the employee’s start date. Each case submitted will receive a Verification or Tentative Non-confirmation which means that form I-9 did not match the DHS or SSA databases. Job seekers can also make sure their records are accurate before an employer checks their employment eligibility by visiting .

Many states have already enacted legislation requiring mandatory use of E-verify. Nearly 24 million cases run in 2013 and as of August this year 22.8 million cases have been run by employers. Employers can take advantage of free webinars to learn the advantages of using E-Verify. Visit to learn more.

Tax News & Notes

On July 28th the 2014 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds includes projected increases within the social security system wage base. This report estimates that the social security wage base will be $119,100 in 2015. This represents an increase of $2,100 from this year’s wage base of $117,000. Employee’s wages are currently taxed at 6.2% of the first $117,000 wages.

The formal announcement for the wage base increase will be published in October. More information about the annual projected increase is available on the Social Security Administration’s website at

Payroll Help Desk

Deluxe Payroll is committed to informing you about the changes in the Affordable Care Act that may affect your business. As of July 2014, federal guidance has updated information for businesses qualifying for transitional relief. But first let’s determine if your business is an “applicable large employer” (ALE) for 2015:

  • ✓ An ALE is any organization with at least 50 full-time equivalent employees
  • ✓ When counting employees, include all entities owned by a single controlling group. For example, an employer owning 10 franchised eateries would include all 10.
  • ✓ Include all employees subject to FLSA, and exclude self- employed individuals like Sole Proprietors, LLP’s, LLC’s, 2% + Shareholders in corporations or correctly classified independent contractors.
  • ✓ Calculate the number of full-time equivalents for the year (for 2014 only, a 6-month period of your choosing can be used)
    • – Start with the number of full-time employees each month in the year and add any employee who averaged over 30 hours per week
    • – For each month, add in full-time equivalents by taking the total number of hours worked (for employees working under 30 hours per week) divided by 120, rounding the fractions to the nearest one hundredth
    • – Add the sum of FT and FTE count to get your monthly ACA total employees. You may exclude Seasonal workers who work less than 4 months
  • ✓ Based on the calculated ACA count:
    • – Under 50: you are not a Large Employer
    • – Between 50-99: you are a Large Employer for 2015; however, you may be eligible for Transition relief to avoid “pay or play penalties” until 2016.
    • – Over 100: Your business is a Large Employer for 2015, but may also be eligible for short-term transition relief.
    • To see if your business is eligible for transition relief go to
    • Deluxe Payroll can provide monthly reporting of employee hours for ACA compliance, and can assist in determining your large employer status using the calculations above. Please contact your Deluxe Payroll representative for assistance.

Seasonal Items

National Payroll week is September 1 – 5. Every year, as payroll professionals, we celebrate this week at Deluxe Payroll because it is an honor to compute and deliver to our employers their valued employee paychecks. At present there are over 156 million wage earners in America! Did you know that 68.9% of the annual revenue of the United States Treasury is attributed to workers’ tax withholding through each paycheck. Celebrate along with us as we enjoy getting paid in America!