The House Passes “SECURE” Act to Ease 401(k) Compliance and Promote Savings. The Changes Could Become Law for the 2020 Plan Year
With overwhelming bipartisan support, the U.S. House of Representatives approved a bill to promote greater savings through employer-sponsored retirement plans while easing plan administration. The Senate isn’t far behind with a similar measure, generating optimism that these changes could become law for the 2020 plan year. This legislation will help hard working Americans prepare for a financially secure future by incentivizing small businesses to set up employer-sponsored retirement plans. Among the provisions to encourage employers to become plan sponsors, the SECURE Act would:
If you currently include credit checks on applicants or employees, your policy will need to be reviewed. The House Committee on Financial Services passed legislation on July 11ththat prohibits employers from using credit reports for employment decisions. Exceptions may be made if a credit report is required by law or for a national security clearance. “The growing use of credit checks, therefore, may disproportionately screen otherwise qualified racial and ethnic minorities out of jobs, leading to discriminatory practices” stated Rep. Maxine Waters, D-Calif. If you currently require credit checks, you should determine the reason for the credit check and if it fits within the guidelines.
If you have at least 199 employees, including federal contractors, you must file the EEO-1 Component 2 by September 30th. The Equal Employment Opportunity Commission (EEOC) released a sample form, instructions and “Frequently Asked Question” to assist employers. In Component 2, employees’ hours worked and pay information should be broken down by job category, race, ethnicity and sex. The Component 2 EEO-1 Online Filing System data collection instrument will be available for all filers on July 15th. System logon notification will be sent to employers via USPS or email on July 15th.
This Federal tax credit incentives workplace diversity and is available to employers for hiring individuals from certain targeted groups who have consistently faced significant barriers to employment. To review the guidelines, target groups and how you can apply for the WOTC, go to https://www.irs.gov/businesses/small-businesses-self-employed/work-opportunity-tax-credit#targeted