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Rick Rossignol

Audit your HR and Payroll

Posted by & filed under Benefits, BLOG, Human Resources, Wage and Hour Compliance.

Greetings from RTR Consulting:

We know protecting your business from HR compliance risks is a high priority for you. Ignorance and blatant violation of workplace regulations could cost your business hundreds of thousands of dollars.

As today’s workers become increasingly litigious and the list of legislative compliance issues gets even longer, the risk of getting sued is greater than ever before.

Juries Have Awarded Employees, On Average, $400,000 Per HR Violation.

Whether you have 5 or 5,000 employees, you need to be aware of ALL Federal and State HR compliance requirements. That is why we offer scores of services to help keep your HR processes and procedures organized and in compliance. Services like:

 

  • Payroll Audit – A review of payroll processing compliance.
  • Benefits Audit – A complete analysis of your employee benefits, legal and plan compliance.
  • HR Audit – A 12-step audit of all HR related functions; from hiring and firing practices to everything in between.  
  • Employee Handbook – Preparation of an employee handbook including legal compliance with all state and federal employment laws.
  • HR Support Services – 24/7 access to HR consultants for ongoing HR-related business activities.

Minimum Wage Exempt from FSLA

Posted by & filed under BLOG, Minimum Wage, Wage and Hour Compliance.

While there is an injunction on the Federal Department of Labor increase of the salary test. Employers in California still have to follow the rules for being exempt from the FSLA. The salary test in California for exempt employees is two times the minimum wage. Meaning that the employee must be paid a weekly salary of 2 times the minimum wage. Currently, the employee has to earn $800.00 a week. January the rate will be $840.00 a week. What makes the rule more complicated is Cities have enacted ordinances in their city increasing the minimum wage above the State of California. Looking at the chart below you can see 19 cities have higher rates than the state. Exempt employees working in those cities must be paid two times the minimum wage.

The chart below summarizes the increases scheduled for 2017:

California Local Ordinance Effective Date of Increase 2016 Rate 2017 Rate
Berkeley  October 1, 2017 $12.53 $13.75
Cupertino January 1, 2017 NA $12.00
El Cerrito January 1, 2017 $11.60 $12.25
Emeryville July 1, 2017 $13.00
(55 or fewer employees)		 $14.00
$14.82
(56 or more employees)		 $15.20
Long Beach January 1, 2017 NA $10.50
Los Altos January 1, 2017 NA $12.00
Los Angeles (City) July 1, 2017 $10.50
(26 or more employees)		 $12.00
NA
(25 or fewer employees)		 $10.50
Los Angeles County (Unincorporated Areas) July 1, 2017 $10.50
(26 or more employees)		 $12.00
NA
(25 or fewer employees)		 $10.50
Malibu July 1, 2017 $10.50
(26 or more employees)		 $12.00
NA
(25 or fewer employees)		 $10.50
Mountain View January 1, 2017 $11.00 $13.00
Oakland January 1, 2017 $12.55 $12.86
Palo Alto January 1, 2017 $11.00 $12.00
Pasadena July 1, 2017 $10.50
(26 or more employees)		 $12.00
NA
(25 or fewer employees)		 $10.50
Richmond January 1, 2017 $11.52
(without qualifying healthcare benefits)
(Note: Excludes small businesses that pay for 800 or fewer hours of employee labor per two weeks)		 $12.30
$10.02
(with $1.50 per hour per employee towards healthcare benefits)		 $10.80
$10.76
(Intermediate Minimum Wage)
(Note: Used if employer derives more than half its income from transactions where the employer’s goods and services produced in Richmond are delivered or shipped outside Richmond)		 $11.40
San Diego January 1, 2017 $10.50 $11.50
San Francisco July 1, 2017 $13.00 $14.00
San Jose January 1, 2017 $10.30 $10.50
San Leandro July 1, 2017 NA $12.00
San Mateo January 1, 2017 NA $12.00
$10.50 (nonprofit employers)
Santa Clara January 1, 2017 $11.00 $11.10
Santa Monica July 1, 2017 $10.50
(26 or more employees)		 $12.00
NA
(25 or fewer employees)		 $10.50
Sunnyvale January 1, 2017 $11.00 $13.00

Mileage for 2017

Posted by & filed under BLOG.

Beginning on Jan. 1, 2017, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

  • 53.5 cents per mile for business miles driven, down from 54 cents for 2016
  • 17 cents per mile driven for medical or moving purposes, down from 19 cents for 2016
  • 14 cents per mile driven in service of charitable organizations

The business mileage rate decreased half a cent per mile and the medical and moving expense rates each dropped 2 cents per mile from 2016. The charitable rate is set by statute and remains unchanged.   The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously

Employment Law Changes in 2017 CA

Posted by & filed under BLOG, Human Resources, Minimum Wage, Wage and Hour Compliance.

Bill

Main Topic

Summary

Effective Date
SB 1342 Agency Enforcement To enforce local laws or ordinances, including local wage laws, the city or county can delegate authority to a county or city official or a department head to issue subpoenas and report a failure to comply with subpoenas to a state court judge. 1/1/2017
AB 184314 Background Checks Prohibits juvenile-court-related inquiries with limited exceptions. 1/1/2017
AB 128915 Background Checks Drivers participating with a Transportation Network Company in California will be subject to mandatory criminal background checks, regardless of whether a driver is considered an employee or an independent contractor. 1/1/2017
SB 124116 Contracts Contracts entered into, modified, or extended on or after January 1, 2017 cannot require employees who primarily reside or work in California to adjudicate certain claims outside California. 1/1/2017
AB 1785 Cellphones & Driving Prohibits driving while holding and operating a handheld wireless telephone or a wireless electronic communication device unless in hands-free mode, but allows using hands under limited circumstances. 1/1/2017
SB 1128 Employee Benefits (Commuting) San Francisco Bay Area Commuter Benefits program was set to expire January 1, 2017, but has been extended indefinitely. 1/1/2017
SB 1234 Employee Benefits (Retirement) Implements previously approved California Secure Choice Retirement Savings Program on January 1, 2017. Once initiated, employers with 5 or more employees that do not offer an employer-sponsored retirement plan or an automatic enrollment payroll deduction IRA must provide notice about the program to new and existing employees. 1/1/2017
AB 282817 Data Breach Businesses must disclose a data security breach to California residents whose encrypted personal information was, or is reasonably believed to have been, acquired by an unauthorized person along with an encryption key or security credential that could render that personal information readable or useable. 1/1/2017
AB 1676 Equal Pay Prior salary by itself cannot justify compensation disparity under the bona fide factor exception. 1/1/2017
SB 1063 Equal Pay Prohibits paying employees less than employees of another race or ethnicity for substantially similar work. 1/1/2017
SB 1001 Immigration Prohibits requesting more or different documents than are required under federal law, refusing to honor documents that on their face reasonably appear to be genuine, refusing to honor documents or work authorization based on the specific status or term of status that accompanies the work authorization, and reinvestigating or re-verifying an employee’s work authorization. 1/1/2017
AB 908 Leave of Absence Increases the amount of paid family leave insurance benefit employees can obtain for claims filed on or after January 1, 2018. Eliminates one-week waiting period. 1/1/2017
SB 318 Paid Leave Extends paid sick leave benefits to qualifying in-home supportive services workers. 1/1/2017
San Francisco Ordinances 160065 & 16071919 Family Bonding Leave Employers must provide pay to employees receiving state paid family leave insurance benefit when leave is taken for bonding with a new child. *Coverage is phased in based on employer size: 50 or more employees (January 1, 2017); 35 or more employees (July 1, 2017); 20 or more employees (January 1, 2018). 1/1/2017*
San Francisco Proposition E20 Paid Leave Amends paid sick leave ordinance to better align with state law. Expands permitted uses to include leave connected to domestic violence, as well as bone marrow and organ donation. 1/1/2017
Santa Monica Ordinances 2509 & 251521 Paid Leave Delays operative date of paid sick and safe time law to January 1, 2017. Phases in how many sick days must be provided each year. 1/1/2017
Los Angeles Ordinance 18432022 Paid Leave Paid sick leave ordinance’s requirements apply to employers with 25 or fewer employees. 7/1/2017
Berkeley Ordinance 750523 Paid Leave Creates a paid sick and safe time law. Covered employees accrue 1 sick leave hour for every 30 hours worked.  For small businesses, there is a cap of 48 hours per year; for all other businesses the cap is 72 hours. Leave accrued up to the cap must be carried over to the following year. There is no express limit on how many leave hours can be used per year. Leave can be used for an employee, an employee’s family member, or a designated person. 10/1/2017
AB 1847 Notification Employers must notify employees that they may be eligible for the California (in addition to the federal) Earned Income Tax Credit. 1/1/2017
AB 2337 Notification Employers must inform new employees (and current employees, upon their request) of their rights regarding discrimination against victims of domestic violence, sexual assault, and stalking. *The law is effective January 1, 2017, but notice is not required until the state labor department posts an online a model notice, which must occur by July 1, 2017. 1/1/2017*
Annual Adjustment of Computer Software Employee Pay Rate Overtime Increases the hourly rate employees must be paid from $41.85 to $42.35 per hour, increases the monthly rate from $7,265.43 to $7,352.62, and increases the annual rate from $87,185.14 to $88,231.36. 1/1/2017
Annual Adjust of Licensed Physician and Surgeon Pay Rate Overtime Increases the hourly rate employees must be paid to be considered overtime-exempt from $76.24 to $77.15 per hour. 1/1/2017
AB 2535 Pay Stubs Wage statements for various employees that are exempt from state minimum wage or overtime requirements need not show total hours worked. 1/1/2017
AB 1978 Recordkeeping Employers that enters into contracts, subcontracts, or franchise arrangements to provide janitorial services must keep for three years: names and addresses of employees engaged in rendering actual services for any business of the employer; hours worked daily by each employee, including the times the employee begins and ends each work period; wage and wage rate paid each payroll period; age of all minor employees; and any other conditions of employment. 1/1/2017
AB 1732 Restroom Accommodation Single-user toilet facilities must be identified as all-gender. 3/1/2017
Emeryville Ordinance 2016-607 Scheduling Covered retail and hospitality industry employers must, among other items, provide two weeks’ notice of schedule, predictability pay for schedule changes, and offer hours to existing part-time employees before hiring new employees 7/1/2017
San Jose Measure E Scheduling Covered retail and hospitality industry employers must offer additional work hours to existing qualified part-time employees before hiring new staff. TBD
SB 5 Smoking Smoking prohibitions are amended to include a definition of smoking. Workplace smoking bans will apply to electronic cigarettes and vapes. Eliminates ability to allow smoking in designated employee vented breakrooms and for employers with five or fewer employees to smoke in certain nonwork areas. 1/1/2017
AB 1245 (2015)24 Unemployment Employers with 10 or more employees must file all reports and returns electronically, and remit all contributions for unemployment insurance premiums by electronic funds transfer, except as otherwise provided. 1/1/2017
Proposition 64 Marijuana Legalizes recreational marijuana for individuals age 21 or older, but permits drug-free workplaces, and does not require accommodation of marijuana use in the workplace or affect policies prohibiting use. VARIES

California Statewide and Local Minimum Wage Rates to Increase in 2017

Posted by & filed under BLOG, Minimum Wage, Wage and Hour Compliance.

 

The chart below summarizes the increases scheduled for 2017:

California Local Ordinance Effective Date of Increase 2016 Rate 2017 Rate
Berkeley October 1, 2017 $12.53 $13.75
Cupertino January 1, 2017 NA $12.00
El Cerrito January 1, 2017 $11.60 $12.25
Emeryville July 1, 2017 $13.00
(55 or fewer employees)		 $14.00
$14.82
(56 or more employees)		 $15.20
Long Beach January 1, 2017 NA $10.50
Los Altos January 1, 2017 NA $12.00
Los Angeles (City) July 1, 2017 $10.50
(26 or more employees)		 $12.00
NA
(25 or fewer employees)		 $10.50
Los Angeles County (Unincorporated Areas) July 1, 2017 $10.50
(26 or more employees)		 $12.00
NA
(25 or fewer employees)		 $10.50
Malibu July 1, 2017 $10.50
(26 or more employees)		 $12.00
NA
(25 or fewer employees)		 $10.50
Mountain View January 1, 2017 $11.00 $13.00
Oakland January 1, 2017 $12.55 $12.86
Palo Alto January 1, 2017 $11.00 $12.00
Pasadena July 1, 2017 $10.50
(26 or more employees)		 $12.00
NA
(25 or fewer employees)		 $10.50
Richmond January 1, 2017 $11.52
(without qualifying healthcare benefits)
(Note: Excludes small businesses that pay for 800 or fewer hours of employee labor per two weeks)		 $12.30
$10.02
(with $1.50 per hour per employee towards healthcare benefits)		 $10.80
$10.76
(Intermediate Minimum Wage)
(Note: Used if employer derives more than half its income from transactions where the employer’s goods and services produced in Richmond are delivered or shipped outside Richmond)		 $11.40
San Diego January 1, 2017 $10.50 $11.50
San Francisco July 1, 2017 $13.00 $14.00
San Jose January 1, 2017 $10.30 $10.50
San Leandro July 1, 2017 NA $12.00
San Mateo January 1, 2017 NA $12.00
$10.50 (nonprofit employers)
Santa Clara January 1, 2017 $11.00 $11.10
Santa Monica July 1, 2017 $10.50
(26 or more employees)		 $12.00
NA
(25 or fewer employees)		 $10.50
Sunnyvale January 1, 2017 $11.00 $13.00

Attract and Retain

Posted by & filed under Attract and Retain, BLOG, Talent Management.

73% of CEOs reported being concerned about the availability of key skills. Supply and Demand is a concept that most employers understand. The Scarcity of talent is driving the cost of talent up. Employers need the talent to expand and are working on developing their brand. They want to be an employer of choice!

  • What is your value proposition to candidates and employees?
  • Where can your employees and candidates find it?
  • Are you competitive in your market space?

In an annual study by the ManpowerGroup, 36% of global employers reported talent shortages, the highest percentage since 2007. So how can companies compete effectively in this new war for talent? For larger employers, they continue to focus on strengthening their organizations’ employer brands. Small companies are just getting started in developing their employer brand.

Developing your employee value proposition is going to be critical to employers. It has to incorporate all of the aspects of employment, compensation, benefits, employee growth, and advancement. Employers that do not have a career/ employee site searchable by Google will be at a disadvantage. New services from Glassdoor and LinkedIn have just made the “what’s in it for me” important. They are going to provide salary and benefit information to people on their website.

The bar is being raised for Talent! The winner expands its business and hits its goals.

For more on attracting and retaining talent, watch this talk that I gave recently to a group of business owners at the Business Leader Consortium.

 

 

 

Independent Contractor or Employee

Posted by & filed under BLOG.

When distinguishing an employee from an independent contractor in California, remember that the existence of a written agreement purporting to establish an independent contractor relationship is not determinative (Borello, Id. at 349), and the fact that a worker is issued a 1099-MISC form rather than a W-2 form is also not determinative with respect to independent contractor status (See, Toyota Motor Sales v. Superior Court (1990) 220 Cal.App.3d 864, 877).In California, several state agencies are involved in the determination of independent contractor status.

The actual determination of whether a worker is an employee or an independent contractor depends on a number of factors, all of which must be considered and none of which is controlling by itself.

The following checklist (derived from California EDD) is intended to help make the determination of whether a worker is an independent contractor or an employee.

Questions 1 through 3 is significant questions. If the answer to any of them is “Yes,” it is a strong indication that the worker is an employee, and you have a high probability of risk if you classify the worker as an independent contractor.

  1. Do you instruct or supervise the person while he or she is working?

Yes _____ No _____

Independent contractors are free to do jobs in their own way, using specific methods they choose. A person or firm engages an independent contractor for the job’s end result.

When a worker is required to follow company procedure manuals or is given specific instructions on how to perform the work, the worker is normally an employee.

  1. Can the worker quit or be discharged (fired) at any time?

Yes _____ No _____

If you have the right to fire the worker without notice, it indicates that you have the right to control the worker.

Independent contractors are engaged to do specific jobs and cannot be fired before the job is complete unless they violate the terms of the contract. They are not free to quit and walk away until the job is complete. For example, if a shoe store owner hires an attorney to review his or her lease, the attorney would get paid only after satisfactory completion of the job.

  1. Is the work being performed part of your regular business?

Yes _____ No _____

Work that is a necessary part of the regular trade or business is normally done by employees. For example, a sales clerk is selling shoes in a shoe store. A shoe store owner could not operate without sales clerks to sell shoes. On the other hand, a plumber engaged to fix the pipes in the bathroom of the store is performing a service on a one-time or occasional basis that is not an essential part of the purpose of the business enterprise. A certified public accountant engaged to prepare tax returns and financial statements for the business would also be an example of an independent contractor.

All three questions are trying to find out if the employer controls the work.

  1. Does the worker have a separately established business?

Yes _____ No _____

When individuals hold themselves out to the general public as available to perform services similar to those performed for you, it is evidence that the individuals are operating separately established businesses and would normally be independent contractors. Independent contractors are free to hire employees and assign the work to others in any way they choose. Independent contractors have the authority to fire their employees without your knowledge or consent. Independent contractors can normally advertise their services in newspapers and publications and seek new customers through the use of business cards.

  1. Is the worker free to make business decisions that affect his or her ability to profit from the work?

Yes _____ No _____

An individual is normally an independent contractor when he or she is free to make business decisions that affect his or her ability to profit or suffer a loss. These decisions involve real economic risk, not just the risk of not getting paid. These decisions would normally involve the acquisition, use and disposition of equipment, facilities and stock in trade, which are under his or her control. Further examples of the ability to make economic business decisions include the amount and type of advertising for the business, the priority in which assignments are worked, and selection of the types and amounts of insurance coverage for the business.

  1. Does the individual have a substantial investment that would subject him or her to a financial risk of loss?

Yes _____ No _____

Independent contractors furnish the tools, equipment and supplies needed to perform the work. Independent contractors normally have an investment in the items needed to complete their tasks. To the extent necessary for the specific type of business, independent contractors provide their own business facility.

Are they a going concern and make profit and loss decisions.

Questions 7 through 13 are additional factors that should be considered. A “Yes” answer to any of these questions is an indication the worker may be an employee, but no one factor by itself is deciding. All factors must be considered and weighed together to determine which type of relationship exists. However, the greater the number of “Yes” answers to questions 7 through 13, the greater the likelihood the worker is performing services as an employee.

  1. Do you have employees who do the same type of work?

Yes _____ No _____

If the work being done is generally the same as the work normally done by your employees, it indicates that the worker is an employee. This standard applies even if the work is being done on a one-time basis. For instance, to handle an extra workload or replace an employee who is on vacation, a worker is hired to fill in on a temporary basis. This worker is a temporary employee, not an independent contractor.

(Note: If you contract with a temporary agency to provide you with a worker, the worker is normally an employee, but may be an employee of the temporary agency. You may wish to request EDD’s Information Sheet “Temporary Services and Employee Leasing Industries”(DE 231F) on the subject of temporary service and leasing employers.)

  1. Do you furnish the tools, equipment or supplies used to perform the work?

Yes _____ No _____

Independent businesspeople furnish the tools, equipment, and supplies needed to perform the work. Independent contractors normally have an investment in the items needed to complete their tasks.

  1. Is the work considered unskilled or semi-skilled labor?

Yes _____ No _____

The courts and the California Unemployment Insurance Appeals Board have held that workers who are considered unskilled or semi-skilled are the type of workers the law is meant to protect and are generally employees.

  1. Do you provide training for the worker?

Yes _____ No _____

In skilled or semi-skilled work, independent contractors usually do not need training. If training is required to do the task, it is an indication that the worker is an employee.

  1. Is the worker paid a fixed salary, an hourly wage or based on a piece-rate basis?

Yes _____ No _____

Independent contractors agree to do a job and bill for the service performed. Payments to independent contractors for labor or services are made upon the completion of the project or completion of the performance of specific portions of the project.

  1. Did the worker previously perform the same or similar services for you as an employee?

Yes _____ No _____

If the worker previously performed the same or similar services for you as an employee, it is an indication that the individual is still an employee.

  1. Does the worker believe that he or she is an employee?

Yes _____ No _____

Questions 7 through 13 Are designed to see how they perform the services. How and with what tools will indicate employee or Independent Contractor.  “Yes” answer to any of these questions is an indication the worker may be an employee. Having other employees doing the same work is a sign that they are really an employee.

While the intent of the parties is a consideration is a factor to consider when making an employment or independent contractor determination. When both the worker and the principal believe the worker is an independent contractor, an argument exists to support an independent contractor relationship between the parties.

 

the EDD website atwww.edd.ca.gov/Payroll_Taxes/

Source: California Employment Determination Guide (EDD website) DE 38 Rev. 2 (4-09)

Retirement Plan Deferral Limit Unchanged for 2017 Other limits also

Posted by & filed under BLOG.


Other limits also remained unchanged according to an IRS Notice, but the annual 415 limits increased.

October 27, 2016

The Internal Revenue Service (IRS) announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for the tax year 2017 in Notice 2016-62.

The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan remains unchanged at $18,000. In addition, the catch-up contribution limit for employees age 50 and older who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan remains unchanged at $6,000.

Other limits also remain unchanged. The limitation used in the definition of highly compensated employee under Section 414(q)(1)(B) remains unchanged at $120,000, and the dollar limitation on premiums paid with respect to a qualifying longevity annuity contract under Section 1.401(a)(9)-6, A-17(b)(2)(i) of the Income Tax Regulations remains unchanged at $125,000.

The limit on annual contributions to an individual retirement account (IRA) remains unchanged at $5,500.  The additional catch-up contribution limit for individuals age 50 and older is not subject to an annual cost-of-living adjustment and remains at $1,000.

However, some limits have changed. Effective January 1, 2017, the limitation on the annual benefit under a defined benefit (DB) plan under Section 415(b)(1)(A) is increased from $210,000 to $215,000.  For a participant who separated from service before January 1, 2017, the limitation for defined benefit plans under Section 415(b)(1)(B) is computed by multiplying the participant’s compensation limitation, as adjusted through 2016, by 1.0112. The limitation for defined contribution (DC) plans under Section 415(c)(1)(A) is increased in 2017 from $53,000 to $54,000.

The annual compensation limit under Sections 401(a)(17), 404(l), 408(k)(3)(C), and 408(k)(6)(D)(ii) is increased from $265,000 to $270,000.

The dollar limitation under Section 416(i)(1)(A)(i) concerning the definition of key employee in a top-heavy plan is increased from $170,000 to $175,000.

The dollar amount under Section 409(o)(1)(C)(ii) for determining the maximum account balance in an employee stock ownership plan (ESOP) subject to a five-year distribution period is increased from $1,070,000 to $1,080,000, while the dollar amount used to determine the lengthening of the five-year distribution period is increased from $210,000 to $215,000.

Other limitations announced include:

  • The annual compensation limitation under Section 401(a)(17) for eligible participants in certain governmental plans that, under the plan as in effect on July 1, 1993, allowed cost of living adjustments to the compensation limitation under the plan under Section 401(a)(17) to be taken into account, is increased from $395,000 to $400,000.
  • The compensation amount under Section 408(k)(2)(C) regarding simplified employee pensions (SEPs) remains unchanged at $600.
  • The limitation under Section 408(p)(2)(E) regarding SIMPLE retirement accounts remains unchanged at $12,500.
  • The limitation under Section 664(g)(7) concerning the qualified gratuitous transfer of qualified employer securities to an employee stock ownership plan remains unchanged at $45,000.
  • The compensation amount under Section 1.61 21(f)(5)(i) of the Income Tax Regulations concerning the definition of “control employee” for fringe benefit valuation remains unchanged at $105,000. The compensation amount under Section 1.61 21(f)(5)(iii) remains unchanged at $215,000.
  • The Code provides that the $1,000,000,000 threshold used to determine whether a multiemployer plan is a systemically important plan under Section 432(e)(9)(H)(v)(III)(aa) is adjusted using the cost-of-living adjustment provided under Section 432(e)(9)(H)(v)(III)(bb). After taking the applicable rounding rule into account, the threshold used to determine whether a multiemployer plan is a systemically important plan under Section 432(e)(9)(H)(v)(III)(aa) remains unchanged for 2017 at $1,012,000,000.
  • The adjusted gross income limitation under Section 25B(b)(1)(A) for determining the retirement savings contribution credit for married taxpayers filing a joint return remains unchanged at $37,000; the limitation under Section 25B(b)(1)(B) remains unchanged at $40,000; and the limitation under Sections 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $61,500 to $62,000.
  • The adjusted gross income limitation under Section 25B(b)(1)(A) for determining the retirement savings contribution credit for taxpayers filing as head of household remains unchanged at $27,750; the limitation under Section 25B(b)(1)(B) remains unchanged at $30,000; and the limitation under Sections 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $46,125 to $46,500.
  • The adjusted gross income limitation under Section 25B(b)(1)(A) for determining the retirement savings contribution credit for all other taxpayers remains unchanged at $18,500; the limitation under Section 25B(b)(1)(B) remains unchanged at $20,000; and the limitation under Sections 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $30,750 to $31,000.
  • The deductible amount under Section 219(b)(5)(A) for an individual making qualified retirement contributions remains unchanged at $5,500.
  • The applicable dollar amount under Section 219(g)(3)(B)(i) for determining the deductible amount of an IRA contribution for taxpayers who are active participants filing a joint return or as a qualifying widow(er) increased from $98,000 to $99,000. The applicable dollar amount under Section 219(g)(3)(B)(ii) for all other taxpayers who are active participants (other than married taxpayers filing separate returns) increased from $61,000 to $62,000. If an individual or the individual’s spouse is an active participant, the applicable dollar amount under Section 219(g)(3)(B)(iii) for a married individual filing a separate return is not subject to an annual cost-of-living adjustment and remains $0. The applicable dollar amount under Section 219(g)(7)(A) for a taxpayer who is not an active participant but whose spouse is an active participant is increased from $184,000 to $186,000.
  • The adjusted gross income limitation under Section 408A(c)(3)(B)(ii)(I) for determining the maximum Roth IRA contribution for married taxpayers filing a joint return or for taxpayers filing as a qualifying widow(er) is increased from $184,000 to $186,000. The adjusted gross income limitation under Section 408A(c)(3)(B)(ii)(II) for all other taxpayers (other than married taxpayers filing separate returns) is increased from $117,000 to $118,000. The applicable dollar amount under Section 408A(c)(3)(B)(ii)(III) for a married individual filing a separate return is not subject to an annual cost-of-living adjustment and remains $0.
  • The dollar amount under Section 430(c)(7)(D)(i)(II) used to determine excess employee compensation with respect to a single-employer defined benefit pension plan for which the special election under Section 430(c)(2)(D) has been made is increased from $1,106,000 to $1,115,000.