Full Circle Bookkeeping & Consulting

11/09/2023

Here's another great Q&A from Intuit Quickbooks HR Support Center.

Question:

What should we do when one of our designated paid holidays falls on a weekend when we aren’t open? Do we need to offer an alternative day off?


Answer:

No, you don’t need to offer an alternative day off. There are no federal laws requiring private employers to provide paid time off for holidays.

However, there are potential benefits to offering an alternative day off:

It can boost employee morale. Employees won’t feel that they “lost” a day off—and three-day weekends are always appreciated!

It may save you from having to process a host of time-off requests for weekdays around that holiday.

It communicates your commitment to work-life balance, an important factor for engagement and retention.

This Q&A does not constitute legal advice and does not address state or local law.

11/02/2023

A question I get asked a lot, which can be very confusing, has to do with Meals and Entertainment. What can I or can't I deduct from my taxes? Here's a great breakdown from an article from Forbes that makes it pretty clear.

2023 Meals and Entertainment Allowable Deductions

It is probably more helpful to discuss what can still qualify for the meals and entertainment tax deduction in 2023. Here are some potential tax deductions that may be between half to fully deductible.

Business meals with clients (50%)
Food items for the office (50%)
Meals while traveling for work (50%)
Meals at a conference (50%)
Food for company holiday parties (100%)
Food and beverages given to the public (100%)
Dinner for employees working late at the office (100%)‍

Your Guide to Meal Deductions For 2023

For 2023, most business meals are just 50% deductible, according to the IRS rule. Let’s say you take your favorite client to a wonderful dinner (to discuss business); you can deduct half the cost of the meal. On the other hand, if you go out for a meal with a client with no business purpose, the meal is not deductible.

To add to the confusion, meals were 100% deductible in 2021 and 2022. This was a temporary change to help boost spending at restaurants during the Covid-19 pandemic.

How To Document Your Meal Tax Deductions

Suppose you are looking to deduct a business meal that costs more than $75; you are required to keep receipts or documentation of the meal expense. For meals below $75, the IRS has no specific requirement to keep receipts to document the expense. Either way, you will still want to keep a record of your deductible meal, including the following information: date of the meal, total including tax and tip, name of the restaurant, details of the business meal (who attended and how it related to your business).

Your Guide To Entertainment Deductions

We previously mentioned that most entertainment expenses are no longer deductible.

Here are some of the most common exceptions that may still be tax deductible in 2023—expenses for events like the company holiday party or rewards trip; or costs tied to business meetings (think chamber meetings, professional associations, or even a conference).

Also, if you sell entertainment to your customers, there are exceptions to the entertainment deductions. For example, if a bar owner pays a band to perform for customers, this would likely be a deductible business expense.

11/02/2023

Q&A from Intuit Quickbooks HR Support Center.

Question:
Can we decrease the number of hours employees work?

Answer:

Yes. Absent an employment contract or other legally binding agreement, you can reduce an employee’s work hours—there is no law that prevents this. Hours are typically reduced for reasons such as a decrease in business needs, the company's productivity has decreased, job restructuring, or reorganization.

It's important, however, to make scheduling decisions in a manner that is consistent with legitimate business needs and to ensure that you're being consistent in how you treat employees. Reducing an employee's work schedule can expose you to legal claims if it is perceived to be based on an unlawful reason such as discrimination or retaliation. And of course, there’s also the risk that the affected employee may decide to look for work elsewhere.

This Q&A does not constitute legal advice and does not address state or local law.

11/02/2023

Article from Intuit Quickbooks HR Advisor Monthly Newsletter.

Effective November 1st.

Is Remote I-9 Verification Right for You?

Did you know you may still be able to verify I-9 documents remotely? But, you’ll need to use the new procedure. Learn more about it below.

As we reported earlier, there’s a new I-9 form, and you should be using it for all new hires. When U.S. Citizenship and Immigration Services (USCIS) announced the new form, it also informed us about new requirements for remote verification of I-9 documents. USCIS has dubbed this the alternative procedure.

With workforces having gone remote due to COVID, employers were able to view those documents remotely—temporarily. Now, if you are a qualified employer, you are allowed to conduct Form I-9 remote documentation verification for any employee hired on or after August 1, 2023.

Qualified employers are those that are participants in good standing in federal E-Verify. Employers are in good standing if all of the following are true:

They have enrolled in E-Verify for all hiring sites in the United States that use the alternative procedure.

They are compliant with all E-Verify program requirements.

They continue to be enrolled in E-Verify and are in good standing at any time when they use the alternative procedure.

Pros and Cons of Using E-Verify

E-Verify is the USCIS’s free system that compares information from an employee’s I-9 to data supplied by the federal government to confirm whether the individual is authorized to work in the United States. It’s optional for most employers, though some are required by federal or state law to participate. Notably, most federal contractors and subcontractors are required to use the system if the contract contains the Federal Acquisition Regulation (FAR) E-Verify clause.

Using the E-Verify system does not replace or alter any of the Form I-9 requirements, except that it now allows for remote verification via the “alternative procedure.” If you’re thinking about using E-Verify so you can continue (or start) to verify I-9 documents remotely, we recommend weighing the pros and cons of E-Verify and considering the required steps of the alternative procedure, which we’ve outlined below.

Pros

E-Verify can help employers verify that an employee’s I-9 documents are genuine. The system is designed to reduce the risk of hiring undocumented workers. A primary advantage of using the E-Verify system is that the company may reduce its exposure to Department of Homeland Security (DHS) violations and fines.

Proper use of E-Verify (assuming it’s based on a compliant I-9 process) acts as evidence that an employer is following employment eligibility laws.

Employers that hire students who have F-1 visas and have received a bachelor’s, master’s, or doctoral degree in science, technology, engineering, or mathematics (STEM) fields can access a 24-month F-1 STEM extension of the student’s work authorization that is only available to E-Verify employers. More information is available here.

Using E-Verify is a requirement for employers to use the alternative procedure for remote verification of I-9 documents.

Cons

Use of the system adds another administrative step to the I-9 verification process with its own compliance requirements. E-Verify requires staff training as part of the enrollment process.

By using E-Verify, employers agree to allow the Social Security Administration (SSA) and DHS to perform periodic audits of their hiring records. Using E-Verify also does not decrease the chance of an I-9 audit; it may even increase the likelihood if you have a pattern of noncompliance.

Errors that might go undetected in the I-9 process may be subject to more scrutiny when your hiring data is stored in a government database. Employers should ensure their I-9 processes are compliant and ready to withstand inspection.

E-Verify can’t always detect if an employee is using legitimate documents that belong to another person. That said, the E-Verify Memorandum of Understanding (MOU) states that there won’t be civil or criminal liability for actions taken in good faith based on information provided by E-Verify.

Alternative Procedure Steps

If you would like to use the alternative procedure, you’ll need to take the following steps within three business days of an employee’s first day of employment:

Receive and examine copies of the employee’s Form I-9 documents (or an acceptable receipt) and determine if the documents appear to be genuine. If the documents are two-sided, employers need to examine copies of both the front and back.

Conduct a live video meeting with the employee. The employee needs to bring the same documents that they sent to the employer so the employer can ensure that they reasonably appear to be genuine and relate to the employee.

Check the box on Form I-9 (Rev. 08/01/23) that an “alternative procedure” was used to examine documentation to complete
Section 2 or reverification.

Retain clear and legible copies of all documents that the employee sent to complete Form I-9, regardless of whether the documents are from List A, List B, or List C.

Be advised that you can’t require employees to use the alternative procedure if they don’t want to, and you will need to perform an in-person examination for those unable or unwilling to participate in the remote verification process. This could arise when new employees don’t have access to the necessary technology or are uncomfortable transmitting sensitive personal information electronically, particularly if the employer hasn’t provided a secure way for them to do so.

Also, if you offer the alternative procedure at a particular hiring site, it needs to be offered to all employees at that site. If you prefer, you can offer the alternative procedure only to remote employees and do in-person inspection for onsite and hybrid employees.

Employers can’t choose when to use remote or in-person verification based on a person’s or group of employees’ citizenship or immigration status, national origin, or any other protected characteristic.

Action Item

If you aren’t using E-Verify but want to utilize the alternative procedure, you should begin the enrollment process now. See what’s needed to enroll here.

When you enroll your company in E-Verify, you need to tell us some basic information about your company and agree to the rules of our program. During the enrollment process, you will:

11/02/2023

Q&A from Intuit Quickbooks HR Support Center.

Question:
We recently made a couple of small updates to our employee handbook. Do we need to have employees sign a new handbook for each update?

Answer:

No. For small, minor updates, you don’t need employees to sign off, especially if you simply made an administrative change like updating the name of your employee assistance program provider, correcting a typo, or adding a clarifying statement. A simple communication to all employees to let them know that the change has been made, why, and where to find the change should suffice as notice.

Larger changes, like a brand-new policy or an update with essential changes, would warrant a new employee signature, especially if they could be disciplined for violating the new or updated policy. If you need to discipline an employee related to the new policy or update, their signature will help show that they were made aware of the change.

This Q&A does not constitute legal advice and does not address state or local law.

11/02/2023

Q&A from Intuit Quickbooks HR Support Center

Question:
What should I know about checking employee references?

Answer:

Reference checks help you verify the employment information candidates provide, but they aren’t required, so it’s up to you whether you want to do them.

Here are some practices we recommend if you do choose to conduct reference checks:

Get permission from candidates to contact references. This should be part of the application process and can be a simple yes/no question.

Determine at what point during the hiring process you will perform reference checks. Checking references earlier in the process may help you decide which candidates to interview, but it usually means doing a lot more of them. On the other hand, waiting until after a conditional offer has been made may slow the process down if you find reason to rescind the job offer. Some employers choose the middle ground and do these checks only for final candidates.

Decide how much information you want to obtain in the reference check but be prepared for many employers to have a policy of doing no more than confirming the dates the candidate was employed with them.

Be consistent. Do the checks at the same time in the process and for all candidates applying for similar positions.

Ask objective, job-related questions. Be aware that some states prohibit inquiring about salary history, though we don’t recommend asking even if it is permissible.

Document the responses and keep them with your other recruiting and interviewing materials.

This Q&A does not constitute legal advice and does not address state or local law.

11/02/2023

Federal Law Alert

October 17th, 2023


Federal: EEO-1 Reporting Opens October 31

The Equal Employment Opportunity Commission (EEOC) has announced that 2022 EEO-1 Component 1 data collection opens on October 31, 2023. The EEO-1 Component 1 report is a mandatory filing required of all private sector employers with 100 or more employees, and federal contractors and subcontractors with 50 or more employees meeting certain criteria.

The deadline to file EEO-1 reports is December 5, 2023. Employers should visit the EEO-1 Component 1 website for the latest filing updates and to find additional information including the Instruction Booklet. There will also be a Filer Support Message Center available when reporting opens.

Changes for Multi-Establishment Employers
The biggest change for 2022 EEO-1 data collection is that multi-establishment employers (those with more than one location) will no longer be required to file separate “types” of reports (e.g., “Type 4” or “Type 8”) based on the size of each of their non-headquarters locations. Instead, they’ll use the new “Establishment-Level Report” to report data for each of their non-headquarters locations, regardless of headcount.

Additionally, the Consolidated Report will now auto-generate and be auto-populated with data from the Headquarters Report and each Establishment-Level report. However, employers are still responsible for ensuring that the data in that report, including the total employee count, is accurate.

Visit https://eeocdata.org/eeo1 for more information and instruction booklet for proper reporting.

09/10/2023

Can We Tell Our Employees Not to Check Messages After Hours?

Here's another HR Snapshot from Quickbooks HR Support Center.

Question:
Can we tell nonexempt employees not to check email and messages when they’re supposed to be off the clock? They’ve been doing this a lot, and we don’t want to have to continue paying them for this additional, unscheduled time.


Answer from Sergio, SHRM-CP:
Yes, you can tell nonexempt employees that they shouldn’t read or respond to messages when they’re not scheduled to be working. When communicating your expectations, it may be beneficial to investigate why these employees are checking email and messages outside their scheduled hours.

How you handle the issue may depend on what’s driving it. Employees feeling the need to catch up on work they didn’t have time to finish during their scheduled hours would likely have a different solution than employees deliberately clocking unapproved time to increase the size of their paychecks. If, after communicating your expectations, employees continue working unapproved time, you can remind or discipline them, as appropriate.

This Q&A does not constitute legal advice and does not address state or local law

09/10/2023

Here's another Quickbooks HR Support Center eAlert.

Federal DOL Announces Proposed Rule to Increase Exempt Employee Minimum Salaries

Federal Law Alert
September 5th, 2023

The federal Department of Labor (DOL) has finally announced the release of its proposed rule to increase the minimum salary required for certain employees to be classified as exempt from minimum wage and overtime. While we don’t usually report on proposed rules because they have a tendency to change—and often the effective date is distant and unknown—we wanted to provide some information given the potential significance of this rule.

Currently, executive, administrative, and professional employees must be paid at least $684 per week ($35,568 per year) to be properly classified as exempt. This grouping of exemptions is often referred to collectively as “EAP.” The proposed rule, if adopted as-is, would increase the salary threshold to require that EAP employees be paid at least $1,059 per week ($55,068 per year) to be classified as exempt.

Currently, employees who are exempt under the highly compensated employee (HCE) exemption, which has its own specific criteria, must be paid at least $107,432 per year. The proposed rule, if adopted as-is, would increase this amount to require that HCE employees be paid at least $143,988 per year to be classified as exempt.

Finally, the proposed rule, if adopted in its current form, would implement automatic updates to the EAP salary level and HCE total annual compensation requirement every three years.

To learn more about the rules for these exemptions, including what duties employees must perform to qualify, see the Federal FLSA White Collar Exemption Guide on the platform.

Timing
The proposed rule will likely be published soon and then there will be a 60-day comment period. During that time, the DOL will accept comments (read: suggestions, complaints, arguments) from anyone who would like to submit them.

Once the comment period is closed, the DOL will review the feedback and potentially make changes before publishing the final rule. We don’t know how long that review and revision process will take, though it will likely be at least a few months. The DOL has suggested that these changes could take effect as soon as 60 days after the publication of the final rule.

It’s worth noting that last time the DOL attempted a drastic change to the salary minimums, the rule was thrown out in litigation just weeks before taking effect. We have no way of predicting if that will happen again, but it is likely that the rule change will be litigated.

Impacts
While it may be a bit early to start thinking about the impacts of this rule change, employers that want to maximize planning time should consider the following:

*You may need to reclassify many employees as nonexempt—this will bring the expected administrative hassle.
*If you have exempt employees who make well below the proposed minimum salary (and therefore won’t be getting a raise to bring them up to the new threshold), and they’re regularly working more than 40 hours per week, you’ll need to budget for their overtime pay.
*If you can't afford to pay overtime, you’ll need to redistribute work, find other efficiencies, or potentially alter aspects of your business.
*Employees who go from exempt to nonexempt will need to be trained in the ways of nonexempt employees (e.g., they’ll need to log their time, take lunches and breaks, and observe your overtime policies).

As usual, if a state law requires higher minimum salaries than what is or will be required by the federal rule, the state minimums must be followed.

We'll provide additional information when the final rule is published and will create a number of resources to help employers make the necessary changes as smoothly as possible. If you’d like to review the proposed rule, you can find it at

08/15/2023

Texas Law Alert
August 15th, 2023


Texas Hairstyle Discrimination and Workplace Violence Reporting Notice

The following changes to Texas employment law take effect on September 1, 2023.

Texas Prohibits Hairstyle Discrimination
Texas joins the growing list of states that prohibit discrimination based on hairstyle. The state’s employment discrimination law, which applies to employers with 15 or more employees, has been expanded to prohibit discrimination on the basis of an employee’s hair texture or protective hairstyle commonly or historically associated with race. Protective hairstyles include braids, twists, and locks.

If you have safety concerns with certain hairstyles or lengths, consider how those can be addressed short of all-out restrictions. For example, employees with long hair may be able to tie it back or cover it during hazardous activities. If you can’t resolve a conflict between protected hairstyles and safety, we recommend consulting with an attorney before taking adverse action against an employee.

Action Items

Update your equal employment or antidiscrimination policy to include hair texture and protective hairstyles commonly or historically associated with race as a protected characteristic.
Evaluate any dressing or grooming policies that limit hairstyles, including policies that contain indirect restrictions, such as those that require hair to be less than a certain length.
Train managers and those involved in the hiring process to not make judgments about professionalism or cultural fit based on an applicant’s hairstyle.
Texas Requires Workplace Violence Reporting Notice
Employers of all sizes are required to post a notice containing the contact information for the Department of Public Safety for employees to report workplace violence or suspicious activity. The notice must be posted in English and Spanish in a conspicuous location in the workplace (or in multiple locations to ensure that all employees can easily view the notice).

The state has been charged with creating a sample notice on or before March 1, 2024.

Action Item
Post the required notice in English and Spanish in a conspicuous location in the workplace (and electronically for remote employees) when it becomes available from the state.

07/28/2023

Federal Law Alert: New Form I-9 and Remote Verification Procedure Rolled Out

From Quickbooks HR Support Center, July 27th 2023

Updated I-9
A new Form I-9 (Rev. 08/01/23) will be available for employers to use on or after August 1, 2023, and once released can be found on the USCIS website: https://www.uscis.gov/i-9 and employers can also order paper copies: https://www.uscis.gov/forms/forms-information/forms-by-mail if they don’t want to use the electronic version. The version date, noted in parenthesis, can be found in the bottom corner of the Form I-9.

The prior version of Form I-: 9 (Rev. 10/21/19) continues to be effective through October 31, 2023. Beginning November 1, 2023, only the Form I-9 (Rev. 08/01/23) will be accepted. Employers shouldn’t complete the new Form I-9 (Rev. 08/01/23) for current employees who already have a properly completed Form I-9 on file, unless reverification applies after October 31, 2023.

The overhaul to the Form I-9 is quite extensive and includes the following changes:

Section 1, Preparer/Translator Certification, is now a standalone document (Supplement A) that employers can provide to employees when necessary.

Section 3, Reverification and Rehire, is now a standalone document (Supplement B) that employers can use if reverification is required.

The Form I-9 can now be filled out on tablets and mobile devices as well as easily downloaded.

The term “alien authorized to work” in Section 1 has been replaced with “noncitizen authorized to work.”

The Lists of Acceptable Documents page now includes acceptable receipts, as well as guidance and links to information on automatic extensions of employment authorization documents.

A box has been added that eligible employers need to check if the Form I-9 documentation was examined using the new alternative verification procedure.

The instructions have been, mercifully, reduced from 15 pages to eight.

Action Item
By November 1, 2023, ensure that you’re using the new Form I-9 (Rev. 08/01/23) for all new hires and reverifications.

Remote Verification, aka “Alternative Procedure” for Form I-9 Verification
Qualified employers are allowed to conduct Form I-9 remote documentation verification for any employee hired on or after August 1, 2023. Employers need to follow specific steps to remotely verify Form I-9 documents—USCIS has dubbed this the alternative procedure.

If an employer offers the alternative procedure at a particular hiring site, it needs to be offered to all employees at that site. There is an exception, however, if employers want to offer the alternative procedure only to remote employees and do in-person inspection for onsite and hybrid employees. Employers can’t choose when to use remote or in-person verification based on a person’s or group of employees’ citizenship or immigration status, national origin, or any other protected characteristic.

The Meaning of Qualified Employer
Qualified employers are those that are participants in good standing in federal E-Verify. Employers are in good standing if all of the following are true:

They have enrolled in E-Verify for all hiring sites in the United States that use the alternative procedure

They are compliant with all E-Verify program requirements

They continue to be enrolled in E-Verify and in good standing at any time when they use the alternative procedure

Alternative Procedure Steps
An employer needs to take the following steps within three business days of an employee’s first day of employment:

1. Receive and examine copies of the employee’s Form I-9 documents (or an acceptable receipt) and determine if the documents appear to be genuine. If the documents are two-sided, employers need to examine copies of both the front and back.

2. Conduct a live video meeting with the employee. The employee needs to bring the same documents that they sent to the employer so the employer can ensure that they reasonably appear to be genuine and relate to the employee.

3. Check the box on Form I-9 (Rev. 08/01/23) that an “alternative procedure” was used to examine documentation to complete Section 2 or reverification. If an employer is using the old form (Rev. 10/21/19) they should write “alternative procedure” in the Additional Information field in Section 2.

4. Retain clear and legible copies of all documents that the employee sent to complete Form I-9, regardless of whether the documents are from List A, List B, or List C.

Employers can’t require employees to use the alternative procedure if they don’t want to and will need to perform an in-person examination for those unable or unwilling to participate in the remote verification process. This could arise when new employees don’t have access to the necessary technology or are uncomfortable transmitting sensitive personal information electronically, particularly if the employer hasn’t provided a secure way for them to do so.

The Alternative Procedure and COVID-19 Flexibilities
Qualified employers can use the alternative procedure to satisfy the requirement to physically examine Form I-9 documentation that was examined remotely under the COVID-19 flexibilities, but only if all of these conditions are met:

They were enrolled in E-Verify at the time the remote examination for a new hire or a reverification occurred

They created an E-Verify case for the employee, except in the case of a reverification

They performed the remote inspection between March 20, 2020, and July 31, 2023

Employers should follow the alternative procedure steps and write “alternative procedure” and the date of the live video meeting on the Form I-9 in Section 2 in the Additional Information box or the section used for reverification, whichever applies. They should not create a new case in E-Verify.

Action Item
If you aren’t using E-Verify but want to utilize the alternative procedure, begin the enrollment process now. You can start by seeing what’s needed to enroll here: https://www.e-verify.gov/employers/enrolling-in-e-verify/the-enrollment-process


Questions?
QuickBooks HR Support Center
7535 Torrey Santa Fe Rd
San Diego, CA 92129

Phone: 1-800-4-INTUIT

Legal Disclaimer: The HR Support Center is not engaged in the practice of law. The content in this email should not be construed as legal advice, and does not create an attorney-client relationship. If you have legal questions concerning your situation or the information you have obtained, you should consult with a licensed attorney. The HR Support center cannot be held legally accountable for actions related to its receipt.

When you enroll your company in E-Verify, you need to tell us some basic information about your company and agree to the rules of our program. During the enrollment process, you will:

07/28/2023

Another great question/answer from Quickbooks HR Support.

HR Snapshot: What Do I Need to Know About Religious Accommodations?

Question:
What do I need to know about religious accommodations?

Answer from Kara, JD, SPHR:

Employers with 15 or more employees are required by federal law to provide reasonable accommodations for an employee’s sincerely held religious beliefs, practices, and observances, unless doing so would create an undue hardship on the employer.

The need for a religious accommodation generally arises when an employee’s religious beliefs or practices conflict with a specific task or requirement of the position or application process. For instance, an employee might need a change to their schedule to allow for prayer during the workday, to not be scheduled on Sundays, or to wear a head covering or hairstyle that is outside of your dress code.

Undue hardship—as it applies to religious accommodations specifically—has recently been reinterpreted by the Supreme Court to mean “a substantial increased cost in relation to the conduct of [an employer's] particular business.” Most accommodations, particularly those related to scheduling and dress codes, will not cause an undue hardship, so employers should be open to requests and work with employees whenever possible.

When an employee requests a religious accommodation, you can ask them to describe their sincerely held religious belief, practice, or observance that requires accommodation. We suggest that you do this by having the employee complete a Request for Religious Accommodation Form, which is available in the platform. If you require this documentation for one religious accommodation request, you should require it for all—don’t get caught in a discrimination claim by being more lenient towards some religions than others.

This Q&A does not constitute legal advice and does not address state or local law.



Kara practiced employment law for five years and worked in Human Resources for several years prior to that. As an attorney, she worked on many wage and hour and discrimination claims in both state and federal court. She holds a Bachelor of Arts degree from Oregon State University and earned her law degree from Lewis and Clark Law School.

Questions?
QuickBooks HR Support Center
7535 Torrey Santa Fe Rd
San Diego, CA 92129

Phone: 1-800-4-INTUIT

Legal Disclaimer: The HR Support Center is not engaged in the practice of law. The content in this email should not be construed as legal advice, and does not create an attorney-client relationship. If you have legal questions concerning your situation or the information you have obtained, you should consult with a licensed attorney. The HR Support Center cannot be held legally accountable for actions related to its receipt.