Heat waves weren’t the only thing to kick in over the month of July. Several state-based legislative updates from New York’s Metropolitan Commuter Transportation Mobility Tax (MCTMT) to Colorado’s Protecting Opportunities and Workers’ Rights (POWR) Act and parts of Minnesota’s Omnibus Jobs Act either took effect in July or soon will. At the federal level, the United States Citizenship, and Immigration Services (USCIS) announced a new, overhauled version of Form I-9 and an alternative document exam for qualified employers. Learn more about these updates and more below in this month's Regulatory Roundup.
Effective August 1, 2023, a brand-new version of Form I-9 is available and eligible employers are allowed to use an Alternative Document Examination Method.
The new version of Form I-9 includes several changes, including shorter Sections 1 and 2, Preparer/Translator Certification and Reverification and Rehire portions being converted into standalone supplements (A & B respectively), removal of “alien authorized to work” from Section 1, and technical updates that ensure the form can be downloaded easily and completed on mobile or tablet devices.
Employers may continue using the old version of the form until October 31, 2023.
Within three business days of a new hire’s first day, eligible employers may forgo normal review steps and instead examine copies of Form I-9 documents during a live video interaction with an employee to verify the employee’s identity and employment eligibility. To qualify, employers must be enrolled and in good standing with E-Verify via compliance with the service’s Memorandum of Understanding (MOU). Those interested in using this alternative procedure must register with E-Verify and complete assigned training.
On May 10, 2023, Governor Ron DeSantis signed immigration bill SB 1718, which took effect on July 1, 2023. The new law requires “private employers” with at least 25 employees to use the USCIS’ E-Verify service to confirm the identity and eligibility of newly hired employees. Affected employers are also required to keep employment eligibility documents for a minimum of three years and certify their E-Verify compliance on their annual re-employment tax return.
Several state legislative changes signed by Governor Jared Polis will take effect on August 7, 2023, unless otherwise noted below:
The following portions of Minnesota’s new Omnibus Jobs Act took effect on July 1, 2023:
Other parts of the act, such as mandated paid sick leave and expanded workplace posters, will take effect on January 1, 2024.
Senate Bill S4008B significantly changes the state’s existing MCTM tax by reshaping the Metropolitan Commuter Transportation District (MCTD) into two zones, each with tiered tax rates. Zone 1 will include Manhattan, the Bronx, Brooklyn, Queens, and Staten Island, while Zone 2 will include the Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester counties. Tax filing and payment deadlines, however, will remain unchanged.
Per Public Act 103-0009, the state of Illinois lowered its withholding formula allowance from $2,625 to $2,425. Booklet IL-700-T has also been updated with the new formulas and an addendum for “catch-up” calculations that correct withholdings for existing employees for the remainder of 2023.
Get more details on the compliance updates from July here:
Bookmark our resource library and come back monthly for Regulatory Roundups of tax and compliance alerts you need to know. For any other frequently asked questions or general assistance, refer to our Administrator Support page for support contact information, quick how-to guides or training courses, important PEAK articles, and more. Remember to follow us on Facebook, LinkedIn, and Twitter for urgent updates.
This information is provided as a courtesy, may change, and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney, or Advisor.
Between constantly changing employment laws and updates to the Affordable Care Act (ACA), keeping your workplace compliant can be a time-consuming and costly challenge. Eliminate the stress and stay up to date with our Compliance Dashboard. View compliance alerts and get a bird’s eye view of what you need to do to avoid fines and penalties.