ILLINOIS – Paid Leave for Any Reason Coming January 2024
Effective January 1, 2024, employees in Illinois will accrue one hour of paid leave for every 40 hours worked. After accruing leave for 90 days, employees may begin using the accrued time off for any reason. Employees can use up to 40 hours in a 12-month period.
Under the new law, employees must be paid their full hourly rate and tipped employees must receive at least minimum wage. Up to 40 hours of accrued but unused time may be carried over to the next year. Employers have the option to front-load the time (making the 40 hours available at the beginning of the year) and if they choose this option, they are not required to carry over any unused time to the following year.
MINNESOTA – Paid Family and Medical Leave Begins January 1, 2026
On January 1, 2026, MN employer’s will be responsible for premiums of 0.70% of an employee’s taxable wage up to the maximum income subject to contributions for Social Security to fund the MN Paid Family and Medical Leave program. Employers may charge a maximum of half of the premium (0.35%) to their employees through a wage reduction. Employers will have certain responsibilities prior to the January 1, 2026, start date.
In mid-2024, most Minnesota employers will be required to submit a wage detail report which will include the quarterly wages received and hours worked for each employee.
In late 2025, employers will be required to notify their employees about the program. The MN Paid Family and Medical Leave program will supply the language for this notification.
Starting in January 2026, employers will be required to submit any premiums that are due. For more information and updates as they become available, please visit https://mn.gov/deed/programs-services/paid-family/employers/.
OKLAHOMA – Technology Reinvestment Apportionment Renewed
Effective November 1, 2023, Oklahoma is renewing the 5% offset from the unemployment tax rates to fund the Technology Reinvestment tax. This tax has been in place since 2018 but expired at the end of 2022. HB 2456 renewed this tax through 2027.
In addition, this bill also increases the penalty for not filing contribution and wage reports within 15 days of a written notice to $200. Reimbursing employers will be penalized $20 per day up to a maximum of $200 for failing to file wage reports within 15 days of a written notice.
TEXAS – Fraud Reminder
Texas Workforce Commission recently sent out a reminder that criminals are always looking for new ways to commit fraud in the UI system. In addition to checking the claims that are received, it is a good time to remind employers to also check earnings verification requests and potential chargeback or benefit charge notices for employees who are still working, and their hours have not been reduced.
Thomas & Company is on the lookout for any fraud in the system but if you get these notices and find employees who are still employed, please let your T&C team know right away that this is a potential identity theft fraud case so we can report it to the state in question. Please feel free to direct your employees to https://support.thomas-and-company.com/hc/en-us/articles/360063688893-Identity-Theft-Fraud-Recommended-Actions for actions they can take to protect their identity.
WASHINGTON – Long-Term Care Withholding Begins July 1
A new withholding tax funded by employees for the WA Cares Fund (a long-term care insurance program) goes into effect on July 1, 2023. This payroll tax of up to $0.58 cents for every $100 in earned income should be added as a deduction starting on July 1, 2023.
As of January 1, 2023, employees may apply for certain exemptions by applying for the exemption and providing their employer with the approved exemption letter. Exemptions include:
• Veterans with a service-connected disability of 70 percent or higher,
• Spouses or domestic partners of active-duty service members,
• Persons residing outside of Washington while working in Washington, and
• Persons working in the United States under a temporary, non-immigrant work visa.
Exemptions become effective the quarter following the approval by the state and by law, refunds for previous contributions are not permitted. Employees are required to notify both WA ESD and their employer when they no longer qualify for an exemption. If your employees have more questions about the available exemptions, they can visit https://wacaresfund.wa.gov/how-it-works/exemptions.
