Organizational growth is an exciting thing! It means new team members, fresh initiatives, and bigger goals and accomplishments. But once your company surpasses a certain number of employees, it also means new compliance responsibilities, like filing an EEO report.

The Equal Employment Opportunity Commission (EEOC) mandates EEO reports from employers with 100 or more employees (federal contractors are subject to lower thresholds). There are four different versions of data collections applicable to certain employers. This data collection only applies to actual employees, not applicants or candidates from your hiring process.

So, what does the EEOC do with this data? The information is used for various reasons, including enforcement, self-assessment by employers, and research. Reporting is not optional, so employers must conduct timely and accurate EEO reports to ensure compliance and avoid penalties. 

Let’s look at the different types of EEO reporting requirements and deadlines below. 

EEO-1 Report: Employer Information Report

The EEO-1 Report, or Employer Information Report, is the most common version. Employers who meet the following criteria must file the EEO-1 annually:

• Employers with 100 or more employees
• Employers with fewer than 100 employees but who are owned, affiliated with, or controlled by a company with more than 100 employees overall
• Federal contractors or subcontractors with 50 or more employees and a contract/subcontract worth more than $50,000
• Employers with 50 or more employees who also serve as an issuing and paying agent for U.S. Savings Bonds OR serve as a depository of government funds

To complete their EEO-1 Report, employers must collect data on their employees’: 

• Race/ethnicity
• Gender
• Job category

The EEOC will tentatively start accepting submissions on Tuesday, April 12, 2022. The tentative deadline to file your 2021 EEO-1 is Tuesday, May 17, 2022. Keep checking the EEO-1 Data Collection page for updates.

EEO-3: Local Union Report

The EEO-3 Report is a mandatory survey that local unions must file every other year, specifically local unions with 100 or more members. Eligible local unions must submit demographic info on their workforce, including membership, applicant, and referral information by race/ethnicity and sex.

Data collection is tentatively scheduled to open on Tuesday, August 23, 2022. Check the EEO-3 Data Collection page for updates.

EE0-4: State and Local Government Information Report

State and local governments with 100 or more employees must file the EEO-4 Report every other year to report demographic information of their workforce, including:

• Race/ethnicity
• Gender
• Job category
• Salary band

The filing deadline was Tuesday, January 4, 2022, but the EEOC allows state and local governments to file until Tuesday, February 15, 2022, if they haven’t done so. After that, the agency will accept no more EEO-4 Reports. Visit the EEO-4 Data Collection page for more information and updates.

EEO-5: Elementary-Secondary Staff Information Report

Public elementary and secondary school systems and districts with 100 or more employees must submit their demographic workforce data via the EEO-5 Report every other year. This report collects staff information on:

• Race/ethnicity
• Gender
• Activity assignment classification

The 2022 data collection will tentatively open on Tuesday, September 27, 2022. Refer to the EEO-5 Data Collection page for updated information.

Data Collection & Filing Tips

It can seem like a daunting task if you’re new to EEO reporting. Every employer should ensure efficiency and compliance by establishing a procedure to conduct an employee/member survey. Be sure to:

• Survey your staff with sufficient time for everyone to respond.
• Provide self-identification forms to employees.
• Collect the surveys in time to prepare your EEO report.

If applicable, the headquarters or parent company must collect all forms from their other locations or subsidiaries.

What should an employer do if an employee refuses to identify themselves?

You may complete the data on the employee’s behalf based on records or visual observation (regarding race).

The EEOC requires submission through its online filing system. Remember to click the “Certify report” button, or your report will not be filed! Ensure you’ve followed the guidelines (i.e., collected all required data) when collecting data for your respective EEO report.

If you want to submit a paper report, you will need to file a written proposal to the EEOC. Paper reports are only accepted upon request and approval.

The Importance of EEO Compliance

Like any other legal requirement for employers, filing incomplete or inaccurate EEO reports–or failing to file them at all–can lead to significant fines. Federal contractors could even lose contracts and future agreements. So, while conducting surveys and prepping data may be time-consuming, it is crucial to protecting your company. 

If you need assistance administering, managing, and filing your EEO report, BlueLion’s HR experts will be happy to help you with the process. Our experienced team will also guide you in any other areas of EEO compliance. Contact us today at 603-818-4131 or info@bluelionllc.com to learn more!

Tax time is rolling around, and you’ve received your W-2 from your employer. But what do you do with it? And how do you read a W-2 and ensure all of your information is accurate? 

Your Form W-2 is an earnings statement your employer uses to report your income and any taxes or other withholdings you’ve paid throughout the past tax year. You’ll need a W-2 from your employer to file your taxes.

Check out the W-2 basics and learn what each field means in our simple outline below.

Form W-2 Basics

An employer must file a W-2 for you if they: 

• Paid you at least $600 (whether cash or another form of payment).
• Withheld income, Social Security, or Medicare tax from your paycheck–even if they paid you less than $600.

There are other reasons employers may need to file a W-2 on your behalf, but those are the primary reasons. Employers must issue a W-2 by January 31, meaning it must be postmarked by that date. If you don’t receive your W-2 by early February, speak to your employer to confirm if and when they mailed it.

You need your W-2 to file your taxes. If you work multiple jobs, you may receive a W-2 from each employer who paid you more than $600 or paid you and withheld taxes. You will need all W-2s to file your taxes.

You’ll also receive three copies of each W-2: 

• Copy A: Your employer sends this to the Social Security Administration.
• Copy B: File this with your federal tax return.
• Copy 2: File with your state or local tax return.
• Copy C: Keep for your records.
• Copy D: Your employer keeps this for their records.

If you’re an independent contractor, you’ll probably receive a Form 1099-MISC from the people or organizations you worked for. You’ll need a 1099-MISC from each client who paid you more than $600 to file your taxes.

How to Read a W-2

A W-2 can seem like an overwhelming amount of information initially. But once you know how to read a W-2, it’s not all that complicated! Here’s the breakdown, so you know exactly what you’re looking at.

• Boxes A-F: Employee & Employer Basic Information
  • These are pretty self-explanatory fields containing your and your employer’s basic information. Note that your employer may use Box D to include a code to identify your form or leave it blank.

• Box 1: Wages, Tips and Other Compensation

• • This number is calculated using your GROSS pay from your last paycheck of the year minus pretax deductions (e.g., 401(k), medical, dental, HSA).

• Box 2: Federal Income Tax Withheld

• • This is the total amount you paid to the FEDERAL government in taxes.

• Box 3: Social Security Wages

• • This number is calculated using your GROSS pay from your last paycheck of the year minus pretax deductions EXCEPT for any retirement 401(k) contributions.

• Box 4: Social Security Tax Withheld

• • This is the total amount you paid to the FEDERAL government for social security tax (your employer matches this amount).
  • The 2021 tax rate is 6.2% and only applies to the first $142,800.

• Box 5: Medicare Wage and Tips

• • This can be calculated using your GROSS pay from your last paycheck of the year minus pretax deductions EXCEPT for any retirement 401(k) contributions.

• Box 6: Medicare Tax Withheld

• • This is the total amount you paid to the FEDERAL government for Medicare tax (your employer matches this amount).
  • The 2021 Medicare tax rate is 1.45%.
  • Additional Medicare tax of 0.9% on earnings over $200,000 for single filers and $250,000 for joint filers.

• Box 10: Dependent Care Benefits

• • The amount of dependent care benefits you elected if any. 
  • If you deferred pretax money into a flexible spending account to pay for dependent care costs, or if your employer provided you money for dependent care costs under a dependent care assistance program, that amount would be shown here.

• Box 11: Nonqualified Plans

• • If applicable, this is the amount an employer paid you from a nonqualified deferred compensation plan (for use by the Social Security Administration). 

• Box 12: Codes

• • This is where your employer would report any applicable codes, such as nontaxable sick pay, adoption benefits, or designated Roth contributions under a section 401(k) plan that they provided to you. See the complete list of codes below:

• Box 13: Three Check Boxes

• • Statutory Employee Status: Your earnings are subject to Social Security and Medicare taxes but not federal income tax withholding. 
  • Third-party Sick Pay: You received sick pay under a third-party insurance provider.
  • Retirement Plan: You were an active participant in a retirement plan such as a 401(k) in the past tax year. 

• Box 14: Other

• • Your employer would use this field to report anything that doesn’t fit in a different area on the form. This might include nontaxable income, union dues, uniform payments, and health insurance premiums.
  • Massachusetts Paid Family & Medical Leave (MAPFML): This is the amount you paid to the State of MA in taxes for MA Paid Family Medical Leave. Your employer would also report this in Box 14, if applicable.
• Box 15: State & Employer’s State ID Number
  • Your employer enters their details here.

• Box 16: State Wages, Tips, etc.

• • This number is calculated using your GROSS pay from your last paycheck from the year minus pretax deductions (e.g., 401(k), medical, dental, HSA).

• Box 17: State Income Tax

• • This is the total amount you paid to the STATE for income tax.
• Boxes 18-20: Local Tax Information
  • If applicable, your employer will use these boxes to report any city or local income and taxes.

Now that you understand how to read a W-2 and what to do with it, filing your federal and state income tax returns will be that much easier. Be sure to hold on to all tax documents for three to seven years, as recommended by the IRS. You’ll need these records in case you’re ever audited. If you have additional questions about your W-2, comment below, and we’ll be happy to answer them for you!

Are you an employer with questions about reporting your employees’ taxes? Contact BlueLion today at info@bluelionllc.com or 603-818-4131 to find out how our human resources specialists can help you!

Believe it or not, federal law does not require employers to give employees meal breaks or short breaks during the workday. It may seem only fair and natural to allow workers a break to eat and rest in order to keep up their energy and productivity, but the federal government has left this labor law area up to the states.

Since states mandate their rest and meal break laws, you must know your local regulations. Many states require employers to provide meal breaks, and some even require short rest breaks. Below, we’ve outlined the basics for Maine, Massachusetts, and New Hampshire employers.

Maine Meal Break Law

Maine employers must provide employees with a 30-minute break after 6 consecutive hours worked. This break may be paid or unpaid.

Exceptions can be made: 

• In cases of emergency
• When the nature of the employee’s work allows them frequent breaks during the workday

Who is covered?

All Maine employers with three or more employees working at a time must follow this law. However, it is not applicable if a collective bargaining or other written employer-employee agreement provides other meal arrangements.

Massachusetts Meal Break Law

Like Maine, Massachusetts employees have a right to a 30-minute meal break for every 6 consecutive hours worked. This break can be paid or unpaid.

According to the Massachusetts government, the meal break is the employee’s free time. They must be free of all duties, free to leave the workplace, and allowed to pray or perform other activities during their break.

Who is covered?

The meal break requirement applies to most Massachusetts employers, excluding:

• Ironworks
• Glassworks
• Printworks
• Paper mills
• Letterpress establishments
• Bleaching or dyeing works

The state attorney general may grant an exemption for a business that requires continuous operation, as long as this does not compromise worker safety.

New Hampshire Meal Break Law

New Hampshire employees who work 5 consecutive hours are entitled to a 30-minute meal break unless the employee can eat while working and the employer allows them to do so. Meal breaks may be paid or unpaid.

Who is covered?

All New Hampshire employers must provide a 30-minute meal break.

Additional Rest Break Information

Below are two areas all three states have in common.

Can employees skip their meal breaks?

Yes, an employee may waive their right to a rest break. It’s best to have both the employee and employer sign off on this. 

When you allow an employee to work through their break, the time must be included as hours worked. For example, a customer service representative who has to cover phones during her break or a repair technician who eats lunch while driving from one job to the next must be paid for that time.

As the employer, you may require employees to take their 30-minute rest break.

What about shorter breaks?

Shorter rest breaks are not required but may be provided to employees at the employer’s discretion. Short breaks or pauses in performing duties ranging from five to 20 minutes are considered part of the workday and must be paid.

Be sure to keep up with your state’s mandates on areas like rest and meal breaks. Labor laws often change, so employers should regularly review their practices and policies to ensure compliance.

If you have a question about rest break laws in your area or need help developing a rest and meal break policy, our human resource experts will be happy to help! Contact BlueLion today at 603-818-4131 or info@bluelionllc.com to tell us about your needs. 

The information on this website, including its newsletters, is not, nor is it intended to be legal advice. You should contact an attorney or HR specialist for advice on your individual situation.

From hiring new employees to rehiring to changes in their information, employment Form I-9 is a crucial document. So, what do you need it for? How do you fill it out? And how do you know when to update it?  

Below, we’re breaking down the steps and requirements for the Employment Eligibility Verification form that every employer needs to know.

What is Form I-9?

Form I-9, Employment Eligibility Verification, is used to verify the identity and employment authorization of people hired for employment in the United States. 

Employers must fill out and retain Form I-9 for every employee they hire in the United States, including citizens and noncitizens. There are three sections that the employer and the employee must complete as applicable. 

Several specific groups do not need to complete Form I-9:

• Individuals hired on or before November 6, 1986, who are continuing their employment.
• Employees hired in the Commonwealth of the Northern Mariana Islands (CNMI) on or before November 27, 2009.
• People employed for casual domestic work in a private home on a sporadic, irregular, or intermittent basis.
• Independent contractors or those employed by a contractor (e.g., temp agencies).
• Individuals not physically working in the U.S.

Basic Form I-9 Requirements

There are many Form I-9 requirements regarding when it must be filled out, necessary information, and supporting documents. 

The employee must complete Section 1 of Form I-9 on or before their first day of employment (once they’ve accepted your job offer). They will also need to provide documents proving their identity and employment authorization, which the employer must verify. 

Form I-9 includes a list of acceptable documents on the last page. The categories are:

• List A: Documents that show both identity and employment authorization
• List B: Documents that show only identity
• List C: Documents that show only employment authorization

How to Complete Form I-9

Section One: Employee Information and Attestation

Employee Responsibilities

Employees must enter their information in this section.

• Full legal name:
  • Employees should include all names, even those with two last or first names.
  • Employees with only one name should enter it in the Last Name field, then write “Unknown” in the First Name field.
  • Employees should include hyphens (-) or apostrophes (‘) if their names have them.
  • Employees with a middle name should enter their middle initial.
• Other legal last names used, including a maiden name, if applicable
• Current address, including the apartment number or letter if applicable
• Date of birth
• Check the appropriate box to indicate whether they are a U.S. citizen, a noncitizen national, a lawful permanent resident of the U.S., or an alien authorized to work in the U.S.
• If applicable, employees should enter their Alien Number/USCIS Number, Form I-94 admission number, or foreign passport number (including country of issuance), and the date employment authorization expires.
• Signature and the date

Employees may also provide their:

• Social Security number (This is required if the employer participates in E-Verify.)
• Email address (so employees can receive email notifications from the U.S. Citizenship and Immigration Services [USCIS] if the employer participates in E-Verify)
• Phone number

Employees must sign the form even if they receive help from a preparer or translator. The preparer or translator must also sign and date the certification on the form. If they did not use a preparer or translator, the employee must check the box marked “I did not use a preparer or translator.”

Employer Responsibilities

Once you receive your employee’s Form I-9, review the information to confirm: 

• They filled out all required fields.
• They provided their Social Security number if you participate in E-Verify.
• They signed and dated the form.
• The preparer or translator completed, signed, and dated the Preparer/Translator section, if applicable.

Also, be sure to:

• Check whether the employee noted in Section 1 that their employment authorization would expire, meaning you may need to reverify their employment authorization at the expiration date.
• Check whether the expiration date for employment authorization they noted in Section 1 matches the expiration date on their proof of identity and employment authorization documents (List A or List C).

Section Two: Employer Review and Attestation

After turning the form in, the employer should complete Section 2 by the employee’s third workday.

Example: If the employee starts on a Monday, you must complete it by Thursday of that week. 

If the job lasts less than three days, you must complete it by their first day of work.

Employee Responsibilities

Employees must provide original, unexpired documents that show their identity and employment authorization. They can present:

• One document from List A, or
• One document from List B and one document from List C

An employee may present an acceptable receipt in place of a List A, B, or C document. Note that receipts only temporarily satisfy this Form I-9 requirement. Employers that participate in E-Verify may only accept List B documents with a photo.

Employer Responsibilities

Now, you must examine the employee’s documentation and fill out and sign Section 2. You (or an authorized representative of your company, like an HR team member) must:

• Enter the employee’s last name, first name, middle initial, and enter the correct citizenship/immigration number in the “Employee Info from Section 1” area at the top of Section 2.
• Verify that the employee’s documentation is original and on the Lists of Acceptable Documents or is an acceptable receipt.
• Review each document to determine if it is genuine and relates to the employee presenting it. If you decide it does not, request that your employee provide other documentation from the Lists of Acceptable Documents.
• Enter the document title, issuing authority, number(s), and expiration date (if applicable) from the original document(s) your employee provided.
• Enter the date your employee began or will begin paid work.
• Enter the first and last name, signature, and title of the person completing Section 2, along with the completion date.
• Enter your business name and address. For companies with multiple locations, use the most appropriate address that identifies the employer’s location concerning the employee and their Form I-9 completion (e.g., the address where Form I-9 is completed).
• Return the employee’s documentation to them.

Regarding the employee’s employment start date, enter:

• A current date if Section 2 is completed the same day the employee begins paid employment. 
• A past date if Section 2 is completed after the employee started paid employment. Enter the employee’s actual start date.
• A future date if Section 2 is completed after the employee accepts your job offer but before their start date. In this case, enter the expected start date; if the employee begins employment on a different date, cross out the scheduled start date and write in the correct start date. Date and initial the correction.

Section 3: Reverification and Rehires

You’ll need to complete Section 3 of Form I-9 when your employee’s employment authorization or documentation of employment authorization has expired (i.e., reverification).

You may also complete this section when: 

• You rehire an employee within three years of the date that Form I-9 was initially completed.
• Your employee has a legal name change.

You are not required to update Form I-9 when an employee has a legal name change, but it is best to keep the form updated and note any name changes in Section 3.

When filling out Section 3, be sure to enter the last name, first name, and middle initial fields from the top of Section 2.

Reverification

When your employee’s employment authorization or documentation expires, you need to reverify that they are still authorized to work. Check Section 1 for the date that employment authorization expires and Section 2 for the date the employment authorization document expires.

If the dates do not match, use the earlier date to determine when reverification is necessary.

It’s best to remind them at least 90 days before the reverification deadline that they will need to provide a List A or List C document or acceptable receipt by that expiration date. If the employee has a Form I-765, Application for Employment Authorization, pending with the USCIS, and the application has been pending for 75 days, your employee may contact the USCIS Contact Center.

You do NOT need to reverify:

• U.S. citizens and noncitizen nationals
• Lawful permanent residents who presented a Form I-551, Permanent Resident or Alien Registration Receipt card for Section 2, including conditional residents.
• List B documents

To complete Section 3, employers must:

• Review the unexpired documents to confirm authenticity. If you feel the document does not reasonably appear authentic and related to your employee, have them bring another document from the List of Acceptable Documents.
• If applicable, record the document title, document number, and expiration date.
• Sign and date Section 3.

Rehires

If you rehire an employee within three years of the date that their previous Form I-9 was completed, you may either complete a new Form I-9 or complete Section 3 of the previous form.

Employers completing Section 3 for rehire must:

• Review the original Form I-9 to ensure accuracy and determine if the employee is still authorized to work. This includes checking their employment authorization documentation (List A or List C) in Section 2.
• If the employee is still authorized to work and their documentation is still valid, enter the rehire date in the relevant field in Section 3.
• If the employee’s List A and List C documents have expired, request updated records for reverification. Then, enter the updated information and the rehire date in the relevant fields in Section 3. If the current version of Form I-9 varies from the original form, complete Section 3 on the current version.
• Sign and date Section 3.

Enter the appropriate dates:

• When rehiring a former employee, enter the date the employee begins paid employment in Block B (this can be a future date). 
• When reverifying your employee, enter the date the employee’s new work authorization document expires in Block C.
• Sign Section 3 and include the date of completion.

Assistance with Employment Form I-9

Do you have further questions regarding employment Form I-9? If you have a unique situation with an employee, the reverification or rehiring process can lead to some confusion. It’s vital to follow the Form I-9 requirements for all relevant employees. 

If you need guidance or simply want to ensure compliance, contact BlueLion today at 603-818-4131 or info@bluelionllc.com. Our HR experts will be happy to walk you through the Employment Eligibility Verification Form.

The information on this website, including its newsletters, is not, nor is it intended to be legal advice. You should contact an attorney or HR specialist for advice on your individual situation.