And, there you have it…
It’s always a little shocking to come back from the Thanksgiving holiday in December. It was a tiny bit more shocking for me as we returned from a trip to Colombia, a lovely country where we enjoyed eternal Spring and that I would love to explore a bit more.
As promised, our final 2024 year-end checklist is ready to go, and you can find it HERE.
From our friend, Pete Ravani, we’re reminded of the big change in retirement plan limits and that some action may be required. He says “This is a friendly reminder about SECURE Act 2.0, Section 109, going into effect on 1/1/2025. Section 109 involves higher catch-up limit for active participants who turn 60, 61, 62, and 63 in 2025. These active participants can contribute in calendar year 2025 either $10,000 or 50% more than the regular catch-up contribution limit, whichever is greater.
It is imperative your clients speak with their payroll provider regarding Section 109 and that they are prepared to accommodate this change on 1/1/2025. Most major payroll providers are aware of the change but if they are using a smaller payroll provider, it is critical you speak with them.”
Affogato always takes a compliance first approach to HR Management (you can hear me saying something about building a house on a bad foundation, can’t you?). We begin our engagements with an assessment, focusing on several compliance elements.
One compliance element is always the I-9 process. If it’s been a while since you have reviewed your current employees’ I-9 forms and your I-9 verification process, the end of the year is a great time to get that done.
Another aspect of compliance is minimum wage or salary, which depends on where the employee is working. If you have exempt employees outside of California, you were probably paying attention to the upcoming Federal minimum salary increase. The increase has been rescinded, but you still want to make sure that your compensation philosophy is reflected by actual pay rates. Don’t know where to start? Let us know, we’re happy to help.
Let’s finish the year strong!