Sage 100 Payroll News: New Update for EEO-1 Government Requirements
Attention Sage 100 Payroll clients!
If you use Sage 100 for Payroll and have 100 or more employees there are important product updates and federal deadlines approaching.
Under federal law, businesses with at least 100 employees and some federal contractors with at least 50 employees must submit an EEO-1 form each year. Component 1 of the EEO-1 form hasn’t changed from prior years: It asks for the number of employees who work for the business sorted by 10 job categories, race/ethnicity and gender.
Earlier this year, employers were required to submit EEO-1 Component 1 data that lists employees by job category, race, ethnicity and sex.
You must file EEO-1 Component 1 if:
- Your business employs at least 100 individuals;
- You are a federal contractor with at least 50 employees and have a contract with the federal government of $50,000 or more.
Additionally, you must file EEO-1 Component 2 if:
- Your business employs at least 100 individuals, including contractors. Component 2 data includes hours worked and pay information from employees’ W-2 forms by race, ethnicity and sex.
Effected employers must submit this data for employee records from 2017 and 2018 by September 30, 2019.
Sage Payroll Update Now Available
Because these US legislative changes will introduce several payroll reporting requirements, the Sage Payroll team has issued an update that is available for the 2018 and 2019 installs of Sage 100.
If you are not on a Sage 2018 or Sage 2019, you will need to upgrade in order to have this update.
Here’s what you need to know about these requirements, and how to update Sage 100 Payroll to help you stay compliant.
• The changes described below will be implemented only in the latest version of Sage 100 payroll that is compatible with Sage 100 2018 and later.
• The January 2020 tax table update (TTU) will be the final TTU released for Sage 100 version 2017. No further TTUs will be release for version 2017.
What you need to know
Component 2 EEO-1 Compensation Data
To comply with reporting requirements that must be in place by September 30, 2019, the following changes to the Employee Maintenance Additional tab are planned for Payroll version 2.19.4, available by early September:
• Changes to the Ethnicity/Race field—the required categories will be updated
• New Job Category field with the 10 required job categories available for selection
Changes based on the 2020 W-4 form
Changes for Payroll version 2.20, available in December 2019 for tax year 2020, are under review. Sage is waiting for finalization of the W-4 form and Publication 15-T.
EEO-1 Survey Submission Due Dates
- May 31, 2019: 2018 Component 1 data due.
- June 14, 2019: 2018 Component 1 data due for employers that requested a two-week extension.
- July 15, 2019: EEOC Component 2 portal made available to employers.
- September 30, 2019: Component 2 data for 2017 and 2018 due.
For more information on the detailed EEO requirements or sample forms, please visit the official site.
With deadlines fast approaching, we want to make sure you are able to benefit from these updates. Please contact your account manager or Sage 100 support to schedule your upgrade today!
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