On April 23, the U.S. Department of Labor (DOL) announced a final rule to increase the minimum salary level for the Fair Labor Standards Act “white collar” exemptions in two steps:

• On July 1, the minimum salary level increases from $684 to $844 per week (or from $35,568 per year to $43,888 per year)
• On January 1, 2025, the minimum salary level increases from $844 to $1,128 per week (or from $43,888 per year to $58,656 per year)

The final rule also requires the salary level be updated every 3 years to match the 35th percentile of weekly earnings of full-time salaried workers in the lowest-wage Census Region. This means that on July 1, 2027, and every 3 years after, the salary level will be updated.

The final rule is scheduled for publication in the Federal Register on April 26.

HCE Salary Requirements

The final rule increases the salary requirement for highly compensated employees (HCEs) from $107,432 to $132,964 per year on July 1, then from $132,964 to $151,164 per year on January 1, 2025. The HCE level also will be adjusted every 3 years at the same time as the salary threshold.

Courtesy of PayrollOrg

The Board of Trustees of the Social Security Trust Fund reports each year on the financial condition of the social security program. The 2024 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds, issued on May 6, includes both short- and long-term projections about the social security system.

Using the “intermediate” projections, the board projects the social security wage base will be $174,900 in 2025 (up from $168,600 this year) and will increase to $242,700 by 2033. The formal announcement of the 2025 wage base will not come until mid-October.

Courtesy of PayrollOrg

The IRS announced the 2025 maximum contribution levels for health savings accounts (HSAs) and out-of-pocket spending limits and deductible minimums for high deductible health plans (HDHPs) that must be used in conjunction with HSAs [Rev. Proc. 2024-25, 5-9-24].

2025 Limits

• The maximum annual HSA contribution for an eligible individual with self-only coverage is $4,300.
• For family coverage, the maximum annual HSA contribution is $8,550.
• The 2025 maximum annual out-of-pocket amount for HDHP self-only coverage is $8,300, and the maximum annual out-of-pocket amount for HDHP family coverage is twice that: $16,600.
• The 2025 minimum deductible amounts for HSA-compatible HDHPs are $1,650 for self-only coverage and $3,300 for family coverage.

A fiscal year plan that satisfies the requirements for an HDHP on the first day of the first month of its fiscal year may apply that deductible for the entire fiscal year.

In addition, the IRS announced the 2025 maximum amount that may be made available for excepted benefit health reimbursement arrangements (HRAs) is $2,150.

Courtesy of PayrollOrg

Meet our New Membership Director, Holly Petrilli, CPP. Holly currently works for Yokohama Tire Corporation’s HR department as their Director, Payroll & HRIS, headquartered in Santa Ana, CA. In her current role, she is functioning as the department head and subject-matter expert for all things Payroll & HR Systems. She loves that she can exercise her analytical side, and that payroll is such an interesting niche field!

She has been a CPP and OCCAPA member since 2016, and has over 25 years of accomplishments in payroll across many industries including manufacturing, restaurant/hospitality, real estate/property management, construction, and healthcare. Holly’s experience encompasses the full spectrum of payroll & HRIS, including management, operations, compliance, tax, accounting, and change management, and comprises both high- and low-volume processes for up to 15,000 employees, with multi-state experience spanning 39 states.

In her free time, she loves gardening, baking, hiking and spending time with her two kiddos (6 and 3), and dabbles in photography and graphic design. She also volunteers as the “troop cookie-mom” for her daughter’s girl scout troop.

We have another new Board Member – Jaime Brogdon is our new National Liaison Officer. Jaime embarked on her professional journey in 1998 within the realm of payroll at a distinguished pipeline construction company. In 2000, she transitioned to a dynamic role as a Corporate Administrator at a recruiting company. During her tenure of 14 years, Jaime adeptly managed payroll and HR responsibilities for a workforce exceeding 100 employees across the nation.
In 2014, Jaime brought her wealth of experience to the Aquarium of the Pacific, initially serving as a Payroll Coordinator. Her dedication and proficiency quickly propelled her into the role of Payroll Manager, where she presently oversees the intricacies of payroll operations for a substantial workforce comprising over 350 employees.
Complementing her professional achievements, Jaime has been an esteemed member of OCCAPA for over seven years, actively engaging with industry peers to stay abreast of the latest developments and best practices in payroll and HR.
Beyond the professional sphere, Jaime cherishes her role as a parent to three accomplished adult children. In her leisure time, she finds solace and joy in open water swimming and actively participates in half ironman races, showcasing her commitment to both physical well-being and personal growth.

The OCCAPA would like to announce another new board member. Please welcome Miya Vu, CPP who is our new Social Director. Miya does the planning of the social activities for the OCCAPA. In addition she will be taking photos at our events. We are so happy and very lucky to have Miya. Everyone a big round of applause and congratulations to Miya

I am honored to welcome our new and returning members as your 2024-2025 Orange County Chapter of the American Payroll Association (OCCAPA) President. As I enter my first year as President of OCCPA, I notice that our Chapter has never been more relevant for our members and followers, payroll professionals, and HR professionals! You make our Chapter strong and amazing. We are a Chapter that provides abundant opportunities to learn, teach, mentor, and share top quality professional key note speakers. A chapter that enables you to advocate, brainstorm, give back to your employer, community, network, and socialize with friends and payroll colleagues all over the country.

The ever evolving payroll environment requires that we help our members navigate through new and increasingly complex payroll laws and regulations, which profoundly impact the companies for which we work, our communities, and the payroll profession. We contribute to our Chapter’s successes by introducing innovative topics, providing our members with professional development, and networking opportunities. We will continue with our Zoom virtual meetings, as well as a few “In Person “events.

Thank you members for your continued participation and enthusiasm in our chapter, and sponsors for your incredible support and contributions. Please take advantage of all the resources OCCAPA provides, as past and current members have voiced their benefits in their professional development. We look forward to some fun and exciting learning/networking events that you will not want to miss this year!

Lastly, I’d like to give a special shout-out of appreciation to our Chapter Board of Directors and to PayrollOrg for all the resources, guidance and support they provide. Wishing you endless opportunities, brand-new beginnings, and hitting new goals. I am looking forward to possibly seeing all of you and meeting you soon.

Sophadavy Luizaga, CPP
President, Orange County Chapter of the American Payroll Associstion

The IRS released the 2024 Publication 15-T, Federal Income Tax Withholding Methods, as well as the 2024 Forms W-4, W-4P, and W-4R. Employees and payees may now use the IRS’s tax withholding estimator when completing their 2024 Form W-4 and Form W-4P.

Publication 15-T

Publication 15-T describes how to figure federal income tax withholding using the percentage method and the wage bracket method and describes alternative methods for figuring withholding. The publication explains how to withhold income tax based on pre-2020 Forms W-4 and 2020 or later Forms W-4.

Form W-4

The IRS released the 2024 Form W-4, Employee’s Withholding Certificate, with few changes. Instructions for using the IRS’s tax withholding estimator when figuring withholding for multiple jobs, which were removed in the 2023 version, have been added back to the form. The amounts in the tax tables for use with the Multiple Jobs Worksheet have been updated for 2024.

Withholding on Periodic Payments of Pensions and Annuities

The 2024 Form W-4P, Withholding Certificate for Periodic Pension or Annuity Payments, and the 2024 Form W-4R, Withholding Certificate for Nonperiodic Payments and Eligible Rollover Distributions, have also been released. There are few changes.

Courtesy of PayrollOrg.

The IRS announced that the business standard mileage rate for transportation expenses paid or incurred beginning January 1, 2024, will be 67 cents per mile, up 1.5 cents from 65.5 cents per mile for 2023.

Vehicles Put Into Service in 2024

For vehicles put into service in 2024, the cents-per-mile valuation method and the fleet-average valuation rule can be used only if the vehicle does not have a fair market value of more than $62,000 ($60,800 in 2023).

Make Sure to Use the Correct Rate

Because of the 1.5 cent increase in the business standard mileage rate, employers reimbursing employees at the 2023 rate need to be mindful of the rate change. Employers should make sure they change to the 2024 rate for all affected travel on or after January 1, 2024. And remember that business miles driven in December 2023 that show up on an employee’s expense report in 2024 are governed by the rules applicable to the corresponding 2023 mileage rate.

Courtesy of PayrollOrg

Effective January 1, 2024, employees in California will be entitled to additional paid sick leave (PSL). The amount of PSL that an employee can take in one year will increase: the use cap will increase to 40 hours or five days in a year from 24 hours or three days in a year [S.B. 616, L. 2023].

Accrual Cap, Front Loading

Also effective January 1, 2024, the amount of PSL that an employee can accrue in one year will increase to 80 hours or 10 days from 48 hours or six days. The amount of accrued, unused PSL that can be carried over to the next year will also increase to 80 hours from 48 hours. The rate of accrual will remain one hour for every 30 hours worked.

If an employer chooses to front load PSL for an employee, the employee must receive no less than 24 hours of PSL by the 120thcalendar day of employment and no less than 40 hours of PSL by the 200th calendar day of employment.

Local PSL Laws, Preemption

Also effective January 1, 2024, local PSL laws will be prohibited (preempted) from regulating certain issues with regard to PSL.

Courtesy of PayrollOrg