September 2018
OSHA Proposes to Eliminate Requirement That Large Employers Electronically Report Workers’ Injuries and Illnesses
On July 30, the Occupational Safety and Health Administration issued a Notice of Proposed Rulemaking to eliminate the requirement to electronically submit information from OSHA Form 300, Log of Work-Related Injuries and Illnesses, and OSHA Form 301, Injury and Illness Incident Report, for establishments with 250 or more employees that are currently required to maintain injury and illness records. These establishments would be required to electronically submit information only from OSHA Form 300A, Summary of Work-Related Injuries and Illnesses. In addition, OSHA proposes to require covered employers to submit their Employer Identification Number electronically along with their injury and illness data submission.
OSHA seeks to amend its recordkeeping regulations to protect sensitive worker information from potential disclosure under the Freedom of Information Act. OSHA has preliminarily determined that the risk of disclosure of this information, the costs to OSHA of collecting and using the information, and the reporting burden on employers are unjustified given the uncertain benefits of collecting the information. OSHA believes that this proposal maintains safety and health protections for workers while also reducing the burden to employers of complying with the current rule.
OSHA is seeking comment on this proposal, particularly on its impact on worker privacy, including the risks posed by exposing workers’ sensitive information to possible FOIA disclosure. Comments must be submitted by Sept. 28, 2018. Submit comments electronically via the federal e-rulemaking portal at https://www.regulations.gov.
Treasury Issues Proposed Regulations on New 20 Percent Deduction for Pass-Through Businesses
The U.S. Department of the Treasury and Internal Revenue Service issued proposed regulations on Aug. 8 implementing a significant provision of the Tax Cuts and Jobs Act, which allows owners of sole proprietorships, partnerships, trusts, and S corporations to deduct 20 percent of their qualified business income. The proposed rules ensure that this historic tax cut will be available to the broadest spectrum of American businesses, consistent with the law, while minimizing compliance costs and streamlining the process for claiming the deduction.
“The pass-through deduction is an important tax cut for small and mid-size businesses, reducing their effective tax rates to their lowest levels since the 1930s,” said Secretary Steven T. Mnuchin. “Pass-through businesses play a critical role in our economy. This 20-percent deduction will lead to more investment in U.S. companies and higher wages for hardworking Americans.”
The proposed rules:
- Ensure that all small business income below $315,000 for married couples filing jointly (and $157,500 for single filers) is eligible for the deduction;
- Provide clarity and flexibility for filers over those income thresholds by:
- Including “aggregation rules” for filers with pass-through income from multiple sources;
- Issuing guidance relating to specified service, trade or business (SSTB) income above the thresholds, which may be subject to limitation for the purposes of claiming the deduction; and
- Allowing a de minimis exception to avoid unnecessary compliance costs for businesses earning only a small percentage of SSTB income; and
- Establish anti-abuse safeguards to prevent improper tax avoidance schemes, such as relabeling employees as independent contractors.
Qualified business income includes domestic income from a trade or business. Employee income, capital gains, interest, and dividend income are excluded from this deduction.
Interest Rate Increases for Late Payments on Federal Projects
Contractors and suppliers that do business with the federal government should be aware that beginning on July 18, 2018, the interest rate used to calculate the penalty for late payments on federal contracts increased to 3.500 percent, up from 2.625 percent during the first half of 2018. The new rate is effective through Dec. 31, 2018.
The Prompt Payment Act of 1982 and the Contract Disputes Act of 1978 give the Secretary of the Treasury the authority to set the rate used to calculate interest due to providers of goods and services to the federal government. The U.S. Department of Treasury’s Fiscal Service updates the rate every six months.
Tax Bill This Year? Check Withholding Soon, Avoid Another One Next Year
Taxpayers who owed additional tax when they filed their 2017 federal tax return earlier this year can avoid another unexpected tax bill next year by doing a “paycheck checkup” as soon as possible, according to the Internal Revenue Service.
The Tax Cuts and Jobs Act, the tax reform legislation passed in December, made major changes to the tax law, including increasing the standard deduction, removing personal exemptions, increasing the Child Tax Credit, limiting or discontinuing certain deductions and changing tax rates and brackets. These far-reaching changes could have a big impact on the tax refund or balance due on the tax return people file next year.
The IRS encourages every employee to do a “paycheck checkup” soon to ensure they have the correct amount of tax taken out of their pay. Checking and adjusting withholding now can prevent an unexpected tax bill and penalties next year at tax time.
The IRS offers a variety of resources to help taxpayers learn whether they need to make changes soon to avoid any surprises come tax time, including a paycheck checkup flier; the Publication 505, Tax Withholding and Estimated Tax; a video, How to Use Withholding Calculator for Paycheck Checkup; a Web page, Get a Jump on Next Year’s Taxes; and its online Withholding Calculator. For even more information, visit irs.gov/withholding and IRS.gov/getready.
EEOC Publishes Workplace Harassment Prevention Guidance
The U.S. Equal Employment Opportunity Commission published Promising Practices for Preventing Harassment, which contains harassment prevention recommendations for employers in four broad categories:
- Leadership and accountability.
- Harassment policies.
- Harassment complaint systems.
- Harassment training.
For each category, the publication lists actions employers can take. For example:
- Allocating sufficient resources for effective harassment prevention strategies.
- Crafting an unequivocal statement that harassment based on, at a minimum, any legally protected characteristic, is prohibited.
- Conducting regular, interactive, and comprehensive harassment prevention training for all employees.
The document states that while the practices it discusses are not legal requirements under federal employment discrimination laws, they may enhance compliance efforts.
Suicide in the Construction Industry: What You Need to Know
The workplace is a critical place for changing how our country addresses mental health. This is particularly true in the construction industry, which ranks first in the number of suicide deaths and second in the suicide rate, according to a study by the Centers for Disease Control and Prevention. Working through the Construction Industry Alliance for Suicide Prevention, ASA is making materials available to its members to help them implement suicide prevention programs in their companies.
Certainly, suicide is not an easy topic, but it is critical to start the conversation. The process starts with bold leadership by groundbreakers who are willing to admit “this matters to the well-being of our company and the families of our employees.” A first step is to integrate suicide prevention and mental health awareness into their existing safety culture. One tool to help you in your own company is the A Construction Industry Blueprint: Suicide Prevention in the Workplace, a 15-page handbook that lists danger signs, suggests conversation tips, and provides sample tool box talks. Visit the Alliance Web site for more tools to help your company address the mental health challenges of your employees.
