Before heading off for the Thanksgiving holiday, we wanted to share a couple of brief noteworthy items with you that California employers will want to share with their payroll departments as we edge nearer to 2016.

California State Disability and Paid Family Leave

The California Employment Development Department recently announced that the taxable wage base subject to the employee contribution rate for these benefit programs will increase in 2016 from $104,378 to $106,742, for a maximum yearly employee contribution of $960.68. (The employee contribution rate is unchanged for 2016 at 0.9%.) In addition, the maximum weekly benefit for both State Disability and Paid Family Leave will increase from $1,104 to $1,129.

San Francisco Health Care Security Ordinance

The City and County of San Francisco’s Office of Labor Standards Enforcement has released the 2016 required expenditure rates for its Health Care Security Ordinance (HCSO). The expenditure requirement applies to all covered employees, (those who have been employed for more than 90 days, who regularly work at least 8 hours per week in San Francisco, and who are not otherwise exempt).

Company Size

2015 Expenditure Rate

2016 Expenditure Rate

All Employers with 100+ Employees

$2.48/payable hour

$2.53/payable hour

For Profit Employers with 20-99 Employees and

Non Profit Employers with 50-99 Employees

$1.65/payable hour

$1.68/payable hour

All Other Employers

Exempt

Exempt

 

In June 2014, the San Francisco Board of Supervisors amended the HCSO to phase-in irrevocable expenditures. In 2016, the minimum percentage for irrevocable expenditures will increase from 60% to 80%. In addition, the required annual salary for the managerial or supervisorial exemption will increase to $92,990 (equal to $44.71/hour).

Remember that for purposes of determining company size, all employees, regardless of whether or not they work in San Francisco, must be counted. In addition, the count should include full and part-time employees; seasonal, temporary or contracted employees; and owners who perform work for compensation.

For further information on the HCSO, please visit its website here.

We are in the process of putting together a post to provide you with additional year-end reminders early next month.  In the meantime, may we wish you and your family a very happy Thanksgiving holiday!