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EEOC tries once more to collect payroll data on EEO-1 form

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in Office Management,Payroll Management

When the EEOC first proposed collecting W-2 data on the EEO-1 form earlier this year, it floated three options, all of which went over like a lead balloon. Its second attempt, announced in September, seems more payroll-friendly, as it relies on W-2, Box 1 data exclusively.

Also good: The EEOC is changing the launch date of the new EEO-1, from Sept. 30, 2017, to March 31, 2018.

What stays the same. The EEOC isn’t changing who files the EEO-1: private employers with at least 100 employees and government contractors with at least 50 employees. Exception: Government contractors with up to 99 employees still don’t have to report wage and tax data, but must continue to report ethnicity, race and gender by job category.

Under the EEOC’s final draft of the EEO-1, you must still collect the total number of hours worked by all employees. For nonexempts, “hours worked” are the same as hours worked under the Fair Labor Standards Act. For exempts, you may report 40 hours a week, or if they work fewer hours, their actual hours worked.

Wage data must still be reported in 12 so-called pay bands, which range from $19,239 and under, to $208,000 and over.

What’s changing. Under both the EEOC’s original and the final draft, you report W-2, Box 1 data by tallying the total number of full and part-time employees on the payroll in each of the 12 pay bands for each of the EEO-1 job categories. You also tally and report the number of hours worked by all the employees accounted for in each pay band.

The principal problem, as pointed out by people who commented on the EEOC’s original proposal, is the EEO-1’s due date—Sept. 30. According to these commentors, the W-2 data that would be reported on the EEO-1 would be incomplete. In response, the EEOC now says you must report hours worked and W-2, Box 1 data on a calendar-year basis, and the filing deadline is moved to March 31, which is after the Jan. 31 W-2 due date. The workforce snapshot is a pay period between Oct. 1 and Dec. 31 of the reporting year.

SNEAK PEEK: The revised EEO-1 is at tinyurl.com/eeo1revised. Heads up: Since you must begin accumulating this information beginning next year, now is the time to determine whether your Payroll and HRIS systems need to be upgraded. Pay attention to: integrating W-2 and hours-worked data with employees’ gender, race, ethnicity and job category.

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