New Jersey Sick Leave Goes into Effect
As NJ initiates paid sick leave, The Bottom Line examines the requirements for business owners, the five reasons for which employees can use sick leave, and what business owners should be doing now to ensure a smooth implementation.
Dave Plaskow: Hello and welcome to The Bottom Line. This podcast examines the everyday business and finance issues faced by closely held and private businesses. We hope to provide you with news you can use in what we like to think of as a jargon-free zone. I'm your host, Dave Plaskow, and with us as Tim Schuster, a Manager in EisnerAmper Private Business Services Group. Today we'll discuss the new paid sick leave act that's going into effect in New Jersey. Tim, hello.
Tim Schuster: Dave. It's great to see you.
DP: Tim, when does the new paid sick leave act go into effect for New Jersey businesses?
TS: It began on October 29, 2018.
DP: What are the requirements of business owners?
TS: Employers must provide one hour of sick leave for all employees, which includes full, part-time and per diem employees for every 30 hours worked, with a maximum accumulation of up to 40 hours during a benefit fiscal year, which is chosen by the employer. The law also allows the employee to carry over up to a maximum of 40 hours of unused sick leave. Employers also have the option to pay out the unused sick leave.
DP: And what can employees use this paid sick leave for?
TS: There's several reasons that you're allowed to use any of the sick leave. One is probably the most obvious—an employee's own personal medical treatment, diagnosis, recovery or preventative care. Workplace, school or childcare is closed by order of public official due to public health emergency. If the health of an employee or family member could have negative impacts on the health of others to attend a school-related activity, meetings or functions that are requested or required by a school. A family member’s—which the state does define as any person with whom the employee has a significant personal bond that is or is like a family relationship regardless of biological or legal relationship--need for medical treatment, diagnosis, recovery or preventative care. And lastly, family member or employee's need for medical attention, legal services related to an incident of sexual or domestic violence.
DP: It's pretty comprehensive. So what should business owners be doing right now to get ready?
TS: A big item of note is a lot of specifics and technical items of the law will be ironed out after the law goes into effect, which puts businesses at a massive disadvantage. I would advise keeping in touch with your trusted advisor or payroll services on any changes. If you are a company that already offers paid time off that complies with the act for your workers, you are exempt from these changes. So you're okay. My advice now is to speak to your trusted advisor to compare your current policies to what is known about the law to make sure your business is compliance.
DP: Tim, give us one of your famous New Jersey Historical Society fun facts.
TS: On November 20th, 1789, New Jersey became the first state to ratify the Bill of Rights. The first 10 amendments to the United States Constitution. Of the 12 articles proposed, New Jersey actually approved 11.
DP: Interesting. Well thank you for this valuable information. And thank you for listening to The Bottom Line as part of the EisnerAmper podcast series. If you have any questions or there's a topic you'd like us to cover, email us at contactateisneramper.com and visit eisneramper.com for more information on this and a host of other topics. And join us for our next EisnerAmper podcast when we get down to business.
Tim Schuster discusses executive compensation, option grants, deferred compensation, fringe benefits and more. He also examines what to be aware of when preparing an executive compensation package.
Lindsey Gross of EisnerAmper’s Outsourced Finance and Accounting Group joins Tim Schuster from Private Business Services to discuss the differences between these two areas, client case studies that demonstrate those differences, and which types of client could benefit from each.
The Bottom Line looks at how you can use social media to grow your business and examine the different communication platforms available including Facebook, Twitter and LinkedIn. You really need to develop website content and push it on social media platforms.
Tim Schuster, a manager in EisnerAmper's Private Business Services Group, discusses new NJ legislative initiatives happening in Trenton that you should be aware of. The first is the New Jersey Family Leave Act and the second is the increase in NJ's minimum wage.
In this episode of The Bottom Line, EisnerAmper Private Business Manager Tim Schuster discusses developing a quarterly planning calendar, including budget, tax planning and speaking with your trusted advisor. Review these concepts monthly from an accounting perspective.
In the wake of the government shutdown, Tim Schuster offers tips on creating an emergency fund. To avoid living paycheck to paycheck, Tim suggests putting money into a separate savings account, as well as a portion of any windfalls. Emergency funds should include medical expenses.
Tim Schuster from EisnerAmper’s Private Business Services Group talks about the family issues and financial burdens for members of the sandwich generation - those individuals who are responsible for raising their children as well as caring for aging parents.
EisnerAmper’s Private Business Services Group Manager discusses the current unemployment rate and the booming economy despite current trade tariffs. To help attract employees, businesses are offering incentives such as assisting with student loans to attract millennials.
EisnerAmper’s Private Business Services Group partner discusses estate planning and the need to have a will - from an online provider or an estate planning professional - to help your heirs understand your estate asset wishes and the Tax Cuts and Jobs Act estate tax thresholds.
The Bottom Line looks at some of the common IRS scams out there and what you should do if you fall victim to one of these scammers, including email and personal data hacks, ID theft and fraudulent returns. Contact your accountant if you think you’re a victim of a scam
The landmark Supreme Court decision in the Wayfair case on e-commerce taxation allows states to collect sales tax on e-commerce companies, even without brick and mortar locations in that state, affecting all e-commerce companies such as Amazon. Accountant guidance is suggested.
This podcast discusses the New Jersey Department of Labor and the employee or independent contractor (freelance work) classification under new Tax Cuts. A DOL audit might look at your Facebook and LinkedIn, and can also change your employee or contractor classification.
This episode of The Bottom Line looks at New Jersey Governor Phil Murphy’s inaugural NJ budget. The discussion includes the Governor's proposed New Jersey's state tax on Uber and Airbnb, addressing tax loopholes for hedge funds and New Jersey tax's effect on the gig economy.
In this episode of The Bottom Line, Tim Schuster discusses some of the individual taxation questions bubbling up from clients in the wake of tax reform including adjusted gross income changes, private business taxation, QBI, and the importance of talking with your tax advisor.
This episode of “The Bottom Line” discusses new tax reform changes including C corp and individual taxpayer changes, NOLs, double taxation and bonus depreciation. Tim Schuster came up with a top seven list of business tax reform questions he's been receiving from clients.
In this episode of “The Bottom Line,” Tim Schuster talks about the benefits of retirement savings plans for small businesses, including SEP IRAs, SIMPLE IRAs, and Solo 401(k) plans, as well as eligibility and contribution limits set for small business contributions.
Tim Schuster discusses how starting a college savings account – sooner rather than later – can help alleviate sticker shock for your child’s college education. He talks about the different state-sponsored 529 plans, what you can use the money for, the tax benefits and more.
EisnerAmper’s examines the differences between different Health Spending Accounts including HSAs, HRAs and FSAs. It is recommended you speak with your tax advisor about qualified medical expenses and pending tax reform's affect on health spending accounts.
EisnerAmper's Tim Schuster looks at several categories of SBA loans for working capital. He covers the loan approval process, SBA 504, real estate exclusions and how business advisors can help you make the most of the Small Business Administration (SBA) loan process.
EisnerAmper’s Tim Schuster tackles the issue of succession planning - Companies should have something written down for succession planning purposes as well as take into consideration estate planning, wealth management and valuation when creating their transition plan.
EisnerAmper's private business manager, Tim Schuster discusses the need for proactive disaster planning for private businesses, as well as business interruption insurance in the event that your disaster planning fails. FEMA offers online disaster planning recovery courses.
In this episode, Our private business services advisor Tim breaks down what a closely held business is, the different business formats such as LLC LLP and S Corp, and how this impacts the role of business advisors so your accountant, banker and lawyer will all be on the same page.