Latest Highlights

California has enacted Senate Bill 1477 which modifies the maximum amount of an individual’s disposable earnings subject to levy when required to enforce a money judgment.

California has enacted legislation (Senate Bill 1126) that requires employers with four or fewer employees to either register with CalSavers or offer a qualifying employer-sponsored retirement plan by December 31, 2025. Larger employers are already subject to the requirement.

California has enacted legislation (Assembly Bill 2188) that prohibits employers from discriminating against individuals because of their use of cannabis while off duty. Assembly Bill 2188 takes effect on Jan. 1, 2024.

The Department of Homeland Security (DHS) has announced that employers should continue using the current Form I-9 (Employment Eligibility Verification) until further notice. Separately, the DHS announced that employers will be allowed to inspect Form I-9 documents remotely in certain situations related to COVID-19 until July 31, 2023. Prior to the announcement, this temporary policy was set to expire on Oct. 31, 2022.

On Oct. 13, 2022, the Social Security Administration (SSA) announced the 2023 wage base. The annual wage base limit is the maximum amount of employee wages that are subject to the social security tax for the calendar year.

On Oct. 18, 2022, the Internal Revenue Service (IRS) announced via Revenue Procedure 2022-38 the dollar limitation for 2023 on employee salary reductions for contributions to health flexible spending accounts; the monthly limitation regarding the aggregate fringe benefit exclusion amount for transportation in a commuter highway vehicle and any transit pass; and the maximum amount that can be excluded from an employee’s gross income for the amounts paid for qualified adoption expenses furnished pursuant to an adoption assistance program.

The United States Department of Labor (DOL) has announced increases to the minimum wages that federal contractors covered under Executive Orders (EO) 13658 and 14026 must pay its employees who are performing work on or in connection with certain covered federal contracts.  

The U.S. Department of Labor (DOL) has published a proposed rule that would change the test for determining whether a worker is an employee or independent contractor under the Fair Labor Standards Act (FLSA) and rescind and replace the current 2021 rule.

Employers with an average of at least 50 full-time employees (including full-time equivalents) in the prior calendar year (2021) (“Applicable Large Employers” or “ALEs”) need to file ACA Forms 1094-C and 1095-C with the IRS. 

For detailed information about these year-end tasks, visit and bookmark the ADP TotalSource Year-End & Quarter Close Guide.