Category Archives: Salaries

What the Payroll Tax Deferral Means for Workers

Following a directive from the memorandum signed by the president, the U.S. Internal Revenue Service (IRS) issued Notice 2020-65 on August 28, allowing employers to suspend withholding and paying to the IRS eligible employees’ Social Security payroll taxes, as part of COVID-19 relief.

The payroll tax suspension period runs from September 1 through December 31, 2020. It applies only to employees whose wages are less than $4,000 for a biweekly pay period, including salaried workers earning less than $104,000 per Read the rest

If You Planned to Retire in the Next 5 Years, Should You Just Do It Now?

If you are close to retirement, should you accelerate your timeline and retire now? It’s a relevant consideration, given that there is no concrete answer as to when and how the U.S. economy will open back up fully. The number of people testing positive for COVID-19 continues to surge in many states across the country. Some libraries that reopened after closing in the early stages of the pandemic have been forced to close again. Most people within five years Read the rest

How to Evaluate an Early Retirement Offer

It’s no secret that the COVID-19 pandemic has wreaked havoc on the world’s economic systems. Almost all businesses —large and small, for-profit and not-for-profit, private and public, associations, libraries, even governmental agencies— are affected. Market volatility has many people worried. During economic downturns such as we are currently experiencing, businesses consider every option available to them to reduce expenses. Some companies offer early retirement packages as a way to reduce their number of paid employees. If your employer asks you Read the rest

New Spending Bill Brings Big Changes to Your 401(K)

According to CFO Daily News, the feds passed a $1.4 trillion spending bill in the last days of 2019, and it will drastically change the way you administer your company’s retirement plan. The bipartisan Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 aims to aid Americans’ ability to save for retirement. This page gives a concise breakdown of the significant retirement-plan-related changes in the new fed spending bill.

For tracking information, visit the bill’s Read the rest

New State Minimum Wages

With the start of the new year, twenty-one states across the country increased their minimum wage requirements for workers. Additionally, Connecticut, Delaware, Nevada, Oregon and the District of Columbia are all set to increase their minimum wage later in the year.

Based on guidelines of the U.S. Fair Labor Standards Act (FLSA), the federal minimum wage for nonexempt workers remains at $7.25 per hour. However, if a state or local law requires a higher amount, workers must be paid Read the rest

More States Banning Salary-History Inquiries

For years, requesting applicants’ salary history has been standard practice for many employers. Often, the information is used to eliminate applicants from the hiring pool and/or to set compensation for new hires. The problem with this practice is that it may perpetuate the pay disparity between men and women, and particularly for people of color. In addition, relying on salary history to set future salary assumes that prior salaries were fairly established in the first place. If they were not, Read the rest

Things That Must Be Talked About

In the August 2019 issue of LW, we included a link to an article called ‘8 Things You Should Never Share at Work.’ One of the things on the list was discussions about salaries. The advice on not sharing salary information was something with which we don’t necessarily agree. Pay equity is a primary concern for ALA-APA. It is one of the major issues in which we put forth much effort to raise awareness. We address pay equity concerns Read the rest

DOL Issues Final Overtime Rule

In a news release issued last month (Sept. 2019) the U.S. Department of Labor (DOL) announced a final overtime rule which is expected to make 1.3 million American workers eligible for overtime pay under the Fair Labor Standards Act (FLSA). Many workers will be able to collect one and one-half times their regular rate of pay for any hours over 40 worked during a workweek. The rule will become effective January 1, 2020.

Under the FLSA, workers must be paid Read the rest

What to Do If You Have to Retire Early

When do you plan to retire? When you’re 65, 70, 75?  Five years from now, ten years from now? What would you do if something happened and you had to retire next month? Would you be prepared? Would you know what to do? Many workers find themselves suddenly retired—sometimes years ahead of their target date. Some people end up retiring early because of a job loss, a health problem or caregiving responsibilities. It happens more often than you may realize. Read the rest

9 Things Never to Say in a Salary Negotiation

Do you wish you made more money? Who doesn’t? When you were first offered your current position, did you just accept the salary offered? How often do you think to yourself, “I wish I had negotiated for a better salary?” Did you even consider negotiating, or were you just grateful to be offered a job? If it’s time for your annual review, are you preparing to ask for a raise? Or perhaps you’re nearing the end of the job interview Read the rest