SA CHAMBER and MEMBER NEWS!

U.S. Immigration Agency Publishes New Form I-9

The U.S. Citizenship and Immigration Services (USCIS) published a revised version of Form I-9, Employment Eligibility Verification (rev. 11/14/2016 N).

By January 22, 2017, employers must use only this new version. Until then, they can continue to use either the version dated 03/08/2013 N or the new version.

According to the USCIS, there are several changes in the new version to help reduce technical errors, including:

Section 1 asks for "other last names used" rather than "other names used," and streamlines certification for certain foreign nationals.
The addition of prompts to ensure information is entered correctly.
The ability to enter multiple preparers and translators.
A dedicated area for including additional information rather than having to add it in the margins.
A supplemental page for the preparer/translator.

In addition, the instructions for completing the Form I-9 are now separate from the form and include specific instructions for completing each field.

According to the USCIS, the revised Form I-9 is easier to complete on a computer. Enhancements include drop-down lists and calendars for filling in dates, on-screen instructions for each field, easy access to the full instructions and an option to clear the form and start over. When the employer prints the completed form, a quick response (QR) code is automatically generated, which can be read by most QR readers.

New Workers' Comp Law Changes Definitions of Excluded Employees; May Affect Existing Policies

Insurance Commissioner Dave Jones has notified workers' compensation insurers of upcoming changes to the definition of "employee" and to who is an excluded employee. The changes are a result of recently signed legislation, Assembly Bill 2883 .

Beginning January 1, 2017, all business workers' compensation insurance policies, including in-force policies, will be required to cover, among others, certain officers and directors of private corporations and working members of partnerships and limited liability companies that may be excluded from coverage under current law.

Under the law as it exists today, officers, directors and working partners generally are not required to be covered under a company's workers' compensation policy, unless they elected to be covered.

Under AB 2883, the presumption is changed:

Officers, directors, and partners generally are required to be covered under the employer's workers' compensation policy.
There is a narrower definition of excluded officers, directors and partners who can still opt out.
For those who still meet the narrow exclusion, a waiver of rights must be signed under penalty of perjury stating that the person is a qualifying officer or director. The waiver must be filed with the employer's insurer.

"We have issued a notice today to workers' compensation insurers so that they know what the new law requires of them and we directed insurers to provide notice to employers so they are made aware of the new law," said Commissioner Dave Jones.

Insurance companies must identify and provide notice to each employer that may have employees who were previously excluded from coverage and are affected by the new law. Insurers also are required to determine and report the premium and loss experience associated with those who have not chosen to opt into the coverage.

It is important to note that the California Department of Industrial Relations (DIR) has indicated that this change in law applies to in-force policies as of January 1, 2017. Per the notice from the Insurance Commissioner:

Unless a duly executed waiver is received and accepted by the insurance carrier on or before January 1, 2017, any individual that had been exempted from coverage under the workers' compensation policy, including but not limited to, an officer or member of the board of directors of a corporation, or an individual who is a general partner of a partnership or a managing member of a limited liability company, will need to be added to the coverage provided by the insurer until such time as a duly executed waiver is received and accepted by the insurer.

Employers who believe they may be affected by this change in law are encouraged to contact their workers' compensation insurer or their workers' compensation agent or broker.

Sales and Use Tax Rate Decreases 0.25 Percent
Effective January 1, 2017

The statewide sales and use tax rate will decrease one quarter of one percent (0.25%) from 7.50 percent to 7.25 percent on January 1, 2017. The decrease in the statewide rate is effective for all cities and counties in California; however, the actual sales and use tax rate may still be higher than the statewide rate in many jurisdictions in California due to the addition of district taxes.

Why is the sales and use tax rate decreasing?
Proposition 30, The Schools and Local Public Safety Protection Act of 2012, was approved by California voters in November 2012 to temporarily increase the sales and use tax by 0.25 percent. The sales and use tax imposed by Proposition 30 expires December 31, 2016.

Where can I find more information?
Guidance on how the tax rate decrease affects partial exemptions, fixed-price contracts, returned merchandise, fuel rates, and return filing can be found on the Board of Equalization (BOE) webpage Sales and Use Tax Rate Decreases January 1, 2017. You may also call the BOE's Customer Service Center at 1-800-400-7115 (TTY:711) where customer service representatives are available to assist you weekdays
from 8:00 a.m. to 5:00 p.m. (Pacific time), except holidays.

U.S. Immigration Agency Publishes New Form I-9

New Workers' Comp Law Changes Definitions of Excluded Employees; May Affect Existing Policies

Sales and Use Tax Rate Decreases 0.25 PercentEffective January 1, 2017

Sales and Use Tax Rate Decreases 0.25 Percent
Effective January 1, 2017