As the 2023 California Payroll Data Reporting Cycle begins, recent Payroll Data Reporting Enforcement Actions by the California Civil Rights Department (CRD) highlight the potential risks that exist for employers who do not submit required reports. Helps remind you.
quick hit
- Private employers with 100 or more employees in the U.S. and at least one employee working in California must annually file payroll and labor contractor employee reports .
- Employers who fail to file will be subject to a fine of $100 per employee for a first violation and $200 per employee for a second violation.
- The California Department of Civil Rights is authorized to enforce payroll data submission requirements and collect fines and recover costs.
- The CRD’s public discussion of its efforts to enforce the filing requirement suggests that the agency will continue to pursue non-filers.
On July 5, 2023, CRD announced that it had filed charges against Cambrian Homecare, Inc. for failing to report employee payroll data. CRD said Cambrian Homecare failed to submit required payroll data reports.[d]Despite repeated warnings. ”
According to the petition seeking enforcement of the CRD, Cambrian Homecare failed to comply with the 2020, 2021 and 2022 California did not submit a salary data report. As of July 5, 2023, when the petition was filed, no reports had been filed for three years after the reporting requirements for salaried employees were established. On October 2, 2023, CRD announced a settlement with Cambrian Homecare, stating that the company agreed to pay approximately $100,000 and to submit payroll data in a timely manner in the future. The provisions regarding the filing of the final judgment include some interesting details, including that Cambrian Homecare filed all three years’ worth of previously unfiled reports within three weeks of being sued by CRD. is listed. Cambrian Homecare agreed to pay a $70,000 fine for failing to submit a 2022 payroll data report and pay CRD $24,778 in legal costs, according to the filing. Cambrian Homecare agrees to submit all future required payroll data reports “by the annual deadline” and that the court retains jurisdiction to enforce the terms of the stipulated judgment for a period of three years. agreed.
Entering the 2023 payroll data reporting period, this enforcement action means that California’s payroll data reporting requirements will be extended to employers with 100 or more payroll employees with at least one employee working in California. This is a reminder of the wide range of coverage that applies. Starting with the 2022 reporting cycle, employers who fail to file a report will be subject to a fine of $100 per employee for a first violation and $200 per employee for a second violation. Masu. In addition to recovering these fines, the CRD can also recover its costs in forcing employers to submit these reports. In light of the May 8, 2024 deadline for submitting 2023 payroll data, employers will want to assess their preparation for submitting their 2023 Payroll Employee and Contract Employee Payroll Data Report. maybe.
