REGULATORY CHANGES

Escape Technology is dedicated to ensuring that our software meets all State, Federal and other reporting requirements. The following is a list of upcoming regulatory changes, how we plan to address the changes, and what the timeline is for implementing the changes. 

Comments are appreciated! Or, if you know of upcoming regulations, send us an email and let us know.

This document was last updated October 3, 2018.

 

2018 Regulatory Changes

Job Class in Salary Schedule Posting (CR 17836)

PERS requires that the job class be listed in the posted salary schedules. While our customers have been complying with this requirement, it has been a manual process. So, we are adding this information to the Salary Schedule Snapshot.

What is the deadline?

There is no deadline, as customers are already complying with this requirement.

What is changing in Escape Online?

We are revamping the Salary Schedule Snapshot to include job class and other information. We are also creating a second snapshot for those one-off salary schedules (like coaches) where every line has a different description.

When will the changes in Escape Online be ready?

The snapshots will be delivered in 2018. In the meantime, the requirement can be met manually.

2019 Regulatory Changes

Risk Assessment Questionnaire & Certificate of Completion Report (CR 14710)

While we have added the fields to the Employee record for tracking immunization, we feel that customers would benefit from a standard report for questioning employees per AB1667 - Tuberculosis testing in schools. For more information about the bill, please see the California Legislature site.

What is the deadline?

The bill has been signed into law and tracking can be accomplished in Escape Online. The required questionnaire can be administered by paper currently, so there is no current deadline.

What is changing in Escape Online?

Escape Online will create a new report that mimics the state report and allow for it to be delivered to employees electronically.

When will the changes in Escape Online be ready?

This will be scheduled at a future date.

STRS Employer Contributions Via ACH (CR 18381)

Per AB2052, passed by the Legislature and signed into law on July 18, 2018, STRS now has the right to require employers to submit their contribution for the retirement system via ACH (EFT Credit), with an opt-out by board approval. At this time, STRS has not issued a circular to define a deadline for this change. For more information about the bill, please see the California Legislature site.

What is the deadline?

STRS has not yet issued a deadline. We will update this page when a circular with more information is delivered.

What is changing in Escape Online?

We are updating the Payroll Vendor record and the STRS processing activities to comply with this requirement.

When will the changes in Escape Online be ready?

We will be working closely with STRS and our customers to roll out the new requirement in alignment with STRS.

W2 and 1099 Tax Changes (CR 18289, 18361)

Escape Technology watches for updates to tax tables, forms and filing requirements for every tax year.

2020 Regulatory Changes

STRS Pension Solution Project (CR 15962)

CalSTRS has undertaken a replacement of their current legacy pension administration and auxiliary systems (START). The goal of the replacement is to ensure CalSTRS has a pension system with enough flexibility to quickly respond to business changes. For more information, please see the Powerpoint handout from STRS.

What is the deadline?

STRS is using a multi-year phase approach, with full implementation by the year 2020.

What is changing in Escape Online?

Escape Online will change the STRS processing to create multiple regular files in same month, phasing out supplemental files.

When will the changes in Escape Online be ready?

We will be working closely with STRS and our customers to roll out the new functionality in alignment with STRS.

W-4 Changes for 2020 (CR 18424)

The Employee's Withholding Allowance Certificate, commonly referred to as the Form W-4, will be changing substantially in 2020 (postponed from 2019).  For more information, watch the IRS website and take a look at the current 2019 W-4 draft

What is the deadline?

W-4 changes will be needed at the beginning of the 2020 tax year.

What is changing in Escape Online?

Escape will add all necessary fields to the Employee Tax record, update the W-4 submission form from the Employee Online Portal and change the tax calculations as necessary. For historical purposes, the Federal Exemptions field will become read-only. In addition, search forms and reports will be updated as appropriate.

When will the changes in Escape Online be ready?

The changes to the records and searches are scheduled for the appropriate tax year. 

2022 Regulatory Changes

ACA Excise Tax on High Cost Employer Sponsored Health Coverage (CR 14692)

If the aggregate cost of applicable employer-sponsored coverage provided to an employee exceeds a statutory dollar limit, which is revised annually, the excess is subject to a 40 percent excise tax. This tax is commonly referred to as the Cadillac Tax and is referred to as Section 4980I.

On January 22, 2018, the End The Shutdown Act of 2018 delayed the implementation of the ACA Excise Tax to January 1, 2022. The tax was originally set to take effect in 2018 but was delayed until 2020 under the Consolidated Appropriations Act of 2016.

For more information, please see the IRS ACA Provisions Home Page.

What is the deadline?

Currently, the IRS is in a comment period. This section of IRS Code should not take effect until 2020.

What is changing in Escape Online 5?

We are also in a comment period, gathering information from customers and government agencies.

When will the changes in Escape Online 5 be ready?

This will be scheduled at a future date.


Delivered Regulatory Changes

 

2018

  • Union Reporting and Opt Out Flag (CR 17386) ~ Delivered 18.03

  • Gender Reconciliation Act (CR 17285) ~ Delivered 18.03

  • Opt out flag for Union Employee Information report (AB119) (CR 17547) ~ Delivered 18.01

  • Tax Tables and Supplemental Rates (CR 17646, 17106, 17438) ~ Delivered 18.01

  • New Matrix Errors for STRS Solution Project (CR 17159) ~ Delivered 18.01

2017

  • ACA changes for 2017 (CR 17191, 17200, 17191) ~ Delivered 17.04

  • W2 changes for 2017 (CR 16466) ~ Delivered 17.04

  • PERS mandate of Electronic Fund Payments (CR 16488) ~ Delivered 17.03

  • 1099 changes for 2017 (CR 16469) ~ Delivered 17.02

  • EEOC Assignment Classification (CR 11487) ~ Delivered 17.02

  • Track immunization for influenza, pertussis and measles (CR 16132) ~ Delivered 17.01

  • Allow for filing of prior year ACA manifest and data files (CR 16320) ~ Delivered 17.01

2016

  • ACA 2016 CHANGES (CR 15682) ~ Delivered 16.04

  • New STRS Rates (CR 16021, 16036, 16061) ~ Delivered 16.03

  • W2 2016 Changes (CR 15544) ~ Delivered 16.03

  • 1099 2016 Changes (CR 15841 AND 15445) ~ Delivered 16.03

  • ACA Integrated IRS Filing (CR 14706) ~ Delivered 16.02

  • New Activity for ACA Reporting (CR 14899) ~ Delivered 15.03

  • ACA Snapshot 1095-C - Employer-Provided Health Insurance Offer and Coverage (CR 14704) ~ Delivered 15.03

  • ACA Snapshot 1095-B - Health Coverage (CR 14705) ~ Delivered 15.03

  • ACA Compliance Reporting Setup and Employee Activity (CR 14231, 14531, 14668) ~ Delivered 15.02

  • ACA Compliance Reporting Setup (CR 14501, 14532, 14533, 14535, 14536, 14539) ~ Delivered 15.01

 

Customers Say...

In a teleconference with my counterparts from a couple of other southern counties, the subject of readiness for the CalSTRS employee and employer rates changes came up. They were quite impressed that Escape had done the necessary programming and that the new rate guidelines have been implemented.
— Retirement Specialist
Escape should be very proud of its ACA software functionality, and its ability to take a very complex set of requirements and develop such a powerful, logical and user-friendly product.
— Director, Fiscal Services