Posted July, 15 2016NACHA Submits Comments to the New York Department of Labor
On July 13, 2016, NACHA submitted a response to the Request for Comment regarding the Methods of Payment of Wages (LAB-21-15-00009-RP) issued by the New York Department of Labor. The Revised Rule Making requested comment on a proposed regulation in New York State that would require employers to provide written notice to employees about available payment methods, and obtain written consent for employees to be paid by Direct Deposit or payroll debit card.
The proposed wage payment rule would force millions of employees in New York State to reauthorize their employers to pay them by Direct Deposit via ACH or a payroll card. If employers do not obtain new consents within six months, they will have to pay their employees in cash or by check. This regulation covers any company that has a nonexempt employee in the state of New York.
Comment Letter High Level Summary
Driving consumers/employees to paper checks if they do not renew their existing ACH authorizations in a timely manner could cause security concerns, account management issues, potential overdrafts, additional fees and the burden of physically presenting checks to a bank or check casher. Employees/consumers rely on Direct Deposit for the certainty of their deposit; their bill pay timing; and for many, automated splitting of their paychecks to promote automatic savings. The proposed rule would cause unintended harm to those employees who do not choose an electronic alternative in a timely manner. Allowing employees who become dissatisfied with Direct Deposit, a miniscule subset if any, to affirmatively withdraw their existing consent is a much better alternative.
PYMNTS.com Covers NACHA’s Capitol Hill Day
The July 12, 2016 edition of PYMNTS.com wrote a feature piece on NACHA’s Government Advisory Group’s Capitol Hill Day: http://www.pymnts.com/news/faster-payments/2016/nacha-faster-payments-same-day-ach-congressional-meetings/.
Donald Trump Announces Running Mate
On July 15, 2016, presumptive Republican presidential nominee Donald Trump announced that he has chosen Indiana Gov. Mike Pence as his running mate. A former congressional leader, Gov. Pence is described as being a cautious, mainstream conservative politician.
IRS Urges Tax Professionals to Prioritize Cybersecurity – Warns of Increasing Risk
This month, the Internal Revenue Service issued a fact sheet (Tax Professionals: Protect Your Clients; Protect Yourself from Identity Theft) urging tax preparation businesses to prioritize cybersecurity. Building upon its December-issued business data security guide, the IRS’s new fact sheet states that "[b]ecause of the sensitive client data held by tax professionals, cyber criminals increasingly are targeting the tax preparation community, using a variety of tactics from remote computer takeovers to phishing scams." The agency went on to point out that tax preparers are legally held liable for the protection of their customers' sensitive digital information while it is stored and transmitted through their systems, and suggested precautionary steps tax agencies could take to keep this information secure.
"Cyber criminals are continuing to evolve, using new technology, ruses and scams," stated IRS Commissioner John Koskinen." The tax community handles large volumes of sensitive personal and financial information. We need every tax professional to stay on top of their security to protect taxpayers as well as their businesses."
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