July 23, 2020
Why do we need to go all the way back to January 1, 2019 for Payroll Costs?
Posted by Armanino Financial Advisory Team
The purpose of the 2019 pay data is to identify employees who may be subject to the Salary Reduction Factor. This rule relates to employees who exceeded a defined amount of pay in any single pay period, not in the aggregate. Furthermore, there are two time periods in 2019 that are used as possible baselines for the FTE Reduction Factor, so the hours data in Tables 2 and 3 (if appropriate) is necessary to properly perform that calculation.