What a Trump Win Means for HR and Payroll
Last night the voices of the nation proved the media and election polls wrong. For many the election of Donald Trump to the presidency signaled a call for change. What happens now is a nation that proved itself significantly divided, but ready for a major shake-up, will begin to repair itself and wait to see what January 2017 brings.
We are a nation of amazing people. Each one of us is a little different, but it is when the people of this nation unite that we are at our best. Right now half of our country feels raw, but it is up to us as individuals and as a nation to work together towards making our country stronger and once again unified. It is up to us in HR to ensure all employees feel safe at work and not discriminated against.
A Trump presidency has significant impacts on HR and payroll. His campaign promises were at times in-line with his Republican party brethren and at times significantly opposite. The fact of the matter is that we will have to see what the next four years holds for us.
At Willory, our focus is on HR and payroll, and that is the focus of this blog. We recognize that this is just a small snippet of what matters to Americans, however, it is within these areas that HR and payroll are impacted. It is our job as HR and payroll professionals to stay aware of the changes that apply to our organizations and our employees. For some it may seem easier to bury their heads in the sand, but we assure you that is not what is best to continue to elevate HR and payroll practices.
It is expected that with a Trump presidency tax cuts will be coming. His proposed tax issues have both parties questioning the additional dollars it will add to the national deficit. At this point we are playing a waiting game for the actual tax plan. With that in mind, it is the goal of the Republican party to reduce the national debt for the long-term. HR and payroll professionals should be prepared for employee questions and remain knowledgeable of tax changes.
Trump has proposed significant changes to immigration, including modifying employment-based immigration legislation. The crux of this argument is to keep companies from displacing American workers. We can expect changes to immigration law that have the potential to impact recruiting and changes to work verification procedures that will impact onboarding.
Affordable Care Act
HR is going to have to be more on alert when it comes to potential Affordable Care Act changes. Trump has argued that the current legislation has failed and needs to be repealed. However, it is more likely that some aspects will remain (prohibiting exclusion of pre-existing conditions), while others will be removed, including the excise tax, and/or replace certain provisions as they relate to benefits packages. While ACA is likely to remain, any significant changes will have to come from all components of the government and parties working together.
FMLA and Family Leave
Probably one of the biggest areas that can impact HR and payroll is the amount of time people can take off and how they will get paid. Trump’s plan includes the ability for working parents to deduct from their income taxes child care expenses and up to six weeks of paid maternity leave.
FLSA and Minimum Wage
It’s on everyone’s mind: what happens to the DOL’s new overtime compensation rule? Right now nothing. The biggest chance for change actually lies in the current court battle that is warring before the deadline. Trump seems to be leaving the regulation of minimal wage up to states, but has also commented that he supports a $10/hour minimum wage. Several states had minimum wage regulations on their ballots that passed. We recommend HR and payroll professionals to stay tuned in to the news on this issue as things have the potential to change very quickly. As always, we will do our best to provide timely and accurate information.
We know that offices across the nation have been fragmented by this election. Please encourage all employees to remain respectful, composed, and focused. While many organizations have policies about discussing politics in the office, be prepared that for the immediate future HR may have to step in if discussions turn ugly. It is imperative that leaders understand what is going on in their employee base and not just assuming they know what is happening. Just as HR’s job is to organize and unite a company, it is now time to do that as a country.
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