TALK OF THE TOWN
New York City Paid Sick Leave: What Employers Need to Know
Certain employers must comply with New York City’s Earned Sick Time Act (Paid Sick Leave Law), which started April 1, 2014. Under the law, covered employees
have the right to use sick leave for the care and treatment of themselves or a family member.
The highlights of the law include:
• All businesses must offer sick time.
• Employers with one to four employees must offer up to 40 hours unpaid.
• Employers with five or more employees must offer up to 40 hours paid.
• Household employers with one or more domestic workers must offer two days paid.
• All employers must notify their employees of their rights to sick time in writing.
• There are specific accrual rates for this time off.
The Department of Consumer Affairs (DCA) has prepared a document to provide guidance to employers about their responsibilities under the law. To read this
document, please click here.
To read the law and Frequently Asked Questions about the law, please visit nyc.gov/PaidSickLeave.
IRS Tax Court Will Not Revisit IRA Rollover Decision
To settle the question of whether the limitation on rolling over one IRA per year applies to taxpayers on an aggregate basis or on an IRA-by-IRA basis, the IRS announced it will follow the Tax Court’s recent decision in Bobrow, T.C. Memo. 2014-21, applying the rule on an aggregate basis, meaning no matter how many IRAs a taxpayer has, the taxpayer is limited to one rollover per year.
Because the IRS has received comments that its new stance will require IRA trustees to change their procedures for making IRA rollovers and their IRA disclosure documents, the new rules will not apply to rollovers made before Jan. 1, 2015. Additionally, the new rules will not affect an IRA owner’s ability to transfer funds from one IRA trustee to another because those transactions are not considered rollovers and therefore are not subject to the one-a-year limit.
To read more about this decision, please click here.