CAPLAW eNews Bulletin - August 2019
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Head Start Proposed DRS Rule • Title X Rules • Form EEO-1 •
Cloud Computing • I-9 Compliance • E-Filing Form 990
Head Start Proposes Changes to DRS Recompetition Rule In a Notice of Proposed Rulemaking published on August 13, 2019, the Office of Head Start (OHS) proposes to change two of the seven conditions—the CLASS condition and the audit-based fiscal condition — that trigger recompetition under the Designation Renewal System (DRS) for Head Start grantees. OHS also seeks comment (though does not propose a change at this time) on the condition that a single deficiency identified during an OHS monitoring automatically puts a grantee in recompetition. OHS invites the public to submit comments on the proposed DRS rule via Regulations.gov (submit here) by 11:59 p.m. EDT on September 27, 2019. |
New Title X Rules Take |
Revised Form EEO-1 Due September, 30 2019
Beginning in 2019, the Equal Employment Opportunity Commission (EEOC) will collect new pay data from employers filing Form EEO-1. Employers with at least 100 employees must report on employee compensation, also known as Component 2 data, for calendar years 2017 and 2018 in their Form EEO-1 by September 30, 2019. Employers with at least 100 employees are already required to report on Component 1 workforce demographics data, which covers the job category, race/ethnicity, and sex of employees. Reporting Component 2 data requires employers to state how many of their employees fall into each of the twelve compensation bands provided by the EEOC. Employers must then identify the number of employees within each band based on their Component 1 data, or their race/ethnicity and sex. This new reporting requirement allows the EEOC and other federal agencies to better identify pay disparities and create solutions to eliminate those disparities.
The EEOC has released an FAQ discussing which employers must report Component 2 data and how to submit it on the EEOC’s portal. Troutman Sanders, a national law firm, has also released a helpful guide to employer obligations under the new reporting requirements.
Is Your Head in the Cloud? Contemplating Cloud Computing for CAAsCloud computing is rapidly increasing as one of the most efficient ways to conduct business. A Community Action Agency (CAA) looking to add, renew, or upgrade its existing software platform is likely to consider cloud-based solutions. To help CAAs understand the benefits and risks of cloud computing, this article highlights key differences between cloud-based applications and traditional hosted software, the potential impact that cloud software may have on a CAA’s operations and data security, and reasons your CAA may decide to adopt a cloud model. The article also provides a checklist of issues for your CAA to consider negotiating in its agreement with a cloud provider, to ensure your data is sufficiently protected. |
Immigration Check-Up: Is Your CAA I-9 Compliant? In light of recent immigration raids of worksites across the country and a significant increase in investigations by Immigration and Customs Enforcement (ICE), CAAs should take a closer look at their Form I-9 compliance to ensure that they understand their obligations as employers and use the most current version of the form. The United States Citizenship and Immigration Services (USCIS) requires employers to complete a Form I-9 to verify the identity of each individual hired for employment in the U.S. and determine that they are legally authorized to work in the U.S. This FAQ provides practical guidance for CAAs looking to do a checkup of their I-9 procedures, and also offers tips for CAAs that discover they are not in compliance with I-9 requirements. |
(Almost) All Nonprofits Soon Required to E-File Form 990
Under the new Taxpayer First Act (H.R. 3151), passed on July 1, 2019, all nonprofit organizations that are required to file IRS annual information returns (Forms 990, 990 PF, 990-EZ, and 990-T) will soon be required to do so electronically. Previously, only certain tax-exempt organizations with significant assets, smaller organizations that file the Form 990-N, and private foundations were required to electronically file their Form 990s. Under the new law, most tax-exempt organizations must e-file beginning in 2021, as the new law takes effect for years starting after July 2, 2019.
The new law requires the IRS to publicly release data from the Form 990 returns in machine readable format as soon as practicable. The IRS must also notify an organization that has not filed a required Form 990 for two consecutive years, with a warning that the IRS will automatically revoke the organization’s tax-exempt status if it fails to file for a third consecutive year.
The IRS has the discretion to issue guidance to delay required e-filing for up to two years for certain organizations, including: (1) small organizations with total assets of less than $500,000 and annual revenue less than $200,000; (2) all organizations filing unrelated business income tax (UBIT) returns; and (3) organizations that face undue burdens from the change.
CAPLAW will continue to monitor the status of the law, including any guidance from the IRS regarding delayed implementation of the e-filing requirement, and issue additional updates and resources as they become available.
This e-News Bulletin is part of the Community Services Block Grant (CSBG) Legal Training and Technical Assistance (T/TA) Center. It was created by Community Action Program Legal Services, Inc. (CAPLAW) in the performance of the U.S. Department of Health and Human Services, Administration for Children and Families, Office of Community Services Cooperative Agreement – Grant Award Number 90ET0467-02. Any opinion, findings, conclusions, or recommendations expressed in this material are those of the author(s) and do not necessarily reflect the views of the U.S. Department of Health and Human Services, Administration for Children and Families.
The contents of this publication are intended to convey general information only and do not constitute legal advice. Any communication through this publication or through CAPLAW’s website does not constitute or create an attorney-client relationship. If you need legal advice, please contact CAPLAW or another attorney directly.
