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April,
2010 |
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Hello!
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This
is me! Earlier this month, to celebrate a milestone birthday, I finally accomplished a goal that I had set for myself during my late 20’s – to “jump out of a perfectly good airplane”--as some of my family and friends characterized it.
I took my first (and probably only) tandem parachute
jump. What an amazing experience! Aside from the exhilaration I felt “flying” through the air from 13,000 feet, watching the earth from an angle that was expansive and unrestrained, at approximately 120 mph, it was the accomplishment of a long-held dream.
What a feeling – both physically and
emotionally. You probably guessed that I landed safely, and I did, but I don’t think my feet have hit the ground yet. If you would like to see some photos of the experience, go to my Facebook page:
www.facebook.com/margaretjacoby
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Unfortunately,
all the business concerns of the day did not go
away while I was flying so I thought I'd take on
a few for you in this month's newsletter. Are
any of the new laws a bit confusing?
Hopefully I can help. |
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COBRA
Subsidy Extended ~ Again
... and
may not be for the last time! |
The period of eligibility for the federal subsidy of COBRA premiums under the American Recovery and Reinvestment Act (ARRA) was extended again on April 15, 2010, when President Barack Obama signed into law an extension of unemployment benefits and the COBRA premium assistance. This extension provides a COBRA premium subsidy for eligible individuals who are involuntarily terminated from employment through May 31, 2010.
Since the last extension covered certain involuntary terminations of employment through March 31, 2010, the new law provides retroactive eligibility for individuals who lost their jobs after that date. Employers that sent basic COBRA notices (notices without subsidy information) to qualified beneficiaries who became eligible for COBRA on account of a qualifying event that occurred after March 31, 2010, should send an updated notice to those persons concerning the extended subsidy eligibility.
Department of Labor website dedicated to COBRA Subsidy Information:
http://www.dol.gov/ebsa/cobra.html - here you can find fact sheets in English and Spanish and Model COBRA Notices that you should use to be sure your notices are in compliance.
Source: Jackson-Lewis
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HIRE
Act Signed by President
Affects Employers
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As previously announced, the HIRE Act was signed by President Obama on March 18, and
gives “qualified employers” an exemption from paying the 6.2% Social Security payroll tax for
workers hired between February 3, 2010 and January 1, 2011, if those newly hired workers
had been unemployed for at least 60 days.
On April 7, 2010, the IRS released the payroll tax exemption form,
Form
W-11, for employers
to use to claim the tax credit provided by the Hiring Incentives to Restore Employment (HIRE)
Act. Each newly hired worker for whom the employer is requesting credit, must sign the Form W-11
certifying that he/she was unemployed during the 60 days before beginning work.
An additional $1,000 income tax credit can be claimed, if the newly hired worker(s) stay for
one year.
The tax credit is not allowed if the newly hired workers are replacements for other employees,
unless the other employees voluntarily resigned or were discharged for cause.
Business owners can also benefit from an increase to $250,000 the expensing allowance for depreciable
business assets under Section 179 for taxable years beginning after 2007 and before 2011.
IRS detailed information is at: http://www.irs.gov/newsroom/article/0,,id=221036,00.html
Source: StrategicHR HR Alert-3/24/10
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And our quiz is Part 2 of last month's newsletter
involving Velma. ...
Mystery Inc. has a written policy prohibiting improper deductions. Employees receive a copy of the policy in their employee handbook. The payroll department has told Fred to stop docking Velma for partial day absences, but he continues to dock her pay for half-day absences because she hasn't complained about the deductions. He tells the payroll department that he will continue docking Velma's pay until she gets the message and will do the same with any employee who doesn't follow his rules. Will Fred's actions impact Velma's status as an exempt employee?
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No. The regulations provide that employers forfeit an employee's exempt status only if they continue making improper salary deductions after an employee has complained about those deductions. Velma hasn't complained, so there's no problem.
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B)
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Yes. Fred has an actual practice of making improper pay deductions, which demonstrates that he does not intend to pay employees on a salary basis. In fact, Fred's practice may affect the exempt status of other employees in the same job classification who report to him. |
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C)
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Yes. Once she has the surgery and can see her paycheck better you can bet she'll be complaining. |
Answers are found at the end of our feature
article. |
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Now
on to our feature article ... health
care reform!
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Health Care Reform |
There are so many conflicting stories floating around about the impact of the new Health Care Reform legislation. While I am no expert on the subject, I found a couple of articles written in easy-to-understand language that may help put this into perspective. Be sure to check the links at the bottom of this article for other well-written and researched articles on this topic.
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Article
1: What's Up With Health Reform?
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With all the dust clearing, just how, exactly, does the new health care reform law Congress recently passed impact employers? I have seen several good summaries on the internet (see links below to a couple of them).
The new law attempts to provide coverage for uninsured Americans without drastically impacting Americans who already have coverage through their employers. But there are some impacts to employers highlighted here briefly because the new law:
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Provides reimbursements for certain retiree health benefits through 2014; |
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Allows tax credits to small employers (with fewer than 25 employees) who provide employees with insurance; |
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Effective six months after passage, mandates various kinds of coverage (e.g. coverage of dependents up to age 26) and prohibits pre-existing condition exclusions and lifetime dollar limits of coverage; |
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Like existing rules on pension and retirement funds, prohibits discrimination in favor of highly-compensated employees; |
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Beginning in 2014, mandates that larger employers (with 50 or more full time employees) provide coverage to employees or pay a penalty of about $2,000 per year for each full time employee (excluding the first 30 full time employees); |
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Mandates that waiting periods to join plans be limited to no more than 90 days; |
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By about 2013 mandates that employers with 200 or more employees automatically enroll employees in the company health plan and allowing opt-outs only if a penalty is paid or other coverage obtained; and |
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Beginning in 2018 imposes taxes on certain high value or “Cadillac” health plans; |
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The new law does not require employers to provide health coverage to part-time employees but part-timers will impact the extent to which small businesses will be eligible for government subsidies to provide health coverage and whether certain provisions of the new law will apply to employers; |
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Beginning in 2011 requires W-2 reporting (for informational purposes only) of the value of benefits provided; and |
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Beginning in 2013, limits employee contributions to health flexible spending accounts to $2,500; |
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Imposes many specific coverage and related requirements that will impact how insurers and self-funded plans deliver and administer their plans and benefits. |
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While you really need to work closely with your Insurance Broker, here are some other good articles on this subject:
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Article
2: FLSA Now Requires Breastfeeding
Breaks/Place
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The new health care reform law also includes a revision to the Fair Labor Standards Act (FLSA) that impacts how employers treat breastfeeding mothers.
The new law requires that an employer provide reasonable breaks (no limit is set on the number of breaks) for an employee to express breast milk for her nursing child for one year after the child’s birth. The employer must also provide a place, other than a bathroom, shielded from view and intrusion (by the public or co-workers) that can be used for this purpose.
The breaks need not be paid time unless required by state law or perhaps by an employee’s exempt status. Employers with fewer than fifty (50) employees are exempt from these requirements if they would impose an undue hardship by causing significant difficulty or expense based on the employer’s size, resources and business structure.
The United States Department of Labor likely will issue regulations to implement this new rule. About half of the states already have in place rules requiring the accommodation of nursing mothers.
Source: www.HRonline.com
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Answers
to the quiz:
1. Yes.. Fred has an actual practice of making improper pay
deductions ,,,
Explanation:
Fred has an actual practice of making improper pay deductions, which demonstrates that he does not intend to pay employees on a salary basis. In fact, Fred's practice may affect the exempt status of other employees in the same job classification who report to him.
Under the FLSA, an employer who makes improper deductions from employee salaries shall lose the exemption if the facts demonstrate that the employer did not intend to pay employees on a salary basis. An employer who has an actual practice of making improper deductions does not intend to pay employees on a salary basis.
Don't Forget To Access Our WebForms.
Answer All Your Human Resource Needs! Manage Your Day-to-Day Non-Profit or Small Business Organize All Necessary Human Resource Information Promote Legal Compliance Within Your Organization.
Click Here To Know More!
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ABOUT MJMS, INC. |
President and Principal Consultant: Margaret Jacoby, SPHR
Margaret Jacoby has more than 25 years of Human Resources and professional management experience in a variety of industries. She has designed human resources infrastructure and implemented systems to ensure compliance with state and federal employment laws. She has directed high quality human resources functions for small and emerging businesses, and served as an external consultant to a wide range of erse organizations, including non-profits.
Her work has included:
Conducting H.R. Needs Assessments Drafting employee handbooks and policy manuals Conducting job analysis and developing position descriptions Conducting on-site compliance audits Counseling management on progressive discipline
Drafting and review of employee disciplinary actions Providing mediation in employee/employee conflict
Training employees/supervisors/managers in the implementation of human resources systems and policies such as Sexual Harassment Conducting workshops for business owners on H.R. compliance issues.
Ms. Jacoby has earned the nationally-recognized certification of Senior Professional in Human Resources (SPHR) from the HR Certification Institute, Society for Human Resource Management
(SHRM).
Ms. Jacoby’s professional affiliations include: Professionals in Human Resources Association (PIHRA) Society for Human Resource Management (SHRM) National Association of Women Business Owners (NAWBO), Los Angeles and Phoenix California Chamber of Commerce Arizona Small Business Association (ASBA) Long Beach Community Business Network (LBCBN) Institute for Management Consultants
(IMC)
The information contained in this newsletter is provided as general information and is not a substitute for legal or professional advice. The information is provided by MJ Management Solutions, Inc. and while we endeavor to keep the information up-to-date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the newsletter or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk. |
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Phone: 480-924-6101 and 310-798-4569
Fax: 408-452-1429
margaret@mjms.net • MJ Management Solutions, Inc.
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