Vision Payroll

Vision Payroll announces updates to our web-based general ledger (G/L) import program. Clients may use the program to import general ledger entries and paychecks into most popular accounting packages.

In some very limited cases, clients with a large chart of accounts were receiving an Exceed Buffer Limit error since too many items were appearing in the drop down menu on the Master Map Screen. The program has been changed to eliminate this error.

In addition, bank account numbers are now partially masked on the Bank Account Screen and on Web G/L reports.

Contact Vision Payroll if you would like more information on our web-based general ledger (G/L) import program or have questions on these changes.

This week’s question comes from John, an HR Director. We need to send COBRA notices to terminated employees. Are model notices available for the COBRA premium reduction? Answer: The American Recovery and Reinvestment Act of 2009 (ARRA) made changes to the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) continuation health coverage. In certain situations, employers must pay 65% of the continuation premium and take a credit on Form 941, Employer’s QUARTERLY Federal Tax Return. The US Department of Labor recently announced the availability of model notices for use in four different situations.

The first notice is the General Notice (full version). Plans subject to the Federal COBRA provisions must send the General Notice to all qualified beneficiaries, not just covered employees, who experienced a qualifying event at any time from September 1, 2008 through December 31, 2009, regardless of the type of qualifying event, AND who either have not yet been provided an election notice or who were provided an election notice on or after February 17, 2009 that did not include the additional information required by ARRA. This full version includes information on the premium reduction as well as information required in a COBRA election notice.

The second notice is the General Notice (abbreviated version). The abbreviated version of the General Notice includes the same information as the full version regarding the availability of the premium reduction and other rights under ARRA, but does not include the COBRA coverage election information. It may be sent in lieu of the full version to individuals who experienced a qualifying event during on or after September 1, 2008, have already elected COBRA coverage, and still have it.

The third notice is the Alternative Notice. Insurance issuers that provide group health insurance coverage must send the Alternative Notice to persons who became eligible for continuation coverage under a State law. Continuation coverage requirements vary among States, and issuers should modify this model notice as necessary to conform it to the applicable State law. Issuers may also find the model Alternative Notice or the abbreviated model General Notice appropriate for use in certain situations.

The final notice is the Notice in Connection with Extended Election Periods. Plans subject to the Federal COBRA provisions must send the Notice in Connection with Extended Election Periods to any assistance eligible individual (or any individual who would be an assistance eligible individual if a COBRA continuation election were in effect) who:

1. Had a qualifying event at any time from September 1, 2008 through February 16, 2009; and
2. Either did not elect COBRA continuation coverage, or who elected it but subsequently discontinued COBRA.

This notice includes information on ARRA’s additional election opportunity, as well as premium reduction information. This notice must be provided by April 18, 2009.

Contact Vision Payroll if you have any questions on the COBRA model notices.

According to the US Department of Labor, in the week ending March 14, the advance figure for seasonally adjusted initial claims was 646,000, a decrease of 12,000 from the previous week’s revised figure of 658,000. The 4-week moving average was 654,750, an increase of 3,750 from the previous week’s revised average of 651,000.

The advance seasonally adjusted insured unemployment rate was 4.1% for the week ending March 7, an increase of 0.2 percentage points from the prior week’s revised rate of 3.9%.

The advance number for seasonally adjusted insured unemployment during the week ending March 7 was 5,473,000, an increase of 185,000 from the preceding week’s revised level of 5,288,000. The 4-week moving average was 5,251,250, an increase of 118,750 from the preceding week’s revised average of 5,132,500.

The fiscal year-to-date average for seasonally adjusted insured unemployment for all programs is 4.577 million.

The employee review process is one that makes many employers cringe and many employees anxious. When is it required by law? Should you do it if not required by law? Can the employee evaluation be an effective tool in business management?

The answers to these questions and many more can be found in this month’s HRCast, a recording provided by our team of HR Pros and available exclusively on MyHRSupportCenter. Learn what you need to know about these five key areas in the employee performance review process:

1. Appraisal System
2. Performance Standards
3. Businesss Goals
4. Individual Reviews
5. Workforce Feedback

Then, log-in to MyHRSupportCenter and click Essentials, Guides, and search “performance”. You’ll be brought to the Performance Management System Guide, a profile that will help you analyze your performance management process and your use of performance appraisals.

Visit MyHRSupportCenter regularly not only for our HRCasts, but also to get late-breaking compliance alerts, best practices to implement, and HR tools to use every day. If you’re not yet signed up or would like a free trial of MyHRSupportCenter, contact Vision Payroll today.

Vision Payroll is proud to announce the availability of our updated file transfer site. Here employers, employees, vendors, and third-parties can upload and download files from a secure site without the security risks associated with e-mail. And since many e-mail providers place limits as low as 10 MB on file transfers, larger files are often blocked. At the Vision Payroll file transfer site, files up to 2 GB can be uploaded or downloaded without worry. If Vision Payroll has a file for you to download, an e-mail will be sent to you to notify you that the file is ready. To upload a file to us, simply go to our file transfer site and select “Upload a file without logging in” or sign in with your user name and password. We protect your files with multiple levels of leading edge security. The data center is protected from intrusion by sophisticated security systems. Layers of security devices, software, and data encryption protect the network and servers. On the web, where your files travel, protection takes the form of the highest form of SSL data encryption. Logins are encrypted and passwords are not stored in a cookie on your browser. Cookies that store marketing or tracking information are NOT used on this site. Contact Vision Payroll today with questions on our updated file transfer site.

The United States Department of Transportation (DOT) recently released updated Standard Industry Fare Level (SIFL) rates which are used to value employee personal use of company aircraft. The revised rates are 24.84¢ per mile for 500 or fewer miles traveled, 18.94¢ per mile for greater than 500 miles traveled and up to 1,500 miles traveled, and 18.21¢ per mile for greater than 1,500 miles traveled. The terminal charge is $45.41. These rates apply to the period from January 1, 2009 to June 30, 2009.

Contact Vision Payroll if you have any questions on SIFL changes.

The US Department of Labor (DOL) recently issued Administrator signed Opinion Letter FLSA2009-2. Although Opinion Letters only apply to the exact set of facts and circumstances presented in each case, they are a valuable aid in understanding current interpretations of the Fair Labor Standards Act (FLSA).

In this Opinion Letter, the DOL concluded that an employer “may require exempt employees to use accrued vacation time during a plant shutdown of less than a workweek without violating the salary basis test and thereby affecting their exempt status” under the FLSA.

There is no requirement under the FLSA to provide vacation to employees. Employers may require employees to use vacation time or leave time “whether for a full or partial day’s absence, provided the employees receive in payment an amount equal to their guaranteed salary.” Therefore, so long as the employees receive their guaranteed salary there is no impact on their exempt status. Exempt employees without available time for vacation or leave must still receive their full salary “for any absence(s) occasioned by the employer or the operating requirements of the business.”

State laws may provide rules that are more beneficial to the employee and must be followed. Contact Vision Payroll if you have questions about this Opinion Letter.

The US Department of Labor (DOL) recently issued Administrator signed Opinion Letter FLSA2009-1. Although Opinion Letters only apply to the exact set of facts and circumstances presented in each case, they are a valuable aid in understanding current interpretations of the Fair Labor Standards Act (FLSA).

In this Opinion Letter, the DOL concluded that employee attendance at State mandated training programs by child care center workers does not result in hours worked under the FLSA. The DOL lists four criteria that must be met for the time not to be counted as hours worked:

1. Attendance is outside of the employee’s regular working hours;
2. Attendance is in fact voluntary;
3. The course, lecture, or meeting is not directly related to the employee’s job; and
4. The employee does not perform any productive work during such attendance.

In this case, the employer offered the training courses after-hours, thereby meeting criterion 1. Employees could choose to attend or not, thus meeting criterion 2. The training qualifies under an exception for criterion 3 that states that “where the training is for the benefit of the employee and corresponds to courses offered by independent bona fide institutions of learning,” the training is not considered directly related to the employee’s job. As long as employees do not perform productive work during the training, criterion 4 would be met.

The DOL concludes that such training does not qualify as hours worked under the FLSA unless the State does not require the employer to provide the training.

State laws may provide rules that are more beneficial to the employee and must be followed. Contact Vision Payroll if you have questions about this Opinion Letter.

This week’s question comes from Jerri, an HR director. I know federal income tax withholding is supposed to change because of the new tax law. Do employees need to file a new Form W-4? Answer: Employees are not required to file a revised Form W-4, Employee’s Withholding Allowance Certificate or its Spanish equivalent, Formulario W-4(SP), Certificado de Exención de la Retención del Empleado to see the impact of the American Recovery and Reinvestment Act of 2009 (ARRA). The Internal Revenue Service (IRS) provided new tax tables in Publication 15-T that adjust withholding for most workers. Employers must begin using the tables no later than April 1, 2009.

Workers may file a new Form W-4 or Formulario W-4(SP) if they do not wish to have their withholding reduced. Employees may wish to review Publication 919, How Do I Adjust My Tax Withholding or use the IRS withholding calculator. The IRS also recommends that employers provide a copy of the notice on page 73 of Publication 15-T to employees to help them understand the changes.

Contact Vision Payroll if you have further questions on the impact of ARRA on federal income tax withholding.

According to the US Department of Labor, in the week ending March 7, the advance figure for seasonally adjusted initial claims was 654,000, an increase of 9,000 from the previous week’s revised figure of 645,000. The 4-week moving average was 650,000, an increase of 6,750 from the previous week’s revised average of 643,250.

The advance seasonally adjusted insured unemployment rate was 4.0% for the week ending February 28, an increase of 0.2 percentage points from the prior week’s unrevised rate of 3.8%.

The advance number for seasonally adjusted insured unemployment during the week ending February 28 was 5,317,000, an increase of 193,000 from the preceding week’s revised level of 5,124,000. The 4-week moving average was 5,139,750, an increase of 124,250 from the preceding week’s revised average of 5,015,500.

The fiscal year-to-date average for seasonally adjusted insured unemployment for all programs is 4.533 million.