Vision Payroll

According to the US Department of Labor, in the week ending September 5, the advance figure for seasonally adjusted initial claims was 550,000, a decrease of 26,000 from the previous week’s revised figure of 576,000. The 4-week moving average was 570,000, a decrease of 2,750 from the previous week’s revised average of 572,750.

The advance seasonally adjusted insured unemployment rate was 4.6% for the week ending August 29, a decrease of 0.1 percentage points from the prior week’s unrevised rate of 4.7%.

The advance number for seasonally adjusted insured unemployment during the week ending August 29 was 6,088,000, a decrease of 159,000 from the preceding week’s revised level of 6,247,000. The 4-week moving average was 6,182,500, a decrease of 37,750 from the preceding week’s revised average of 6,220,250.

The fiscal year-to-date average for seasonally adjusted insured unemployment for all programs is 5.617 million.

The Treasury Department recently released the following statement by Treasury Secretary Tim Geithner:

“[Recently], the Administration announced steps we are taking to make it easier for working families to save, particularly for retirement. Working Americans should be able to retire with dignity and security, but nearly half of the nation’s workforce has little or nothing beyond Social Security benefits to get by on in old age. The measures we are announcing today will give more choices to families who want to save, and will complement the Administration’s legislative proposals to expand retirement savings. Just as the Administration is dedicated to reviving the economy and getting people back to work, so too it is dedicated to helping put retirement security within the reach of all Americans.”

The IRS also issued the following related technical guidance:

1. Revenue Ruling 2009-30
2. Revenue Ruling 2009-31
3. Revenue Ruling 2009-32
4. Notice 2009-65
5. Notice 2009-66
6. Notice 2009-67
7. Notice 2009-68

Vision Payroll will be providing further information over the next several days. Be sure to click the links above for the original documents and further analysis.

Effective February 26, 2010, Iowa Workforce Development will no longer accept magnetic media (CDs or diskettes) for filing unemployment insurance data. Any magnetic media submitted after February 26, 2010 will not be processed. The options for employers required to file quarterly reports in 2010 are the following:

1. Manual Entry – Login to your online tax account and enter your wage information.
2. File Import – Login to your online tax account and upload a comma-delimited (.csv) file with your wage information. Comma-delimited files can be created using a spreadsheet program, such as Microsoft Excel. If you currently use this method to file quarterly reports on UITS, the format for CSV files for myIowaUI will be slightly different from what is currently required.
3. Secure File Transfer – Send your wage information electronically to a secure server; this information will include the report, wage information and payment. The XML format is based on TIGERS FSET Version 2.1.

Contact Vision Payroll if you have any questions on the new filing requirements for Iowa unemployment insurance quarterly data.

According to information provided by the Iowa Department of Revenue, the withholding tables for Iowa income tax will not change for 2010. The current tables, used for 2009 withholding, became effective April 1, 2006. Contact Vision Payroll if you have any questions on Iowa withholding.

Iowa Workforce Development has announced that the 2010 unemployment rates will be based on Table 4; 2009 rates are based on Table 6. This move to higher rates is required to maintain the solvency of the Trust Fund used to provide unemployment benefits.

According to Director Elisabeth Buck, “Iowa Workforce Development is committed to maintaining the solvency of the Trust Fund while minimizing the effects felt by Iowa employers. The Department is continually working with Iowans receiving unemployment benefits to increase their skill sets and reduce barriers individuals may have for returning to work.”

In addition, the taxable wage base for 2010 has been announced. The wage base will increase to $24,500, up from $23,700 for 2009. Consequently, many employers will see contributions to the fund increase based on both the higher rate and the higher wage base.

Contact Vision Payroll with any questions on the Iowa unemployment insurance rates or wage base.

Nonfarm payroll employment continued to decline in August (-216,000), and the unemployment rate rose to 9.7%, the US Bureau of Labor Statistics reported recently. Although job losses continued in many of the major industry sectors in August, the declines have moderated in recent months.

In August, the number of unemployed persons increased by 466,000 to 14.9 million, and the unemployment rate rose by 0.3 percentage points to 9.7%. The rate had been little changed in June and July, after increasing 0.4 or 0.5 percentage points in each month from December 2008 through May. Since the recession began in December 2007, the number of unemployed persons has risen by 7.4 million, and the unemployment rate has grown by 4.8 percentage points.

Among the major worker groups, the unemployment rates for adult men (10.1%), whites (8.9%), and Hispanics (13.0%) rose in August. The jobless rates for adult women (7.6%), teenagers (25.5%), and blacks (15.1%) were little changed over the month. The unemployment rate for Asians was 7.5%, not seasonally adjusted.

The civilian labor force participation rate remained at 65.5% in August. The employment-population ratio, at 59.2%, edged down over the month and has declined by 3.5 percentage points since the recession began in December 2007.

In August, the number of persons working part time for economic reasons was little changed at 9.1 million. These individuals indicated that they were working part time because their hours had been cut back or because they were unable to find a full-time job. The number of such workers rose sharply in the fall and winter but has been little changed since March.

About 2.3 million persons were marginally attached to the labor force in August, reflecting an increase of 630,000 from a year earlier. (The data are not seasonally adjusted.) These individuals were not in the labor force, wanted and were available for work, and had looked for a job sometime in the prior 12 months. They were not counted as unemployed because they had not searched for work in the 4 weeks preceding the survey.

Among the marginally attached, the number of discouraged workers in August (758,000) has nearly doubled over the past 12 months. (The data are not seasonally adjusted.) Discouraged workers are persons not currently looking for work because they believe no jobs are available for them. The other 1.5 million persons marginally attached to the labor force in August had not searched for work in the 4 weeks preceding the survey for reasons such as school attendance or family responsibilities.

This week’s question comes from Ryan, a small-business owner. We’re going to be closed next Monday for Labor Day. We have some full-time employees and some part-time employees. Do I have to pay employees for holidays? Answer: There is no requirement in the Fair Labor Standards Act (FLSA) for employers to pay employees for holidays not worked or to pay them a higher rate if they do work. Most employers do pay holiday pay to their full-time employees. Among part-time employees, some employers pay a full day’s pay, some pay according to the employee’s work schedule or other allocation method, and some do not pay part-time employees for holidays. Most public sector and union employees have holiday pay negotiated into their contracts.

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

According to the US Department of Labor, in the week ending August 29, the advance figure for seasonally adjusted initial claims was 570,000, a decrease of 4,000 from the previous week’s revised figure of 574,000. The 4-week moving average was 571,250, an increase of 4,000 from the previous week’s revised average of 567,250.

The advance seasonally adjusted insured unemployment rate was 4.7% for the week ending August 22, an increase of 0.1 percentage points from the prior week’s unrevised rate of 4.6%.

The advance number for seasonally adjusted insured unemployment during the week ending August 22 was 6,234,000, an increase of 92,000 from the preceding week’s revised level of 6,142,000. The 4-week moving average was 6,216,750, a decrease of 27,250 from the preceding week’s revised average of 6,244,000.

The fiscal year-to-date average for seasonally adjusted insured unemployment for all programs is 5.602 million.

According to the US Bureau of Labor Statistics, the unemployment rate in July 2009 was 9.4% compared to an adjusted rate of 5.8% in July 2008. In turn, many employers have observed from their growing stacks of resumes, a wider availability of experienced workers as interested job applicants. Use the following helpful steps in reviewing the resumes that you receive:

1. Check the Introduction
2. Scan the Resume
3. Confirm the Minimum
4. Skim the Summary
5. Target Key Words
6. Identify Relevant Experience
7. Review the History
8. Note the Miscellaneous
9. Rank and File
10. Screen and Schedule

To learn more be sure to read this month’s featured article by the HR pros at MyHRSupportCenter, Ten Steps to Effectively Review Resumes. If you’re not yet signed up or would like a free trial of MyHRSupportCenter, contact Vision Payroll today.

The US Citizenship and Immigration Services (USCIS), a component of the Department of Homeland Security (DHS), in conjunction with the Social Security Administration (SSA) operates an electronic system that allows employers to verify the employment eligibility of newly hired employees. The system, which is free of charge, is known as E-Verify. Effective with new contracts awarded after September 8, 2009, most federal contractors and sub-contractors will be required to use E-Verify to confirm the employment status of newly hired employees and current employees who are classified as “employees assigned to the contract.” Contact Vision Payroll if you have any questions on this process.