Vision Payroll

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 22.43¢ per mile for 500 or fewer miles traveled, 17.10¢ per mile for greater than 500 miles traveled and up to 1,500 miles traveled, and 16.44¢ per mile for greater than 1,500 miles traveled. The terminal charge is $41.00. These rates apply to the period from July 1, 2010 to December 31, 2010.

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

Under the Hiring Incentives to Restore Employment Act (HIRE Act), employers who hire certain unemployed workers are exempt from certain employment taxes. In order to qualify under the HIRE Act, the wages must be paid by a qualified employer “with respect to employment” in the period beginning March 19, 2010 and ending December 31, 2010. The Internal Revenue Service (IRS) has provided employers further information on the HIRE Act.

According to the IRS, the HIRE Act payroll tax exemption applies to an employee who has been on furlough, standby status or temporary layoff “only if the furlough, standby status, or temporary layoff constitutes a termination of employment and, upon reestablishment of the employment relationship, the requirements to be a qualified employee are satisfied. Whether the employment relationship has terminated is based on facts and circumstances.” An earlier post reviewed when employment begins for purposes of the HIRE Act.

Employers should review employees who have been on furlough, standby status or temporary layoff and determine if the rehired employee is eligible under the HIRE Act.

Contact Vision Payroll if you have further questions on the HIRE Act.

Due to the damage caused by Hurricane Alex in Texas beginning June 30, 2010, President Barack Obama declared the following counties a federal disaster area: Cameron, Hidalgo, Jim Hogg, Maverick, Starr, Val Verde, Webb and Zapata. Therefore, the Internal Revenue Service (IRS) announced recently that it will waive failure to deposit penalties for employment and excise taxes due after June 29, 2010 and before July 16, 2010 as long as the deposits were made by July 15, 2010. In addition, affected taxpayers will have until August 30, 2010 to file most tax returns. Contact Vision Payroll if you were affected by Hurricane Alex and need further information on the relief provided by the IRS.

The US Department of Labor’s Mine Safety and Health Administration (MSHA) recently announced that Kansas City Chiefs’ running back Thomas Jones has become a spokesman for the agency’s annual “Stay Out-Stay Alive” public safety campaign, launched in 1999 to warn outdoor enthusiasts, especially children, about the dangers of playing on mine property. Each year, dozens of people are injured or killed in recreational accidents at active and abandoned mine sites.

Jones, who grew up in the coalfields of southwestern Virginia, has recorded a series of audio and video public service announcements describing the hidden dangers that exist in abandoned mines and quarries. He played college football at the University of Virginia and was drafted by the Arizona Cardinals. His former teams include the Tampa Bay Buccaneers, the Chicago Bears, and the New York Jets. His brother Julius Jones plays for the Seattle Seahawks. “Both my parents were coal miners, and they instilled in me a respect for the hazards they often encountered while working underground,” said Jones. “If you haven’t been properly trained as a miner, you have no business being anywhere near a quarry, gravel pit or mine.”

“We are pleased that Thomas has dedicated his time to help MSHA spread this very important safety message, especially to young people,” said Joseph A. Main, assistant secretary of labor for mine safety and health. “Since professional athletes often serve as role models for our children, and he comes from a coal mining family, Thomas is the ideal spokesperson for this campaign.”

Each spring, MSHA field personnel visit schools, scouting groups and other venues around the country to talk to young people about the dangers of playing on active and abandoned mine property.

Drowning is by far the most common cause of non-occupational fatal mining accidents, accounting for three out of five fatalities over the past 10 years. Abandoned water-filled quarries harbor slippery slopes and unstable rock ledges. The water can conceal old machinery and sharp objects left behind after a mining operation closes. Even expert swimmers may encounter trouble in the dangerously cold and deceptively deep waters. Since 1999, nearly half of all drowning victims were between 15 and 25 years old.

Old surface mines, popular spots for all-terrain vehicles and motorcycle enthusiasts, often contain hills of loose materials or refuse heaps that can easily collapse and cause deadly rollovers. Surface mining landscapes are constantly changing, resulting in poor visibility of cliffs and steep ledges. These hazardous conditions make vehicle accidents at surface mines the second most common cause of fatalities on mining properties.

Underground mines can have hidden shafts, flooded or airless sections, or deadly gases. Tunnels are susceptible to cave-ins, and unused or misfired explosives can be set off by the slightest disturbance or touch.

To listen to the PSAs, click the links below:

Thomas Jones PSA #1

Thomas Jones PSA #2

Thomas Jones PSA #3

Thomas Jones PSA #4

Total nonfarm payroll employment declined by 131,000 in July, and the unemployment rate was unchanged at 9.5%, the US Bureau of Labor Statistics reported recently. Federal government employment fell, as 143,000 temporary workers hired for the decennial census completed their work. Private-sector payroll employment edged up by 71,000.

Both the number of unemployed persons, at 14.6 million, and the unemployment rate, at 9.5%, were unchanged in July.

Among the major worker groups, the unemployment rate for adult men (9.7%), adult women (7.9%), teenagers (26.1%), whites (8.6%), blacks (15.6%), and Hispanics (12.1%) showed little or no change in July. The jobless rate for Asians was 8.2%, not seasonally adjusted.

In July, the number of long-term unemployed (those jobless for 27 weeks and over) was little changed at 6.6 million. These individuals made up 44.9% of unemployed persons.

The civilian labor force participation rate (64.6%) and the employment-population ratio (58.4%) were essentially unchanged in July; however, these measures have declined by 0.6 percentage points and 0.4 points, respectively, since April.

The number of persons employed part time for economic reasons (sometimes referred to as involuntary part-time workers) was essentially unchanged over the month at 8.5 million but has declined by 623,000 since April. These individuals were working part time because their hours had been cut back or because they were unable to find a full-time job.

About 2.6 million persons were marginally attached to the labor force in July, an increase of 340,000 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, there were 1.2 million discouraged workers in July, up by 389,000 from a year earlier. (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 remaining 1.4 million persons marginally attached to the labor force 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 Kenneth, an HR Director. We tested our multi-state employees for unemployment purposes based on Localization of Services and Base of Operations. For some employees we were able to determine the appropriate state, but for some we weren’t. Now we need to test based on Place of Direction or Control. What is Place of Direction or Control? Answer: The general rule for employees who work in more than one state is that employees should be covered by only one state to prevent employers from paying tax in two or more states for the same employee. To determine which state, employers should look at four factors, in the following order:

1. Localization of Services
2. Base of Operations
3. Place of Direction or Control
4. Place of Residence

The employee is covered by the state under which that employee first qualifies using these factors. For example, if an employee is determined to be covered by a state under the Localization of Services test, the results of the remaining tests are irrelevant. Only if a determination cannot be made under the Localization of Services test does the employer consider the Base of Operations.

For the Place of Direction or Control test, determine if the employee performs any service in the state from which the services are directed and controlled. Services are directed or controlled in the place where basic authority resides and where general and immediate control originates. If the employee performs some services in the state that is the Place of Direction or Control for that employee, that state is the state where the employee will be covered. If not, go to the Place of Residence test.

Contact Vision Payroll if you have further questions.

According to the US Department of Labor, in the week ending July 31, the advance figure for seasonally adjusted initial claims was 479,000, an increase of 19,000 from the previous week’s revised figure of 460,000. The 4-week moving average was 458,500, an increase of 5,250 from the previous week’s revised average of 453,250.

The advance seasonally adjusted insured unemployment rate was 3.6% for the week ending July 24, unchanged from the prior week’s unrevised rate of 3.6%.

The advance number for seasonally adjusted insured unemployment during the week ending July 24 was 4,537,000, a decrease of 34,000 from the preceding week’s revised level of 4,571,000. The 4-week moving average was 4,575,500, an increase of 25,750 from the preceding week’s revised average of 4,549,750.

The fiscal year-to-date average of seasonally adjusted weekly insured unemployment, which corresponds to the appropriated AWIU trigger, was 5.028 million.

Excessive or avoidable employee turnover results in a waste of time, resources, and added costs. While it can depend on the industry and business cycles, the impact is often especially hard on small businesses. Understanding what goes into the turnover costs and establishing helpful strategies are important steps for you to effectively manage the revolving employee door of your company.

Do you know the full price of losing employees? Are you aware of three key items to review if you’d like to reduce high turnover? Do you understand the positives and negatives of low turnover?

For answers to these questions and much more, be sure to read the featured article by the HR pros at MyHRSupportCenter, Controlling Your Employee Turnover Costs. If you’re not yet signed up or would like a free trial of MyHRSupportCenter, contact Vision Payroll today.

Under the Hiring Incentives to Restore Employment Act (HIRE Act), employers who hire certain unemployed workers are exempt from certain employment taxes. In order to qualify under the HIRE Act, the wages must be paid by a qualified employer “with respect to employment” in the period beginning March 19, 2010 and ending December 31, 2010. The Internal Revenue Service (IRS) has provided employers further information on the HIRE Act.

According to the IRS, the HIRE Act does not address when an individual begins employment; therefore, general principles relating to employment apply. Under these general principles, employment includes the establishment, maintenance, and termination of the employer-employee relationship, all of which depend on the facts and circumstances. Accordingly, an individual begins employment on the date when, based on the facts and circumstances of the particular situation, the employer-employee relationship is first established.

In the case of an individual who was previously employed by the qualified employer and whose employment was terminated, for purposes of determining qualified employee status, the individual begins employment on the date when, based on the facts and circumstances of the particular situation, the employer-employee relationship is reestablished.

Contact Vision Payroll if you have further questions on the HIRE Act.

The Internal Revenue Service has released Formulario W-11(SP), Declaración Jurada del Empleado Conforme a la Ley de Incentivos para la Contratación y la Recuperación del Empleo (HIRE). This form is a Spanish-language version of Form W-11, Hiring Incentives to Restore Employment (HIRE) Act Employee Affidavit, and may be used by employers to certify worker eligibility for payroll tax forgiveness under the HIRE Act. Employers are not required to use the official form and may use another similar statement if it contains the same information and the employee signs it under penalties of perjury. Contact Vision Payroll if you have any further questions on Form W-11 or Formulario W-11(SP).