Vision Payroll

In Rev. Proc. 2010-39, the Internal Revenue Service (IRS) released updated per diem rates for 2011 and made some minor changes to list of high-cost areas.

Per Diem Rates Decrease for High-Cost and Other Localities

In §5.02, the IRS announced that per diem rate for high-cost localities is $233 (down from $258 in 2010) and the per diem rate for other localities is $160 (down from $163 in 2010).

Meal Rates and Incidental Rates Remain the Same for 2010

In §5.02, the IRS announced that meal rate for high-cost localities is $65 and the meal rate for other localities is $52. These rates are unchanged from 2010. Also unchanged is the incidental expenses rate. In §4.05, the IRS announced that the incidental rate is $5 for 2011.

High-Cost Localities Announced

In §5.03, the IRS announced the localities that “are high-cost localities for all of the calendar year or the portion of the calendar year specified in parentheses under the key city name.”

Additions to and Deletions from the High-Cost List

In §5.04, the IRS announced the localities that have been added to the list of high-cost localities. They are:

• Yosemite National Park, California;
• Silverthorne/Breckenridge, Colorado;
• New Orleans, Louisiana;
• Falmouth, Massachusetts;
• Riverhead/Ronkonkoma/Melville, New York;
• Kill Devil, North Carolina;
• Stowe, Vermont; and
• Virginia Beach, Virginia.

In §5.04, the IRS announced the localities that have had the portion of the year for which they are considered high-cost localities changed from 2010. They are:

• South Lake Tahoe, California;
• Aspen, Colorado;
• Telluride, Colorado;
• Vail, Colorado;
• Fort Lauderdale, Florida;
• Miami, Florida; and
• Martha’s Vineyard, Massachusetts.

In §5.04, the IRS also announced that Hershey, Pennsylvania has been removed from the list of high-cost localities.

New Per Diem Rates Effective October 1, 2010 or January 1, 2011

The new per diem rates are effective October 1, 2010 for taxpayers using the fiscal year period for reimbursements and January 1, 2011 for those using the calendar year period for reimbursements.

Contact Vision Payroll if you have any questions on Rev. Proc. 2010-39.

The Massachusetts Division of Occupational Safety (DOS) issues prevailing wage schedules to cities, towns, counties, districts, authorities, and agencies of the Commonwealth for construction projects and several other types of public work. These prevailing wage schedules contain hourly wage rates that workers must receive when working on a public project.

DOS Recently Released PW-2010-11-07.29.10 on Prevailing Wages

The DOS regularly issues Prevailing Wage Opinion Letters and recently released PW-2010-11-07.29.10. This letter confirms that the University of Massachusetts is one of “the several departments of the government of the commonwealth” and therefore subject to MGL, c. 5, §1. As such, the print shop at the University of Massachusetts – Amherst “must require its printing contractors…to pay prevailing wage rates to their employees.”

MGL, c. 5, §1 Mandates Prevailing Wages

According to the DOS, the relevant part of MGL, c. 5, §1 provides as follows:

The commissioner of administration, or any other awarding official, in the advertising for bids or the placing of orders for the execution of printing, composition, proof reading, presswork, all processes used in the making of printing plates, paper ruling and binding, or for the supplying of office stationery and blank books without printed headings, for the several departments of the government of the commonwealth other than the legislative department… Contracts or orders shall be given to such establishments only as pay the prevailing rate of wages, based on wage rates and working hours that have been established by collective bargaining agreement or understanding between organized labor and employers; provided, that nothing herein contained shall prevent said commission, or any other awarding official, from placing contracts or orders with existing state institutions or departments which furnish printing or other work of the kind and character above mentioned…

The University of Massachusetts is One of the Several Departments of the Government of the Commonwealth

The DOS concludes that the preponderance of the authority indicates that the University of Massachusetts is one of “the several departments of the government of the commonwealth”. Among other factors are the following

• The University of Massachusetts “is subject to the statutory provisions governing capital facility projects under the division of capital asset management.”
• The University of Massachusetts is subject “to the competitive bidding laws.”
• The University of Massachusetts “does not dispute that it is subject to the prevailing wage law for construction of public works projects.”
• “DOS’s records reflect that the University’s Boston campus regularly requests DOS to provide prevailing wage rates for its printing and binding contracts.”

The DOS Concludes that the University Is Subject to the Prevailing Wage Law

“Because the University is subject to the prevailing wage law for printing, contractors which provide printing services to the University are required to pay the prevailing wage rate set by the DOS for such contracts.”

Vision Payroll Assists Employers Preparing Certified Weekly Payroll Reports

Vision Payroll is ready to assist employers in gathering information for certified weekly payroll reports. Vision Payroll can also prepare the certified weekly payroll reports for submission to the proper authorities. Contact Vision Payroll today to get started.

This week’s question comes from Tyler, a sales manager. We provide all our sales reps cell phones for business and personal use. In the past, the sales reps had to pay income tax on their personal-use portion of the cell phones. Now I hear they don’t have to pay on personal-use portion anymore. What is the status of taxation of cell phones? Answer: Effective for tax years beginning after December 31, 2009, cell phones are no longer designated as listed property.

Cell Phone Change Effected by Small Business Jobs and Credit Act of 2010

With the signing of the Small Business Jobs and Credit Act of 2010 (HR 5297) into law by President Barack Obama, the definition of listed property no longer includes “any cellular telephone (or other similar telecommunications equipment)”. The impact is that employers no longer must include the value of the personal-use portion of cell phones in an employee’s gross income.

Contact Vision Payroll for Further Information

Contact Vision Payroll if you have further questions on the changes to the classification of cell phones.

According to the US Department of Labor, in the week ending September 25, the advance figure for seasonally adjusted initial claims was 453,000, a decrease of 16,000 from the previous week’s revised figure of 469,000. The 4-week moving average was 458,000, a decrease of 6,250 from the previous week’s revised average of 464,250.

Advance Seasonally Adjusted Insured Unemployment Rate Decreases

The advance seasonally adjusted insured unemployment rate was 3.5% for the week ending September 18, a decrease of 0.1 percentage points from the prior week’s revised rate of 3.6%.

Advance Seasonally Adjusted Insured Unemployment Decreases

The advance number for seasonally adjusted insured unemployment during the week ending September 18 was 4,457,000, a decrease of 83,000 from the preceding week’s revised level of 4,540,000. The 4-week moving average was 4,526,750, a decrease of 5,500 from the preceding week’s revised average of 4,532,250.

An organization’s workforce is its most valuable asset. And when an employee can’t work due to illness or injury, it impacts not only an organization’s productivity, but also its morale.

The Return-to-Work Toolkit Provides Valuable Resources

The Office of Disability Employment Policy (ODEP) in the US Department of Labor created its new online Return-to-Work Toolkit to help employers and employees understand the return-to-work process and provide resources to assist in getting employees back on the job quickly and smoothly.

Effective Return Helps Employers and Employees

Effective return-to-work approaches can protect an employee’s earning power and boost an organization’s output as the employee adds value while still recuperating. Furthermore, in many instances, work itself plays an important role in the recovery process.

Employees Can Benefit from the Toolkit

With effective accommodations and a clear understanding of the return-to-work process, employees can be back on the job sooner and retain their income. Employees can use this toolkit to get started.

Employers Can Also Benefit from the Toolkit

Strategies to return employees to work as quickly and smoothly as possible benefit everyone. Employers can use this toolkit to learn about the tools and resources available to assist you with the return-to-work process.

A World with Unlimited Employment Opportunities

Vision Payroll salutes the ODEP in its quest for a world in which people with disabilities have unlimited employment opportunities.

Monday, October 11, 2010 will be Columbus Day, a federal holiday. Although the offices of Vision Payroll will be open and payrolls will be processed, most banks will be closed in observance of the holiday.

Date Paid	Process Deadline
10/11/2010	10/6/2010
10/12/2010	10/7/2010
10/13/2010	10/11/2010

Payroll Dates May Be Affected by Columbus Day

Payrolls dated October 11 will be paid October 8 unless a previous change in schedule has been submitted. Payrolls submitted after these processing deadlines will be pushed back until the next available processing day. No changes are required for payrolls dated October 14.

Veterans Day Is Next Federal Holiday

The next federal holiday will be Thursday, November 11, 2010, Veterans Day. Contact Vision Payroll as soon as possible to make changes to or for questions on your processing schedule.

Vision Payroll was one of only nine companies chosen from hundreds nationwide as a 2010 Outstanding Achievement Award winner by Payroll Associates, the leading payroll software provider in the country. The award was announced at the annual users’ conference held recently in Scottsdale, Arizona.

“We’re honored to be recognized with such a prestigious award,” said Anne Leader, president of Vision Payroll. “It is a remarkable testimony to the support we’ve received from our current customers and the hundreds of companies who make the decision each year to choose Vision Payroll for their employer services.

“We also want to thank our employees for their part in helping us win this award. Though we have the best technology in the industry, without our employees, our clients would be just another number as they are at other payroll providers.”

Vision Payroll of Leominster provides payroll processing, human resource management, time and attendance, and employee screening and hiring and collaborates with the top providers in many other areas to provide a superior solution for the employee-related needs of today’s employers.

Assistant Secretary Julie E. Squire of the Division of Unemployment Insurance of the Maryland Department of Labor, Licensing and Regulation has announced that the taxable wage base for 2011 will remain at $8,500, unchanged from 2010. Rate information for 2011 will be available in the coming months.

Wage Base Has Been Unchanged Since 1992

The wage base in Maryland has been at $8,500 since 1992.

Find Out the Wage Base for All States by Visiting the Vision Payroll Unemployment Taxable Wage Base Page

Contact Vision Payroll if you have any questions on Maryland unemployment taxable wage base or visit our Unemployment Taxable Wage Base page.

Brad Avakian, Commissioner of the Oregon Bureau of Labor and Industries, announced recently that, effective January 1, 2011, the minimum wage for the state of Oregon will increase to $8.50 per hour.

Measure 25 Mandates Annual Adjustments

As a result of Measure 25, which passed in 2002, an adjustment to the minimum wage must be calculated no later than September 30 of each year. The adjustment is based on any increase in the US City Average Consumer Price Index for All Urban Consumers for All Items (CPI). The 1.15% increase in the CPI will result in a comparable change in the minimum wage.

Find Out the Minimum Wage for All States by Visiting the Vision Payroll Minimum Wage Chart Page

Contact Vision Payroll if you have any questions on the Oregon minimum wage or visit our Minimum Wage Chart.

This week’s question comes from Katy, an HR administrator. We know we need to capture the cost of health coverage and report it on Form W-2, starting in 2011. How do we determine the cost of health insurance to report on Form W-2? Answer: Employers are required to use rules “similar to the rules of §4980I(d)(1)”, which are the rules used to calculate the cost to qualified beneficiaries who elect COBRA coverage.

Further Guidance for Reporting the Cost Health Insurance on Form W-2 Is Expected

As further guidance from the Internal Revenue Service (IRS) becomes available in this area, Vision Payroll will provided updated guidelines for calculating the amount to be included on Form W-2.