Vision Payroll

The California Employment Development Department (EDD) recently released the 2012 UI, ETT, and SDI rates. An historical compilation of prior year rates is available in Form DE 3395.

2012 UI, ETT, and SDI Rates

The UI rate schedule in effect for 2012 is Schedule “F+.” This is Schedule F plus a 15% emergency surcharge, rounded to the nearest tenth. Schedule “F+” provides for UI contribution rates from 1.5% to 6.2%.

Exception for Employers Subject to §977(c)

Exception: Employers subject to §977(c) of the CUIC must pay at the highest rate provided by law plus an additional 2%.

Taxable Wage Limit Remains at $7,000

The taxable wage limit is $7,000 per employee.

The Voluntary UI program Is Not in Effect for 2012

The Employment Training Tax (ETT) rate for 2012 is 0.1%. The UI and ETT taxable wage limit remains at $7,000 per employee per calendar year.

SDI Rate Is Set at 1.0%

The State Disability Insurance (SDI) withholding rate for 2012 is 1.0%. The taxable wage limit is $95,585 for each employee per calendar year. The maximum to withhold for each employee is $955.85.

Notices Will Be Mailed December 30

UI, ETT, and SDI tax rates are combined on a single rate notice, Notice of Contribution Rates and Statement of UI Reserve Account (DE 2088). The DE 2088 will be mailed in December, with a mailing date of December 30. Employers will have 60 days from the December 30 mailing date to protest any item on the DE 2088 except SDI and ETT, which are specifically set by law.

New Employer Rate Set at 3.4%

For new employers, the UI tax rate is 3.4% for up to three years. Owners that purchased an established business have the option of acquiring the previous owner’s UI tax rate.

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 the California unemployment taxable wage base or visit our Unemployment Taxable Wage Base page.

According to the California Employment Development Department, California will be a FUTA tax credit reduction state in 2011.

Standard Credit Rates Is 5.4% for 2011

Generally, employers who pay their state unemployment tax by the due date for filing Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return, receive a credit 5.4% against their Federal Unemployment Tax Act (FUTA) tax. This credit is claimed on Form 940.

FUTA Wage Base Is $7,000 for 2011

The FUTA wage base is $7,000 for 2011.

Employers in Certain States Are Subject To Credit Reduction

Federal law provides for a reduction in the FUTA tax credit when a state has outstanding federal loans for two years. The credit reduction is calculated on Schedule A of Form 940.

California Is Subject To Credit Reduction for First Time

Since California was not a credit reduction state in 2010, the credit reduction rate will be 0.3% for 2011. California employers will receive a reduced credit of 5.1% for 2011. For the first six months of 2011, the FUTA tax rate was 6.2% and for the last six months of 2011, the FUTA tax rate has been 6.0%. Therefore, California employers will pay an effective rate of 1.1% for the first six months of 2011 and 0.9% for the last six months of 2011. The credit reduction will continue to increase by 0.3 percentage points each year until the loan is paid, e.g., 0.6% in 2012, 0.9% in 2013, etc.

Vision Payroll Will Calculate the Credit Reduction for All California Clients

Contact Vision Payroll if you have any further questions on the California credit reduction.

The California Employment Development Department (EDD) has announced the release of the California Employer’s Guide 2012 DE 44 Rev. 38 (the Guide). The Guide is published to help employers understand their rights and responsibilities.

Information Presented in Chronological Sequence

Information in the Guide is presented in a chronological sequence, beginning with what employers need to know or do first, such as who is an employer, when to register, who is an employee, and what are wages.

California Generally Follows Federal Law

To simplify reporting requirements, the EDD follows federal tax guidelines and due dates whenever possible; however, California laws and rates may differ from federal laws and rates. The EDD administers payroll tax reporting laws according to the California Unemployment Insurance Code (CUIC) and California Code of Regulations (CCR).

The Guide Is an Important Resource

Regardless of the size of the business, the Guide is an important resource on the procedures required for compliance with California payroll tax laws. It clarifies both the provisions of the CUIC and CCR and their application to the business.

The Guide Provides General Information

The Guide provides general information that applies to the majority of employers. The Guide provides references to additional information on specialized topics. Information on detailed or complex issues that only apply to a small number of employers is not included in the Guide.

Contact Vision Payroll Today

Contact Vision Payroll if you have further questions on the Guide.

The US Department of Labor (DOL) recently announced a $2,261,417 National Emergency Grant to provide re-employment services to about 365 workers affected by layoffs at 12 companies throughout Massachusetts, including four employee staffing businesses that provided workers for the other companies.

Layoffs Scheduled to Continue Through 2012

The layoffs, which began in May 2008 and are scheduled to continue until March 2012, are occurring at Biogen Idec in Cambridge, Commercial Sheet Metal in Canton, Covidien in Mansfield, EDO Fiber Innovations/ITT Corp. in Walpole, Henkel Corp. in Billerica, International Power America in Marlborough, Reveal Imaging Technologies Inc. in Bedford and Unilever-Breyers Ice Cream in Framingham. The staffing agencies include Kelly Services in Quincy, Randstad in Boston, Aerostek in Braintree and Total Technical Services in Waltham.

DOL Secretary Solis Comments on Grant

“This funding from the federal government is a step toward helping Massachusetts workers, who face a challenging market, find new employment,” said Secretary of Labor Hilda L. Solis. “The grant will support efforts to prepare these individuals for good jobs in high-growth occupations.”

Funds Are Awarded to the Massachusetts Department of Workforce Development

Awarded to the Massachusetts Department of Workforce Development, the grant will provide training and supportive services for affected workers. Supplemental services will be available to workers who also have been deemed eligible for benefits in the form of Trade Adjustment Assistance. Those who are not eligible for TAA will receive the full array of employment-related services available under this grant.

Additional Funding May be Available at a Later Date

Of the $2,261,417 announced today, $998,078 will be released initially. Additional funding up to the amount approved will be made available as the commonwealth demonstrates a continued need for assistance.

National Emergency Grants Are Part of Discretionary Fund

National Emergency Grants are part of the secretary of labor’s discretionary fund and are awarded based on a state’s ability to meet specific guidelines.

This week’s question comes from Natalie, an HR director.

Natalie asks:

We are looking to hire some more employees, but need some help locating talented candidates. How can Vision Payroll help us recruit employees?

Answer: Vision Payroll has partnered with My Recruiting Center to provide a comprehensive solution to employers looking to recruit and hire new employees.

Different Solutions for Different Employer Needs

Vision Payroll and My Recruiting Center know that different employers have different needs. Therefore, employers can pick from three different levels of service:

1. Self Service Solution
2. Full Service Solution
3. Temp/Contract Solution

Self Service Solution: An Easy Way to Advertise Your Job Opening!

The Self Service Solution has three easy steps:

1. Pick a Job Description—Edit one of ours or use your own;
2. Choose Your Advertising— Monster, Career Builder, the paper…We have 150+ locations. List your job wherever you choose; and
3. Review Your Candidates—One list of candidates screened and ranked. No more logging on to multiple sites to get the same resumes over and over again.

Full Service Solution: Want Someone to Recruit for You?

We have a dedicated team of recruiters available and on call to address any recruiting need. From day labor to IT Specialists, we have the expertise to find the right people quickly.

Temp/Contract Solution: Looking for Temporary and Contract Workers?

Whether it’s a project, a day of labor, or a long-term contract, My Recruiting Center can help you find the temporary and contract labor that meets your needs.

Get Started with My Recruiting Center Today!

Simply go to the Vision Payroll home page, click “Payroll Login”, and then sign in to Online Employer. Once in, click the “Recruiting Center” tab on the left and then the company you want to recruit for on the right and you’re ready to go. Contact Vision Payroll if you need help with your Online Employer login or password.

According to the US Department of Labor, in the week ending November 12, the advance figure for seasonally adjusted initial claims was 388,000, a decrease of 5,000 from the previous week’s revised figure of 393,000. The 4-week moving average was 396,750, a decrease of 4,000 from the previous week’s revised average of 400,750.

Advance Seasonally Adjusted Insured Unemployment Rate Remains Unchanged

The advance seasonally adjusted insured unemployment rate was 2.9% for the week ending November 5, unchanged from the prior week’s unrevised rate.

Advance Seasonally Adjusted Insured Unemployment Decreases

The advance number for seasonally adjusted insured unemployment during the week ending November 5 was 3,608,000, a decrease of 57,000 from the preceding week’s revised level of 3,665,000. The 4-week moving average was 3,670,000, a decrease of 32,750 from the preceding week’s revised average of 3,702,750.

With many company holiday celebrations being planned, employers need to be aware of and prepare for potential workplace-related risks and liabilities.

Three Areas You Must Be Well Prepared to Address

1. Religious Accommodation: Some employees may feel uncomfortable with the inclusion or exclusion of certain holiday celebrations. Do you have a fair resolution process for dealing with complaints?
2. Harassment and Discrimination: Harassment and discrimination are issues year-round, but may be more prevalent during holiday social gatherings. Have you reminded employees about inappropriate conversations and actions before such gatherings?
3. Alcohol and Drug Use: Inappropriate and illegal drug and alcohol use during company functions is still a high-profile concern. Have you set the expectations about what is and is not acceptable drug and alcohol use at company events?

Have You Addressed the Top Three Employer Hot Points During This Holiday Season?

To learn the valuable tips for dealing with these issues and much more, be sure to listen to Top Three Employer Hot Points During This Holiday Season in this month’s HRCast, a recording provided by our team of HR Pros and available exclusively on MyHRSupportCenter.

MyHRSupportCenter Provides Alerts, Best Practices, and HR Tools Every Day

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 haven’t yet signed up and would like a free trial of MyHRSupportCenter, contact Vision Payroll today.

The Vermont Department of Labor announced recently that pursuant to Title 21 of the Vermont Statutes, Annotated §384, the minimum wage for the state of Vermont will increase from $8.15 to $8.46 per hour effective January 1, 2012. The law requires an adjustment to the minimum wage be calculated each year.

Adjustment Is Tied to Changes in CPI

The adjustment is tied to the change in the federal Consumer Price Index, US city average, not seasonally adjusted (CPI-U) for the 12 months ending in August and cannot increase more than five percent per year. The 3.7% increase in the CPI-U will result in an increase of $0.31 for 2012.

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 Vermont minimum wage increase or visit our Minimum Wage Chart.

Thursday, November 24, 2011 will be Thanksgiving Day, a federal holiday. The offices of Vision Payroll will close Thanksgiving Eve, November 23 at 3 pm EST and re-open Friday November 25. Most banks will also be closed in observance of the holiday. Payroll changes and hours must be submitted before the processing deadlines as listed below.

Date Paid	Process Deadline
11/24/2011	11/21/2011
11/25/2011	11/22/2011
11/28/2011	11/23/2011

Payroll Dates May be Affected by Thanksgiving Day

Payrolls dated November 24 will be paid November 23 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 November 29.

Christmas Day Is Next Federal Holiday

There will be no UPS ground delivery on November 24 or November 25, so we strongly recommend submitting payrolls during this time as early as practicable. The next federal holiday will be December 26, 2011, celebration of Christmas Day. Contact Vision Payroll as soon as possible to make changes to or for questions on your processing schedule.

This week’s question is from Herman, an HR Manager.

Herman asks:

We are reviewing our payroll processing schedule for 2012. What is the holiday schedule for 2012?

Answer: There are two types of holidays: those on which payrolls are processed and those on which payrolls are not processed. In addition, companies should also consider that there is no mail pickup or delivery on federal holidays.

UPS Holiday Delivery Schedule Varies

UPS may pickup and deliver on certain holidays, but may not pickup or deliver on other days that are not holidays. Consult the UPS website for further information. The schedule for 2012 holidays is as follows:

Date	Holiday	Federal Reserve Holiday	Payrolls Processed
1/2/2012	New Year's Day (Observed)	Yes	No
1/16/2012	Birthday of Martin Luther King, Jr.	Yes	Yes
2/20/2012	Washington's Birthday	Yes	Yes
5/28/2012	Memorial Day	Yes	No
7/4/2012	Independence Day	Yes	No
9/3/2012	Labor Day	Yes	No
10/8/2012	Columbus Day	Yes	Yes
11/12/2012	Veterans Day (Observed)	Yes	Yes
11/22/2012	Thanksgiving Day	Yes	No
12/25/2012	Christmas Day	Yes	No

Visit VisionPayroll.com for Further Details on Individual Holidays

Contact Vision Payroll if you have any questions on the 2012 holiday schedule and be sure to check VisionPayroll.com for further details as each holiday approaches.