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The Employment Security Division of the Nevada Department of Employment, Training and Rehabilitation has announced an decrease in the taxable wage base for 2012.

Wage Base Decreases for Second Consecutive Year

The wage base will decrease from $26,600 for 2011 to $26,400 for 2012. This will be the second straight year that Nevada has reduced the taxable wage base.

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

This week’s question comes from Steve, a small business owner.

Steve asks:

I’ve read about the Voluntary Classification Settlement Program (VCSP) and its application process with the Internal Revenue Service (IRS). What are the IRS and Department of Labor (DOL) doing about workers who receive 1099s?

Answer: The IRS and DOL are entering into agreements that include the IRS and DOL as well as several states to share information and coordinate enforcement of current laws and regulations.

Memoranda Signed at Washington Ceremony

Secretary of Labor Hilda L. Solis recently hosted a ceremony at DOL headquarters in Washington to sign a memorandum of understanding with the IRS that will improve departmental efforts to end the business practice of misclassifying employees in order to avoid providing employment protections. In addition, labor commissioners and other agency leaders representing seven states signed memoranda of understanding with the department’s Wage and Hour Division (WHD) and, in some cases, its Employee Benefits Security Administration, Occupational Safety and Health Administration, Office of Federal Contract Compliance Programs and Office of the Solicitor. The signatory states are Connecticut, Maryland, Massachusetts, Minnesota, Missouri, Utah and Washington. Secretary Solis also announced agreements for the WHD to enter into memoranda of understanding with the state labor agencies of Hawaii, Illinois and Montana, as well as with New York’s attorney general.

DOL and IRS Will Share Information with Participating States

The memoranda of understanding will enable the DOL to share information and coordinate law enforcement with the IRS and participating states in order to level the playing field for law-abiding employers and ensure that employees receive the protections to which they are entitled under federal and state law.

Secretary Solis: We’re Standing United to End the Practice of Misclassifying Employees

“We’re here today to sign a series of agreements that together send a coordinated message: We’re standing united to end the practice of misclassifying employees,” said Secretary Solis. “We are taking important steps toward making sure that the American dream is still available for all employees and responsible employers alike.”

Commissioner Shulman: We Will Work Together More Efficiently to Address Worker Misclassification Issues

“This agreement takes the partnership between the IRS and DOL to a new level,” said IRS Commissioner Doug Shulman. “In this new phase of our relationship, we will work together more efficiently to address worker misclassification issues, and better serve the needs of small businesses and employees.”

Misclassification Can Create Economic Pressure for Law-Abiding Business Owners

Business models that attempt to change, obscure or eliminate the employment relationship are not inherently illegal, unless they are used to evade compliance with federal labor laws — for example, if an employee is misclassified as an independent contractor and subsequently denied rights and benefits to which he or she is entitled under the law. In addition, misclassification can create economic pressure for law-abiding business owners.

Memoranda Arose as Part of the Misclassification Initiative

These memoranda of understanding arose as part of the department’s Misclassification Initiative, which was launched under the auspices of Vice President Biden’s Middle Class Task Force with the goal of preventing, detecting and remedying employee misclassification.

Contact Vision Payroll Today

Contact Vision Payroll if you have further questions on the memoranda of understanding.

According to the US Department of Labor, in the week ending September 24, the advance figure for seasonally adjusted initial claims was 391,000, a decrease of 37,000 from the previous week’s revised figure of 428,000. The 4-week moving average was 417,000, a decrease of 5,250 from the previous week’s revised average of 422,250.

Advance Seasonally Adjusted Insured Unemployment Rate Remains Unchanged

The advance seasonally adjusted insured unemployment rate was 3.0% for the week ending September 17, 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 September 17 was 3,729,000, a decrease of 20,000 from the preceding week’s revised level of 3,749,000. The 4-week moving average was 3,743,000, a decrease of 4,500 from the preceding week’s revised average of 3,747,500.

The federal Americans with Disabilities Act (ADA) prohibits certain employers from discriminating against individuals with disabilities. The ADA also requires employers to engage in an interactive process of assessing reasonable accommodations with affected employees.

Learn About the Interactive Process of Assessing Reasonable Accommodations Today

• Which businesses are subject to the ADA?
• Which employees are considered to have disabilities under the ADA?
• What is the impact of the ADA Amendments Act of 2008 (ADAAA)?
• What are undue hardships?
• What are reasonable accommodations?

Get More Details on Employee Disabilities and the Interactive Process

To learn the answers to these questions and much more, be sure to listen to Employee Disabilities and the Interactive Process 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.

Iowa Workforce Development has announced that the 2012 unemployment rates will be based on Table 4; 2011 rates are based on Table 3. As a result, employers will see approximately $96 million in tax savings and the average rate will fall from 2.8% in 2011 to 2.4% in 2012.

Director Teresa Wahlert Comments on the Increase

According to Director Teresa Wahlert, “Most states across the country are experiencing significant increases in their tax rates in order to repay the federal government for loans. Due to successful management of our Unemployment Insurance Trust Fund, Iowa did not borrow from the federal government and is reducing the burden on employers.”

Wage Base Will Increase in 2012

In addition, the taxable wage base for 2012 has been announced. The wage base will increase to $25,300 for 2012, up from $24,700 for 2011. Consequently, some employers will see contributions to the fund increase even with the lower rates based on the higher wage base.

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

Contact Vision Payroll with any questions on the Iowa unemployment insurance rates or wage base or visit our Unemployment Taxable Wage Base page.

Monday, October 10, 2011 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
10/10/2011	10/5/2011
10/11/2011	10/6/2011
10/12/2011	10/7/2011

Payroll Dates May Be Affected by Columbus Day

Payrolls dated October 10 will be paid October 7 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 13.

Veterans Day Is Next Federal Holiday

The next federal holiday will be Friday, November 11, 2011, Veterans Day. Contact Vision Payroll as soon as possible to make changes to or for questions on your processing schedule.

Director Joan K. Evans of the Wyoming Department of Workforce Services has announced a increase in the taxable wage base for 2012.

$700 Increase More Offsets Last Year’s Decrease

The wage base will increase from $22,300 for 2011 to $23,000 for 2012.

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

For the second straight year, Vision Payroll has been selected as an Outstanding Achievement Award winner by Payroll Associates, the leading payroll software provider in the country. The platinum level award, the highest honor given, was announced at the annual users’ conference held recently in Charlotte, North Carolina.

Customer Service Is a Top Priority at Vision Payroll

“Many companies claim to make customer service a priority,” said Anne Leader, president of Vision Payroll. “To receive a platinum-level award and be one of only four companies from among hundreds of eligible companies to win in consecutive years proves that we at Vision Payroll make customer service our top priority every day.

“Our customers recognize this dedication and that’s why each year hundreds of them choose to use Vision Payroll for their payroll and other employer services.

“We thank our employees for their hard work and customer focus that puts a human face on our leading-edge technology. We also want to thank our business associates, whose belief in us is evidenced by their many referrals each year that allow us to grow our business successfully. Finally, we say thank you to our customers for their on-going support. The gratitude and loyalty our customers show Vision Payroll make awards like this possible.”

Vision Payroll Offers a Superior Solution in Payroll and Other Employment-Related Areas

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

This week’s question comes from Allan, a small-business owner.

Allan asks…

I read about the Voluntary Classification Settlement Program (VCSP). I have some workers who might need to be classified as employees. How do I apply for the VCSP?

Answer: Employers may use Form 8952, Application for Voluntary Classification Settlement Program (VCSP), to apply for participation in the VCSP.

Eligibility Requirements

The instructions to Form 8952 list the following eligibility requirements to participate in the VCSP:

1. Want to voluntarily reclassify certain workers as employees for federal income tax withholding, Federal Insurance Contributions Act (FICA), and Federal Unemployment Tax Act taxes (collectively, federal employment taxes) for future tax periods.
2. Be presently treating the workers as non-employees.
3. Have satisfied any Form 1099 requirements for each of the workers for the 3 preceding calendar years ending before the date Form 8952 is filed. A taxpayer will have satisfied its Form 1099 filing requirements if it provided Forms 1099 to the workers being reclassified for the period of time that the workers worked for the taxpayer. For example, a taxpayer who has only been in business for two years will have satisfied its Form 1099 filing requirements if it provided the workers being reclassified with Forms 1099 for those two years.
4. Have consistently treated the workers as non-employees.
5. Have no dispute with the Internal Revenue Service (IRS) as to whether the workers are non-employees or employees for federal employment tax purposes.
6. Not be under examination by the IRS.
7. Not be under examination by the Department of Labor (DOL) or any state agency for the proper classification of the workers.
8. Not have been examined previously by the IRS or the DOL for the classification of workers; or,
9. If the taxpayer has been examined previously by the IRS or the DOL for the classification of workers, taxpayer must have complied with the results of the prior examination.

In addition, as part of the VCSP, a taxpayer must agree to extend the period of limitations on assessment of employment taxes for 3 years for the first, second, and third calendar years beginning after the date the taxpayer elects to begin treating the workers as employees under the VCSP closing agreement. The taxpayer has the right to refuse to extend the period of limitations on assessment or to limit the extension to particular issues or to a particular period of time. However, if the taxpayer refuses to extend the period of limitations on assessment or provides only a limited extension, the IRS will not execute the VCSP closing agreement.

Filing Deadline for Form 8952

Although there is no absolute filing deadline for Form 8952, it should be filed at least 60 days before the date you want to begin treating the class or classes of workers as employees.

No Payment Due with Form 8952

Although you will be required to calculate the amount of the payment to be paid, the amount should not be sent with Form 8952. It must be sent with the signed closing agreement.

Contact Vision Payroll Today for Information on Form 8952

Contact Vision Payroll for further information on Form 8952.

According to the US Department of Labor, in the week ending September 17, the advance figure for seasonally adjusted initial claims was 423,000, a decrease of 9,000 from the previous week’s revised figure of 432,000. The 4-week moving average was 421,000, an increase of 500 from the previous week’s revised average of 420,500.

Advance Seasonally Adjusted Insured Unemployment Rate Remains Unchanged

The advance seasonally adjusted insured unemployment rate was 3.0% for the week ending September 10, 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 September 10 was 3,727,000, a decrease of 28,000 from the preceding week’s revised level of 3,755,000. The 4-week moving average was 3,742,000, a decrease of 6,500 from the preceding week’s revised average of 3,748,500.