Vision Payroll

The US Department of Labor (DOL) recently announced a $1,570,907 grant to assist about 400 workers affected by the closing of Sonoco Packaging Products in Devens, Mass., and layoffs at Debbie’s Staffing in Ayer, Mass.

DOL Secretary Solis Comments on Grant

“Many of these workers — who have lost jobs through no fault of their own — face significant language and education barriers to new employment,” said Secretary of Labor Hilda L. Solis. “This grant will make available the services they need to re-enter the workforce.”

Merrimack Valley Workforce Investment Board Will Operate Grant

Awarded to the Massachusetts Department of Workforce Development, this grant will be operated by the Merrimack Valley Workforce Investment Board. It will provide these dislocated workers, many of whom are also certified as eligible for Trade Adjustment Assistance (TAA), with access to “wrap-around” and supportive services that are not available through the TAA program. The workers that are not TAA-eligible will have access to the full array of training and employment-related services under this grant, including English for speakers of other languages classes and assistance to prepare for the General Educational Development tests.

Additional Funding Will Be Released as Needed

Of the $1,570,907 announced today, $701,933 will be released initially. Additional funding up to the amount approved will be made available as the commonwealth demonstrates a continued need for funding.

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 or commonwealth’s ability to meet specific guidelines.

In Technical Information Release 11-2, the Massachusetts Department of Revenue (DOR) announced higher interest rates on overpayments and underpayments of tax.

Interest Rates Had Decreased for First Quarter

For all of 2010, interest rates on overpayments had been 3%, simple interest. In addition, for all of 2010, interest rates on underpayments had been 5%, compounded daily. These rates had decreased to 2%, simple interest and 4%, compounded daily, respectively, effective January 1, 2011.

Second Quarter Interest Rates Revert to 2010 Levels

Effective April 1, 2011, interest rates will revert to the 2010 rates of 3%, simple interest for overpayments and 5%, compounded daily on underpayments.

Contact Vision Payroll Today

Contact Vision Payroll for more information on interest rates on overpayments and underpayments of tax in Massachusetts.

The Massachusetts Executive Office of Labor and Workforce Development (EOLWD) has released the 2011 contribution rates. Employers apply the rates to taxable payroll to determine the amount of tax due.

Many 2011 Employer Rates Remain Unchanged

Although the new construction employer rate and the solvency assessment rate have both increased, the  new non-construction employer rate, the minimum rate, the maximum positive rate, and the maximum rate all remain unchanged. The following table provides rates for 2011 and 2010.

Rate	2011	2010
New non-construction employer rate	2.83%	2.83%
New construction employer rate	8.62%	7.84%
Minimum rate	1.26%	1.26%
Maximum positive rate	6.14%	6.14%
Maximum rate	12.27%	12.27%
Solvency assessment	1.71%	1.22%

Solvency Assessment Is not Paid Directly

The Solvency Assessment is applied by the Division of Unemployment Assistance (DUA) when calculating an employer’s Statement of Account Balance. It is applied to the employer’s taxable wages for the period.

Still Have Questions on 2011 Massachusetts Unemployment Tax Rates

Contact Vision Payroll for further information on 2011 Massachusetts unemployment tax rates.

Governor Deval Patrick recently signed legislation that will provide immediate relief to Massachusetts’ businesses by freezing employer contributions to the Unemployment Insurance (UI) Trust Fund at current levels. This new law prevents a scheduled rate hike from taking effect, helping to save businesses $402 million this year. Although the legislation freezes the rate schedule for 2011, individual employer’s rates may increase or decrease from 2010. The rate change is determined by the change in the employer’s Experience Rating.

Legislation Said to Position State for Continued Economic Recovery

“Without this legislation employers would have seen an average increase of $228 per employee,” said Governor Patrick. “We want to encourage a positive climate for employers and by signing this bill we are helping to position the state for continued economic recovery.”

Employer Contributions Tied to Trust Fund Levels

Employer contributions into the UI Trust Fund are tied to the amount of reserves in the trust fund. By law, a scheduled increase was triggered on January 1, 2011, which would have caused an increase in the average contribution per employee of $228 for 2011. In order to reduce costs for Massachusetts businesses, Governor Patrick and the Legislature agreed to freeze the contribution at a lower rate schedule (Schedule E). This measure will not impact benefit levels or eligibility for persons currently collecting unemployment benefits.

Notice of Employer’s Unemployment Insurance Contribution Rate for 2011 to Be Released

Now that the legislation has been passed, the Massachusetts Division of Unemployment Assistance (DUA) is expected to release through QUEST the Notice of Employer’s Unemployment Insurance Contribution Rate for 2011. This notice contains information on each employer’s contribution rates, including the following:

• Unemployment Insurance (UI) Rate,
• Universal Health Insurance (UHI) Rate,
• Workforce Training Fund (WTF) Rate, and
• Experience Rating

Contact Vision Payroll for Further Information

Contact Vision Payroll for further information on the unemployment tax rate schedule in Massachusetts for 2011.

The Massachusetts Division of Unemployment Assistance (DUA) has released the UHI contribution rates for 2011. According to MGL c. 151A, §14G(f):

There shall be a rate review board composed of the commissioner of medical assistance or his designee, the deputy director of employment and training or his designee and the commissioner of insurance or his designee. The rate review board shall determine if the unemployment health insurance contribution rate and the unemployment health insurance contribution wage base established in this section shall be adequate to provide for the estimated costs for the subsequent year of unemployment health insurance programs established pursuant to subsection (j) provided by said division of employment and training. If in the opinion of said board the unemployment health insurance contribution wage base or the unemployment health insurance contribution rate as established above would be inadequate to properly fund the unemployment health insurance program, said rate of health insurance inflation or the unemployment health insurance contribution rate shall be appropriately adjusted in order to properly fund said unemployment health insurance program.

On or before November 30 of each year, the deputy director of employment and training shall certify to said board the estimated costs for the subsequent year of health insurance programs provided by the division of employment and training for individuals and their families who are eligible for the health insurance program established by subsection (j) for individuals receiving unemployment insurance compensation. Such estimated costs shall be exclusive of amounts to be covered by premiums, co-payments, deductibles and co-insurance to be paid by covered individuals and any anticipated appropriations. The rate review board shall further adjust such estimated costs to reflect prudent levels of reserves sufficient to carry out the responsibilities of the division of employment and training for said unemployment health insurance program. If in the opinion of said board the rate of health insurance inflation on the unemployment health insurance contribution wage base as established or calculated above would be inadequate to properly fund said unemployment health insurance program, said rate of health insurance inflation or the unemployment health insurance contribution rate shall be appropriately adjusted in order to properly fund said health insurance programs.

2011 Rates to Increase for Most Employers

According to the DUA, for 2011 rates will be as follows:

The health insurance contribution rate is a flat rate of 0.36% for calendar year 2011 for all subject employers—except for those meeting the exempt or reduced rate criteria. (Employers operating within two calendar years following the “newly subject” status pay at rates of 0.04% and 0.08%, respectively.)

Contact Vision Payroll if you have any questions on the 2011 UHI contribution rates.

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-2010-13-12.13.10 on Prevailing Wages

The DOS regularly issues Prevailing Wage Opinion Letters and recently released PW-2010-13-12.13.10. This letter confirms the job classifications “for workers who perform certain tasks related to the construction of either concrete or asphalt sidewalks.”

DOS Job Classifications of the Tasks

According to the DOS, the relevant job classifications are the following:

1. Removal of the existing materials (old sidewalk) using a backhoe or front end loader.
2. Removal of existing materials with hand tools, primarily shovels, or jackhammer.
3. Gravel and sub-grade materials are put in place using hand shovels and rakes.
4. With respect to concrete sideways, the installation with hammers and stakes of wood edging of 1 inch by 4 inches. Thereafter, the area is filled with concrete from a pre-mix truck using shovels, rakes and wheelbarrows. The cement is leveled and swept with brooms.
5. In the asphalt installation, the process is similar to the concrete but the asphalt is leveled with rakes and shovels. It is then rolled with a hand roller.
6. Installation of curbing using a front end loader and guidance of the curbing into place

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

With the exception of the operation of the backhoe, front end loader, and jackhammer, described in items 1, 2 and 6, each of the listed tasks is paid at the rate for “Laborer” as indicated on the rate sheet.

The operation of a jackhammer, as described in item 2, is paid at the rate for “Jackhammer & Paving Breaker Operator” as indicated on the rate sheet. 

The operation of a backhoe or loader, as described in items 1 and 6, is paid at the rate for a “Backhoe/Front End Loader” as indicated on the rate sheet.

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.

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-2010-12-11.08.10 on Prevailing Wages

The DOS regularly issues Prevailing Wage Opinion Letters and recently released PW-2010-12-11.08.10. This letter clarifies “that the installation of photovoltaic modules or linking of the individual modules together to form photovoltaic arrays, including hardware is to be paid at the rate for an ‘Electrician.’” Furthermore, if portions of the roof structure are removed or re-roofed or flashing or other roofing material is required to be installed as part of the project, such work is to be paid at the rate for a ‘Roofer.’”

DOS Job Classifications of the Tasks

According to the DOS, “the relevant job classifications of the tasks listed in [the] request” are the following:

1. Construction of a Unirac ULA support structure for the photovoltaic modules: The Unirac ULA is an aluminum pipe support structure for photovoltaic modules that was constructed on the roof of the building in question.
2. Attaching the supporting structure to the roof with bolts.
3. Construction of a rail system with square tubing which is used to act as an angled base where the photovoltaic modules are installed.

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

“An examination of the applicable collective bargaining agreements and nature of the work confirms that the rate for ‘Electrician’ applies to such work including the installation of mounting brackets and attachment of such brackets to the roof as these tasks are integral to the to the installation of the modules themselves.”

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 Jordan, a company controller. For most employees in our company, the Massachusetts wages reported on the Form W-2 equal the federal wages on the Form W-2. My Massachusetts wages, however, are higher than my federal wages. Why don’t my Massachusetts wages equal my federal wages on my W-2? Answer: There may be several reasons why Massachusetts wages don’t equal federal wages on a Form W-2.

Differences Between Federal Wages and Massachusetts Wages on Form W-2

Although Massachusetts generally follows federal law on income taxation of wage benefits, certain items may increase or decrease Massachusetts wages as compared to federal wages. Among the differences are the following:

1. Employee and employer contributions to Massachusetts governmental unit §414(h) retirement plans are taxable for Massachusetts purposes and not for federal purposes,
2. The value of an employer-provided monthly transit pass in excess of $120 and not in excess of $230 per month is taxable for Massachusetts purposes and not for federal purposes,
3. Imputed income from cost of health insurance coverage of former spouses and non-dependent children as required under Massachusetts law is taxable for federal purposes and not for Massachusetts purposes (prior to the change included in the Patient Protection and Affordable Care Act),
4. Employee contributions to cafeteria plans for the benefit of a same-sex spouse and that spouse’s children when the same-sex spouse or that spouse’s children do not qualify as a dependent of the employee are taxable for federal purposes and not for Massachusetts purposes,
5. Qualified tuition reduction that an educational organization provides to the same-sex spouse of an employee is taxable for federal purposes and not for Massachusetts purposes, and
6. Employer contributions to an accident or health insurance plan for the benefit of a same-sex spouse and that spouse’s children when the same-sex spouse or that spouse’s children do not qualify as a dependent of the employee are taxable for federal purposes and not for Massachusetts purposes.

Contact Vision Payroll Now

Contact Vision Payroll if you have further questions on the differences between federal wages and Massachusetts wages on Form W-2.

Effective November 4, 2010, employers in Massachusetts are prohibited from asking about criminal history on most job applications. In some limited situations, employers will still be able to ask about criminal history on job applications.

Situations in Which Employer May Inquire About Criminal Convictions on Initial Applications

According to the new law, “[a]n employer may inquire about any criminal convictions on an applicant’s application form if:

(i) The applicant is applying for a position for which any federal or state law or regulation creates mandatory or presumptive disqualification based on a conviction for 1 or more types of criminal offenses; or

(ii) The employer or an affiliate of such employer is subject to an obligation imposed by any federal or state law or regulation not to employ persons, in either 1 or more positions, who have been convicted of 1 or more types of criminal offenses.”

Employers May Inquire Later in Application Process

The law does not prevent criminal history after the initial application either in an interview or on a subsequent form. Other existing laws, however, limit the types of questions employers may ask.

More Provisions of the Law to Take Effect in 2012

Changes to the information in the Massachusetts Criminal Offender Record Information (CORI) reports, as well as provisions relating to notices that must be provided to certain applicants and policies that must be maintained by certain employers take effect February 6, 2012.

Employers Must Revamp Their Hiring Policies and Procedures

Vision Payroll strongly recommends that employers consult with a qualified labor law attorney to make necessary changes to employment applications and forms and to receive advice as to how to make the necessary changes to their hiring policies and procedures.

This week’s question comes from Anne, a company president. We just received a Notice of Change in Filing Frequency from the Massachusetts Department of Revenue (DOR). What is a Notice of Change in Filing Frequency? Answer: In Massachusetts, employers are required to deposit payroll taxes on one of four filing frequencies:

• Depository
• Monthly
• Quarterly
• Annual

Frequencies Are Based upon Taxes Paid

These frequencies are based upon the amount of tax paid in a twelve-month period. For payroll taxes, the amounts are as follows:

• Depository is greater than $25,000
• Monthly is between $1,200 and $25,000
• Quarterly is between $100 and $2,500
• Annual is less than $100

Consequently, when the amount an employer is expected to pay passes one of the thresholds, the DOR will change the filing frequency.

DOR Mails Notices to Affected Employers

Each year, the DOR mails notices to employers whose frequency will change for the next calendar year. This notice is called a Notice of Change in Filing Frequency.

Forward Notices to Vision Payroll

Although Vision Payroll will review each client’s filing frequency in January, employers who receive a notice can send a copy to Vision Payroll if they wish to have their filing status change on file.