Vision Payroll

Many employers have real concerns about avoidable expenses resulting from employee damage to company property. Some employers have specific policies requiring employees to reimburse for the damages often in the form of payroll deductions or a deduction from the employee’s final paycheck. A common question, however, is whether or not such a workplace policy is appropriate.

Does it matter if the damage was accidental or caused by gross negligence, dishonest or willful acts (i.e., theft), or intentional misconduct? Does the employer need written authorization to make the deduction? What is the impact of the federal Fair Labor Standards Act?

To learn the answers to these questions and much more, be sure to read the featured article by the HR pros at MyHRSupportCenter, Making Employees Pay for Damaged Company Property. If you’re not yet signed up or would like a free trial of MyHRSupportCenter, contact Vision Payroll today.

In IR-2010-022, the Internal Revenue Service (IRS) announced that interest rates for the second quarter of 2010 would remain unchanged from the first quarter. The rates are as follows:

• Four (4) percent for overpayments [three (3) percent in the case of a corporation];
• Four (4) percent for underpayments;
• Six (6) percent for large corporate underpayments; and
• One and one-half (1.5) percent for the portion of a corporate overpayment exceeding $10,000.

The IRS will publish the rates in Revenue Ruling 2010-9. Contact Vision Payroll if you have any questions on the second quarter rates.

The filing deadline for 2009 Form 1096 is March 1, 2010 for most returns. The returns due on that day include Forms 1099, Form 1098, Form 3921, Form 3922, and Form W-2G. The deadline for filing Form 5498, Form 5498-ESA, and Form 5498-SA is June 1, 2010. Filers transmitting more than 250 of any type information return must file electronically. Not filing electronically when required and without a waiver could subject the filer to a penalty. Additionally, filers who submit returns that are unable to be scanned may be subject to a penalty of $50 per return. Contact Vision Payroll if you have any questions on the Form 1096 filing deadlines.

Business owners should be proactive in confirming work eligibility before hiring a new employee. Compared to dealing with Immigration and Customs Enforcement, internally addressing issues right up front is a lot easier. The Form I-9 is the form used to verify that an employee is eligible to work in the United States. Many employers have questions about the Form I-9. Is it better to prepare the Form I-9 before an employee starts work or after? Which sections should be completed and by whom? Can you request too much documentation? Should the completed I-9 Forms be kept in the personnel files?

You’ll learn the answers to these questions and much more from the Top Ten I-9 Tips in this month’s HRCast, a recording provided by our team of HR Pros and available exclusively on MyHRSupportCenter. These tips include information on preparing, reviewing, and storing I-9 Forms as well as additional valuable information.

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’re not yet signed up or would like a free trial of MyHRSupportCenter, contact Vision Payroll today.

Employees who have provided a Form W-4, Employee’s Withholding Allowance Certificate claiming exemption from federal income tax withholding must file a new 2010 Form W-4 by February 16, 2010 in order to continue their exemption from federal income tax withholding. Employers must start withholding on February 16, 2010 if employees have not provided a 2010 Form W-4 claiming exemption. Even employees who are no longer claiming exemption should file a 2010 Form W-4 so that employers may calculate the proper amount of withholding. If an employee has not provided a 2010 Form W-4 by February 16, 2010, the employer should withhold based on a previously filed Form W-4 not claiming exemption, if available or using single, zero allowances, if not. Spanish-speaking employees may complete Formulario W-4(SP), Certificado de Exención de la Retención del Empleado. Upon request, Vision Payroll can provide employers with pre-printed 2010 Forms W-4 for all active employees. Vision Payroll will not automatically change any employee’s claimed withholding allowances. Employers should update the allowances claimed by logging in to their company file or providing Vision Payroll with the updated information.

The US Department of Labor (DOL) has released updated COBRA model notices to help employers meet the notification requirements created by the passage of the Department of Defense Appropriation Act, 2010 (2010 DOD Act). The notices are the Updated General Notice, the Premium Assistance Extension Notice, and the Updated Alternative Notice.

Plans subject to the Federal COBRA provisions must provide the Updated General Notice to all qualified beneficiaries (not just covered employees) who experienced a qualifying event at any time from September 1, 2008 through February 28, 2010, regardless of the type of qualifying event, and who have not yet been provided an election notice. This model notice includes updated information on the premium reduction as well as information required in a COBRA election notice.

Plan administrators must provide notice to certain individuals who have already been provided a COBRA election notice that did not include information regarding the American Recovery and Reinvestment Act of 2009 (ARRA), as amended. This model Premium Assistance Extension Notice includes information about the changes made to the premium reduction provisions of ARRA by the 2010 DOD Act. Listed below are the affected individuals and the associated timing requirements.

• Individuals who were “assistance eligible individuals” as of October 31, 2009 (unless they are in a transition period – see below), and individuals who experienced a termination of employment on or after October 31, 2009 and lost health coverage (unless they were already provided a timely, Updated General Notice) must be provided notice of the changes made to the premium reduction provisions of ARRA by the 2010 DOD Act by February 17, 2010;
• Individuals who are in a “transition period” must be provided this notice within 60 days of the first day of the transition period. An individual’s “transition period” is the period that begins immediately after the end of the maximum number of months (generally nine) of premium reduction available under ARRA prior to its amendment. An individual is in a transition period only if the premium reduction provisions would continue to apply due to the extension from nine to 15 months and they otherwise remain eligible for the premium reduction.

Insurance issuers that provide group health insurance coverage must send the Updated Alternative Notice to persons who became eligible for continuation coverage under a State law. Continuation coverage requirements vary among States and issuers should modify this model notice as necessary to conform it to the applicable State law. Issuers may also find the model Premium Assistance Extension Notice or the Updated General Notice appropriate for use in certain situations.

Vision Payroll recommends employers consult with their benefit broker, COBRA administrator, and labor law attorney to ensure compliance with the updated notice requirements.

Do you need to know the most important employment legislation, HR case laws, workplace trends, and major employee issues anticipated for 2010 and how they affect employers? In this month’s HRCast, a recording provided by our team of HR Pros and available exclusively on MyHRSupportCenter, you’ll learn more about these seven hot HR topics:

1. Employment Litigation
2. Social Networking
3. Expanded FMLA and Military Leave
4. Pandemic Illness Preparedness
5. ARRA COBRA Subsidies
6. Health Care Reform
7. Employee Free Choice Act

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’re not yet signed up or would like a free trial of MyHRSupportCenter, contact Vision Payroll today.

The Internal Revenue Service (IRS) recently released 2010 Form W-5, Earned Income Credit Advance Payment Certificate. There are four criteria for claiming advance earned income credit (EIC) payments.

1. Taxpayer (and spouse if filing jointly) must have a valid social security number.
2. Taxpayer (or spouse if filing jointly) must have at least one qualifying child and be able to claim the credit using that child.
3. Taxpayer’s expected earned income and adjusted gross income must be less than $35,535 ($40,545 if filing jointly).
4. Taxpayer must expect to claim the EIC for 2010.

The maximum credit taxpayers may receive in advance is $1,830. Eligible taxpayers must file a new Form W-5 for 2010. The 2009 Form W-5 expired December 31, 2009. Contact Vision Payroll if you have any question on Form W-5.

Last December, President Barack Obama had authorized to deploy more than 30,000 troops for military service which would impact a greater number of employees and their employers. Earlier in October, President Obama had signed the National Defense Authorization Act (NDAA) which includes provisions expanding military leave entitlements of the Family and Medical Leave Act (FMLA) by broadening the “qualifying exigency” leave and military caregiver leave that became effective in January 2008.

Do you know what qualifying exigency leave is and which employees are eligible? Are you familiar with military caregiver leave and how the benefits to employees have been expanded? Have you completed the action items needed to update company policies and your employee handbook?

If your answers to these questions make you realize there’s work to be done, be sure to read this month’s featured article by the HR pros at MyHRSupportCenter, Expanded Military Leave and the FMLA. If you’re not yet signed up or would like a free trial of MyHRSupportCenter, contact Vision Payroll today.

There were many changes in employment laws during 2009 with more anticipated for 2010. These changes require employers to review and establish new company Employee Handbook policies to address emerging workplace issues. Is a handbook required in 2010? What are the risks of having an out-of-date handbook? Do you understand the importance of the following in making your handbook more relevant to your company and its employees?

• The Basic Elements
• The Business Relevance
• Employee Communication

You’ll learn much more about how addressing these three areas make your handbook more relevant in this month’s HRCast, a recording provided by our team of HR Pros and available exclusively on MyHRSupportCenter.

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’re not yet signed up or would like a free trial of MyHRSupportCenter, contact Vision Payroll today.