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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.

The Internal Revenue Service (IRS) today launched a new program that will enable many employers to resolve past worker classification issues and achieve certainty under the tax law at a low cost by voluntarily reclassifying their workers.

Minimal Payment Will Clear Up Prior Liabilities

This new program will allow employers the opportunity to get into compliance by making a minimal payment covering past payroll tax obligations rather than waiting for an IRS audit.

Part of the “Fresh Start” Initiative

This is part of a larger “Fresh Start” initiative at the IRS to help taxpayers and businesses address their tax responsibilities.

Settlement Program Provides relief and Certainty

“This settlement program provides certainty and relief to employers in an important area,” said IRS Commissioner Doug Shulman. “This is part of a wider effort to help taxpayers and businesses to help give them a fresh start with their tax obligations.”

VCSP Designed to Increase Tax Compliance

The new Voluntary Classification Settlement Program (VCSP) is designed to increase tax compliance and reduce burden for employers by providing greater certainty for employers, workers and the government. Under the program, eligible employers can obtain substantial relief from federal payroll taxes they may have owed for the past, if they prospectively treat workers as employees. The VCSP is available to many businesses, tax-exempt organizations and government entities that currently erroneously treat their workers or a class or group of workers as nonemployees or independent contractors, and now want to correctly treat these workers as employees.

Eligibility Criteria for the Program

To be eligible, an applicant must:

• Consistently have treated the workers in the past as nonemployees,
• Have filed all required Forms 1099 for the workers for the previous three years,
• Not currently be under audit by the IRS, the Department of Labor or a state agency concerning the classification of these workers.

File Form 8952 to Apply for the Program

Interested employers can apply for the program by filing Form 8952, Application for Voluntary Classification Settlement Program, at least 60 days before they want to begin treating the workers as employees.

Payment Due upon Acceptance

Employers accepted into the program will pay an amount effectively equaling just over one percent of the wages paid to the reclassified workers for the past year. No interest or penalties will be due, and the employers will not be audited on payroll taxes related to these workers for prior years. Participating employers will, for the first three years under the program, be subject to a special six-year statute of limitations, rather than the usual three years that generally applies to payroll taxes.

Contact Vision Payroll Today

Contact Vision Payroll for further information on the VCSP.

As previously described, the US Department of Labor (DOL) has launched its “DOL-Timesheet” smartphone application designed specifically to allow employees to track their daily hours worked. The app marks another step in the DOL’s strategic “Plan/Prevent/Protect” initiative of increased workplace compliance enforcement efforts. This app serves as a reminder to employers to make sure that their systems and processes accurately account for employees’ hours worked.

As more and more employees become familiar with, and start to utilize,  the DOL’s timesheet app, they may become more likely to file wage and hour grievances with the DOL. For employers, an important protection against employee grievance filings is making sure that your business satifies its obligations under the federal Fair Labor Standards Act (FLSA).

Challenges

• Discrepancies between employer’s and employee’s records
• Employee manipulation of records for more pay
• Absence of employer records used as a basis for wage claims

Immediate Actions to Take

• Require employees and their supervisors to verify (with signatures) the accuracy of time records
• Review/update relevant employee handbook policies
• Make sure timekeeping systems are accurate and consistent
• Regularly audit the company’s time records

Learn More About the DOL Free Smartphone App for Your Employees

To get more details about the DOL free smartphone App for your employees, be sure to read the featured article by the HR pros at MyHRSupportCenter, The US DOL’s Free Smartphone App…Made for Your Employees, Part II. If you’re not yet signed up or would like a free trial of MyHRSupportCenter, contact Vision Payroll today.

The Internal Revenue Service (IRS) is providing tax relief to individual and business taxpayers impacted by Hurricane Irene.

The IRS has announced that certain taxpayers in Connecticut, Massachusetts, New Jersey, New York, North Carolina, Puerto Rico and Vermont will receive tax relief, and other locations are expected to be added in coming days following additional damage assessments by the Federal Emergency Management Agency (FEMA).

The tax relief postpones certain tax filing and payment deadlines to Oct. 31, 2011. It includes corporations and businesses that previously obtained an extension until Sept. 15, 2011, to file their 2010 returns and individuals and businesses that received a similar extension until Oct. 17. It also includes the estimated tax payment for the third quarter of 2011, which would normally be due Sept. 15.

The tax relief is part of a coordinated federal response to the damage caused by the hurricane and is based on local damage assessments by FEMA. For information on disaster recovery, individuals should visit disasterassistance.gov.

Tax Relief Available So Far

Filing and payment relief is currently available to taxpayers in federal disaster areas declared in Connecticut, Massachusetts, New Jersey, New York, North Carolina, Puerto Rico and Vermont. The IRS expects to announce tax relief for taxpayers in other areas as damage assessments continue. The IRS encourages taxpayers and tax practitioners to monitor Tax Relief in Disaster Situations for updates.

So far, IRS filing and payment relief applies to the following counties and municipalities:

• Connecticut: Fairfield, Hartford, Litchfield, Middlesex, New Haven, New London, Tolland and Windham;
• Massachusetts: Berkshire and Franklin.
• New Jersey: Atlantic, Bergen, Burlington, Camden, Cape May, Cumberland, Essex, Gloucester, Hudson, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Salem, Somerset, Sussex, Union and Warren.
• New York: Albany, Clinton, Delaware, Dutchess, Essex, Greene, Montgomery, Nassau, Orange, Otsego, Rensselaer, Rockland, Saratoga, Schenectady, Schoharie, Sullivan, Suffolk, Ulster, Warren and Westchester.
• North Carolina: Beaufort, Bertie, Brunswick, Camden, Carteret, Chowan, Craven, Currituck, Dare, Duplin, Edgecombe, Gates, Greene, Halifax, Hertford, Hyde, Johnston, Jones, Lenoir, Martin, Nash, New Hanover, Northampton, Onslow, Pamlico, Pasquotank, Perquimans, Pitt, Tyrrell, Vance, Warren, Washington and Wilson;.
• Puerto Rico: Arroyo, Aguas Buenas, Caguas, Canovanas, Carolina, Cayey, Cidra, Coamo, Comerio, Humacao, Jayuya, Juncos, Loiza, Luquillo, Orocovis, Patillas, Ponce and San Juan.
• Vermont: Addison, Bennington, Caledonia, Chittenden, Orange, Rutland, Washington and Windsor.

Vision Payroll is Here to Help Affected Taxpayers with Payroll Tax Issues

Contact Vision Payroll if you were affected by Hurricane Irene and need further information on the relief provided by the IRS.

According to the US Department of Labor, some individuals will still be eligible to receive the COBRA premium reduction (subsidy) beyond August 31, 2011. It had been reported that the subsidy ended today.

ARRA Provided a COBRA Premium Reduction

The American Recovery and Reinvestment Act (ARRA) provided a COBRA premium reduction for eligible individuals who were involuntarily terminated from employment through the end of May 2010. Due to the statutory sunset, the COBRA premium reduction under ARRA is not available for individuals who experience involuntary terminations after May 31, 2010. Since August 31, 2011 is fifteen months after May 31, 2010, it had been incorrectly reported that the subsidy was ending

Severance Agreement Among Reasons for Extended Subsidy

However, individuals who qualified on or before May 31, 2010 may continue to pay reduced premiums for up to 15 months, as long as they are not eligible for another group health plan or Medicare even if their COBRA coverage did not start until a later date due to the terms of a severance arrangement, or the use of banked hours or other similar provision that delayed the start of their COBRA coverage. For example if an individual was involuntarily terminated on May 31, 2010 and due to the terms of a severance agreement their COBRA coverage did not start until December 1, 2010, they would still be eligible for the full 15 months of subsidy through February 29, 2012 as long as they are not eligible for another group health plan or Medicare.

Contact Vision Payroll Today

Contact Vision Payroll if you have further questions on the COBRA subsidy.

In IR-2011-085, the Internal Revenue Service (IRS) announced that interest rates for the fourth quarter of 2011 would decrease from the third quarter. The rates are as follows:

Three (3) percent for overpayments [two (2) percent in the case of a corporation];

Three (3) percent for underpayments;

Five (5) percent for large corporate underpayments; and

One-half (0.5) percent for the portion of a corporate overpayment exceeding $10,000.

Revenue Ruling 2011-18 Contains Official Rate Announcement

The IRS will publish the rates in Revenue Ruling 2011-18. Contact Vision Payroll if you have any questions on the fourth quarter rates.

Every business should understand the implications of workplace harassment. Businesses should also understand the proper response if harassment occurs. Establishing and effectively communicating clear guidelines will help enable a safer work environment for all employees and provide evidence of the employer’s good faith efforts to take action, be accountable for workplace behavior, and address harassment behaviors in the workplace.

How the Anti-Harassment Policy Checklist Can Help

The Anti-Harassment Policy Checklist addresses areas including:

• Content Areas
• Employee Communication
• Monitoring Commitment

Download the Anti-Harassment Policy Checklist Now

The Anti-Harassment Policy Checklist can be downloaded from the Checklists area in the Essentials tab section of the MyHRSupportCenter. If you’re not yet signed up or would like a free trial of MyHRSupportCenter, contact Vision Payroll today.

On May 9, 2011, the US Department of Labor (DOL) announced the launch of its first smartphone application, the “DOL-Timesheet” designed specifically for employees. In a DOL news release that same day, Secretary of Labor Hilda Solis stated that by leveraging “increasingly popular and available technology …this app will help empower workers to understand and stand up for their rights when employers have denied their hard-earned pay.” However, this tool can be problematic for small to mid-sized businesses. Employers need to take extra caution to ensure that employees are absolutely paid correctly, complaints are handled effectively, and recordkeeping is maintained accurately.

DOL Timesheet Currently Available for iPhone and iPod Touch

The free app is currently compatible with the iPhone and iPod Touch. The Labor Department will explore updates that could enable similar versions for other smartphone platforms, such as Android and BlackBerry, and other pay features not currently provided for, such as tips, commissions, bonuses, deductions, holiday pay, pay for weekends, shift differentials and pay for regular days of rest.

Learn More About the DOL Free Smartphone App for Your Employees

To find get more details about the DOL free smartphone App for our employees, be sure to read the featured article by the HR pros at MyHRSupportCenter, The US DOL’s Free Smartphone App…Made for Your Employees, Part I. If you’re not yet signed up or would like a free trial of MyHRSupportCenter, contact Vision Payroll today.

Employers must ensure that any adverse employment actions are completely unrelated to claims an employee might make in terms of wage and hour issues. Learn about steps to avoid disastrous wage and hour class actions.

Six Steps You Can Take Today to Minimize Your Company’s Risk

• Don’t create a situation or reason for an employee to raise a complaint.
• Ensure that unpaid lunch breaks are at least thirty minutes long.
• Don’t make improper deductions from exempt employees’ salaries.
• Self-audit your exempt and non-exempt employees for proper classification.
• Self-audit your independent contractors to ensure they’re not employees.
• Provide wage and hour training for all supervisors and managers.

Get More Details on Wage and Hour Retaliation Claims

To learn more details about each of these preventive measures, be sure to listen to How to Protect Against Wage and Hour Retaliation Claims 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.

As previously announced, New York has assessed most employers an Interest Assessment Surcharge (IAS). The New York Department of Labor has posted the following twelve FAQs about the IAS.

1. Why is the IAS being assessed?
Due to the high rate of unemployment, New York, as well as many other states, had to borrow money from the federal government in order to meet unemployment insurance (UI) benefits obligations. Normally, there should be sufficient revenues generated from quarterly UI employer tax collections to repay the federal loan in time to avoid interest charges. As a result of the recession there have been insufficient revenues from unemployment insurance (UI) taxes to satisfy the loans and to avoid the interest assessment. In 2009 and 2010, the federal government provided interest-free loans to states with insolvent Trust funds. Thus far, Congress has not extended the interest-free loan provisions for 2011. Therefore, New York owes approximately $95 million in interest for this year, which must be paid by September 30, 2011. In order to pay the interest due for 2011 on these federal loans, New York State is required by state law to assess a temporary charge on employers called the Interest Assessment Surcharge, or IAS.

2. What happens if the interest is not paid to the federal government?
Failure to pay the interest due can have severe consequences. New York’s Unemployment Insurance Program could lose its federal certification, which would result in employers in the state losing eligibility for a credit of up to 5.4% against the Federal Unemployment Tax Act (FUTA) tax. This would cause a very large and sudden spike in employer payroll taxes. In addition, the federal government can withhold administrative funds needed to operate New York’s Unemployment Insurance Program.

3. Isn’t the federal government waiving the interest?
The American Recovery and Reinvestment Act (also known as the Recovery Act) provided interest-free loans to New York and other states with insolvent Trust Funds during calendar years 2009 and 2010. Thus far, Congress has not extended the interest-free loan provisions into 2011. Should Congress extend the interest-free loan provision, we will either credit the employer’s account or refund the money paid.

4. What is the section of the law which imposes the IAS?
The section of the State Labor Law is Article 18, Title 6, Section 581-d. This can be found by visiting our website at www.labor.ny.gov. Employers were previously charged an IAS under this law in 2003, 2004, and 2005.

5. Are all employers required to pay the IAS?
All employers who pay unemployment insurance (UI) tax to the State are liable for the IAS. State and local government and not-for-profit employers who self-insure for UI purposes are not liable for the IAS.

6. How was my IAS calculated?
Your IAS was calculated using the taxable wages for the current payroll year (the fourth quarter of 2009 through the third quarter of 2010) and multiplying those wages by the IAS rate of 0.25%. The maximum amount that most employers will be assessed is $21.25 per employee.

7. Will my tax rate increase as a result of IAS?
No. IAS does not affect an employer’s experience rating account.

8. When is my payment of the IAS due? Can I get an extension?
Payment is due August 15, 2011. As the federal government has not granted an extension of the interest payment, extensions on the due date cannot be granted.

9. Why didn’t I receive the notice of the IAS earlier?
Because multiple bills were being considered by Congress to extend the interest waiver position into the current year, it was prudent to wait for Congressional resolution. Unfortunately, to date, Congress has not enacted an extension of this provision.

10. Whom should I make my check payable to and where do I send the payment?
Checks should be made payable to: NYS Unemployment Insurance and sent to: NYS Unemployment Insurance, PO Box 4301, Binghamton, NY 13902-4301.

11. Is this a one-time billing and what happens if I do not pay my IAS?
IAS will be billed annually until the loans to the federal government have been paid. IAS is subject to the same collection processes as contributions due. This would include legal actions to enforce the debt.

12. What if I did not receive an IAS bill or have questions regarding the IAS bill?
If you have any questions, please call the Employer Accounts Adjustment Section of the Unemployment Insurance Division at (888) 899-8810 or go to the agency website at www.labor.ny.gov.

Contact Vision Payroll Today

New York clients who have further questions on the IAS should contact Vision Payroll.