Vision Payroll

On April 5, 2011, the US Department of Labor (DOL) issued a final rule that affects employers who have tipped employees. The rule amended a Fair Labor Standards Act (FLSA) regulation. All employers are required to provide certain required information to all tipped employees in either oral or written form.

Signed Written Notice Would Document That Requirements Were Met

The DOL commented although a written notice is not required, “employers may wish to do so, since a physical document would, if the notice is adequate, permit employers to document that they have met the requirements in section 3(m) and the Department’s regulations to ‘inform’ tipped employees of the tip provision.”

NRA, CSRA, and NFIB Have Filed Suit over Tip Credit Regulation

The National Restaurant Association (NRA), Council of State Restaurant Associations (CSRA), and National Federation of Independent Business (NFIB) have filed suit over the new final rule. According to the NRA:

The Final Rule followed a notice of proposed rulemaking (NPRM) that the DOL published in 2008 that would have made only technical and non-substantive changes to the tip credit notice regulation. Nothing in the 2008 NPRM put the public on notice that the DOL was contemplating significant changes to the tip-credit notice requirements.

Vision Payroll Recommends Restaurants Implement a Written Notice Policy

The NRA has provided sample documents that restaurants and other who have hired tipped employees may download. Vision Payroll recommends that employers review the documents with legal counsel and implement a written notice policy as soon as practicable.

The Employee Retirement Income Security Act (ERISA) is a federal law establishing minimum standards for employee health benefit and retirement plans. While an employer is not required to establish a plan, ERISA does require those who establish and administer plans to meet certain standards. For example, plan administrators must provide participants written disclosures, such as a summary plan description (SPD) in a clear and easy to understand format about the company’s employee benefit plans.

Supreme Court Rules SPD Statements not Subject To ERISA

In a recent court ruling, the US Supreme Court unanimously ruled that inaccurate or misleading SPD statements were not subject to ERISA enforcement penalties or remedies. Regardless, employers should consider these five areas regarding benefit plan communications:

1. Summary Plan Descriptions
2. Communications Officer
3. Regular Reviews
4. Transparency in Changes
5. Non-Summary Plan Descriptions

Learn More About the Five Top Tips for Benefit Plan Communications

To find get more details about each of the five top tips for benefit plan communications, be sure to read the featured article by the HR pros at MyHRSupportCenter, Five Top Tips for Benefit Plan Communications. If you’re not yet signed up or would like a free trial of MyHRSupportCenter, contact Vision Payroll today.

Most employers nationwide will receive an employment tax reduction July 1, 2011 when the temporary FUTA surtax expires. The temporary surtax was enacted in 1976. The standard FUTA tax rate will decrease from 6.2% to 6.0%.

Standard Credit Rate 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. Therefore, for 2011, many employers will pay an effective rate of 0.8% for wages paid from January 1, 2011 to June 30, 2011 and 0.6% for wages paid from July 1, 2011 to December 31, 2011.

FUTA Wage Base is $7,000 for 2011

The FUTA wage base for 2011 is $7,000. Since many employees have already been paid $7,000 in wages during 2011, no reduced tax will apply for those employees.

Credit Reduction Will Apply in Some States

Unless Congress changes the law, as many as thirty-eight states could be credit reduction states in 2011. Michigan would have a credit reduction of 0.9%, Indiana and South Carolina would have credit reductions of 0.6%, and all other states would have credit reductions of 0.3%. If these states are determined to be credit reduction states in November, the effective rates for the second half of 2011 would be 1.5% for Michigan employers, 1.2% for Indiana and South Carolina employers, and 0.9% for all other credit reduction state employers.

Vision Payroll Will Calculate the Appreciate FUTA Tax for All Employers

Employers in every state can contact Vision Payroll for assistance in determining their FUTA tax rate for 2011 and for assistance in filing Form 940.

As previously reported, the Internal Revenue Service (IRS) has released Notice 2011-28, Interim Guidance on Informational Reporting to Employees of the Cost of Their Group Health Insurance Coverage.

Notice 2011-28 Applies To Large Employers

Notice 2011-28 exempts smaller employers from the reporting requirement. If an employer files fewer than 250 Forms W-2 for 2011, then the employer will be exempt from the reporting requirement for 2012 Forms W-2. Furthermore, until further guidance is issued by the IRS, such employers will continue to be exempt from the next year’s reporting requirements as long as they are required to file fewer than 250 Forms W-2 for a calendar year.

Further Guidance on Health Insurance Reporting on Form W-2 to Come

Over the coming months, Vision Payroll will provide further information on the interim guidance on informational reporting to employees of the cost of their group health insurance coverage as outlined in Notice 2011-28.

The Occupational Safety & Health Administration (OSHA) requires that employers post Form 300A, Summary of Work Related Injuries and Illnesses be posted by all establishments covered by Part 1904. This summary page must be posted from February 1 to April 30 of the year following the year covered by the form.

Form 300 Should not Be Posted

OSHA’s Form 300, Log of Work Related Injuries and Illnesses, should not be posted.

Optional Worksheet Is Available

Employers may use the optional Worksheet to Help You Fill Out the Summary to calculate some numbers to enter on Form 300A. The numbers for average annual number of employees and total hours worked by all employees last year can be estimated using this optional worksheet.

Contact Vision Payroll Today

Contact Vision Payroll if you have further questions on the posting period for Form 300A.

A few employers may be familiar with a recent US Supreme Court ruling on March 1, 2011, regarding the case of Staub v. Proctor Hospital, No. 09-400, and how “cat’s paw” liability played a part. Cat’s paw liability involves an employer being held liable for unlawful discrimination, even though the “motivating factor” in the employment decision-making process stems from an unlawful bias of a supervisor with no employment decision-making authority.

Cat’s Paw Derived from the La Fontaine Fable

Cat’s paw relates to a fable about how a monkey convinces a cat to steal chestnuts from a fire, steals the same nuts from the cat, and then leaves the cat with empty but burnt paws. In the context of the workplace environment, the supervisor is the monkey as the employer is the cat.

Apply Seven Preventive Measures to Minimize Cat’s Paw Liability

To find out seven preventive measures companies can take to minimize cat’s paw liability, be sure to read the featured article by the HR pros at MyHRSupportCenter, Is Cat’s Paw Liability Scratching at Your Door?. 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 Notice 2011-28, Interim Guidance on Informational Reporting to Employees of the Cost of Their Group Health Insurance Coverage.

Notice 2011-28 Does not Cause Excludable Employer-Provided Health Care Coverage to Become Taxable

According to Notice 2011-28, nothing in §6051(a)(14), Notice 2011-28, or the additional guidance that is contemplated under §6051(a)(14), causes or will cause otherwise excludable employer-provided health care coverage to become taxable.

Notice 2011-28 Applies to 2012 Forms W-2

Notice 2011-28 applies to the 2012 Forms W-2, which will generally be furnished to employees during January 2013. Employers are not required to report the cost of excludable employer-provided health care coverage before the 2012 Forms W-2. The reporting will be in box 12 of 2012 Form W-2, using code DD.

Notice 2011-28 Contains Information on Calculating Reportable Amounts

Notice 2011-28 provides detailed information, in a question and answer format, on calculating reportable amounts, which amounts are included in the reportable amount, and which amounts are excluded from the reportable amount.

Contact Vision Payroll Today

Contact Vision Payroll today if you have further questions on changes to the 2012 Form W-2 reporting for health coverage.

With social media’s expanding influence, many companies have been quickly shifting to more open methods of managing the business and their employees to share ideas and get things done.

Social Media Technologies that Can Change the Nature of Business Relationships

The following social technologies, among others, change the nature of business relationships and thus require changes in leadership.

• Virtual Meetings
• LinkedIn
• reddit
• Facebook
• Twitter

Learn How Social Media Can Change Your Company’s Leadership

To learn more about the impact of these and other social technology changes, be sure to listen to How Social Media Can Change Your Company’s Leadership 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.

According to the US Occupational Safety and Health Administration (OSHA), homicide is the fourth-leading cause of fatal occupational injury in the United States. Workplace violence such as intimidation, verbal threats, physical attacks, and property damage includes, but is not limited to, acts committed by employees, customers, and unsolicited visitors at the workplace.

High-Risk Occupations that Expose Workers To Violent Situations

Examples of occupations exposed to higher risks of violent situations likely to occur may involve those with:

• Direct customer contact while handling cash transactions,
• Service deliveries in high-crime neighborhoods, and
• Early morning or late night work shifts.

Federal Law Requires Employers to Act

The federal Occupational Safety and Health Act requires employers to provide a safe and healthful workplace for all workers covered by the Act. If the work environment has hazards or harmful conditions present, then the employer has an obligation to protect their employees who may be at risk of unintentional accidents and potential dangers.

Find Out More About Taking Control of Workplace Violence Now

To find out the steps to take to provide a safe and healthful workplace, be sure to read the featured article by the HR pros at MyHRSupportCenter, Taking Control of Workplace Violence. If you’re not yet signed up or would like a free trial of MyHRSupportCenter, contact Vision Payroll today.

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.