Vision Payroll

Many small businesses struggle to determine whether or not non-compete agreements are worthwhile to use. Such agreements are employment contracts designed to restrict an employee’s right to start a competing business across the street or to take your clients, other employees, or even your training with them when joining your competition. Depending on how the agreements are written and applied, they may help add protection to your business or simply add headaches.

Six Questions to Answer from an HR Perspective

1. What are the appropriate restrictions?
2. What is the scope of the restrictions?
3. What is the nature of the job position?
4. How is confidential information secured?
5. What is the duration that the agreement can be enforced?
6. Is the non-compete agreement complete?

Find Out More About Non-Compete Agreements Now

For more information, be sure to read the featured article by the HR pros at MyHRSupportCenter, Six HR Tips for Non-Compete Agreements. If you’re not yet signed up or would like a free trial of MyHRSupportCenter, contact Vision Payroll today.

In IR-2010-120, the Internal Revenue Service (IRS) announced that interest rates for the first quarter of 2011 would decrease from the fourth 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 2010-31 Contains Official Rate Announcement

The IRS will publish the rates in Revenue Ruling 2010-31. Contact Vision Payroll if you have any questions on the first quarter rates.

The standard mileage rates for the use of automobiles beginning January 1, 2011 will be 51 cents per mile for business miles driven and 19 cents per mile driven for medical or moving purposes the Internal Revenue Service announced in Revenue Procedure 2010-51 and News Release IR-2010-119.

Both Rates Are Higher than 2010 Rates

The new rates are changed from 50 cents per mile for business travel and 16.5 cents per mile for moving and medical travel for 2010.

Charitable Rate Remains Unchanged

The rate for miles driven in service of charitable organizations remains the same at 14 cents per mile.

Contact Vision Payroll for More Information on 2011 Mileage Rates

Contact Vision Payroll if you have any questions on 2011 mileage rates or visit our Important Facts and Figures page for further information.

The Internal Revenue Service (IRS) has released the 2010 Form 944, Employer’s ANNUAL Federal Tax Return, and related instructions. Form 944 is designed so the smallest employers (those whose annual liability for social security, Medicare, and withheld federal income taxes is $1,000 or less) will only file once a year instead of every quarter.

Several Changes Have Been Made To the 2010 Form 944

The 2010 Form 944 has several new items. The new items include the following:

Qualified Employer’s Social Security Tax Exemption

Qualified employers are allowed an exemption for their share (6.2%) of social security tax on wages/tips paid to qualified employees after March 31, 2010, and before January 1, 2011.

Qualified Employer’s Social Security Tax Credit

Qualified employers are allowed a credit for their share (6.2%) of social security tax on wages/tips paid to qualified employees after March 18, 2010, and before April 1, 2010.

COBRA Premium Assistance Credit Extended

The credit for COBRA premium assistance payments applies to premiums paid for employees involuntarily terminated between September 1, 2008, and May 31, 2010, and to premiums paid for up to 15 months.

Social Security Wage Base for 2010 and 2011

Do not withhold or pay social security tax after an employee reaches $106,800 in social security wages for the year. There is no limit on the amount of wages subject to Medicare tax.

Advance Payment of Earned Income Credit (EIC)

The option of receiving advance payroll payments of EIC expires on December 31, 2010. Individuals eligible for EIC in 2011 can still claim the credit when they file their federal income tax return. Individuals who receive advance payments of EIC in 2010 must file a 2010 federal income tax return.

Electronic Deposit Requirement

The IRS has issued proposed regulations under §6302 of the Internal Revenue Code of 1986 which provide that beginning January 1, 2011, you must deposit all depository taxes (such as employment tax, excise tax, and corporate income tax) electronically using the Electronic Federal Tax Payment System (EFTPS). Under these proposed regulations, which are expected to be finalized by December 31, 2010, Forms 8109 and 8109-B, Federal Tax Deposit Coupon, cannot be used after December 31, 2010.

Vision Payroll Will File Form 944 for Eligible Taxpayers

Contact Vision Payroll if you have further questions on Form 944.

The Employee Benefits Security Administration (EBSA)has given notice that it will hold a hearing to consider issues relating to the disclosure of fee, conflict of interest and other information by service providers to group health, disability, severance and other employee welfare benefit plans under §408(b)(2) of the Employee Retirement Income Security Act (ERISA).

Hearing to Be Held in Washington, DC

The hearing will be held on December 7, 2010, beginning at 9 am, EST, at the US Department of Labor, Room S-4215 (A-C), 200 Constitution Avenue, NW, Washington, DC 20210.

Meeting Agenda Has Been Released

The agenda for the hearing on disclosure of fees and expenses to welfare plan fiduciaries has been released and is available for download from the Vision Payroll website.

A clear, well-written company employee handbook is crucial to your business. Look closely at your company practices and make sure you have at least the minimum crucial types of policies in place to communicate to your employees and protect your business.

Three Questions to Refine Your Handbook

1. What should we include in the handbook?
2. What should we exclude from the handbook?
3. What general steps should we keep in mind?

Get Help Refining Your Employee Handbook Now

To obtain more information about each of these items, be sure to listen to Bulletproofing Your Company Employee Handbook 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.

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.

Technological advances have evolved to help employers enhance their operations, become more cost-efficient, and become more engaged with their workers. If you employ a remote workforce, technology is often crucial to bridging any communication lag.

Accessible Communications Solutions to Consider

Accessible communications solutions include the following:

• E-mail
• Instant Messaging
• Tele-conferencing
• Video-conferencing
• Web-conferencing

Residual Benefits from Accessible Communications Solutions

Many businesses have found a variety of residual benefits upon effectively leveraging such technologies. These benefits include cost savings, added flexibility, and expanded client reach.

Find Out More About Technologies to Improve Remote Workforce Communications Now

For more information, be sure to read the featured article by the HR pros at MyHRSupportCenter, Technologies to Improve Remote Workforce Communications. If you’re not yet signed up or would like a free trial of MyHRSupportCenter, contact Vision Payroll today.

Hiring remote workers has grown more common and can provide significant benefits for many businesses. Understanding how to manage your employees during this workforce trend is crucial in maintaining top talent and keeping your business competitive.

5 Tips on Working with Remote Workers

1. Get the right workers for remote work
2. Communicate clear expectations
3. Review for relevant policies
4. Leveraging technology for performance
5. Meet regularly and frequently

Implement These Tips for Your Remote Workers

To learn details on how to implement these tips in your workplace, be sure to listen to 5 Tips on Working with Remote Workers 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.

On July 1, 2010, the Vital Statistics Office of the Commonwealth of Puerto Rico began issuing new, more secure certified copies of birth certificates to US citizens born in Puerto Rico because of a new Puerto Rico birth certificate law.

As of September 30, 2010, Certified Copies of Puerto Rico Birth Certificates Issued Before July 1, 2010, Will Now Be Valid Through October 30, 2010. The Dates Below Reflect this Extension.

After October 30, 2010, all certified copies of birth certificates issued prior to July 1, 2010, will become invalid. This new law does not affect the US citizenship status of individuals born in Puerto Rico. It only affects the validity of certified copies of Puerto Rico birth certificates.

How Will this Law Impact the Employment Eligibility Verification (Form I-9) Process?

New Employees

• All certified copies of Puerto Rico birth certificates are acceptable for Form I-9 purposes through October 30, 2010.
• Beginning October 31, 2010, only certified copies of Puerto Rico birth certificates issued on or after July 1, 2010, are acceptable for Form I-9 purposes.
• Beginning October 31, 2010, if an employee presents for List C a birth certificate issued by the Vital Statistics Office of the Commonwealth of Puerto Rico, the employer must look at the date the certified copy of the birth certificate was issued to ensure that it is still valid.

Existing Employees

Employers must not re-verify the employment eligibility of existing employees who presented a certified copy of a Puerto Rico birth certificate for Form I-9 purposes and whose employment eligibility was verified on Form I-9 prior to October 31, 2010. 

Federal Contractors

Employers awarded a federal contract that contains the Federal Acquisition Regulation (FAR) E-Verify clause have special Form I-9 rules for the verification of existing employees. 

If completing new Forms I-9 for existing employees, certified copies of Puerto Rico birth certificates are acceptable as a List C document under the following circumstances:

• Prior to October 31, 2010, all certified copies of Puerto Rico birth certificates are acceptable for Form I-9 purposes.
• Beginning October 31, 2010, only certified copies of Puerto Rico birth certificates issued on or after July 1, 2010, are acceptable for Form I-9 purposes. 

If updating existing Forms I-9, an employer must not ask an employee to present a new certified copy of a Puerto Rico birth certificate if the employee presented a certified copy of a birth certificate issued in Puerto Rico before July 1, 2010 that was valid and acceptable for the Form I-9 at the time it was presented.

See the E-Verify Supplemental Guide for Federal Contractors for more information on E-Verify and FAR requirements.

How Will this Law Affect the Retention of Documents with Form I-9?

Existing federal law governing the Form I-9 process prohibits employers from keeping original certified copies of birth certificates, including those issued in Puerto Rico, but allows employers to keep photocopies of these documents. Employers who choose to make photocopies of documents their employees present when completing Form I-9 must do so for all employees, regardless of national origin or citizenship status.

For more information about Form I-9, visit http://www.uscis.gov/. More information about birth certificates issued in Puerto Rico can be found at www.prfaa.com/birthcertificates and www.prfaa.com/certificadosdenacimiento.

Contact Vision Payroll if you have further questions on the changes to Form I-9.