In a recent study conducted by the Society for Human Resource Management (SHRM), 21% of employees quit their jobs because they believed their boss to be incompetent or difficult. The first step toward making sure that none of your managers becomes crowned as an incompetent boss is to determine some common warning signs of leadership incompetence. Use this quick checklist as your starter guide:
- Unable to Act
- Secret Keeper
- Clueless
- Inside-the-Box
- Lost in Time
- Over-reactive
- Weak Preference
- Credit-Taker
To learn more about the qualities on this checklist and action steps to take after completing it, be sure to read the featured article by the HR pros at MyHRSupportCenter, Making Employees Quit with an Incompetent Boss. If you’re not yet signed up or would like a free trial of MyHRSupportCenter, contact Vision Payroll today.
A job offer letter should try to contain the right combination of professionalism, optimism, information and, of course, relevant disclaimers. Court cases such as Williams v. Computer Resources, Inc., 851 P.2d 967 (Idaho 1993) show the importance of proper wording in a job offer letter. The date of a job offer letter can be very important as well. When writing a job offer letter, be sure to consider these five key elements:
- At-Will Employment
- No Annual Pay Rate
- Job Offer Details Beyond Pay
- Generalized Language
- Professional Review
Get further details on each of these elements by listening to 5 Key Elements in a Job Offer Letter in this month’s HRCast, a recording provided by our team of HR Pros and available exclusively on MyHRSupportCenter. This information will help you the next time you write a job offer letter and guide you in deciding if you should send a job offer letter to all new hires.
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.
In Rev. Rul. 2010-13, Average Premium for Small Group Market for Determining the Small Employer Health Insurance Credit, the Internal Revenue Service (IRS) and the Department of Health and Human Services (HHS) released the chart containing the small group market in each state for the 2010 taxable year. Under the health care reform, employers are allowed a credit in certain situations if they pay a portion of their employees’ health insurance premiums. The credit is limited to the lesser of:
- The amount of nonelective contributions paid by the eligible small employer on behalf of employees under the arrangement during the taxable year, and
- The amount of nonelective contributions the employer would have paid under the arrangement if each such employee were enrolled in a plan that had a premium equal to the average premium for the small group market in the state (or in an area in the state) in which the employer is offering health insurance coverage.
The State of Idaho had the lowest rates at $4,215 for employee-only coverage and $9,365 for family coverage while the Commonwealth of Massachusetts had the highest rates at $5,700 and $14,138, respectively. Family coverage includes any coverage other than employee-only (or single) coverage.
According to Rev. Rul. 2010-13:
HHS recognizes that there may be areas in some States with meaningfully higher premium rates. For the 2010 taxable year, HHS may provide additional average premium rates for the small group market in certain areas within States. However, in no case will any such additional sub-State rates be lower than the applicable rate for each State that is set forth in this Revenue Ruling.
Contact Vision Payroll for further information on the average premium for the small group markets during 2010.
The Internal Revenue Service (IRS) recently released a draft Form 941, Employer’s QUARTERLY Federal Tax Return, to be used by employers to claim payroll tax forgiveness under the HIRE Act for qualifying new hires. Newly added lines on Form 941 include the following:
- Number of qualified employees first paid exempt wages/tips this quarter
- Number of qualified employees paid exempt wages/tips this quarter
- Exempt wages/tips paid to qualified employees this quarter
- Number of qualified employees paid exempt wages/tips March 19–31
- Exempt wages/tips paid to qualified employees March 19–31
A final version of Form 941 is expected to be released next month. Contact Vision Payroll if you have any questions on the draft Form 941.
The recently passed HIRE Act allows employers to save $2,500 in payroll taxes for new hires earning $33,000 and provides even greater savings for hiring more highly paid employees. The Health Care Reform bill added an income tax credit for employers who pay for a portion of their employees’ health insurance.
Don’t miss these significant tax savings. Vision Payroll is presenting a free one-hour seminar this Thursday, April 22 so qualifying employers can learn how to take advantage of these recent law changes. Click here for more information and to register online.
On March 23, 2010, President Obama signed into law the Patient Protection and Affordable Care Act, landmark legislation reforming health care in the US. While this newly enacted law will affect healthcare insurance coverage for millions of workers, many companies are wondering what is to be expected. Some of the elements of the law will not take effect for a few years, but other features will become effective almost immediately. Small business owners need to consider a number of provisions and implications.
What are the implications of a company’s size? Which provisions are effective this year? Which provisions are effective in later years?
To learn the answers to these questions and much more, be sure to read the featured article by the HR pros at MyHRSupportCenter, The Impact of Health Care Reform on Small Businesses. If you’re not yet signed up or would like a free trial of MyHRSupportCenter, contact Vision Payroll today.
The Internal Revenue Service (IRS) has released Form W-11, Hiring Incentives to Restore Employment (HIRE) Act Employee Affidavit. Employers can use Form W-11 to confirm that an employee is a qualified employee under the HIRE Act. Alternatively, they can use another similar statement if it contains the same information and the employee signs it under penalties of perjury.
Only employees who meet all the requirements of a qualified employee may complete this affidavit or similar statement. You cannot claim the HIRE Act benefits, including the payroll tax exemption or the new hire retention credit, unless the employee completes and signs this affidavit or similar statement under penalties of perjury and is otherwise a qualified employee.
A “qualified employee” is an employee who:
- Begins employment with you after February 3, 2010, and before January 1, 2011;
- Certifies by signed affidavit, or similar statement under penalties of perjury, that he or she has not been employed for more than 40 hours during the 60-day period ending on the date the employee begins employment with you;
- Is not employed by you to replace another employee unless the other employee separated from employment voluntarily or for cause (including downsizing); and
- Is not related to you. An employee is related to you if he or she is your child or a descendent of your child, your sibling or stepsibling, your parent or an ancestor of your parent, your stepparent, your niece or nephew, your aunt or uncle, or your in-law. An employee also is related to you if he or she is related to anyone who owns more than 50% of your outstanding stock or capital and profits interest or is your dependent or a dependent of anyone who owns more than 50% of your outstanding stock or capital and profits interest.
Contact Vision Payroll if you have further questions on the HIRE Act. If you prefer, you can attend one of our upcoming seminars that will cover what you need to know about the HIRE Act.
Employers must constantly navigate a minefield of state and federal wage and hour laws. Effectively avoiding common employer pitfalls could save your business thousands of dollars every year. How do you determine which workers should be classified as independent contractors and which as employees? What is the difference between exempt and non-exempt? How should employers deal with employees who work without supervisory authorization?
You’ll learn the answers to these questions and much more, including the potential impact of the multi-agency Misclassification Initiative from the 10 Ways to Avoid Wage and Hour Pitfalls in this month’s HRCast, a recording provided by our team of HR Pros and available exclusively on MyHRSupportCenter. These tips include information on the impact of state laws on wage and hour pitfalls 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.
Under the Hiring Incentives to Restore Employment Act (HIRE Act), employers who hire certain unemployed workers are allowed not to pay certain employment taxes. Employers who claim the exemption under the HIRE Act may not claim the Work Opportunity Tax Credit with respect to wages paid for which the HIRE Act exemption is claimed. The Internal Revenue Service (IRS) is authorized under the HIRE Act to prescribe the manner for making an election to have this section of the HIRE Act not apply. Employers who would receive greater benefit under the Work Opportunity Tax Credit should consider making the election. Vision Payroll strongly recommends that employers consult their income tax advisor before claiming the exemption or electing not to claim the exemption under the HIRE Act.
HR 2847, An Act making appropriations for the Departments of Commerce and Justice, and Science, and Related Agencies for the fiscal year ending September 30, 2010, and for other purposes, was passed by Congress and sent to President Barack Obama who indicated he will sign it March 18, 2010. The law, also called the Hiring Incentives to Restore Employment Act or HIRE Act, allows employers who hire employees after February 3, 2010 (and before January 1, 2011) who were unemployed for sixty days in the period from February 3, 2010 to December 31, 2010 to not pay the employer portion of the social security tax (6.2% of taxable earnings). Employers must still collect and pay the employee portion of the social security tax. Additionally, the employer and employee portion of the Medicare tax must still be collected and paid for all employees. The Internal Revenue Service (IRS) is not planning to change the Form 941 for the first quarter 2010 (the three months ended March 31, 2010). Credits for taxes paid in this quarter will be available on the Form 941 filed for the second quarter 2010. The credit amount would be treated as an additional payment for the second quarter 2010. Employers who employ such qualifying individuals for a fifty-two week period would also be eligible for a $1,000 credit against income taxes. Contact Vision Payroll if you have any questions on the new law.
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