Handling Unpaid Payroll Checks Can Be Tricky

Handling Unpaid Payroll Checks Can Be Tricky.  A wrong decision by an employer handling unclaimed or uncashed payroll checks can result in serious trouble for the company. There are issues to consider in dealing with these types of checks.
When determining how to handle an unclaimed or uncashed payroll check, you need to review state law, the accounting for any voided checks, and W-2 issues, including Social Security and unemployment benefits.

Each state has its own laws for unclaimed property. And there are specific rules for the accounting of a voided check. After a reasonable time, void the check and move the funds to an escrow account pending claim by the employee or submission to the state. Once the check is issued to pay the employee for his services, the money no longer belongs to the employer. Under no circumstances should the funds be returned to the general checking account.

Medicare, Social Security and unemployment taxes must be paid as if the employee had indeed claimed the check.

Vision HR helps you handle unclaimed or uncashed payroll checks properly so that your firm isn’t subject to potentially substantial penalties. Our clients don’t spend time on this issue and are in full compliance.  Call us today if you need help with your unpaid payroll checks, payroll or want to change your payroll provider. (877) 641-0012

Click here for a description of payroll services or here for a payroll quote

 

Vision HR offers Payroll Services in Palm Coast, Bunnell, St. Augustine, Palatka, and surrounding areas.

Eliminate Payroll Hassles

Eliminate Payroll Hassles. Payroll processing continues to get more complicated every year. It’s exhausting to handle it in-house while running a successful business. Our staff is dedicated to staying current with constantly changing payroll laws and regulations. If you’re tired of handling the complex paperwork, let us provide affordable, accurate service that takes the hassle out of payroll.

We can help your business operate more smoothly by:

•  Running your company’s payroll according to your pay schedule.
•  Ensuring payroll deposits are made on a timely basis.
•  Guaranteeing that your quarterly and year-end payroll reports are accurately prepared and filed to meet government deadlines.
•  Monitoring all changes in payroll law to keep you in compliance and help avoid costly penalties.

Complete payroll processing service, tax filings, year end transactions are easy with Vision HR.

Eliminate Payroll Hassles and contact Vision HR. With our payroll service, you can leave payroll hassles behind. (877) 641-0012.

If you had all these tasks completed for you would your business be better off ?

• Check Processing and Distribution
• Direct Deposits, Direct Debits
• Comprehensive Payroll Reports
• Division/Departmental Reports
• Digitally signed checks
• Payroll check reconciliation
• Federal, State and Local Tax Withholding/Deposits
• Annual, Quarterly and Monthly Payroll Tax Reporting
• Electronic / Paper W2’s
• Vacation, holiday & sick leave
• New Hire Reporting
• Garnishment and Child Support Withholding and Management
• Benefits Withholding and Management
• Benefit Premium/Payment Vendor Submissions ( If Agent of Record )
• Workers comp “pay as you go” payment administration
• Importable hardware or online time keeping system available
• 24/7 access to online employer and employee information
• Exportable reports to general ledger using Excel CSV formats.
• “Go Green” have paperless payroll process if desired

 

Eliminate payroll hassles .  Click here for a payroll quote and get back to work.

 

Payroll Services in Lake Mary, Sanford, Debary, Deltona, Deland, and surrounding areas.

 

 

How long do you keep Payroll Records?

How long do you keep Payroll records? If the IRS ever comes calling to check on your company’s payroll history, the government could ask for records from years ago. In addition to keeping certain records for tax purposes, you may also be required to retain information under the Fair Labor Standards Act, as well as other federal and state laws.

Paying employees involves more than just issuing checks. You also need to keep accurate records on each employee for a specific amount of time. These records must include details, such as name, address, occupation and Social Security number. Your business must also retain records about compensation, such as the date paid, pay period, tips, non-cash payments, compensation subject to withholding and payroll taxes, and details about fringe benefits. In addition, you must keep copies of pertinent federal forms filed. Recordkeeping isn’t just required under tax laws.

A number of federal, and possibly state, laws require some or all employers to retain certain records. For example, you may have responsibilities under the Fair Labor Standards Act, the Age Discrimination in Employment Act, the Family and Medical Leave Act, the Immigration Reform and Control Act, the Occupational Safety and Health Act and the Employee Retirement Income Security Act. This is a daunting task to know how long to keep payroll records.  To make matters worse, each law has its own statute of limitations for recordkeeping.

Mistakes can lead to costly penalties.  Keeping track of all these payroll-related records is time-consuming and stressful. There is an easier way. Contact Vision HR to handle your payroll. That way, recordkeeping will be done automatically. We make your life easier … because we do all the work.

We now offer our services such as payroll recordkeeping in Titusville FL and surrounding areas.

Equal Pay for Equal Work — Regardless of Gender

 

“National Equal Pay Day” was held earlier this month. President Obama marked the day by issuing an executive order intended to accomplish, on a    smaller scale, the goals of the proposed legislation discussed by Congress. With this action, the spotlight is cast on women’s pay and the objective of rooting out gender-based pay discrimination. Is this an area where your company might be vulnerable to future litigation? It has been nearly 51 years since President Kennedy signed the Equal Pay Act of 1963. Its aim was straightforward enough — ensuring that women are paid the same as men for “substantially equal” work. In the intervening years, the Equal Employment Opportunity Commission (EEOC) has been exploring the boundaries of its mandate. Often, illegal gender discrimination isn’t as clear-cut as a man and a woman being paid differently for the same precise job. The EEOC has successfully litigated against companies with broader employment policies, including career advancement opportunities, that were deemed discriminatory. A recent major milestone in EEOC pay equity enforcement occurred nine days after President Obama was elected — the enactment of the Lilly Ledbetter Fair Pay Act of 2009. This law overturned a U.S. Supreme Court ruling stating that the 180-day statute of limitations for filing an equal-pay lawsuit begins with the employer’s first discriminatory act. In this case, plaintiff Lilly Ledbetter didn’t know she was paid less than male colleagues performing the same work until several years after the practice had begun. The 2009 law made it clear the statute of limitations begins anew with each issuance of a paycheck ultimately deemed to be discriminatory. Congressional Actions Lilly Ledbetter’s initial problem arose because of a policy of secrecy concerning pay. While the earlier law bearing her name changed the statute of limitations for filing a pay equality lawsuit, it did not resolve the issue of keeping pay levels private. Employees have a hard time proving the existence of pay inequality when they are unable to find out what their counterparts are paid. The burden of proof in such lawsuits falls on the employee. Ledbetter’s employer at the time, Goodyear, had a policy preventing employees from discussing their pay among themselves. An anonymous tip left on her desk containing pay data revealed to Ledbetter her pay was lower than the pay of her male counterparts. A law that has been proposed in Congress, the Paycheck Fairness Act, seeks to address the issue of pay secrecy. However, on April 9, the law failed to receive the votes necessary to pass in the U.S. Senate. Note: Under current law, even if a plaintiff shows she is being paid less than men for a job that requires equal skill, effort and responsibility, and performed under similar working conditions, employers can generally win the case by showing the pay policy is based on:

1. A seniority system,
2. A merit system,
3. Incorporates production metrics, or
4. Is based on any factor other than gender.

 

Wide Loophole? The fourth exception has been interpreted broadly and is considered a significant “loophole” by pay equity advocates. Had it passed, the Paycheck Fairness Act would have narrowed the scope of the exception by, among other things, requiring the “other factor” to be based on the employee’s education, training or experience, or a business necessity, and to pertain specifically to the job at issue. President Obama’s recent executive order, which applies to companies doing business with the federal government, forbids retaliation against employees who discuss their compensation. The order “does not compel workers to discuss pay, nor does it require employers to publish or otherwise disseminate pay data,” according to a White House summary. However, the order encourages pay transparency “so workers have a potential way of discovering violations” of equal pay laws. In addition, the president instructed the Secretary of Labor to write regulations requiring federal contractors to furnish “summary data on compensation paid to their employees, including data by sex and race.” That data, depending on what it reveals, could arm the EEOC to “target enforcement more effectively.”

What to Do Now Here are some implications of the President’s actions, even if you are not a federal contractor:

First, it’s never safe to assume you are impervious to pay discrimination claims. As described above, discrimination can be found even where limited apples-to-apples testing reveal no discrimination.

Second, consider the extent to which your pay practices need to be confidential. While being completely transparent about individual employees’ compensation could be a disaster from an employee relations standpoint, providing general information about pay policies, including some salary or wage ranges can be beneficial. It is critical, however, to ensure the wording of your policies cannot be construed as promises. Telling employees they cannot discuss their pay, as Goodyear did in the Ledbetter case, can fuel suspicion and cynicism. In contrast, making public your compensation guidelines for different categories of jobs helps to combat cynicism. Doing so can also be motivational, by giving lower paid employees an indication of the rewards which could come from working their way into a job with greater responsibility.

Third, at this time, although the Paycheck Fairness Act did not pass Congress, legislation embodying its general principles could someday do just that. Rather than wait to be coerced to adopt a gender-neutral compensation policy, it might be wise to consider adopting these principles voluntarily. Source:  BizActions / Thompson Reuters

 

 

Daytona Beach Payroll Services

Payroll is one of the most complex processes found in the financial operations of companies these days. Not only do payroll administrators need to keep track of federal income tax and benefits regulations, they also must be aware of state wage and hour regulations in every state in which you operate. Most small to midsize firms find it much more economical to outsource this complicated and demanding function. It is only when you reach 1,000 or more employees that you find companies being able to afford the expense associated with maintaining payroll services in-house. Even then, these firms usually have access to a variety of outside payroll services that support their legal and regulatory needs related to payroll.

Human Resources is an ever-changing industry, and HR professionals know they need to remain constantly alert for new regulations and issues to arise. This year has already shaped up to be a challenging one for many HR departments across the U.S. From keeping key workers at the company to implementing effective payroll management HR professionals and payroll managers are facing numerous challenges during 2014.

Here are some top issues HR will be facing..

Compliance with the ACA and its results

In the well-over  10,000 pages that make up the Affordable Care Act bill, the government spells out the legal requirements for employers, but how organizations choose to respond to these requirements is really a  strategic choice. Organizations said that the ACA would have a significant impact on their workforce management strategy. Much has been said about the Affordable Care Act (ACA) within the past few years- especially within the last couple months. This is because the ACA is not only going to impact how companies provide healthcare to employees, but there will be legal compliance standards that will occur as a result. These include employee litigation and audits from the U.S. Department of Labor and the Internal Revenue Service.

Organizations are also thinking about how they are going to track and manage employee data to understand who qualifies for benefits and to enable reporting. For many organizations, these decisions are far beyond just compliance conversation, they are causing them to rethink their overall workforce management strategy, policies and technology.

According to a leading Research Institute, the ACA presents one of the most complex HR compliance challenges of all time. The lack of preparations on the part of employers has escalated the impact the ACA is having on the business community as a whole. For example, the source wrote one-fifth to one-third of companies did not even have a clue how much of an effect the ACA’s health insurance exchanges would have on their businesses this past January. In addition, more ACA regulations are coming, and employers are just as unprepared for potential penalties and the Excise Tax Assessment as they have been for other aspects of the healthcare reform law. Even though the healthcare landscape continues to shift and evolve, HR and payroll professionals need to get on steady ground when it comes to understanding their compliance requirements and mitigating their own legal risks.

Fair Labor Standards Act (FLSA)

The Wage and Hour Division of the Department of Labor, DOL, primarily ensures that employers are in compliance with the Fair Labor Standards Act, FLSA. In short, the FLSA requires that non-exempt employees be paid at least the minimum wage for all hours worked and overtime pay at 1 ½ times their regular rate of pay for all hours worked in excess of 40 hours in a workweek. The FLSA also has child labor provisions which include some restrictions on hours worked for employees under 16 years of age, as well as prohibits youths from working in hazardous occupations.

One of the biggest mistakes employers make is misclassification of employees. Classifying employees as non-exempt or exempt is a challenging process, which is often difficult for small businesses, especially if they do not have a human resource professional to assist them. The FLSA requires that jobs meet both a salary test and duties test before being classified as exempt from overtime. The salary level portion of the salary test requires that employees be paid at least $455 per week or more to be considered exempt from overtime regulations. If a position meets the salary tests then the duties of the position need to be considered to determine if the position is truly exempt.

Florida State Child Support regulation changes Payroll needs to know

Now through the state Dept. of Revenue, you can access Child Support Employer Services.

For example, you can:

• use an income withholding limits calculator, if an employee has more than one child support order.
• You can use your Florida New Hire account to log in and manage the account.
• request replacement copies of income withholding notices.
• report bonus, lump-sum or similar one-time payments.

 

Retaining Top Talent

The recession remains in many people’s minds, but employees are beginning to feel more confident about their employment options. As the labor market shows signs of improvement, many employees who have waited on the sidelines for better career opportunities may decide to jump ship before the year is out. While this is a good sign for the job market, HR professionals are looking to lose some of their best performers this year if they don’t implement new employee engagement ideas.

According to a late 2013 poll by Right Management, 83 percent of 871 surveyed U.S. and Canadian employees said they will look for a new job this year. In 2009, only 6 in 10 employees said they intended to “actively seek a new position” in the coming year, but that number jumped to 84 percent the following year and has stayed about the same ever since. More top workers used to network to feel out their employment opportunities, but now the majority are becoming active job seekers instead. Twenty-one percent of employees said they were networking to keep their options open in 2009, but that number remained at 8 or 9 percent between 2010 and 2013.

Being able to provide competitive compensation is going to be an essential employee engagement strategy for not only 2014 but into the long term, as Right Management’s numbers suggests retaining top talent is going to be a struggle for a while. Human resource planning will be a go-to solution for many in the industry because of this, and more HR professionals will need to seek out additional employee engagement techniques if they want to acquire and keep key performers.

According to Human Resource Executive (HRE) Online, employee engagement may be its own challenge throughout 2014. Offering employees growth opportunities through effective talent management, tracking worker satisfaction, and maintaining collaboration in the workplace are all going to be important strategies to keep employees engaged this year, HRE Online suggested. According to Forbes, it is going to take recognizing where dissatisfaction comes from for HR professionals to entice workers to remain at the company.

Complying with the OFCCP Mandate

The Office of Federal Contract Compliance Programs’ (OFCCP) mandate pertaining to the hiring and employment of individuals with disabilities will be another key challenge this year, specifically Section 503. According to Business and Legal Resource, hiring managers must now reference Section 503 rules that require contractors to invite job seekers to voluntarily self-identify as disabled at the pre-offer and post offer phases of the hiring process.

Daytona Beach Payroll Services – Vision HR

Payroll services can be extremely time-consuming. Fast changing tax laws and widely varying company needs to make payroll one of the most difficult and potentially costly business applications. Making mistakes in payroll costs your business money so outsource this process to experts so that you can stay focused on your business.

Whether you’re existing HR staff needs more support or you do not have Human Resource expertise on your staff, Vision HR has a crafted solution to make a valuable impact on your business and bottom line. Your company will increase productivity and profitability by using our team experts you’ll reduce the amount of time your business spends on burdensome HR tasks.

Vision HR offers advanced payroll processing services located in Daytona Beach to take the burden of paperwork and filing off businesses. We use technology to manage payroll information easily accessible to both employers and employees. Whether you need a web based time keeping system, time clock hardware, or a complete time keeping system, Vision HR can streamline your solution to keep you productive and focused on your business.

Daytona Beach payroll services

Contact Vision HR at: (877)641-0012

Employee Background Checks: Avoid the Pitfalls

Did you know that paper versions of  old employee background checks must be destroyed? Or that electronic versions must be disposed of in such a way that they “can’t be read or reconstructed?” Did you also know you must first retain the reports for a year before destroying them? These are among the recent hot tips issued by the EEOC regarding background checks. Keep reading to learn more.

Background checks can be helpful tools in guiding your hiring choices, as well as subsequent decisions. Once you’ve used them and won’t need them again for awhile, it’s easy to tuck these reports away in a file and forget them. But, like most aspects of business, the handling of background checks is subject to government rules. In this case, two different agencies, the Equal Employment Opportunity Commission (EEOC) and the Federal Trade Commission (FTC) are in charge of how you use background checks and how you retain and dispose of them. The two agencies enforce different rules, but they have jointly issued a set of federal laws and regulations applicable to background checks, which you need to know.

One of the recently released web-based documents consist of summaries of rules applicable to employers, and another one advises employees (and prospective employees) of their rights and obligations with respect to background checks. The Federal Trade Commission enforces the Fair Credit Reporting Act (FCRA), which spells out most of the rules governing background checks, and the EEOC polices the use of background checks if there is discrimination involved.

We tend to think of background checks only as something we do when considering an applicant to hire. But they might also be very helpful if you are thinking about promoting or transferring an existing employee — or even deciding whether to keep the individual on board. A lot can happen between the day an employee is hired, and when he or she is a candidate for more responsibility. The person’s employment history, education, criminal record, financial history and social media usage are all fair game in a basic background check. You can also dig deeper. Just be sure you know how you are allowed to use these reports and what your responsibilities are.

For employers, rule number one is: When you are planning to use a commercial background check provider, the employees and prospective employees you will be checking out must be informed of your plans. Moreover, you must tell them in a letter which only addresses this topic — it cannot be buried in a long letter covering multiple subjects. The letter must also state the obvious, which is, you might use information gained from the research to make employment-related decisions.

You should also get their written consent. But… what if the employee refuses? In a job application, you can articulate a simple policy such as this: You will not consider any applicants who decline granting permission for a background check.

An employee who wants to stay with your company would have to think long and hard about refusing to authorize you to conduct a background check after he has been on board for a number of years. Needless to say, if the employee refuses, this should raise some red flags.

While the employee’s refusal to permit a background check does not necessarily give you grounds to terminate him, you could respond by letting him know he cannot be considered for a promotion unless a background check is run.

Note: The notification and permission requirements only pertain to investigations carried out by commercial background check companies. However, if you were to conduct the investigation on your own, you risk treading into areas that would give the subject grounds for accusing you of an invasion of privacy.

Disposing of Background Checks

What the EEOC says:

Any personnel or employment records you make or keep (including all application forms, regardless of whether the applicant was hired, and other records related to hiring) must be preserved for one year after the records were made, or after a personnel action was taken, whichever comes later. (The EEOC extends this requirement to two years for educational institutions and for state and local governments. The Department of Labor also extends this requirement to two years for federal contractors that have at least 150 employees and a government contract of at least $150,000.)

If the applicant or employee files a charge of discrimination, you must maintain the records until the case is concluded.

What the FTC says:

Once you’ve satisfied all applicable recordkeeping requirements, you may dispose of any background reports you received. However, the law requires that you dispose of the reports – and any information gathered from them – securely. That can include burning, pulverizing, or shredding paper documents and disposing of electronic information so that it can’t be read or reconstructed.

For more information, see:

Disposing of Consumer Report Information? Rule Tells How.

Investigative Reports

A more thorough background check known as an “investigative report” also can be conducted, but you are obliged to share the results of this report upon the subject’s request. The purpose of an investigative report is to try to learn more about a person’s character, general reputation, personal characteristics and lifestyle. Naturally, such reports require personal interviews of people who know the candidate well, and as a result are considerably more expensive. As a general rule, you should avoid digging any deeper than you absolutely need to, based on the nature of the job involved.

The FCRA requires you to certify to the commercial background check service provider that:

you notified the person of your plans to commission an investigation,

• you have complied with the FCRA
• and will not use the information to make any decisions which would violate federal anti-discrimination rules.

Note: State laws often govern some aspects of background checks; be sure you comply with them as well.

If you intend to decline to hire an applicant or terminate an employee based on information contained in the background check report, you have two obligations. You must:

• Give the person a notice regarding your decision, along with a copy of the report, thereby providing him an opportunity to challenge or explain any negative statements in the report before you follow through with your plan, and
• Furnish a copy of a document, generally supplied by the background check company, titled “A Summary of Your Rights Under the Fair Credit Reporting Act.”

If the person offers no defense, or at least not one which changes your mind, after you make your “adverse action” you need to tell the person several things. The list includes the basic fact of your decision and that it was based on the report, and that the person “has the right to dispute the accuracy or completeness of the report,” according to the FTC.

What Constitutes Discrimination?

As noted, the EEOC’s focus is on whether you use background checks in a discriminatory manner. “It’s illegal,” the EEOC states, “to check the background of applicants and employees when that decision is based on a person’s race, national origin, color, sex, religion, disability, genetic information (including family medical history), or age (40 or older).”

The next logical question is, what would constitute evidence of such discrimination? This is assuming you don’t commit the obvious blunder of only conducting background checks for, let’s say, job applicants who appear to have Hispanic family ancestry.

Here are two admonitions from the EEOC:

First, “take special care” when basing employment decisions on background issues “that may be more common among people of a certain race, color, national origin, sex, or religion; among people who have a disability; or among people age 40 or older.”

The EEOC offers this illustration: Employers should not use a policy or practice “that excludes people with certain criminal records if the policy or practice significantly disadvantages individuals “that fall into one of the demographic categories listed above, when the criterion (in this case, a criminal record) “does not accurately predict who will be a responsible, reliable, or safe employee.”

Second, be flexible if it appears that an individual’s disability might impact job performance. Before rejecting such an applicant out of hand, “allow the person to demonstrate his or her ability to do the job — despite the negative background information — unless doing so would cause significant financial or operational difficulty,” instructs the EEOC.

This link takes you to a page on the EEOC’s website which addresses the subject broadly, and includes additional links to pages that allow you to get into the weeds.

Source: Bizactions / Thompson Reuters

Separating Myths from Reality

Under the Affordable Care Act, everyone must have health insurance coverage beginning in 2014. This coverage can come from your employer, Medicare, health programs run by states or the health care “Marketplace.”

 

 

While much attention has been placed on the penalty that will be levied if you don’t have coverage (with some exceptions), you should also be aware that most health plans now cover more preventative care at no cost to you.

 

Under the law, Marketplace plans and many other health care plans are required cover the following list of preventive services without charging you a co-payment or co-insurance. This is true even if you haven’t met your yearly deductible. (The services must be delivered by a network provider.)

 

 Preventative Health Services for Adults

 

1. Abdominal Aortic Aneurysm one-time screening for men of specified ages who have ever smoked.
2. Alcohol misuse screening and counseling.
3. Aspirin use to prevent cardiovascular disease for men and women of certain ages.
4. Blood Pressure screening for all adults.
5. Cholesterol screening for adults of certain ages or at higher risk.
6. Colorectal Cancer screening for adults over age 50.
7. Depression screening for adults.
8. Diabetes (Type 2) screening for adults with high blood pressure.
9. Diet counseling for adults at higher risk for chronic disease.
10. HIV screening for everyone ages 15 to 65, and other ages at increased risk.
11. Immunization vaccines for adults–doses, recommended ages, and recommended populations vary:

• Hepatitis A;
• Hepatitis B;
• Herpes Zoster (Shingles);
• Human Papillomavirus;
• Influenza (Flu Shot);
• Measles, Mumps, Rubella;
• Meningococcal;
• Pneumococcal;
• Tetanus, Diphtheria, Pertussis; and
• Varicella.

1. Obesity screening and counseling for all adults.
2. Sexually Transmitted Infection prevention counseling for adults at higher risk.
3. Syphilis screening for all adults at higher risk
4. Tobacco Use screening for all adults and cessation interventions for tobacco users

 

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Preventative Health Services for Women

 

1. Anemia screening on a routine basis for pregnant women.
2. Breast Cancer Genetic Test Counseling (BRCA) for women at higher risk for breast cancer.
3. Breast Cancer Mammography screenings every 1 to 2 years for women over 40.
4. Breast Cancer Chemoprevention counseling for women at higher risk.
5. Breastfeeding comprehensive support and counseling from trained providers, and access to breastfeeding supplies, for pregnant and nursing women.
6. Cervical Cancer screening for sexually active women.
7. Chlamydia Infection screening for younger women and other women at higher risk.
8. Contraception – Food and Drug Administration-approved contraceptive methods, sterilization procedures, and patient education and counseling, as prescribed by a health care provider for women with reproductive capacity (not including abortifacient drugs). This does not apply to health plans sponsored by certain exempt “religious employers.”
9. Domestic and interpersonal violence screening and counseling for all women.
10. Folic Acid supplements for women who may become pregnant.
11. Gestational diabetes screening for women 24 to 28 weeks pregnant and those at high risk of developing gestational diabetes.
12. Gonorrhea screening for all women at higher risk.
13. Hepatitis B screening for pregnant women at their first prenatal visit.
14. HIV screening and counseling for sexually active women.
15. Human Papillomavirus (HPV) DNA Test every 3 years for women with normal cytology results who are 30 or older.
16. Osteoporosis screening for women over age 60 depending on risk factors.
17. Rh Incompatibility screening for all pregnant women and follow-up testing for women at higher risk.
18. Sexually Transmitted Infections counseling for sexually active women.
19. Syphilis screening for all pregnant women or other women at increased risk.
20. Tobacco Use screening and interventions for all women, and expanded counseling for pregnant tobacco users.
21. Urinary tract or other infection screening for pregnant women.
22. Well-woman visits to get recommended services for women under 65.

 

Preventative Health Services for Children

 

1. Autism screening for children at 18 and 24 months.
2. Behavioral assessments for children at the following ages: 0 to 11 months, 1 to 4 years, 5 to 10 years, 11 to 14 years, 15 to 17 years.
3. Blood Pressure screening for children at the following ages: 0 to 11 months, 1 to 4 years, 5 to 10 years, 11 to 14 years, 15 to 17 years.
4. Cervical Dysplasia screening for sexually active females.
5. Depression screening for adolescents.
6. Developmental screening for children under age 3.
7. Dyslipidemia screening for children at higher risk of lipid disorders at the following ages: 1 to 4 years, 5 to 10 years, 11 to 14 years, 15 to 17 years.
8. Fluoride Chemoprevention supplements for children without fluoride in their water source.
9. Gonorrhea preventive medication for the eyes of all newborns.
10. Hearing screening for all newborns.
11. Height, Weight and Body Mass Index measurements for children at the following ages: 0 to 11 months, 1 to 4 years, 5 to 10 years, 11 to 14 years, 15 to 17 years.
12. Hematocrit or Hemoglobin screening for children.
13. Hemoglobinopathies or sickle cell screening for newborns.
14. HIV screening for adolescents at higher risk.
15. Hypothyroidism screening for newborns.
16. Immunization vaccines for children from birth to age 18 —doses, recommended ages, and recommended populations vary:
17. Diphtheria, Tetanus, Pertussis;
18. Haemophilus influenzae type b;
19. Hepatitis A;
20. Hepatitis B;
21. Human Papillomavirus;
22. Inactivated Poliovirus;
23. Influenza (Flu Shot);
24. Measles, Mumps, Rubella;
25. Meningococcal;
26. Pneumococcal;
27. Rotavirus; and
28. Varicella.
29. Lead screening for children at risk of exposure.
30. Medical History for all children throughout development at the following ages: 0 to 11 months, 1 to 4 years, 5 to 10 years, 11 to 14 years, 15 to 17 years.
31. Obesity screening and counseling.
32. Oral Health risk assessment for young children Ages: 0 to 11 months, 1 to 4 years, 5 to 10 years.
33. Phenylketonuria (PKU) screening for this genetic disorder in newborns.
34. Sexually Transmitted Infection (STI) prevention counseling and screening for adolescents at higher risk.
35. Tuberculin testing for children at higher risk of tuberculosis at the following ages: 0 to 11 months, 1 to 4 years, 5 to 10 years, 11 to 14 years, 15 to 17 years.
36. Vision screening for all children.

 

 

Source:  Biz Actions /  Thomson Reuters

Affordable Care Act (ACA)

The Obama Administration’s most recent change to the Affordable Care Act (ACA) may have given some employers the wrong impression. With this modification, employers with 50 to 99 employees now have until 2016 to comply with the “Shared Responsibility” provisions of the law. Some employers — especially those who are close to the threshold of 99 employees — may be surprised to learn they are not really off the hook.

 

Here’s What You Need to Consider
Two primary factors come into play. First, recall that the employer size thresholds are based on a calculation which includes part-timers. You need to add up their combined monthly hours and divide by 120 to determine the actual number of full-time equivalents (FTEs) you have. This number must then be added to the number of full-timers, to determine your status.

 

Example: Suppose you have 80 employees putting in at least 30 hours per week (in other words, 80 full-timers) and 40 part-timers. Assume the combined total of the part-timer hours over the course of a month is 2,400 (40 part-timers averaging 60 hours per month). You must then divide the total part-time hours of 2,400 by 120 (as stated in the paragraph above). This gives you 20 FTEs plus your 80 full-timers, for a combined count of 100 full timers and FTEs. That puts you over the 99-employee threshold, and makes you subject to the employer mandate for 2015. However, you would still only be required to cover the 80 full-timers.

 

Another way you could be in for a nasty surprise is if you use a lot of independent contractors, who the IRS deems to be employees. Use the same example above, of 80 full-timers. Instead of 20 FTEs, you have 20 workers you consider to be independent contractors. However, the IRS has taken a closer look and decided these individuals are really employees. As a result, you now have 100 employees.

 

Workers who have been classified as independent contractors and then reclassified as employees by the IRS benefit from the change. Others benefit too, like the state unemployment agency, unemployment insurance carriers, state tax authorities, and the IRS. Your company, on the other hand, may face penalties and additional taxes for misclassification (in arrears and going forward). And, depending on where you end up in the total employee count, you may find you are indeed subject to the ACA’s “Shared Responsibility” provision for 2015 after all.

 

IRS Revving Its Engines

Last year, the Treasury Inspector General for Tax Administration (TIGTA) issued a report highlighting the fact that many employers aren’t paying attention to periodic IRS rulings that establish the independent contractor/employee boundaries. The result, stated TIGTA, is that “millions” of workers are misclassified, resulting in employers failing to pay the payroll taxes they should be paying.

 

The IRS has a “Determination of Worker Status Program” (also known as the SS-8 Program), which is supposed to make it easy for employers to get a thumbs up or down on a worker’s independent contractor status. The report found that employers often disregard rulings they don’t like. Combined with the fact the IRS, which is supposed to enforce those rulings, is frequently overwhelmed, enforcement has not always been adequate. In response to TIGTA’s findings, the IRS has vowed to make several changes. One of those changes is, they will form a team “to assess potential avenues to improve employer compliance with SS-8 Program determination rulings.”

 

Proceed with Caution

 

Note, while this program seems like a way to guarantee your company is in compliance with the IRS, it is not a step to be taken lightly. Filling out an Form SS-8 and letting the IRS handle it may seem easy and straightforward, but by providing the information you may be inadvertently inviting the IRS to rule against you preemptively. This is an area where seeking the guidance of your tax adviser is highly advisable.

 

Who’s in Control?

 

You and your tax adviser can evaluate a worker’s status by addressing three basic areas:

 

Behavioral control. The level of direction and supervision the worker receives. How does the worker receive work assignments? Describe the worker’s daily routine, such as his or her schedule of hours.
Financial control. What expenses are incurred by the worker in the performance of services for the firm? Does the worker establish the level of payment for the services provided or the products sold? If not, who does?

 

Relationship of the worker and firm. Did the worker perform similar services for others during the time period [covered by the report]? Please identify the benefits available to the worker.
Keep in mind that Form SS-8 can be filled out either by the worker, or you. Workers who believe they have been misclassified can obtain the form and send it to the IRS. In fact, a very high proportion of SS-8 forms submitted to the IRS come from workers who believe they should be treated as employees. Moreover, the TIGTA report found that in one year, nearly three-quarters of SS-8 forms filed resulted in determinations that a worker treated as an independent contractor should have been treated as an employee. This alone should be a compelling reason for you and your tax adviser to examine worker classification and make necessary changes.

 

Guidelines you can rely on for a determination of who can be classified as an independent contractor are easy to find. A good primer was prepared by Congress’ Joint Committee on Taxation a few years back, but can still be relied upon for the basics.

 

If you review your situation and conclude you might be vulnerable to a massive re-classification, the IRS has a “voluntary worker classification program.” This program, if you are eligible, offers the promise of a reduction in your liability for payroll taxes you should have paid. Last year, the IRS liberalized the program, to encourage greater employer participation. However, once again, enter this program only after consulting with your tax adviser to avoid unintended consequences.

 

Back to the ACA

 

If you do fall below the small employer threshold, and still offer a health plan, remember, while you may not be subject to the play-or-pay rules, your plan still must satisfy other ACA requirements this year. Examples include not denying health coverage due to a pre-existing condition and not having an eligibility waiting period exceeding 90 days.

 

In addition, if your analysis of your employee plus FTE headcount shows that you will be subject to the employer mandate in 2015, new IRS regulations cut you a little bit of slack. Instead of having to offer coverage to at least 95 percent of your employees, the standard is reduced to 70 percent. That 95 percent standard will still take effect in 2016 — assuming no further regulatory changes occur before then.

 

With that said, the ACA has proven so far to be a work in progress. Stay tuned as more changes, big or small, continue to roll out.

 

Disclaimer of Liability

 

Vision HR provides the information in this e-newsletter for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.

 

 

 

 

 

 

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Delay in Dependent Coverage Requirement

The original requirement that employee dependents also be covered in 2015 was pushed back to 2016, “as long as the employer is taking steps to arrange for such coverage to begin in 2016,” states the Treasury Department fact sheet.

The final rules clarified whether certain categories or workers will be considered full-time or not. Two examples:

• Seasonal employees: Those in positions for which the customary annual employment is six months or less generally will not be considered full-time employees.

• Volunteers: Hours contributed by bona fide volunteers for a government or tax-exempt entity, such as volunteer firefighters and emergency responders, will not cause them to be considered full-time employees.

The final rules also addressed the treatment of educational employees, student work-study employees and adjunct faculty members.

Independent Contractor Requirements

Additional highlights of the final rules:

• If you pay for the services of independent contractors, the IRS will decide whether it agrees with your classification of those individuals as independent contractors as opposed to employees based on common law alone — not safe harbors applicable to employment tax requirements. The purpose of this scrutiny is to prevent companies from misclassifying individuals as a way to avoid the need to provide health coverage.

• The final regulations feature a new rule applicable to employers that secure workers via staffing agencies. Employers will only be treated as meeting their shared responsibility requirements if the staffing company employee working for the employer is covered by a health plan offered by that agency, and the fee paid to the staffing agency is higher than it would have been had the agency not provided health coverage to the individual.

 

 

2. Strike the words “permanent employment” and “permanent employee” from handbooks, applications and job descriptions. Train supervisors to avoid promising or implying permanent employment when they hire workers.

3. Evaluate employment contracts for management personnel. Include provisions which identify causes for discharge. Assert that employment is not for a specific period of time. Provide for third party resolution of disputes. Limit recoverable damages by either party in the event of a breach.

4. Review your evaluation process. Make certain an evaluation includes constructive guidance on how employees can improve work performance. Train supervisors to use objective — not subjective — criticism.

Example: Subjective language: “Jane’s typing needs improvement.” Objective language: “Jane will increase her typing speed to 55 words per minute.”

5. Use progressive disciplinary procedures. These procedures include oral warnings, written warnings, suspension without pay and termination.

When implementing such procedures, tell employees which types of behavior merit discipline.

Examples: First instance of excessive tardiness, oral warning. Physical fights, termination.

Make certain supervisors consistently enforce these procedures. Your case in court is weaker if worker Pete says he was unfairly discharged for drinking on the job when worker Bob only received a written warning for drinking a beer at break time.

6. Implement a problem resolution procedure. When employees can appeal a discharge or poor performance rating at an impartial hearing, they are less likely to seek relief in court.

Some firms employ ombudsmen to handle employee complaints. Other firms arrange for outside arbiters to decide disputes. Still other firms have panels of in-house personnel to hear disputes.

7. Approach all discharges with caution. Never fire an employee in a fit of anger. First suspend the employee, investigate the incident and then decide if the questionable behavior warrants discharge. Take statements from witnesses. Give the employee an opportunity to respond to charges.

Most important, seek counsel from qualified, neutral advisers before discharging problem workers.

 

 

Source:  BizActions / Thompson Reuters

Think the ACA Thresholds Don’t Apply to Your Business? Not So Fast

One thing we’ve come to rely on with the Affordable Care Act (ACA)  is that the government keeps tweaking it. As changes have rolled out, there’s a lot of coverage in the media, but not a lot of clarity. If you’re close to the 100-employee threshold for complying with the Employer Shared Responsibility provisions, you may find you are actually over the line if you use a lot of independent contractors that the IRS deems to be employees. Continue reading for details.

Another Delay of the ACA Health Care Mandate for Some Employers

In yet another alteration to the Affordable Care Act, certain mid-size companies now have an additional year before the “play or pay” employer mandate kicks in. This surprising news became known when final regulations were issued by the U.S. Treasury Department on February 10. These regulations include important information for larger businesses as well. Find out if your company is affected and what your responsibilities are in relation to the changes.

 

Another Delay of the ACA Health Care Mandate for Some Employers

Employers that have 50 to 99 full-time employees or full-time equivalent employees (FTEs) now have a one-year reprieve, until 2016, to comply with the employer “play or pay” mandate. This delay is small — but significant — for those affected. It’s part of the 227-page final regulations regarding the employer mandate, which were released by the U.S. Treasury Department on February 10. (You can find the information in section 4980H of the Internal Revenue Code in the “shared responsibility” segment.)

Basics about “Play or Pay”

Under the Affordable Care Act, there is a shared responsibility mandate that imposes a penalty on a “large employer” if it does not offer “minimum essential” health insurance coverage or if one or more of its full-time employees obtains a premium tax credit to help purchase health coverage. The employer mandate applies to for-profit companies, not-for-profit organizations and government entities.

If your company falls into the 50-to-99 employee category that was given a reprieve to 2016, the delay may be good news, but your business is still required to take action, as described below.

Note: Employers having fewer than 50 FTEs were not required to comply with the play or pay mandate in the first place.

Here’s what you need to know, as well as possible responses.
Although employers in the 50-to-99 employee/FTE bracket won’t be subject to the mandate until 2016, they will be required to certify their eligibility for the delay. Also, employers with more than 100 FTEs are not permitted to trim their workforces simply to qualify for the mandate delay.

The IRS has left the door open to pushing back the mandate for larger employers as well. “As these limited transition rules take effect, we will consider whether it is necessary to further extend any of them beyond 2015,” the Treasury Department stated.

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