http://www.checkmatepayroll.com/news.html? News http://www.checkmatepayroll.com/news.html?news_id=168&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Compensation is a company’s largest expense, so what is the cost of not getting compensation correct for current and future employees? Checkmate Payroll and our Webapps program can help keep your current employees as well as future employees on board with your company through our new feature, Pay Scale. Pay Scale provides a list of market standard wages, for a given job description by location, to assure you that your employees and future employees are being currently compensated for, decreasing the number of current employees searching elsewhere as well as increasing talent being recruited for job postings. en-us $date http://www.checkmatepayroll.com/news.html?news_id=169&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Unemployment Tax Alternatives for 501(c)(3)s The following discussion is provided for informational purposes only and is not intended to serve as legal or tax advice. For specific information about unemployment taxes for 501(c)(3) organizations, consult an attorney or tax advisor. In 1972, the Federal Unemployment Tax Act was changed to allow 501(c)(3) organizations to choose between paying into the state unemployment insurance fund or essentially becoming self-insured and reimbursing the state unemployment fund for those unemployment benefits actually paid on behalf of the organization. The law requires that State unemployment laws allow an organization exempt under Section 501(c)(3) to elect whether: (a) to contribute to the State program in accordance with State law or (b) to pay into the program annually an amount equal to the actual unemployment benefits paid out by the state program on account of employment services previously provided to the 501(c)(3) organization. Here is what the NH Department of Employment Security’s Employer Handbook has to say: “Most nonprofit organizations, even if exempt from FUTA taxes under the Internal Revenue Code, are subject to the New Hampshire law if they have one or more employees. These organizations have the option of reimbursing the trust fund for benefits paid to their former employees or of paying quarterly taxes on wages. Non-profit organizations may change from one option to the other by making written application to the Commissioner before January 1 of the applicable year. Once an employer changes its election, it must remain with that status for an irrevocable three (3) calendar year period. Reimbursing employers must also file an Employer Quarterly Tax and Wage Report in a timely fashion each quarter.” The advantages of paying unemployment taxes include: a tax-paying employer knows the tax rate for the coming year and can project the annual cost based on their taxable payroll. If your claims are more than the unemployment taxes you pay, the state unemployment department will still cover the claims (you can expect a tax increase in future years). During the past five years of unusually high unemployment, paying state taxes has provided good security for agencies that experienced staffing cuts. The disadvantage of paying unemployment taxes include: the cost; under current NH Law the annual taxable wage base is $14,000 per employee. Because of the great recession, NH Unemployment tax rates remain much higher than they were before the recession. This means a nonprofit is probably paying much more in taxes than the state is paying for its claims. Nationally, nonprofits typically pay $2.20 in taxes for every $1 in claims. The disadvantage of becoming a reimbursing employer is that the organization becomes responsible for all the unemployment claims paid to their former employees by the state, no matter the amount. A reimbursing employer can only anticipate liability for claims. Your organization could find itself facing an unexpectedly large tax bill. Also, reimbursing employers (as with taxpaying employers) do not get "relief of charges." Thus, if an employee resigned from your organization, went to work for another company, was terminated, and filed for unemployment, your nonprofit could be charged for a portion of that employee's benefits (even though the employee voluntarily left you). The reimbursement option works best for organizations that have stable employment and relatively low unemployment claims based on the size of the organization. Nonprofits with fewer than 10 employees or organizations, which have regular layoffs, may not be the best candidates for reimbursing status. Nonprofits with an annual gross payroll of $500,000 or more, can conceivably realize substantial savings over a period of years. Many nonprofits belong to different grantor trusts throughout the country. These trusts have additional features an organization may not be able to get on its own. They help the nonprofit file the paperwork with its state to become a reimburser, and they handle the reimbursement payments to the state. Other features vary by trusts, but may include member-owned reserve accounts, stop-loss insurance (which protects the members' account from unusually high claims), and claims management services. You can search the Web for grantor trusts that provide unemployment programs for nonprofit organizations. The bottom line on unemployment coverage is to investigate your opportunities. For many larger employers becoming a reimbursing employer will likely be much less costly than paying taxes in the long run. en-us $date http://www.checkmatepayroll.com/news.html?news_id=167&module_params[name]=news&module_params[mode]=default&module_params[action]=detail In the coming weeks and months, we will be sending out a series of articles on the Affordable Care Act, in order to better educate our clients and colleagues on this enormously complicated topic. In the very near future, our workforce management technology will be enhanced to uniquely support your compliance. Some of the things that we're working on include: creating a method for clients to calculate FTE's to determine whether or not they must offer a compliant health plan; determining which employees on staff must be offered coverage and for how long the offer of coverage must be continued; determining the proper look back periods to ensure that coverage is offered to those employees who qualify in a timely manner; and providing support for the shared responsibility provisions for multiemployer situations. en-us $date http://www.checkmatepayroll.com/news.html?news_id=166&module_params[name]=news&module_params[mode]=default&module_params[action]=detail The non-profit, Mount Washington Observatory is hosting their 13th annual Seek the Peak hike-a-thon July 19-20, 2013. Seek the peak provides vital operating income for the Mount Washington Observatories weather station, museum, educational programs, research and more. Bring the family for a shorter hike or try and reach the summit of Mount Washington for tours of the observatory. Enjoy a kickoff party in North Conway, and after party at the base of the mountain and wonderful prizes and giveaways for participating. For more information on the 13th annual Seek the Peak hike-a-thon click here. en-us $date http://www.checkmatepayroll.com/news.html?news_id=165&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Checkmate now has the ability to integrate our web based payroll management technology with the point of sale system that restaurants utilize. We have just developed a formal integration with a POS technology called Lionwise, and will be pursuing other integrations in the near future. Checkmate is also the exclusive provider of pay as you go workers’ comp for the NHLRA Workers Comp Trust. Come and join Checkmate Payroll, as we sponsor the NHLRA Restaurant Week from May 17th-24th. The eight day event will offer a three course, prixe fixe menu at all participating fine cuisine restaurants. For more information on the NHLRA Restaurant Week and participating restaurants, click here. For more information about Checkmate’s POS integration or the NH Hospitality Compensation Trust, please contact Josh Robinson at josh@checkmatenh.com. en-us $date http://www.checkmatepayroll.com/news.html?news_id=164&module_params[name]=news&module_params[mode]=default&module_params[action]=detail E-verify is a service offered through USCIS (US Customs and Immigration Service). It is free, when you are interacting directly with the USCIS, which requires a manual process of communicating the employee SSN and other data with USCIS. USCIS processes the data and responds to indicate whether or not the individual is truly authorized to work in the US. Once an employer gets a positive result from E-verify, they can proceed to keep the employee on board, knowing that they have minimized the risk on noncompliance with USCIS regulations. Use of E-Verify does not mean that an employer is absolved of the need to comply with the rules around form I9. All employers must comply with the I9 requirements, whether or not they use E-Verify. Click here for more information about E-Verify. With the Checkmate's cloud based workforce management technology, our clients can use E-verify from directly within the application. This integrated version of E-Verify is not free. For additional information as well as pricing details contact Josh Robinson via email to josh@checkmateNH.com. en-us $date http://www.checkmatepayroll.com/news.html?news_id=163&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Federal minimum wage for tipped employees will increase significantly if Obama’s plan to increase the minimum wage to $9 is enacted. This minimum wage for tipped employees, which is significantly lower than the regular minimum wage and applies to professions relying on tips, hasn't changed in 22 years. The federal government requires restaurants, hotels and other employers to pay a minimum of $2.13 an hour for workers who rely on gratuities. While most states require a higher tipped minimum wage (New Hampshire requires that the minimum wage for tipped employees be equal to 45% of the minimum wage), 13 states rely on the federal minimum wage for tipped employees. Another bill was introduced last month by Sen. Tom Harkin, D-Iowa, and Rep. George Miller, D-Calif., which proposed a gradual increase to the tipped minimum wage. Their plan, which also would raise the base federal minimum wage to $10.10 an hour from its current $7.25, would increase the tipped minimum wage to $3 an hour and then boost it by 95 cents each year until it reaches 70% of the base federal minimum wage. Currently, the tipped wage is just 29% of the federal minimum pay rate. en-us $date http://www.checkmatepayroll.com/news.html?news_id=160&module_params[name]=news&module_params[mode]=default&module_params[action]=detail The fiscal year 2014 federal budget proposed April 10 by President Obama would increase the hourly minimum wage, modify tax reporting requirements, and address the underfunded unemployment insurance program. Obama proposed an increase in the federal minimum wage to $9 an hour from $7.25 an hour. The wage would rise to $9 an hour by the end of 2015 and the rate would be indexed to inflation in subsequent years. The rate rose to $7.25 an hour in 2009 from $6.55 an hour. Tax changes under the proposed budget would include: reducing the W-2 electronic filing threshold to 50 W-2s, implementing quarterly reporting (IRS Real Time Initiative), allowing IRS to issue worker status guidance/change definitions, and adopting a policy to hold certain Professional Employment Organizations liable for client's federal taxes. Under the proposal, Federal Unemployment Tax Act changes would include: suspending credit reductions for 2013 and 2014, increasing the unemployment taxable wage base to $15,000, effective Jan. 1, 2016, and increasing the effective minimum federal unemployment tax rate to 0.8 percent from 0.6 percent, as of Jan. 1, 2014, then reducing the total tax over time as the wage base increases. en-us $date http://www.checkmatepayroll.com/news.html?news_id=158&module_params[name]=news&module_params[mode]=default&module_params[action]=detail From October 27th-29th, Checkmate Payroll will be featured as a Business Partner and sponsor at the 2013 Strategic HR New England conference at the Mount Washington Hotel. The two day conference will feature top HR executives and strategic thinkers from across the United States, with short demos from Checkmate Payroll of our workforce management technology throughout the conference. You may also catch Checkmate Payroll at the Granite State HR Conference being held on April 30th, at the Radisson Hotel in Manchester, NH. To find out more information about Strategic HR New England click here. en-us $date http://www.checkmatepayroll.com/news.html?news_id=156&module_params[name]=news&module_params[mode]=default&module_params[action]=detail On May 16th, Checkmate is participating as a team in the 2013 Rock 'N Race in downtown Concord. The race, selected by the editors of New Hampshire Magazine as the "Best Community Running Event of 2011", is sponsored by Merrimack County Savings Bank and benefits Concord Hospital Payson Center for Cancer Care. Click Here to sponsor The Checkmate Team. en-us $date http://www.checkmatepayroll.com/news.html?news_id=157&module_params[name]=news&module_params[mode]=default&module_params[action]=detail NH has a well developed network of SHRM affiliated HR associations, with groups that operate out of Concord, Manchester, the Seacoast and more. These associations offer learning and networking opportunities for business owners, HR directors and the like, allowing everyone to keep current on the ever changing landscape of human resources and regulatory compliance. Until recently, no such group existed in the north country. HR North is an satellite of the HR Association of Greater Concord. The next event will be on April 18 at the Mount Washington Hotel. The topic will be Complying with Wage & Hour Laws. Click Here to learn more about HR North and to register online. en-us $date http://www.checkmatepayroll.com/news.html?news_id=152&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Labor Law Poster compliance might seem like low hanging fruit for HR. How complicated can it be, after all, to make sure that you have the proper state and federally mandated notices on display? Unfortunately, the revisions to the mandatory postings seem to come in flurries. Because these revisions are almost always due to legislation passed by lawmakers who have little regard for the impact of their actions on employers, there is no schedule, no discernible rhyme or reason. Some years, there are no revisions at all, while in others, employers find themselves tacking up revised notices month after month after month. Checkmate is pleased to offer our clients a couple of solutions for labor law poster compliance. With Checkmate's Labor Law Poster Subscription Program, employers are automatically shipped a new, laminated Federal and/or State poster, shortly before the effective date of any mandatory revision. Coming Soon...Checkmate will be offering an email version of the Labor Law Poster Subscription Program. With this email service, Checkmate clients will automatically receive an email, shortly before the effective date of every revision. The email will include a print ready version of the revised notice as a .pdf file attachment. If you're interested in learning more about Checkmate's labor law poster compliance programs, payroll services or the workforce management technologies that we provide, please contact Josh Robinson via email , call 603.225.2004, or submit a request for a free consultation on our website. en-us $date http://www.checkmatepayroll.com/news.html?news_id=153&module_params[name]=news&module_params[mode]=default&module_params[action]=detail The Concord Family YMCA invites you to "In Good Spirits," the 9th Annual Spring Social Fundraising Event. Friday, March 29, 5:30-7:30p at the Capitol Center for the Arts. Benefiting families and children in our own neighborhood. Click here for more information and to register online. en-us $date http://www.checkmatepayroll.com/news.html?news_id=154&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Tickets are now on sale for the 22nd Annual Business Showcase hosted by the Greater Concord Chamber of Commerce on Tuesday, April 2, 2013 from 4:30–7:30 pm at the Grappone Conference Center. Click here for more information and to register online. We look forward to seeing your there! en-us $date http://www.checkmatepayroll.com/news.html?news_id=155&module_params[name]=news&module_params[mode]=default&module_params[action]=detail The 2013 Form 941, Employer's Quarterly Federal Tax Return, and instructions were released March 12 by the Internal Revenue Service. The revised form reflects the additional Medicare tax implemented under the Affordable Care Act and the expiration of the payroll tax cut. The new line 5d indicates that taxable wages reported in column 1 are to be multiplied by 0.9 percent to determine the additional Medicare tax due and reported in column 2. The additional tax is assessed on employee annual wages greater than $200,000. The 0.9 percent tax is deducted from applicable employee wages. Unlike the standard Medicare tax, the additional tax is not assessed on employers. en-us $date http://www.checkmatepayroll.com/news.html?news_id=149&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Join us for the NH Rivers Council Wild & Scenic Film Festival, Annual Meeting and 20th Anniversary Celebration, at Red River Theatres, on Friday, March 29, 2013. This is a great opportunity to become a Rivers Council member, support NH rivers, and have a fun and educational evening of viewing short movies spanning the world, celebrating rivers, nature, and the good work that people are doing to inspire us all. Click here to learn more about the event and to buy tickets online. en-us $date http://www.checkmatepayroll.com/news.html?news_id=150&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Notice of Exchanges and Subsidies: Delayed. According to the original Health Care Reform Acts, effective March 1, 2013, employers of all sizes were required to provide each newly hired employee with a written notice of the existence of health insurance exchanges and potential subsidies available (Notice of Exchanges and Subsidies). This notice was, subsequently, required to be provided to all current employees. However, on January 24, 2013, the US Department of Labor (DOL) announced that it has delayed the compliance date for the delivery of this document. The DOL estimates that the notices (for both newly hired and current employees) will be mandated in either late summer or early fall of 2013. The DOL will publish and release a model notice prior to the new deadline. Stay tuned for future HR Alerts from the HR Support Center as the facts and timelines continue to evolve regarding the Health Care Reform Acts. DOL Final Rule on AFCTCA.Effective March 8, 2013, the Department of Labor (DOL) has published a Final Rule implementing the changes to the Family and Medical Leave Act (FMLA) made by the Airline Flight Crew Technical Corrections Act (AFCTCA). The AFCTCA amended the FMLA to incorporate a special eligibility provision for airline flight crewmembers and flight attendants. The DOL clarifies how the FMLA applies to airline personnel and flight crews since those employees work in an industry with a unique system of setting work hours. The new rule explains how to calculate the required number of labor hours airline employees must fulfill within a 12-month period in order to be eligible for leave covered by the FMLA. DOL Final Rule on FMLA Military Amendments.Effective March 8, 2013, the Department of Labor (DOL) published a Final Rule implementing the changes to the Family and Medical Leave Act (FMLA) made by the 2010 National Defense Authorization Act (NDAA). The 2010 NDAA, amended the FMLA's military caregiver leave provision to permit eligible employees to take leave to care for certain veterans with a serious injury or illness incurred or aggravated in the line of duty, which manifested before or after the veteran left active duty. It also now allows military caregiver leave for current service members with a serious injury or illness that existed prior to service and that was aggravated by service in the line of duty on active duty. In addition, the NDAA expanded the qualifying exigency provision to permit eligible employees to take qualifying exigency leave for covered family members in the Regular Armed Forces and added a foreign deployment requirement for qualifying exigency leave for all military members (National Guard, Reserves and Regular Armed Forces). FMLA Forms Update. Effective March 8, 2013, employers should begin to utilize the updated Family Medical Leave Act (FMLA) forms (revised February 2013) released by the Department of Labor (DOL), when applicable. The updated forms are: FMLA Form WH-381 (Notice of Eligibility and Rights & Responsibilities), FMLA Form WH-384 (Certification of Qualifying Exigency for Military Family Leave), FMLA Form WH-385 (Certification for Serious Injury or Illness of Current Servicemember for Military Family Leave) and FMLA Form WH-385-V (Certification for Serious Injury or Illness of a Veteran for Military Caregiver Leave). The forms may be downloaded directly from the HR Support Center, HR Forms Section. For more information on the HR Support Center provided by Checkmate, click here. FMLA Notice Poster Update. Effective March 8, 2013, there are changes to the federal Family and Medical Leave Act (FMLA) requirements. All employers covered by FMLA must display the updated FMLA notice poster, "Employee Rights and Responsibilities under the Family and Medical Leave Act" (WHD Publication 1420, revised February 2013), in a conspicuous area easily visible to all employees and applicants for employment. The poster summarizes the major provisions of the FMLA. In addition, it must be displayed at all locations an employer conducts business, regardless of if there are fewer than 50 employees employed within a 75-mile radius of the worksite. If the employer chooses to utilize electronic postings to satisfy the posting requirement, this method is permissible only if the requirements of the regulations are met. The new FMLA notice poster is available, in downloadable .pdf format, by clicking here. HIPAA Regulations Updates.Effective March 26, 2013, updates to the Health Insurance Portability and Accountability Act (HIPAA) regulations may impact certain employers. These regulations are based on changes under the Health Information Technology for Economic and Clinical Health (HITECH) Act, enacted as part of the American Recovery and Reinvestment Act of 2009 (ARRA) and the Genetic Information Nondiscrimination Act of 2008 (GINA). Although comprehensive, some key updates expand HIPAA security and privacy standards to business associates, shift the default format for patients to receive requested records from paper to electronic, reduce the paperwork necessary for patients to release health information to third parties, decrease the threshold for security breach notification, increase penalties for noncompliance, and prohibit the sale of protected health information for fundraising and marketing purposes. Note: Covered entities and business associates must generally comply with the applicable requirements of the final regulations by September 23, 2013. en-us $date http://www.checkmatepayroll.com/news.html?news_id=151&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Hard to believe for those of us in cold climates, but winter is almost over and the clocks are going to be set ahead one hour in many parts of the country on Sunday, March 10 at 2:00 a.m. Hourly workers who are on the job when the time change occurs will lose an hour of pay, in essence. For example, if an employee is scheduled to work from 11pm on Saturday, March 9 until 7:30am on Sunday, March 10, they will only need to be paid for 7.5 hours of work, because they will not actually have worked from 2-3am. Employees may also lose overtime pay if the loss of the hour prevents them from going above the 40-hour mark during the week. Employers that choose to pay their workers for the full eight-hour shift do not need to include the additional hour's pay in the calculation of the employee's regular rate of pay for overtime purposes. However, the employer may not credit the extra hour's pay toward overtime since it is not compensation for time worked. en-us $date http://www.checkmatepayroll.com/news.html?news_id=146&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Protections Expanded for Military Families and Airline Flight Crews As a result of legislation that was passed during the last few years expanding the rights of certain military employees, their caregivers and their families, and the rights of airline flight crews under the Family and Medical Leave Act, the US DOL has issued a revision to the mandatory notice that must be on display at all employer locations. Several of the changes to the FMLA regulations, including military caregiver leave for a veteran, qualifying exigency leave for parental care, and the special leave calculation method for flight crew employees, will not be effective until the effective date of the Final Rule on March 8, 2013. As the Department noted in the preamble to the Notice of Proposed Rulemaking, however, some of the provisions of the FY 2010 NDAA and the Airline Flight Crew Technical Corrections Act, such as the expansion of qualifying exigency leave to families of members of the Regular Armed Forces and the special eligibility hours of service requirement for flight crew employees, were effective as of the enactment date of those statutes. Family and Medical Leave Act (FMLA) Poster All covered employers are required to display and keep displayed a poster prepared by the Department of Labor summarizing the major provisions of The Family and Medical Leave Act (FMLA) and telling employees how to file a complaint. The poster must be displayed in a conspicuous place where employees and applicants for employment can see it. A poster must be displayed at all locations even if there are no eligible employees. Click here for a link to a print ready version of the revised FMLA notice. Click here to learn more about Checkmate's Labor Law Poster Subscription Service. en-us $date http://www.checkmatepayroll.com/news.html?news_id=147&module_params[name]=news&module_params[mode]=default&module_params[action]=detail We are excited to announce that the Kronos InTouch, the most innovative time clock on the market, is now integrated with our workforce management solution. While workforce management solutions have advanced rapidly over the past few years, the hardware they work with has not kept pace. Designed for today's cloud-centric computing environments, InTouch incorporates the latest technologies and will reshape the way you and your employees interact with your workforce management system. Benefits of the Kronos InTouch: Large 7" full-color LCD touchscreen with an intuitive user interface. The modern design and simplicity of the user interface translates into faster employee adoption. Highly customizable with regard to both hardware and software. InTouch can log punches via employee-specific code, biometrics, or various swipe badges. Being that the device is built on open architecture specifically for the cloud, future enhancements and third-party apps can be easily incorporated into the device. Made of high quality materials designed to withstand the most rugged of work environments. The InTouch design team went to great lengths to use only the most proven and durable components. If you're interested in learning more about the Kronos InTouch device or our workforce management solutions, please call Josh Robinson at 603.225.2004 or send an email to Josh@CheckmateNH.com en-us $date http://www.checkmatepayroll.com/news.html?news_id=148&module_params[name]=news&module_params[mode]=default&module_params[action]=detail The 2013 version of Publication 15, Circular E, Employer's Tax Guide, was released by the Internal Revenue Service, along with two affiliated publications: Publication 15-A, Employer's Supplemental Tax Guide, and Publication 15-B, Employer's Tax Guide to Fringe Benefits. Circular E contains the 2013 federal income tax percentage method and wage bracket withholding tables and employer instructions on accounting for taxable and nontaxable items. Note that amounts to add to nonresident wages for income tax withholding purposes are different than in IRS's earlier release of these amounts in Notice 1036. Publication 15-A supplements Circular E with detailed guidance on employee status, third-party sick pay, and includes alternative 2013 federal income tax withholding tables. Publication 15-B includes descriptions of most fringe benefit issues that often cross into payroll administration. en-us $date http://www.checkmatepayroll.com/news.html?news_id=144&module_params[name]=news&module_params[mode]=default&module_params[action]=detail A health insurance exchange is basically a virtual health insurance marketplace that is intended to create a more organized and competitive market for buying health insurance. Under the Patient Protection and Affordable Care Act (PPACA), states are encouraged, but not required to set up a state-based exchange. However, if they fail to do so, the federal government will step in to help facilitate an exchange in the state. With some states still weighing their options with respect to setting up certain types of health insurance exchanges, employers were beginning to worry about an important compliance deadline on the horizon. According to the original Health Care Reform Acts, effective March 1, 2013, employers of all sizes were required to provide each newly hired employee with a written notice of the existence of health insurance exchanges and potential subsidies available (Notice of Exchanges and Subsidies). This notice was subsequently required to be provided to all current employees. However, on January 24, 2013, the US Department of Labor (DOL) announced that it has delayed the compliance date for the delivery of this document. The delay most likely results from some uncertainty and indecision among state exchanges and anticipated information regarding the federal exchange program. The DOL estimates that the notices (for both new hires and current employees) will be required in either late summer or early fall of this year. The DOL will publish a model notice prior to the new deadline. The notice must contain the following information: Announcement of the exchange and an explanation of services provided through the exchange. Statement of an employee's right to purchase insurance through the exchange, as well as information on how employees can contact the exchange. Notification of whether or not the employer's health plan offers "minimum essential coverage" as defined by the federal law and the potential that an employee has to receive a government subsidy. Notice that employees may lose the employer's contribution to health coverage if they purchase insurance through the exchange. If your company has more than fifty full-time equivalent employees (FTEs), it is time to carefully consider how your organization intends to comply with the Employer Mandate, or if it determines that non-compliance is the best strategic option. Whether your organization will face employer penalties depends on whether your current health plan design and employer contribution meet the minimum requirements. Your decision in this regard may affect information contained in this notice. At the time of issuance of the notices, we recommend that your organization have a resource available to answer employee questions arising out of the notices. Should you have questions regarding the Employer Mandate or this notice requirement, please reach out to your Health Plan Broker or your Human Resources Professional. en-us $date http://www.checkmatepayroll.com/news.html?news_id=145&module_params[name]=news&module_params[mode]=default&module_params[action]=detail During the recession that started in 2007, NH Employment Security implemented the emergency power surcharge, effectively increasing the unemployment tax rate for all employers by 1.0%, in order to ensure the solvency of the state unemployment trust fund. The balance in the unemployment trust fund had been improving, and the emergency power surcharge was reduced by 0.5% in the fourth quarter of 2012, as a result. A few months ago, we reported that NHES had planned to further reduce the emergency power surcharge from 0.5% to 0.0% in the first quarter of 2013. However, NHES has subsequently decided to keep this surcharge in place for the first quarter of 2013. As a result, the total new employer tax rate for the first quarter of 2013 remains at 3.2%. The taxable wage base for unemployment tax purposes remains at $14,000 in 2013. en-us $date http://www.checkmatepayroll.com/news.html?news_id=142&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Following the January tax law changes made by Congress under the American Taxpayer Relief Act (ATRA), the Internal Revenue Service announced today it plans to open the 2013 filing season and begin processing individual income tax returns on Jan. 30. The IRS will begin accepting tax returns on that date after updating forms and completing programming and testing of its processing systems. This will reflect the bulk of the late tax law changes enacted Jan. 2. The announcement means that the vast majority of tax filers -- more than 120 million households -- should be able to start filing tax returns starting Jan 30. The IRS estimates that remaining households will be able to start filing in late February or into March because of the need for more extensive form and processing systems changes. This group includes people claiming residential energy credits, depreciation of property or general business credits. Most of those in this group file more complex tax returns and typically file closer to the April 15 deadline or obtain an extension. The opening of the filing season follows passage by Congress of an extensive set of tax changes in ATRA on Jan. 1, 2013, with many affecting tax returns for 2012. While the IRS worked to anticipate the late tax law changes as much as possible, the final law required that the IRS update forms and instructions as well as make critical processing system adjustments before it can begin accepting tax returns. The IRS originally planned to open electronic filing this year on Jan. 22; more than 80 percent of taxpayers filed electronically last year. Who Can File Starting Jan. 30? The IRS anticipates that the vast majority of all taxpayers can file starting Jan. 30, regardless of whether they file electronically or on paper. The IRS will be able to accept tax returns affected by the late Alternative Minimum Tax (AMT) patch as well as the three major "extender" provisions for people claiming the state and local sales tax deduction, higher education tuition and fees deduction and educator expenses deduction. Who Can't File Until Later? There are several forms affected by the late legislation that require more extensive programming and testing of IRS systems. The IRS hopes to begin accepting tax returns including these tax forms between late February and into March; a specific date will be announced in the near future. The key forms that require more extensive programming changes include Form 5695 (Residential Energy Credits), Form 4562 (Depreciation and Amortization) and Form 3800 (General Business Credit). A full listing of the forms that won't be accepted until later is available on IRS.gov. As part of this effort, the IRS will be working closely with the tax software industry and tax professional community to minimize delays and ensure as smooth a tax season as possible under the circumstances. Updated information will be posted on IRS.gov. en-us $date http://www.checkmatepayroll.com/news.html?news_id=143&module_params[name]=news&module_params[mode]=default&module_params[action]=detail The IRS has released inflation-adjusted tables for 2013 reflecting increases in amounts for excludable transportation fringes, adoption assistance, the standard deduction, and personal exemption. Qualified transportation fringes The amounts that may be excluded from gross income for employer-provided "qualified transportation fringe benefits" for 2013 are as follows: $245 per month for "qualified parking" ($240 in 2012), and $245 per month for "transportation in a commuter highway vehicle and any transit pass" ($240 in 2012, retroactively increased by ATRA 2012 from the $125 limit that had been in place). Adoption assistance For 2013, the maximum amount that can be excluded from an employee's gross income for qualified adoption expenses under an employer's adoption assistance program is $12,970 ($12,650 in 2012). The maximum amount that can be excluded in connection with the adoption of a child with special needs is also $12,970 ($12,650 in 2012). The amount excludable from an employee's gross income begins to phase out for taxpayers with adjusted gross income of $194,580 ($189,710 in 2012) and is completely phased out for taxpayers with adjusted gross income of $234,580 ($229,710 in 2012). Standard deduction The standard deduction amounts for 2013 increase to $12,200 for married couples filing jointly or surviving spouses ($11,900 in 2012), $6,100 for single taxpayers and married taxpayers filing separately ($5,950 in 2012), and $8,950 for heads of household ($8,700 in 2012). Note that under ATRA 2012, the standard deduction for married taxpayers filing jointly is permanently set at 200% of the standard deduction for single taxpayers. Personal exemption The personal exemption amount for 2013 is $3,900 ($3,800 in 2012). Note that under ATRA 2012, the phase-out of the personal exemption for higher income taxpayers is reinstated and begins at $250,000 of adjusted gross income for single taxpayers, at $300,000 for married couples filing jointly or surviving spouses, at $150,000 for married taxpayers filing separately, and at $275,000 for heads of household. en-us $date http://www.checkmatepayroll.com/news.html?news_id=139&module_params[name]=news&module_params[mode]=default&module_params[action]=detail   Happy New Year!!!   It is nice to know that we survived the end of the Mayan calendar and have made it into 2013.   2013 promises to be another interesting year for employers and employees. Our dysfunctional congress continues to pass legislation at the last minute that makes things very confusing for all of us.   There is some good news in the recently passed legislation where certain temporary provisions of previously passed legislation have been made permanent, thus providing us with some certainty going forward.   Below is a summary of some of the major provisions of the new law that have an impact on employers or employees. Keep in mind that there are many other income and estate tax provisions included in the law that will affect many taxpayers (most positively). For more information on these additional provisions, see the article in this week's newsletter, titled "Key Tax Changes for 2013."   On January 1, 2013 Congress passed, and on January 3, 2013 the President signed, the American Taxpayer Relief Act of 2012 (The Act). The Act cancels many of the federal tax increases that were scheduled to go into effect in 2013 and retains some favorable tax benefits that were scheduled to expire. The act increase income taxes for certain high-income taxpayers.   Here is a summary of some of these provisions of The Act that affect employers and employees.   2013 Income Tax Withholding The IRS has revised the 2013 percentage method withholding tables to take into account the new income tax rates included in The Act. The tables include a new 39.6% withholding tax rate on high wage earners. This withholding rate is used for single taxpayers with annual wages greater than $402,200 and for married taxpayers with annual wages greater than $458,300. The IRS is advising employers to use the 2013 withholding tables as soon as possible, but no later than Feb. 15, 2013. Employers should use the 2012 withholding tables until they implement the 2013 withholding tables.   Exclusion of Employer Provided Education and Adoption Assistance A provision in The Act permanently extends the employer-provided educational assistance (maximum $5,250) and adoption assistance fringe benefit tax-free exclusions.   The IRS has not yet announced the 2013 tax-free limitation for employer-provided adoption assistance.   Individual Ordinary Income Tax Rates Individual income tax rates for most taxpayers will stay the same on a permanent basis. A new 39.6 percent tax rate will apply, to the ordinary taxable income of individual taxpayers whose income exceeds $450,000 for married taxpayers and whose income exceeds $400,000 in the case of single taxpayers. The applicable income amounts for application of the 39.6 percent rate will be adjusted for inflation, going forward.   Long-Term Capital Gain and Qualifying Dividend Rates For tax years after 2012, the regular federal income tax rates on long-term capital gains and qualifying dividend income of individual taxpayers will remain at 2012 levels (a maximum 15% rate for most long-term capital gains). Starting in 2013, taxpayers whose incomes exceed $400,000 ($450,000 for married taxpayers) will pay at a rate of 20% on capital gains and qualifying dividends.   Section 179 and Bonus Depreciation The increased expensing amounts ($500,000) under Sec. 179 are extended through 2013. The availability of an additional 50% first-year bonus depreciation was also extended for one year by The Act. It now generally applies to property placed in service before Jan. 1, 2014.   As we begin the new year here are some other thinks to keep in mind   Social Security Taxes The employee Social Security withholding tax rate has increased from 4.2% to 6.2%. Medicare Taxes In addition to withholding Medicare tax at 1.45%, employers must withhold a 0.9% additional Medicare tax from wages paid to an employee in excess of $200,000 in a calendar year. Employers are required to begin withholding additional Medicare tax in the pay period in which they pay wages in excess of $200,000 to an employee. The additional Medicare tax is only imposed on the employee. There is no employer share of additional Medicare tax. All wages that are subject to Medicare tax are also subject to the additional Medicare tax withholding if paid in excess of the $200,000 withholding threshold. Form W-4, Employee's Withholding Allowance Certificate Workers should review their withholding every year and if necessary, fill out a new Form W-4 and submit it to their employer. Workers who claimed exempt on their 2012 Form W-4 will need to complete a new Form W-4 for tax year 2013 by February 18, 2013, in order to maintain their exempt status. Note as of this writing IRS has not published the 2013 Form W-4. en-us $date http://www.checkmatepayroll.com/news.html?news_id=140&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Effective January 31, 2013, Massachusetts employers must comply with a series of new legal requirements for temporary staffing agencies and the companies that use their services. Massachusetts Temporary Workers Right to Know Act The new series of laws is part of the "Temporary Workers Right to Know Act" that amends existing Massachusetts laws governing the temporary staffing industry by: 1) Requiring that staffing agencies provide certain notices and information to all temporary employees; 2) Prohibiting staffing agencies and worksite employers from charging certain fees to temporary employees; 3) Regulating the manner in which staffing agencies conduct their business. The new law will take effect on January 31, 2013. For additional information, refer to Checkmate's HR Support Center, state law summaries. en-us $date http://www.checkmatepayroll.com/news.html?news_id=141&module_params[name]=news&module_params[mode]=default&module_params[action]=detail During the 2012 legislative session, a revision to RSA 281-A: 64 regarding the requirement for employer's to maintain a written Safety Policy was signed into law. The revised law became effective on January 1, 2013. The NH DOL has issued an announcement with details on the new law that all NH employers should be aware of. Click Here to read the announcement from NH DOL. en-us $date http://www.checkmatepayroll.com/news.html?news_id=138&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Would you like a bird's eye view of the gift-giving patterns of the nation's wealthiest donors? The new "2012 Study of High Net Worth Philanthropy" provides valuable data for not-for-profit managers to peruse. This biannual study, often considered the "gold standard" for such reports, is based on information gathered from high-income households in 2011. This article summarizes the key findings. With the presidential election behind us, there's another set of numbers that not-for-profit managers are studying. As part of an ongoing collaboration with the Center on Philanthropy at Indiana University, Bank of America (BOA) just released its "2012 Study of High Net Worth Philanthropy" covering America's wealthiest households, based on data gathered in 2011. This is the fourth in a series of studies issued every other year since 2006. It represents a comprehensive analysis of a 12-page survey presented to high-income donors. Only responses from the upper echelon -- households with incomes greater than $200,000 and/or net worth of more than $1 million (not counting their homes) -- were counted. Slightly more than 700 respondents, showing an average net worth of $10.7 million, made the grade. The biannual study is generally viewed as the "gold standard" for research on the gift-giving practices of our wealthiest households. Here's an overview of some of the key findings. Volunteering is up. In 2011, 89 percent of high net worth individuals volunteered their time and talent to not-for-profit organizations -- up 10 percentage points from 2009. Affluent donors give where they are engaged. More than one-half of the respondents (54 percent) volunteered more than 100 hours and more than one-third (35 percent) worked more than 200 hours, demonstrating their commitment to the organizations and issues they care about the most. Generally, the more that high net worth individuals volunteered, the more they gave. For example, those volunteering more than 100 hours donated more than $78,000 on average, which is roughly twice the average gift from those volunteering fewer than 100 hours (approximately $39,000). The most common volunteer activities: Serving on a not-for-profit board of directors (61 percent); Event planning (48 percent); and Fundraising (also 48 percent). Increasingly, high net worth individuals are giving gifts to not-for-profit organizations where they volunteer and where they believe their gifts will have the greatest impact. In these cases, the average gift grew by 40 percent between 2009 and 2011 (from $73,301 to $102,642). There is often a strategy in donating. The majority of wealthy donors (71 percent) have a specific strategy to guide their charitable giving. This is supported by the fact that 81 percent of donors give to a targeted set of organizations based on geography or a specific cause or issue, compared to 16 percent with no particular focus. Although an individual's will continues to be the most common gift-giving vehicle (43 percent), other techniques are on the rise, including the use of private foundations or donor-advised funds (26 percent). Another 5 percent said they plan to establish a private foundation or donor-advised fund in the next few years. The new study also shows that 40 percent of the wealthiest donors consulted with an independent adviser about charitable giving last year. Those who sought advice from at least one source consulted mostly with accountants (53 percent), financial or wealth advisors (37 percent) or not-for-profit personnel (33 percent). What types of organizations are most popular? The greatest percentage of high net worth households gave to educational organizations (80 percent), followed closely by basic needs organizations (79 percent), arts (69 percent), health (65 percent) and religious (also 65 percent) organizations. Consistent with the 2009 data, the sectors receiving the greatest proportion of gifts in 2011 were education (28 percent), giving vehicles (23 percent) and religious organizations (13 percent). The average dollar amount donated per high net worth household declined 7 percent between 2009 and 2011 (from $56,621 to $52,770, adjusted for inflation). The largest gifts were directed to religious organizations (36 percent), education organizations (25 percent) and health organizations (8 percent). What are the motivations to give? Similar to the previous study, the 2012 study found that wealthy donors give gifts under the following circumstances: Being moved by how a gift can make a difference (74 percent). Feeling financially secure (71 percent). Because they give to the same organization or cause annually (69 percent). Because they feel the organization they are supporting is efficient (68 percent). Surprisingly, less than one-third (32 percent) cited tax benefits among their main motivations. In fact, 50 percent said they would maintain their current charitable giving levels even if income tax deductions were repealed, while 95 percent stated they would maintain or increase gifts made by bequest even if tax deductions for estates were eliminated. Donors have specific expectations. Wealthy donors expect the not-for-profits they support to spend an appropriate amount of their donation on general administration and fundraising (82 percent), to demonstrate sound business and operational practices (76 percent) and to honor their request for privacy and anonymity (75 percent). Along the same lines, 30 percent stopped giving to a not-for-profit organization they previously supported, primarily because: The donor received too frequent solicitation or the not-for-profit organization asked for an inappropriate amount (38 percent). The not-for-profit organization they supported changed leadership or activities (29 percent). The donor personally changed philanthropic focus or decided to support other causes (27 percent). The donor's personal situation -- including financial, relocation and employment factors -- changed (22 percent). The donor was no longer personally involved with the organization (12 percent). Families have philanthropic traditions: Many wealthy families observe annual gift-giving traditions (41 percent). For instance, the spirit of the holidays often encourages generous giving at year end, with 43 percent of donors confirming that they make more charitable contributions from October to December, while 44 percent said they spread out their gifts evenly throughout the year. One-third of wealthy donors with children involve them and other younger relatives in their charitable giving activities. The study reveals that a family's personal efforts and those of their friends and peers continue to be the leading sources by which the next generation learn about gift-giving (51 percent), followed by religious organizations (34 percent) and the not-for-profits themselves (21 percent). Finally, respondents from nearly half of high net worth households (46 percent) reported that they make decisions about their giving jointly with a spouse or partner. To read the full 77-page report, click here. en-us $date http://www.checkmatepayroll.com/news.html?news_id=136&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Effective January 1, 2013, the minimum wage rate in the state of Vermont is $8.60 per hour for non-exempt employees. Vermont's minimum wage increases at the same rate as the Consumer Price Index (CPI), as calculated in August, for the preceding year, or at 5%, whichever is less. In addition, the same increase applies to the basic wage rate for tipped employees and the maximum tip credit allowed, as well as the State allowed rates for employer provided rooms and meals, that may be deducted from an employees pay. Accordingly the basic wage rate for "service and tipped" employees is $4.17 per hour. Service or tipped employees may include individuals working in industries such as hotels, motels, tourist places, and restaurants that customarily and regularly receive more than $120.00 a month in tips for direct and personal service. Note: Employers should make available and/or display the revised state minimum wage notice/poster reflecting the new rate. Click Here for a free, print ready version of the new VT Minimum Wage notice. en-us $date http://www.checkmatepayroll.com/news.html?news_id=137&module_params[name]=news&module_params[mode]=default&module_params[action]=detail The American Payroll Association (APA) has written a letter to the Department of the Treasury (DOT) and the IRS requesting guidance on how employers should withhold federal income tax from payments made after Dec. 31, 2012. The APA would like to see the Obama Administration allow employers to continue to use the 2012 federal income tax withholding rates and tables until the fiscal cliff negotiations are completed, 2013 income tax rates are determined, and withholding tables are released. If resolution of the fiscal cliff situation causes the withholding tables to be revised for 2013, the APA recommends that employers not be required to apply these changes on a retroactive basis. The new tables should take into account that they will be implemented after wages have already been paid in 2013 and any under/over-withholding due to the changes should be addressed on the employee's personal income tax return. en-us $date http://www.checkmatepayroll.com/news.html?news_id=133&module_params[name]=news&module_params[mode]=default&module_params[action]=detail On the December 6 payroll industry telephone conference call, the IRS was asked by two callers how they should calculate 2013 withholding, as the callers expect to begin processing 2013 payroll soon. The IRS replied that it has not yet received the 2013 tables, which come from the U.S. Treasury Department. The IRS speculated that guidance on this issue may come from the Treasury Department soon, but stressed that it has not yet received any guidance on how to proceed. One of the callers followed up by asking, "Do we continue to use the 2012 withholding tables?" The IRS responded by saying that it would be consistent with the past for employers and payroll providers to continue using the 2012 withholding tax tables in 2013, if no new tables are issued by the time they begin processing 2013 payroll. However, the IRS reiterated that it was hopeful that it would receive guidance on how to compute 2013 withholding soon. en-us $date http://www.checkmatepayroll.com/news.html?news_id=134&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Hard to believe that we're in December already, and we don't have to tell you what that means, but, unfortunately, it is part of our job description. You must start planning for the end of 2012 and the start of 2013, which may be even more challenging than it has been in recent memory, due to the so-called "fiscal cliff." It is unclear when the IRS will release the 2013 withholding tables, what the 2013 supplemental wage and backup withholding rates will be, and whether there will be an employer-provided tax-free educational assistance exclusion in 2013. Also on the chopping block is the 2% Social Security employee tax rate reduction that is currently scheduled to expire on December 31. Regardless of the uncertainties noted above, there are still a number of tasks employers should perform in December to make year-end processing go more smoothly. We've noted those tasks below. Remind employees to review all information (i.e., name, address) on their pay stub to verify that it is correct. This will help reduce the number of returned W-2 forms. Remind workers who have had life changes, such as marriage, divorce, or a change in the number of dependents, to make the appropriate changes to their withholding on Form W-4. Remind employees who wish to continue claiming exemption from withholding to submit a new Form W-4 by Feb. 15, 2013. Beginning Feb. 16, 2013, you must withhold based on a marital status of "single" with zero withholding allowances for employees who claimed exemption from withholding in 2012, but who have not submitted a 2013 Form W-4. Collect benefit and payroll adjustment information and post to employees' payroll records. This information should include relocation, educational assistance, group-term life insurance, third-party sick pay, company cars, manual checks, and void checks. Verify employees' names and Social Security Numbers (SSNs) at http://www.ssa.gov/employer/ssnv.htm. Run a special payroll, if necessary, to record all manual and voided checks issued between the last regular payroll and December 31st. en-us $date http://www.checkmatepayroll.com/news.html?news_id=135&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Continue using Form I-9. Until further notice, employers should continue using the Form I-9 currently available in the HR Support Center (even though the OMB control number expiration date of August 31, 2012 has passed). The United States Citizenship and Immigration Services (USCIS) will provide updated information about the new version of the Form I-9 as it becomes available. Employers must complete the Form I-9 for all newly-hired employees to verify their identity and authorization to work in the United States. HIPAA Privacy & Security Audit Program. The American Recovery and Reinvestment Act of 2009 (ARRA), in Section 13411 of the Health Information Technology for Economic and Clinical Health Act (HITECH), requires the U.S. Health and Human Services (HHS) to provide for periodic audits to ensure covered entities and business associates are complying with the HIPAA Privacy and Security Rules and Breach Notification standards. To implement this mandate, the Office for Civil Rights (OCR) piloted a program to perform 115 audits of covered entities to assess privacy and security compliance. Audits conducted during the pilot phase began in November 2011 and will conclude in December 2012. Bush Tax Cuts Expire. With the re-election of President Barack Obama, Congress will need to determine whether to extend the federal income tax cuts launched by former President George W. Bush, under the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA). The Bush Tax cuts encompassed a two-percentage-point cut of the federal Social Security tax that was part of an economic and jobs package enacted at the end of 2010. In February 2012, Congress approved an extension of the tax cut through the end of the year (December 31, 2012). With the expiration of the Bush Tax Cuts, most businesses may be impacted by the Fiscal Cliff. Stay tuned as further updates are released. Employers should review and update their payroll systems to address any changes and inform their employees how their paychecks may be impacted. IRS Mileage Rate Expiration for 2012. The Internal Revenue Service (IRS) optional standard mileage rate of 55.5 cents/mile for business miles expires on December 31, 2012. IRS Severance Pay Provisions in Employment Agreements. Many employment agreements provide severance pay upon a change in control or a termination without cause if the employee signs a release of claims. The Internal Revenue Service (IRS) has noted that these types of agreements may cause problems under Section 409A of the Internal Revenue Code. The IRS has given employers until December 31, 2012 to correct a problem frequently found in severance agreements and other similar arrangements. Middle Class Tax Relief and Job Creation Act of 2012. President Barack Obama signed the payroll tax cut extension into law on February 22, 2012. The "Middle Class Tax Relief and Job Creation Act of 2012," extends the two percent payroll tax reduction until December 31, 2012 and guarantees up to 99 weeks of unemployment insurance benefits. Minimum Wage Increase. Several state minimum wage rates expire on December 31, 2012. On January 1, 2013, some states will have an increased minimum wage rate. Review the state law summaries of the HR Support Center to stay updated with your state's minimum wage. OASDI Tax Rate. For 2012, the maximum taxable earnings amount for Social Security (OASDI) taxes is $110,100. There is no limit on taxable earnings for Medicare's Hospital Insurance (HI) taxes. The Social Security tax rate for employees is 4.2 percent and is set to expire December 31, 2012. The Social Security tax rate for employers is 6.2 percent and is set to expire December 31, 2012. The Medicare tax rate is 1.45 percent for employees and employers and also set to expire December 31, 2012. Social Security's Old-Age, Survivors, and Disability Insurance (OASDI) program and Medicare's Hospital Insurance (HI) program are financed primarily by employment taxes. Tax rates are set by law (sections 1401, 3101, and 3111 of the Internal Revenue Code) and apply to earnings up to a maximum amount for OASDI. Note: In 2013, the social security wage base will increase to $113,700. For other 2013 tax rates, please refer to the HR Support Center alerts section or consult with a CPA. Tax Relief Act of 2010 Expiration Adoption Assistance. Under the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (aka the 2010 Tax Relief Act), adoption assistance that is income exclusion for up to $13,170 of employer-provided adoption assistance in 2010 and $13,360 in 2011, expires on December 31, 2012. Tax Relief Act of 2010 Expiration Dependent Care Credit. Under the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (aka the 2010 Tax Relief Act), the increase in the maximum child care expenses that qualify for the dependent care tax credit from $2,400 for one child and $4,800 for two or more children, expires on December 31, 2012. Employees can claim additional allowances on the W-4 Form based on their eligibility for the credit. Tax Relief Act of 2010 Expiration Educational Assistance. Under the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (aka the 2010 Tax Relief Act), employer-provided educational assistance that is income exclusion for up to $5,250 of employer-provided undergraduate and graduate educational assistance (under IRC §127) is set to expire on December 31, 2012. On December 17, 2010, President Barack Obama signed into law the Tax Relief Act which included a number of taxpayer-friendly changes. W-2 Report for 2012. The W-2 Form for 2012 reporting must provide tax information from January 1, 2012 - December 31, 2012. The actual form must be distributed to employees by January 31, 2013. Work Opportunity Tax Credit (WOTC). On November 21, 2011, President Barack Obama signed into law the Veterans Opportunity to Work (VOW) to Hire Heroes Act of 2011. Section 261 of the Act, the "Returning Heroes and Wounded Warriors Work Opportunity Tax Credits" amends and expands the definition of WOTC's Veteran target groups. The VOW Act extended the WOTC Veteran group and created two unemployed categories with increased wages and tax credits to generate employment opportunities for veterans through December 31, 2012. The U.S. Department of Labor Employment & Training Administration (ETA) and Internal Revenue Service (IRS) have been coordinating the implementation of these provisions by the states and certification applications submitted by employers. en-us $date http://www.checkmatepayroll.com/news.html?news_id=130&module_params[name]=news&module_params[mode]=default&module_params[action]=detail FOR IMMEDIATE RELEASE   December 5, 2012 Contact: Joshua Robinson (603) 225-2004 Josh@CheckmateNH.com CONCORD NH - Checkmate Payroll Services, Inc., an independently owned and operated provider of comprehensive payroll services and cloud based workforce management technologies, is pleased to announce that it has completed a service auditor's review - SSAE 16 SOC1 (formerly known as a SAS 70 audit), of its operations. The audit was performed by a regionally recognized independent auditing firm, and was completed in November 2012. SSAE 16 is an acronym for the American Institute of Certified Public Accountants (AICPA) Statement on Standards for Attestation Engagements No. 16, titled Reports on the Controls at a Service Organization. SSAE 16 defines the professional standards used by a service auditor to assess the internal controls of a service organization and issue a service auditor's report. In order to complete the audit, the auditors evaluated the control objectives that have been developed by Checkmate's management for the significant areas of internal control that support the payroll processing operations. The control objectives in the 2012 report addressed all areas of payroll operations including but not limited to: Employees are properly hired, trained, and evaluated Management provides proper planning and oversight of the company's activities New client implementations are complete and accurate Payrolls are processed as scheduled and deviations from the schedules are identified and resolved Payroll data is recorded completely and accurately Payroll taxes are computed correctly, paid timely, and reported as required by taxing authorities Funds held in trust for clients are properly accounted for and trust bank accounts are reconciled Computer operations, data security , data backup procedures are properly developed Following this rigorous examination, the auditing firm was able to issue an unqualified opinion that Checkmate's controls are properly described and suitably designed to meet the company's control objectives. Checkmate's management understands the ever increasing importance of the impact of the company's services on our clients' system of internal controls. The successful completion of the 2012 SSAE 16 SOC1 audit is only part of Checkmate's continued commitment to maintaining a high level of internal control. en-us $date http://www.checkmatepayroll.com/news.html?news_id=129&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Coverage Public and private employers, including corporations, partnerships, associations, and limited liability companies, are covered by the security breach notification provisions. Specifically, employers that conduct business in New Hampshire are covered if they own or license computerized data that includes certain personal information on any persons, including employees and applicants. This summary is restricted to private employers. Security Breach Notification Employers must notify affected persons, including employees and applicants, and the New Hampshire Office of the Attorney General about security breaches of certain personal information. Personal informationis information that consists of a first name/initial and last name in combination with data, such as a Social Security number, where either the name or data are not encrypted or are encrypted but the encryption is compromised. Personal information does not include information lawfully made available to the public from government records. Employers must make security breach notifications promptly after discovering such breaches, with certain exceptions, and as needed to determine whether breached information is misused or likely to be misused. Employers cannot delay notifications because they are unable to make such determination promptly after discovering security breaches. Employers that must make more than 1,000 security breach notifications also must promptly notify all nationwide consumer credit reporting agencies of such breaches and provide them with the timing, distribution, and content of notices. Employers are not required to disclose to these consumer credit reporting agencies the names or other personal information of any persons, including employees and applicants, whose personal information was breached. Notification methods: Employers must make required notification through: written notice; telephonic notice, if they keep a log of each notification; electronic notice, if that is their primary method of communication with affected persons, including employees and applicants; If employers can show that notification costs exceed $5,000, more than 1,000 persons are affected by the security breach, or employers lack sufficient contact information or consent, they can make required notification through: e-mail, if they have e-mail addresses for affected persons, including employees and applicants; conspicuously posting the notification on their website if they maintain a website; and providing notification to major statewide media. The notice to affected persons, including employees and applicants, must include: a general description of the security breach, including the approximate date of the breach; the type of personal information obtained as a result of the security breach; and employers' telephone number. The notice to the attorney general must include the expected date of security breach notifications to affected persons and approximate number of affected state residents. Employers are not required to disclose to the attorney general or any regulatory agency the names or other personal information of any persons, including employees and applicants, whose personal information was breached. Exceptions: Employers are not required to make security breach notifications if they determine, promptly after discovering such breaches, that personal information is reasonably unlikely to be misused as a result of the breach. Employer liability: Employers are in compliance if they maintain information security policies concerning treatment of personal information; the policies include notification procedures consistent with the security breach notification provisions; and they notify affected persons, including employees and applicants, in accordance with such policies in the event of a breach. Certain employers that maintain security breach notification procedures pursuant to state or federal laws, rules, regulations, guidances, or guidelines are in compliance if they notify affected persons, including employees and applicants, in accordance with such procedures in the event of a breach. Administration/Enforcement The New Hampshire Department of Justice's Office of the Attorney General enforces the security breach notification provisions. If employers violate the provisions, the department can seek court orders to stop employer violations and to ensure that employers maintain sufficient assets to make restitution for violations. Employers can be sued by the department and any persons, including employees and applicants, harmed by employer violations. Employers that are sued bear the burden of proving compliance with the security breach notification provisions. E-discovery: Employers can be required to disclose electronically stored information in connection with litigation in New Hampshire courts, which is subject to New Hampshire's civil procedure rules. Penalties/Remedies Employers that are sued by the New Hampshire Department of Justice's Office of the Attorney General can be ordered to stop violations and restore money or property to any persons, including employees and applicants, harmed by such violations. Employers that are sued by affected persons, including employees and applicants, can be ordered to: • stop violations; • pay actual damages, reasonable attorneys' fees, and costs; and • comply with other court orders. Reference Citations Coverage: N.H. Rev. Stat. Ann. §§ 359-C:19 to 359-C:20 Security Breach Notification: N.H. Rev. Stat. Ann. §§ 359-C:19 to 359-C:20 Administration/Enforcement: N.H. Rev. Stat. Ann. §§ 358-A:4, 359-C:21 E-discovery: N.H. Super. Ct. R. 62 Penalties/Remedies: N.H. Rev. Stat. Ann. §§ 358-A:4, 359-C:21 Web References New Hampshire Laws: http://www.gencourt.state.nh.us/rsa/html/indexes/default.html New Hampshire Superior Court Rules: http://www.courts.state.nh.us/rules/sror/index.htm New Hampshire Department of Justice, Office of the Attorney General: http://doj.nh.gov/ Related Information Agency information: New Hampshire Department of Justice, Office of the Attorney General, 33 Capitol St., Concord, N.H. 03301; (603) 271-3658 en-us $date http://www.checkmatepayroll.com/news.html?news_id=127&module_params[name]=news&module_params[mode]=default&module_params[action]=detail The Internal Revenue Service recently issued the 2013 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on Jan. 1, 2013, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: 56.5 cents per mile for business miles driven 24 cents per mile driven for medical or moving purposes 14 cents per mile driven in service of charitable organizations The rate for business miles driven during 2013 increases 1 cent from the 2012 rate, the medical and moving rate is also up 1 cent per mile from the 2012 rate. The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs. Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates. en-us $date http://www.checkmatepayroll.com/news.html?news_id=128&module_params[name]=news&module_params[mode]=default&module_params[action]=detail It should not have come as a surprise when Josh Robinson was nominated for Concord Young Professionals Network "Young Professional of the Year Award"; on the contrary, it was much deserved. Special Thank you to Austin Sorette from Green Alliance for this article Click Here to read more. en-us $date http://www.checkmatepayroll.com/news.html?news_id=123&module_params[name]=news&module_params[mode]=default&module_params[action]=detail DON'T FORGET TO VOTE FOR BOB! The BOB (Best of Business) Awards honor the best New Hampshire companies in more than 80 business-to-business categories, as voted on by the readers of New Hampshire Business Review. Categories include best accounting firm, best advertising agency, best corporate moving company, best bank, best place for a business lunch, best florist, best Payroll Service and more! Vote for Us! Save the date and join us for the 2013 BOB Awards Party being held in Concord on Thursday, March 7, 2013. This annual event celebrates the winners at a cocktail party and reception like no other. So remember to vote at BOBAWARDSNH.com – BOB is waiting! en-us $date http://www.checkmatepayroll.com/news.html?news_id=124&module_params[name]=news&module_params[mode]=default&module_params[action]=detail WebTax for Online Employer Tax Filing Now up and Running Employers can now file their Employer Quarterly Tax and Wage Reports online with the option of remitting your payment through electronic funds transfer (EFT). You may also pay a prior balance due and make profile changes to your account information. In order to access the WebTax application, you must have a New Hampshire Unemployment account number and an active account in the New Hampshire Unemployment Insurance System (NHUIS). If you are not currently set up with a NHUIS UI Account, go to Register New UI Account or Click Here. You will be directed to the NHUIS main page. Choose the "Register to Maintain Your Account Online" link on the left side of the page. When you register in NHUIS, you will be issued a temporary password. You must immediately use that password to sign on to NHUIS again and establish your permanent password. Once those steps are completed you can return to WebTax and Log on. en-us $date http://www.checkmatepayroll.com/news.html?news_id=125&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Vermont Unemployment A spokesperson for the Vermont Department of Labor has indicated that Vermont will, for the first time, be a federal unemployment tax (FUTA) credit reduction state in the 2012 tax year due to its outstanding federal unemployment insurance loans. Vermont employers will pay a maximum of $21 more per employee on their 2012 federal unemployment taxes, as a result. en-us $date http://www.checkmatepayroll.com/news.html?news_id=126&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Each year, some employers will find themselves faced with a dilemma caused by the calendar. Because a normal year has 365 days, one day of the week will occur 53 times in a year. In a leap year (2016 is the next one) two days of the week will occur 53 times. For weekly and bi-weekly employers whose payday occurs 53 times or 27 times during a calendar year, a number of decisions need to be made. The first decision is whether to adjust salaried employees' (hourly employees are not affected as they are paid based on hours worked) weekly/bi-weekly pay to account for the extra pay period. Many employers do not adjust the per pay period salary for employee relations reasons. In addition to regular earnings make sure to consider allowances like automobile, parking, club dues etc. If you decide to make an adjustment to the per pay period salary make sure that you comply with applicable labor laws. The next decision is how to compute deductions for things like health insurance. If you calculate the per payroll amount by dividing the annual amount by 26 or 52, adjustments will need to be made if you have an extra pay period during the year. For example if an employee's annual medical insurance deduction is computed to be $3,000, the per pay period deduction will be $57.69, if there are 52 pay periods during the year or $56.60 if there are 53 pay periods during the year. Common deductions impacted by the extra pay period include, medical and dental insurance, dependent care and other flexible spending deductions, health savings account contributions, etc. The day of the week that will occur 53 times in 2013 is: Tuesday. en-us $date http://www.checkmatepayroll.com/news.html?news_id=119&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Payroll Tax News: Social Security and Medicare Taxes in 2013 The Social Security Administration (SSA) has announced that the maximum earnings subject to Social Security (OASDI) tax will increase from $110,100 to $113,700 in 2013, an increase of $3,600. The Social Security withholding tax rate for employees was temporarily lowered from 6.2% to 4.2% in 2011 and 2012. The employee Social Security withholding tax rate will be 6.2% in 2013, unless legislation is enacted to reduce it. If the legislation is not enacted, the maximum Social Security tax liability for employees and employers will be $7,049.40 in 2013 (based on a 6.2% employee and employer Social Security tax rate and taxable earning threshold of $113,700). Starting in 2013, the 2010 Patient Protection and Affordable Care Act includes a provision increasing the employee Medicare tax rate by .9% on wages paid by an employer in excess of $200,000. en-us $date http://www.checkmatepayroll.com/news.html?news_id=120&module_params[name]=news&module_params[mode]=default&module_params[action]=detail The IRS has announced the cost-of-living adjustments applicable to dollar limits on benefits and contributions under qualified retirement plans for tax year 2013. • The new limit on pre-tax employee contributions to 401(k) and 403(b) plans increases to $17,500 (from $17,000). • The new limit on pre-tax employee contributions to SIMPLE retirement accounts increases to $12,000 (from $11,500). • The limitation under 457(e) (15) concerning elective deferrals to deferred compensation plans of state and local governments and tax-exempt organizations (457(b) plans) increases to $17,500 (from $17,000). • The limitation under 414(v)(2)(B)(i) for catch-up contributions to 401(k), 403(b), and 457(b) plans for individuals age 50 or over remains unchanged at $5,500; the limitation under 414(v)(2)(B)(ii) for catch-up contributions to an employer's SIMPLE plan for individuals age 50 or over remains unchanged at $2,500. en-us $date http://www.checkmatepayroll.com/news.html?news_id=121&module_params[name]=news&module_params[mode]=default&module_params[action]=detail During the recession that started in 2007, NH Employment Security implemented the emergency power surcharge, effectively increasing the unemployment tax rate for all employers by 1.0%, in order to ensure the solvency of the state unemployment trust fund. The balance in the unemployment trust fund has since improved, and the emergency power surcharge is being reduced as a result. The emergency power surcharge will be reduced from 1.0% to 0.5% in the fourth quarter of 2012, and will be further reduced to 0.0% in the first quarter of 2013. Employers will see the decreases in their tax rates on the quarterly reports that are mailed out each quarter, or on their online tax reports. The decrease in the surcharge will reduce the total new employer tax rate to 3.2% in the fourth quarter of 2012, and to 2.7% in the first quarter of 2013. The taxable wage base for unemployment tax purposes will remain at $14,000 in 2013. en-us $date http://www.checkmatepayroll.com/news.html?news_id=122&module_params[name]=news&module_params[mode]=default&module_params[action]=detail On Sunday November 4 at 2 a.m., Daylight Saving Time ends for most of the United States -- we'll turn the clocks backward one hour on November 4.* Shift workers who work during the time change, and who work a nine-hour shift as a result, must be paid for all hours worked. If the additional hour results in overtime, the employees must be paid time-and-one-half for the additional time. Just remember... Spring forward, Fall back   Daylight savings time begins again on March 10, 2013, when clocks will be set forward one hour. * Traditionally, Daylight Saving Time began in the United States on the first Sunday in April and ended on the last Sunday in October. These dates were modified with the passage of the Energy Policy Act of 2005. Since March 2007, Daylight Saving Time in the United States has begun on the second Sunday in March and ended on the first Sunday in November. en-us $date http://www.checkmatepayroll.com/news.html?news_id=117&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Dia de los Muertos is a Mexican holiday celebrated around the world to honor and remember friends and family members who have passed away. Join CYPN as we put a fun twist on the holiday and celebrate with delicious food, dancing, photo booth, costumes and prizes in the elegant, antique ambiance of The Centennial Hotel! Click Here for details and to register online. en-us $date http://www.checkmatepayroll.com/news.html?news_id=118&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Governor Lynch has announced that the emergency power surcharge will be reduced from 1% to 0.5% in the fourth quarter of 2012 because the unemployment insurance trust fund is in better shape. Lynch expects the surcharge to be further reduced beginning in the first quarter of 2013. Click Here to read the press release. en-us $date http://www.checkmatepayroll.com/news.html?news_id=113&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Checkmate's fundraising effort for NAMI Walks 2012 was a huge success. All in all, we raised more than $3500 from 53 individual contributors, exceeding our goal by more than $1000. As you may know, this event was very personal for us and we are thrilled by the success of our efforts. We could not have done it without the support of our wonderful clients and business partners. Thank you to everyone who contributed, details about this event and Checkmate's efforts, as told by Heikki Perry from the Green Alliance. September 19, 2012 CONCORD — Impelled by the death of a co-worker's husband, employees at a community-minded business will walk in his honor, raising money to help cure the illness that felled him. Eric Cross passed away on June 30 at age 37. He was the husband of Becky Cross, the operations manager at Checkmate Work Management Solutions, a Concord payroll services company that helps small- and mid-sized businesses. With a goal of $2,500, Checkmate employees have already raised $2,082 for New Hampshire's NAMIWalks participatory event, which takes place Sunday, Sept. 30, at the State Hospital Campus in Concord. NAMI stands for National Alliance on Mental Illness. The largest mental health education and fundraising effort in America, NAMIWalks brings together thousands of individuals and supporters to celebrate mental illness recovery, to honor those who have lost their lives to mental illness and to help raise funds, combat stigma and promote awareness. In 2011, more than 84 NAMIWalks events nationally raised more than $9 million to support local programs and initiatives. This year marks the 10th Anniversary of NAMIWalks nationally, and in New Hampshire. "We used to be just sponsors of the event," said Maureen Langlois, one of the Checkmate employees heading the charity effort. "After Eric's death we wanted a way to get involved more and celebrate Eric's life." Checkmate typically volunteers to do one or two things a year for the community, exhibiting a steadfast commitment to myriad initiatives and charities, including United Way, NHPR, Concord Young Professionals Network, and the Concord Boys & Girls Club. "But it's a little more personal this year," Langlois said." We're hoping to continue the tradition and do the walk every year in memory of Eric." Someone from NAMI NH had come to talk to Checkmate employees before Eric's death, Langlois said. "Mental illness is not talked about much. You hear about walks for cancer and for heart disease, so we decided to walk for this cause. It was important to do something a little more personal." Eric, the father of beautiful 3-year-old Jordin, struggled for years with depression until he made the decision to take his own life, leaving his family and friends with unanswered questions and heartache. Every year, mental illness affects the lives of at least one in four adults and one in 10 children across the United States—nearly 60 million Americans, according to NAMI NH. Mike Fitzpatrick, executive director of NAMI National, noted: "The face of mental illness is not the face of a stranger. It is the face of our neighbors, co-workers, family and friends and sometimes us," a point not lost on Checkmate's employees. "We are doing our very best to keep Eric's funny and caring spirit alive through our own efforts. Eric loved the outdoors, hiking, basketball and taking his dog Lilly for walks in the woods. We miss him," says the fund-raising page on the NAMIWalks NH Web site. NAMIWalks NH's 2012 goals are 1,000 registered walkers and $150,000 in donations. Funds raised help provide vital support to the 254,000 adults and 55,000 children in New Hampshire who will be affected by mental illness this year. "All the money goes back into the community for people with mental illness and their families," Langlois said. The Walk is intended also to raise awareness as well as funds; increased awareness and understanding of mental illness leads to decreased stigma for those affected by mental illness, notes Kim Murdoch, the communication director for the NAMIWalks NH event. If you visit the homepage of Checkmate Workforce Management Solutions, you'll quickly spot the familiar NAMI Walks "STOMP OUT STIGMA" logo. It also says: "Today - we walk for Eric!" To make a donation, please log into Checkmate's Web site, www.checkmatepayroll.com, and go to "About Us." Then click "Checkmate in the Community." There is a quick link to the Checkmate Crusaders, where donations are accepted. Or send a check payable to NAMI NH to 112 South State Street, Concord, NH 03301. Every dollar helps! For more information on Checkmate, visit www.checkmatenh.com. en-us $date http://www.checkmatepayroll.com/news.html?news_id=114&module_params[name]=news&module_params[mode]=default&module_params[action]=detail The IRS has a new webpage called "Form W-2 Reporting of Employer-Sponsored Health Coverage." This webpage includes a chart detailing the types of coverage to report; information on transition relief available to small employers; and Q&A's about the reporting requirements. According to the chart, some health coverage that must be reported on form W2 include: Major medical coverage, Health FSA value in excess of the employee's pre-tax contribution, hospital or specified illness coverage paid by the employer or via pre-tax salary reduction by the employee. Large employers must report the "aggregate cost" of employer-sponsored health insurance coverage on employee W-2 forms beginning with the 2012 calendar year. The information is reported in Box 12 of Form W-2, using code "DD." However, an employer is not subject to this reporting requirement for any calendar year, beginning with the 2012 calendar year, if the employer was required to file fewer than 250 W-2 forms for the preceding calendar year. This transition relief will apply to future calendar years until the IRS publishes additional guidance. The amount reported on Form W-2 should generally include both the portion paid by the employer and the portion paid by the employee. The above information does not have to be reported on Form W-3, Transmittal of Wage and Tax Statements. For more information click on the link below. http://www.irs.gov/uac/Form-W-2-Reporting-of-Employer-Sponsored-Health-Coverage en-us $date http://www.checkmatepayroll.com/news.html?news_id=115&module_params[name]=news&module_params[mode]=default&module_params[action]=detail The NH DOL has issued revisions to the following mandatory labor law postings that all employers are required to have on display: Criteria to Establish an Employee or Independent Contractor o Revision Effective Date: 8/6/2012 Click here for a print-ready version of this notice. Whistleblowers' Protection Act o Revision Effective Date: August 2012 Click here for a print-ready version of this notice. Did you know that Checkmate offers a Labor Law Poster Subscription Program to assist your company in staying compliant with labor law posting requirements? Visit our website to learn more: http://www.checkmatepayroll.com/posterelite.html en-us $date http://www.checkmatepayroll.com/news.html?news_id=116&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Checkmate is a proud sponsor of NH Center for Nonprofits 2012 Nonprofit Leadership Conference, which will be held at the Grappone Conference Center on October 11. We look forward to networking with many of our current clients and the opportunity to talk with organizations who are not yet clients. Be sure to stop by our booth to learn about our cloud based workforce management technology. Click on link below to learn more about the 2012 Nonprofit Leadership Conference and to register online. http://www.nhnonprofits.org/summit2012.cfm en-us $date http://www.checkmatepayroll.com/news.html?news_id=112&module_params[name]=news&module_params[mode]=default&module_params[action]=detail We are looking forward to a great HR State Council of New Hampshire Leadership Conference on October 18. This year's conference is focused on Inspiring New Hampshire’s Extraordinary Leaders. Are you a Leader in need of practical information? Are you active in your Chapter or want to become active? Would you like to know how to manage your Core Leadership Area efficiently and effectively? Are you interested in learning tips and techniques from your peers?   Then you do not want to miss this year's conference!   Click here to learn more and to register online. en-us $date http://www.checkmatepayroll.com/news.html?news_id=111&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Is it okay to allow a terminated employee to stay on the company health plan as part of a severance package? Or, can you allow an employee who was full time to remain on a health plan for full time employees, after reducing the employee's hours to part time? Anne Scheer, an employment law attorney with Devine Millimet provides valuable insights about scenarios like this in a recent article. Click Here to learn more. en-us $date http://www.checkmatepayroll.com/news.html?news_id=110&module_params[name]=news&module_params[mode]=default&module_params[action]=detail I bet you have never read your own employee handbook completely. Many haven't and I totally understand. Most employee handbooks are boring. They are not really handbooks. They are a set of rules put together and start off with a boiler plate "hello, thank you for working for us" story of the owner of the company. It has nothing to do with handbook. A handbook tells you how to do things, but an employee handbook often times only tells you how not to do things. Tim Gould has a great blog about why you can live without an employee handbook on the HR Morning website. I can only totally agree with him. Most of the organizations have a handbook, because it is a good thing to have. Yes I agree it is a good thing to have, but only when you work hard to make it a good thing. But how do you that? Let's start at the beginning. What is the reason you would like to have a handbook? Is it for the employee that knows exactly what to do, has a great attitude, and performs above his peers. Not really. When we ask employers why they need one they generally say: "It is all about the employee that doesn't get it". So they would like to have is a document that you can show the rest of the world, this is what he did and here on page 49 it is stated that this is not allowed. But why do you want to do that? Just to save yourself some backs on unemployment taxes? Preventing a huge lawsuit, because this former employee claims you fired him because of one of the many protected reasons? I am sure by reading this you get already a little angry. You know exactly what we are talking about. But what if you can prevent this situation all together? Look at the definition of culture: Cul·ture Shared beliefs and values of group: the beliefs, customs, practices, and social behavior of a particular nation or people. When you look at many of the issues that exist with employees they just don't fit the culture. There is nothing wrong with their skill-set, but it is about their understanding of your (organizational) culture. Not surprising, your organizational culture is close to the culture you grew up in, the way you want to live with people. This might not be true for your employees and it is now the role of the organization to share those shared values and what is a better place then to do this in an employee handbook? I hear you thinking, that handbook that is covered under a layer of dust? Well, think about why it is covered under the dust. When you write an employee handbook, that supports employees to understand the culture and support you in court, it will meet our four standards. Fits with your organizational communication style Covers your business challenge List companies unique benefits Labor attorney reviewed Most employee handbooks are boiler plates, either provided by their labor attorney (who is not an expert in social interactions), their CPA or a traditional HR Firm. All are trained to see HR as a transitional department, not as an area of an organization that supports the organizational goal. They might cover the last point, maybe the second, but often times not the number one, fit with your organizational communication style or the unique benefits of your organization. It is not something that fits with your culture and is not an interesting read. If you would like to understand how to write an employee handbook so it matches all four standards, download our free white paper on our website: http://www.culturalchemistry.com/employeehandbook Checkmate would like to thank Mirjam IJtsma, President of Cultural Chemistry, LLC for the contents of this article.   en-us $date http://www.checkmatepayroll.com/news.html?news_id=107&module_params[name]=news&module_params[mode]=default&module_params[action]=detail The New Hampshire Department of Labor (NHDOL) has issued a notice that must be posted in a conspicuous spot in the workplace which provides the criteria for classifying a worker as either an employee or independent contractor. Workers must meet seven requirements to be classified as an independent contractor. These requirements are as follows; The person possesses or has applied for a federal employer identification number or social security number, or in the alternative, has agreed in writing to carry out the responsibilities imposed on employers under this chapter. The person has control and discretion over the means and manner of performance of the work, in that the result of the work, rather than the means or manner by which the work is performed, is the primary element is bargained for by the employer. The person has control over the time when the work is performed, and the time of performance is not dictated by the employer. However, this shall not prohibit the employer from reaching an agreement with the person as to completion schedule, range of work hours, and maximum number of work hours to be provided by the person, and in the case of entertainment, the time such entertainment is to be presented. The person hires and pays the person’s assistants, if any, and to the extent such assistants are employees, supervises the details of the assistants’ work. The person holds himself or herself out to be in business for himself or herself or is registered with the state as a business and the person has continuing or recurring business liabilities or obligations. The person is responsible for satisfactory completion of work and may be held contractually responsible for failure to complete the work. The person is not required to work exclusively for the employer. en-us $date http://www.checkmatepayroll.com/news.html?news_id=102&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Right now in the United States – there are 60 million American’s affected by Mental illness. Mental illness encompasses a wide range of symptoms including bi-polar disorder, schizophrenia and depression. NAMI – The National Alliance on Mental illness has raised over 9 million dollars to support those affected with mental disorders and their families by offering treatment programs, support groups and promote awareness in our community. The employees of Checkmate Payroll are asking for your help in reaching their $2500.00 goal! Although we are actively involved in other community events – this fundraiser hits especially close to home for us. On June 30th we lost a very special person due to mental illness, Eric Cross. Eric was the husband of our office manager and the father of beautiful 3 year old Jordin. After years of struggling with depression he made the decision to take his own life leaving his family and friends with unanswered questions and heartache. We are doing our very best to keep Eric’s funny and caring spirit alive through our own efforts. Eric loved the outdoors, hiking, basketball and taking his dog Lilly for walks in the woods. We miss him. On September 30 – We Walk for Eric! Click here to donate en-us $date http://www.checkmatepayroll.com/news.html?news_id=103&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Recent changes to RSA 275:48 (Withholding of Wages) have implications for nonprofits that currently accept voluntary charitable donations from their employees through payroll deduction. The NH Center for Nonprofits sought clarification on this issue and an update is available. Click Here en-us $date http://www.checkmatepayroll.com/news.html?news_id=104&module_params[name]=news&module_params[mode]=default&module_params[action]=detail The deadline for filing the Employer Information Report (also known as the EEO-1 Report) with the Equal Employment Opportunity Commission (EEOC) is September 30th. The report must be filed by: (1) employers with federal government contracts of $50,000 or more who have 50 or more employees; and (2) employers who do not have a federal government contract but have 100 or more employees. The report requires employers to provide a count of their employees by job category, ethnicity, race, and gender. Employment numbers may be obtained from any pay period in July through September of 2012. The EEOC website (www.eeoc.gov) contains a list of frequently asked questions on the report. Further information on the reporting process can also be obtained by calling the EEO-1 Joint Reporting Committee at: (866) 286-6440. Employers should continue to use the current version of Form I-9, with an expiration date of August 31, 2012, until further notice. U.S. Citizenship and Immigration Services (USCIS) has announced that, until further notice is provided, employers may continue to use the current version of Form I-9, Employment Eligibility Verification, even though the OMB control number on that form has an Aug. 31, 2012 expiration date. An employer must complete a Form I-9 for all of its newly-hired employees in order to verify their identity and authorization to work in the United States. USCIS will provide updated information about the new version of Form I-9 as it becomes available. en-us $date http://www.checkmatepayroll.com/news.html?news_id=105&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Every day, I see or hear about someone who has been a victim of identity theft. It often happens when confidential information is electronically transmitted through an unsecure email connection. Because this is a growing problem, I felt we at Checkmate needed to take steps to protect all small businesses from this kind of unnecessary risk and worry. For the past few years, FileGuardian has been protecting the confidential information of over 25,000 companies across the country, including Checkmate. Small businesses have chosen FileGuardian because of its sophisticated and powerful security blended with its ease of use. All information electronically transmitted in or out of the office is fully covered by the highest level of security protection available on the market. Data is kept fully secured and confidential. I understand that small businesses have limited cash flow and time to devote to security. This is why we created FG Free, a completely free version of FileGuardian, for every business to take advantage of. FileGuardian is known for the extent to which it safeguards data in a simple, almost invisible manner, specifically designed for small businesses. It's certified as McAfee Secure, and is used by businesses around the country to comply with the increasing number of state regulations intended to ensure all payroll, business records and other sensitive data are carefully protected. Because security breaches and identity theft are not the kinds of threats that go away all by themselves, I also wanted to share FG Free with you as something to think about for your company. When you add FileGuardian to your files, you will have a simple and secure way to send, receive and even store your emails, payroll, tax and business information to prevent potential breaches. It does not take any technical know-how on your end to add to your system. Getting started with FG Free is easy and takes only 60 seconds. Simply visit http://www.myshugo.com/freetrial-checkmatepayrollservicesinc and select the "FREE" subscription plan. From there you'll enjoy for free the chosen data security solution of small businesses. Joshua Robinson, PHR Director of Sales & Marketing Checkmate Payroll Services, Inc josh@checkmate-payroll.com en-us $date http://www.checkmatepayroll.com/news.html?news_id=106&module_params[name]=news&module_params[mode]=default&module_params[action]=detail At Checkmate, we're always interested in sharing news about our clients and their unique services and products. Always On Call is a NH based, family owned business with a unique, award winning business model that allows them to provide their service to small and medium sized businesses of all varieties. For those unfamiliar with AOC, here is an interesting statistic - 70% of callers that reach a voice mail or automated greeting will hang up and call one of your competitors. Recently, a local service-based business in Southern New Hampshire proved this very statistic. His complaint was that his callers were being left on hold for up to 10 minutes until they reached a live person. As soon as he switched to Always On Call, the amount of calls more than tripled from 15 calls per day to nearly 50! For the last 20 years, Always On Call has been leading the way in professional and personalized receptionist services in the Granite State. Headquartered in Concord, they presently serve nearly 85% of New Hampshire funeral directors' and hundreds of other business professionals in numerous other industries, including HVAC contractors, legal firms, IT companies, physicians, dentists, veterinarians, counselors, home health care agencies, and more! Always On Call is the only answering service in New Hampshire to be awarded with the prestigious ATSI Award of Excellence for outstanding service to their clients for the last 5 consecutive years. By instilling a culture of "caring communications" among its employees', clients, and their callers, every call is handled with importance and professionalism. Utilizing cutting edge technology and intensive staff training, Always On Call Answering Service, LLC is able to complement and partner with their clients as an essential customer service department for a fraction of the cost of internal staff. Whether you choose to transfer your existing staff to focus on your core competencies or just allow Always On Call's award winning receptionists to handle overflow or after hours calls, you're guaranteed to improve your reputation within the community and potential sales. To inquire about having Always On Call represent your business with a personalized solution, please visit www.alwaysoncall.comor contact Business Development Manager, Lisa George directly, at (603) 513-7050 or sales@alwaysoncall.comfor more information. en-us $date http://www.checkmatepayroll.com/news.html?news_id=99&module_params[name]=news&module_params[mode]=default&module_params[action]=detail The Benefits Compliance Guide addresses regulatory requirements relating to current benefit items and issues employers should review for compliance with state and federal regulations. Some areas covered include: Summary Plan Description (SPD) Summary of Benefits and Coverage (SBC) Consolidated Omnibus Budget Reconciliation Act (COBRA) Family Medical Leave Act (FMLA) Employee Retirement Income Security Act (ERISA) And much more! To download the Benefits Compliance Guide, please visit the Essentials section of the HR Support Center. en-us $date http://www.checkmatepayroll.com/news.html?news_id=100&module_params[name]=news&module_params[mode]=default&module_params[action]=detail "You're fired!" If you have ever said that to an employee (unless you are Donald Trump and filming the reality show "The Apprentice"), you should be prepared to pay for your now former employee's unemployment claim. If an employee walks out and therefore terminates employment voluntarily, you may still be required to pay for unemployment. Confusing? You bet. By HR Pros of the HR Support Center August 2012 Terminations are part of the employment life-cycle. A voluntary termination results when an employee chooses to resign. An involuntary termination results when an employer fires, discharges, or lays off (due to budget, workforce reduction, or business closure issues) an employee. If employers do involuntarily terminate, they should determine if unemployment benefit claims may apply and prepare to defend accordingly if the benefits are granted. Eligibility criteria impacts how unemployment benefits may be awarded. Some of the criteria for eligibility for unemployment benefits includes whether the terminated employee: Became unemployed through no fault of his or her own (e.g. job elimination or reduction in force) Earned sufficient wages with the company or during the claimant's base year Is available for new work Is actively seeking work An individual may become disqualified for unemployment benefits if he or she: Was fired for misconduct or a clear violation of company policy Quit without good cause (e.g. walking off the job because of a disagreement with a colleague) Returned back to the same job to work Turned down a suitable job offer during the unemployment period Participated in a strike or work stoppage caused by a labor dispute Received Social Security benefits, severance pay, workers' compensation payments, state disability benefits, or a private pension Made false claims or omitted information on his or her unemployment claim In addition, the weekly benefit amount is generally determined by the total wages paid to the employee by his or her employer(s) during the "base" period. The base period typically consists of a minimum amount of work completed within the last five quarters of a calendar year prior to the initial filing for benefits and the amount of earnings during the base period. Sometimes, employers futilely try to avoid addressing unemployment insurance claims. Now, if you know the employee was discharged through no fault of his or her own, save some time and do not appeal the claim. In other situations, it may be worthwhile to appeal a claim when the employee was terminated for issues such as misconduct, policy violations, or a general unwillingness to perform work. The benefit to employers in defending the claim may result in the employer tax rate being lowered or not increased. Your employer unemployment tax rate is directly impacted by the number of successful claims charged to your account. If you do opt to dispute an unemployment claim, ensure you have gathered all records that may influence the denial or awarding of an unemployment claim, such as performance management evaluations, disciplinary notices/letters, individual complaints, investigation information (if theft, harassment, or workplace violence was an issue), witness statements if applicable, etc. Ensure all paperwork is also ready for the state unemployment agency in a timely manner. If paperwork is delayed, there is a chance the former employee may end up winning the battle by default or forfeiture. en-us $date http://www.checkmatepayroll.com/news.html?news_id=101&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Into every life a little rain must fall. This little adage may be true but it is of little comfort when a Department of Labor Inspector appears at your workplace and asks to see the owner or general manager (Remember: N.H. DOL Inspectors usually don't call first: they just show up. U.S. DOL Inspectors may call, but it's best not to expect any warning.). The following outline is intended to help prepare you for and guide you through a DOL inspection with as little upset as possible. If an Inspector shows up and asks to see the owner or general manager it is important that you COOPERATE. You can ask for identification (many companies require this with the sign in log for all visitors) but DON'T BADGER or HARASS THE INSPECTOR. Don't say "That's not a real badge. My kid has one of those. We got it at the Dollar Store." If the appropriate Company representative isn't there, get the next person in line to speak to the Inspector. Don't ask the Inspector why he/she is there or who sent them. They won't say and those questions can raise suspicions or anger the Inspector. The Inspector will probably only indicate that he/she is there for a spot audit. The Inspector may also say that he/she is there because of a particular problem (e.g. Company hasn't met its payroll in 3 weeks) but that is rare. Think twice (and perhaps even more) before refusing the Inspector access to the facility, documents or your employees. Inspectors are supposed to be objective, but they have a job to do and they are human. Ruffling the inspector'S and/or Department's feathers is no way to start the relationship. The quality of this encounter and the content of your discussion will be remembered. Inspectors who are turned away will return with a subpoena granting them access to the facility, requested documents and employees. An Inspector in this position will likely go the extra mile to do a thorough and technically conservative (i.e. more thorough than necessary) investigation. When the Inspector arrives he/she will hand the Company representatives a form labeled "Notification of Inspection." This form notifies the Company who the Inspector is and why the Inspector is there ("… to insure compliance [with] State Labor laws."). This form provides a menu of documents requested those documents include: o Payroll records (dates provided) o Timecards/sheets (dates provided) o Cancelled Payroll Checks (dates provided) o Youth Employment Certificates o Copies if I-9 forms o Written policy regarding Fringe Benefits o Employee Files o Worker's Compensation policy o Employer's Federal Tax Identification Number o Boiler & Unfired Pressure Vessel Certificate Number o Elevator Certificate Number o An Inspector may very well ask for more documents and records. The above listed documents are really only the starting point for an audit. Produce whatever is requested. Have the Inspector work in a separate, well illuminated (Use conventional lighting: scented candles probably won't change the audit outcome.) and well-ventilated room. He/she should be given use of a comfortable chair and a table upon which to work. It isn't improper to offer coffee. (Offers of Company products, cash or Red Sox tickets are not recommended: save those for your lawyer.) The Inspector should not have to fish through personnel records, climb through warehouses or storage areas and otherwise retrieve the documents requested. The Inspector should not be interrupted unnecessarily during the audit. All documents reviewed by the Inspector will be stamped with an ink seal indicating which the documents were reviewed. Most spot inspections take no more than 1 to 2 days to complete. Audits that are in response to a significant problem (e.g. failure to make payroll) and/or are wider in scope generally take 2 to 3 days. If the Inspector takes more than 3 days, start to worry. If the Inspector wants to interview employees he/she will likely do that on day two or three. Like access to the facility and documents/records, you shouldn't block access to employees. The Inspector should be permitted to interview employees in a private room. They should not be interrupted. Don't counsel, coach or coerce employees about how to answer, testify or what to say to the Inspectors. Do not retaliate against employees who cooperate with the Inspector. Employee/Inspector interviews are confidential. Employers cannot sit in on employee/Inspector interviews. The contents of these meetings are "confidential." This means that you can't make a public records request (e.g. Right to Know) to review what employees said to the Inspectors. Don't ask the Inspector for a preview or a sense of how it is going. Instead, be as helpful as possible, and let him/her complete the inspection as soon as possible. The Inspector may ask for additional documents or information. If so, be sure to promptly produce what is requested. When the Inspector is finished he/she will leave a copy of the Inspection Report. This will include a notice of violations and a calculation of wage adjustments, if applicable. You will be asked to sign a receipt of the report. This is only a receipt and it is not an admission of wrongdoing or an agreement to make the proposed changes. If you would be comfortable with more assurances you can note on the report when you sign it: "This is merely an acknowledgment of receipt of the Inspection Report and it is not an admission of wrongdoing or noncompliance. This is not an agreement to pay the wage adjustment or civil penalties." Under State Law NHDOL must give you notice and an opportunity to correct some alleged violations before assessing a fine. The notice will explain the violations and how to correct the problem(s). If a wage adjustment is included you will be directed to pay within 10 days. While the Department of Labor discourages the involvement of lawyers, at least at this stage, you can talk to and involve legal counsel at any stage in the process. You can certainly pay the adjusted amounts as ordered and make the changes proposed, but that isn't required. You should take some time to check the information before responding. You will next receive a letter from the Wage and Hour Administrator ( now Michelle Small) form DOL who will summarize the violations, the proposed changes/adjustments and civil penalties (administrative fines) if applicable. Consider calling the Wage and Hour Administrator to discuss the matter and alternative arrangements for resolution. If you make that call and the resolution isn't to your satisfaction, or you otherwise want to challenge the wage adjustment, violations and/or civil penalties, you can (and this will be outlined in the letter from the Wage & Hour Administrator) request a hearing before a hearings officer at DOL. These hearings are just like wage claim hearings. The appeals process, however, is a little different. Appeals of civil penalties go first to the DOL Compensation Appeals Board. Appeals on wage adjustments go to Superior Court. The danger with having a "record of violations" beyond the publicity and economic impact of wage adjustments, is that subsequent administrative fines can be greater. In short, if you can keep the process brief, amicable and resolved to the satisfaction of DOL and the Company that will likely be in the best interest of the Company. Be careful out there! When in doubt, call legal counsel This outline is intended as general guidance to employers. It is not specific legal advice. Legal counsel should be contacted with any questions. Checkmate would like to thank Jim Reidy of Sheehan, Phinney, Bass + Green for providing the content in this article. en-us $date http://www.checkmatepayroll.com/news.html?news_id=98&module_params[name]=news&module_params[mode]=default&module_params[action]=detail During the recent legislative session, House Bill 1587 regarding employer safety programs has been modified to address the following: Workplace Safety Committees Report Filing Potential Penalties for non-compliance The new law provides: Increases the number of employees from 10 or more employees to 15 or more employees before an employer must have a written safety program filed with NHDOL. Safety plans must be updated and filed from a biennially filing on January 1 to every two years. Joint safety committees must be established if more 15 employees from 5 or more employees. Penalties have been lowered from $1,000 to $250. The safety inspection fund has been repealed. Penalties collected go to the State's General Fund.   This law is effective January 1, 2013. Click here for a copy of the HB 1587 Final Version. Article Contents Provided by Sadler Insurance.   http://www.sadlerinsurance.com/ en-us $date http://www.checkmatepayroll.com/news.html?news_id=97&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Checkmate Payroll Services has partnered with eflexgroup.com (eflex), an industry leader in pre-tax benefits and COBRA administration to market a seamless payroll and flex benefit offering. Checkmate will offer the entire line of eflex pre-tax benefits, including, Flexible Spending Plans, Health Reimbursement Arrangements, Health Savings Accounts, Transportation Plans and COBRA Administration. This partnership will help give Checkmate clients a seamless solution as payroll deductions and reports will go directly to eflex. Checkmate and eflex will provide customers exceptional service with easy-to-use plans that can be embedded right into their current benefit packages. Pre-tax benefit plans are growing in popularity due to their ability to help employers find significant savings in premium costs and payroll taxes. They also encourage employees to control health care spending while reducing the amount they pay in taxes--a mission that is important to both Checkmate and eflex. “We take pride in the reputation that we’ve built in offering benefits with exceptional service and are excited to team up with a company that carries the same high standards for customer service and quality products that we do. We’re really looking forward to teaming up with Checkmate to offer this plan to brokers and employers,” said Ric Joyner, co-founder and CEO at eflex. “I’m looking forward to working closely with the team at Checkmate to help educate their customers and brokers on the many advantages of pre-tax benefits and how our partnership will make administration easy for them,” said Lori Bozacki, Regional Sales Manager at eflex. “Checkmate is committed to providing our clients with the highest level of customer service and the most innovative and user friendly workforce management technology. Over the years, many of our clients have expressed frustration with their third party administration service vendor. By partnering with eflex, we are able to extend our customer centric focus from the core payroll services and workforce management technology that we have become known for, to the benefit plan administration sector, where we know that there is a high demand for excellence but few who can deliver, “ said Joshua Robinson, Director of Sales and Marketing at Checkmate Payroll Services, Inc. Founded in 1994 by Stephen Robinson, Checkmate is dedicated to offering flexible high quality payroll services with a customer focus. Robinson noted that the marketplace for payroll services was dominated with large national firms with poor service and high fees; he set out to create a better payroll company with Checkmate. Stephen and the Checkmate team are headquarted and deeply rooted in New Hampshire. Founded in 2000, eflex has become one of the nation’s leaders in benefits administration employing a staff of over 80. The company specializes in Consumer Driven Healthcare (CDH) solutions including benefit plans such as FSAs, HSAs, HRAs, Transit, and COBRA. eflex is headquarted in Madison, WI with offices Gulfport, FL. To learn more about eflex products and services, visit www.eflexgroup.com en-us $date http://www.checkmatepayroll.com/news.html?news_id=93&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Joshua Robinson, Director of Sales and Marketing at Checkmate Workforce Management Solutions, recently earned certification as a Professional in Human Resources (PHR). The certification, awarded by the HR Certification Institute, signifies that Joshua Robinson possesses the theoretical knowledge and practical experience in human resource management necessary to pass a rigorous examination demonstrating a mastery of the field. "Certification as a human resource professional clearly demonstrates a commitment to personal excellence and to the human resource profession," said Mary Power, CAE, Executive Director of the HR Certification Institute. To become certified, an applicant must pass a comprehensive examination and demonstrate a strong background of professional human resource experience. The HR Certification Institute is the credentialing body for human resource professionals and is affiliated with the Society for Human Resource Management (SHRM), the world's largest organization dedicated exclusively to the human resource profession. The Institute's purpose is to promote the establishment of professional standards and to recognize professionals who meet those standards. en-us $date http://www.checkmatepayroll.com/news.html?news_id=95&module_params[name]=news&module_params[mode]=default&module_params[action]=detail U.S. Supreme Court Decides on Health Care Reform Act On Thursday, June 28, 2012, the U.S. Supreme Court issued a ruling that upheld (except for sanctions related to Medicaid expansion) the constitutionality of the Patient Protection and Affordable Care Act (PPACA), also known as the Health Care Reform Act. The Act's multiple provisions impacting employers remain intact, and many of the mandates become effective in 2013 and 2014. Thus, employers must proceed with implementation of the Act or prepare to pay penalties. Immediate employer actions for the remainder of 2012 include but are not limited to: assessment of the Act's effect on the business; determination of redistribution or usage of Medical Loss Ratio (MLR) rebates; distribution of Summaries of Benefits and Coverage (SBC) in time for the next open enrollment; reporting of group health plan coverage costs on 2012 Forms W-2; and revisions to company cafeteria plans to reflect employee contribution limits on health care Flexible Spending Accounts (FSA). Stay tuned for more updates from the HR Support Center. Federal Circuit Courts' Stance on Hostile Work Environment On June 4, 2012, the 11th U.S. Circuit Court of Appeals recognized a retaliatory hostile environment claim brought by two physicians who had filed Equal Employment Opportunity Commission (EEOC) claims against their employer, a VA hospital and a medical center (Gowski, et al v. Peake, et al). The 11th Circuit for the first time recognized a cause of action for retaliatory hostile work environment under the language contained in Title VII, and the EEOC's own interpretation of the statute. Further, it found that prohibition of a retaliatory hostile environment is consistent with Title VII's remedial goal of preventing supervisors from deterring protected conduct. Proposed Federal Minimum Wage Increase On June 6, 2012, Democrat Jesse Jackson introduced the Catching Up to 1968 Act of 2012, a bill to raise the federal Fair Labor Standards Act (FLSA) minimum wage from $7.25 per hour to $10.00 per hour (beginning 60 days after enactment). The Bill also proposes that the federal government increase minimum wage each year based on inflation as measured by the federal Consumer Price Index (CPI). The bill would also increase the minimum wage for tipped employees to $5.50 an hour. Stay tuned for additional updates as they are released by the governing agencies. H-1B Cap Reached As of June 11, 2012, the U.S. Citizenship and Immigration Services (USCIS) has announced it received enough H-1B cap-subject petitions to reach the annual 65,000 "regular cap" limit. USCIS will reject H-1B cap-subject petitions filed and received after June 11, 2012. Employment Nondiscrimination Act On June 12, 2012 the Senate Committee on Health, Education, Labor and Pensions (HELP) held a hearing to discuss the merits of the bipartisan Employment Non-Discrimination Act (ENDA). ENDA would create comprehensive employment based anti-discrimination protections for individuals based on their sexual orientation or gender identity. New Deportation Rule On June 15, 2012, President Obama announced an Executive Order that allows some undocumented youths to avoid deportation and receive work permits to remain in the United States (U.S.). Students in the U.S. who are in deportation proceedings or those who would have qualified for the Development, Relief, and Education for Alien Minors Act (DREAM Act) and have yet to come forward to Department of Homeland Security officials will not be deported and will be allowed to work in the United States. In addition, Secretary of Homeland Security Janet Napolitano announced young people who were brought to the United States as children through no fault of their own will be considered for relief from deportation, known as "deferred action." Employee Retirement Income Security Act (ERISA) Service Provider Fee Disclosures Effective July 1, 2012, the final service provider fee disclosure regulations under ERISA Section 408(b)(2) must be met. These ERISA regulations are for both existing and new service arrangements. Under these regulations, Registered Investment Advisers (RIAs) and Broker Dealers (BDs) must disclose certain information to the responsible plan fiduciary, including services provided to the covered plan, fiduciary status, and direct and indirect compensation. Form 5500 Record Keeping Requirements As a reminder, under the Department of Labor's (DOL) electronic filing regulations, plan administrators are required to keep a paper copy of the filed Form 5500 report, including schedules and attachments, in the plan's records. The DOL stated a paper copy of the electronic filing receipt is not adequate in satisfying this requirement. The paper copy in the records must be a complete copy that is manually signed and dated. en-us $date http://www.checkmatepayroll.com/news.html?news_id=96&module_params[name]=news&module_params[mode]=default&module_params[action]=detail According to the May 2012 HR Support Center poll inquiring about spring and summer dress code policies, most businesses do not alter their dress code policies during these months. Out of all the respondents, 63% indicated no change during the spring and summer months from the company's standard dress code, while 9% indicated that employees are not required to wear professional clothing during these months. There are several implications to be aware of in regards to workplace dress code policies in the summer. Health concerns (physical and mental stress). During the hot summer months, it is important to consider the health of employees who will be performing work outside or in a facility without air conditioning. The company may need to alter its dress code in order to reduce the physical stress of employees working outdoors, as physical stress can lead to reduced cognitive ability and heat-related injuries and illnesses. In addition, some employees may be protected under the American with Disabilities Act (ADA) which may require reasonable accommodations. Productivity levels (includes motivation). The productivity levels within the business may be reduced if employees are dressed in a manner that is distracting to themselves or others. Therefore, it is important to ensure that dress codes allow for maximum productivity. For example, if an employee is wearing a baseball cap during an office meeting, others may find that to be a distraction. Safety concerns (injury and accident prevention). There are several safety concerns to consider if dress codes are not properly enforced. Even in extreme temperatures, it is critical that employees wear all recommended and required safety equipment. For example, those in a construction field should not wear sandals; those in the medical field should avoid exposing unprotected skin and wearing loose accessories (such as jewelry) around hazardous chemicals, equipment/machinery (such as wheelchairs), and other things (i.e. syringes).   Image/Professionalism. Even in the summer months, it is important that the company portray a professional business image. For example, allowing pilots to wear swim trunks could certainty result in decreases in customer confidence levels.   It is encouraged to write comprehensive policies that cover the business dress code. The management team must consider productivity, safety, and regulatory compliance when writing the dress code policy. It is vital to consider whether the dress code could create a charge of discrimination. A workplace dress code for summer months should not discriminate against members of a protected class under civil rights laws such as gender discrimination, religious discrimination and race discrimination. It is important to stay consistent for all exceptions to the policy and to apply consequences for all violators of the policy. Considering these factors will ensure the company's dress code maximizes summer productivity and minimizes the potential for legal exposure. en-us $date http://www.checkmatepayroll.com/news.html?news_id=91&module_params[name]=news&module_params[mode]=default&module_params[action]=detail The Granite State Music Festival is a two day, non camping, non-profit festival held in Concord, New Hampshire June 23-24, 2012. All proceeds from the festival go to benefit the Concord Community Music School, the largest employer of musicians in Vermont, New Hampshire and Maine! Click Here for more info. en-us $date http://www.checkmatepayroll.com/news.html?news_id=92&module_params[name]=news&module_params[mode]=default&module_params[action]=detail In late May, Governor Lynch signed into law HB 1270, an act requiring employers to provide a copy of any “non-compete and non-piracy agreements” to applicants and certain employees. This new law, which will be effective July 14, 2012, will amend RSA 275 (often referred to as “[Employee] Protective Legislation”) and will require employers to prospectively provide copies of certain employment agreements to new hires prior to the actual job offer and to employees prior to a “change in job classification.” The law provides that failure to disclose such agreements “prior to or concurrent with” the underlying offer will render the agreements unenforceable. While this requirement may seem to be a mere formality, one which some employers already observe as a matter of standard practice, this could be a significant change for many other employers. It also signals yet another legal and legislative narrowing of the scope and enforceability of these restrictive covenants or provisions. While courts in New Hampshire have for several years dealt with non-competition, non-solicitation and non-disclosure agreements, and in doing so have continued to narrow the scope and enforcement of these agreements, this law constitutes the New Hampshire legislature’s first regulation of non-compete agreements between private companies and individuals. The intended scope of the law, however, does not supplant the Court’s traditional role in refereeing disputes of these types of agreements. A review of the law’s legislative history confirms that some Representatives and Senators were concerned that applicants and employees who are presented with these agreements after they are offered a new job do not truly enter into these agreements voluntarily or without duress. The employment relationship, as one legislator put it “is like a marriage” and “presenting one of these agreements to someone who has already accepted a job offer without knowing about the restriction is like presenting your new bride with a pre-nuptial agreement when you return home from the honeymoon.” These agreements, by design, restrict a person’s ability to work, or fully function, in their chosen field, and as is usually discovered when the agreements are sought to be enforced, employees often claim they didn’t read the agreement or fully understand the terms or implications when they signed the agreement. Legislators and legal commentators have speculated that most employees don’t want to make waves or put their job in jeopardy by questioning these agreements, especially at the outset of employment. The scope of this new law has obvious repercussions for New Hampshire businesses as failure to follow these requirements could cause the agreement to be unenforceable. Also, if an employer handles the presentation of these agreements in a uniform manner, if one agreement is deemed unenforceable the employer may lose the ability to enforce the same agreement against other former employees. This new law seems pretty straight-forward but a few problems have already been identified. First, the law does not define what constitutes a “non-compete and non-piracy” agreement. Thus, HB 1270 begs the question: What kinds of employment agreements are subject to its disclosure requirements? Second, how far in advance of an offer must an employer provide copies of any relevant agreements? Third, what degree of change in an existing employee’s job duties and/or salary triggers an employer’s duty to provide copies and does HB 1270 require re-disclosure of existing employment agreements? As mentioned above, the terms “non-compete and non-piracy” are not defined under HB 1270, the related legislative history, or other New Hampshire statues. A “non-compete” agreement or provision is commonly understood to include covenants which, for a specified period of time, restrict a person from competing with his/her current or former employer either by working for a competitor or setting up a competing business. These agreements often include a non-solicitation provision, in addition, or as an alternative, to non-competition covenants. Non-solicitation agreements typically provide that, for a specified period of time after the person’s employment ends, he or she cannot solicit clients, customers, or employees of his/her former employer to end their relationship, in whole or in part, with that former employer and instead form a new association with that person or a new entity. Finally, these agreements often include non-disclosure provisions which usually keep current and former employees from disclosing a former employer’s trade secrets, confidential and proprietary information to other individuals or entities without the former employer’s express authority or permission. Those provisions are usually not limited in duration meaning the employer can protect this confidential business information for as long as it remains a trade secret or it is truly confidential and protected. Courts have disfavored non-competition agreements and over recent years consistently narrowed the scope and duration of these provisions principally because they keep people from working. Courts have also limited the scope of non-solicitation agreements in duration and as to the individuals or entities with whom the departing employee had meaningful contact in the months before the employment terminated. Finally, courts have examined whether information sought to be kept confidential under non-disclosure agreements should be afforded that protection. This new law doesn’t help with those definitions or distinctions. Further, other jurisdictions that have had occasion to interpret this phraseology have determined that non-competition, non-solicitation, and other anti-piracy agreements are distinct from non-disclosure agreements. Again, this law makes no such distinction, so employers in New Hampshire are most likely required under HB 1270 to affirmatively provide copies of all covenants not to compete, non-solicitation agreements, and other anti-piracy agreements that would have the net effect of restraining the employee’s ability to earn a living after separation from that employment. While the law doesn’t specifically mention non-disclosure agreements, a prudent approach would be to treat those agreements or provisions the same way. In short, best practice necessitates full employer disclosure of any incidental employment agreements during the recruitment process but before extending the actual job offer. The New Hampshire legislature originally envisioned HB 1270 as protecting certain employees who were offered new employment, left their previous job or turned down other opportunities based on those assurances, and were presented with a “non-compete and anti-piracy agreement” on their first day or shortly after commencing the employment. Amendments to the bill extended these protections to an offer of change in job classification. Testimony by the bill’s sponsor indicates that the law was tailored narrowly to remedy these “duress” situations. Accordingly, employers should provide copies of agreements prior to, or contemporaneous with, an offer of change in job classification to a current employee or offer of employment to a future employee. The degree of change in an existing employee’s job duties that would constitute a “change in job classification” is unclear from the face of the new law. This ambiguity is partially resolved by statements of Rep. William Infantine of the House Labor, Industrial, and Rehabilitative Services Committee in connection with amendments to HB 1270. In its original form, the law applied only to “offers of employment.” The amendment expanded the law’s scope beyond new hires to include “internal promotions subject to a non-compete or non-piracy agreement.” H.C. 18, 1071 (N.H. 2012). The legislative history suggests that an “offer of change in job classification” does not encompass scheduled salary increases for any given employee. It also suggests that HB 1207’s duties are only triggered when an existing employee moves into a position that requires a “non-compete and anti-piracy agreement” from a position that did not require it. This interpretation of the law is supported by the testimony of the bill’s sponsor, expressing respect for the role of the courts in resolving disputes over employment agreements and the narrow scope of the law. Hearing on HB 1270 Before the H. Comm. On Labor, Indus., and Rehabilitative Services, 162nd Gen. Court (N.H. 2012) (testimony of Keith Murphy, Rep.) (“I would advise against using this bill as a vehicle to legislate non-compete agreements in all aspects. The bill is intentionally very narrowly tailored to address only cases of duress”). Again, employers who fail to provide applicants or employees advance copies of these agreements should not expect that any agreement, signed well after an initial job offer or dated after a written offer of a job change, to be enforceable under the new law. Finally, because the timing of the presentation of these agreements could be important to a post-employment enforcement action, employers would be wise to have applicants and employees who receive these agreements to sign an acknowledgment of receipt of the document. The language of that receipt should include something like: ________________________________________________________________ SAMPLE I ______________________________ [name] acknowledge the receipt of _______________________________ [title of the document] presented to be today ______________________ [date] by ______________________ [name] of ___________________________ [employer]. I understand that I need to read this document before signing it and if I have any questions about the terms of this document, I will ask ____________________ [name] before signing the document.   _________________________________________________________________ This is just the most recent development in an ever-changing area of workplace law. What this new law confirms is that, especially in challenging times, courts and legislatures frown on, and therefore restrict and limit, the application, scope and enforcement of agreements that limit a person’s ability to work, or fully function, in their chosen profession. As this law is tested in the courts, there will likely be more definition and guidance on these provisions. Stay tuned. Article contents provided by Jim Reidy from Sheehan Phinney Bass + Green www.sheehan.com en-us $date http://www.checkmatepayroll.com/news.html?news_id=88&module_params[name]=news&module_params[mode]=default&module_params[action]=detail The EEOC recently issued guidance for employers on the use of background checks during the hiring process. Specifically, this guidance is related to the practice of automatically excluding applicants based on general screening results (e.g. we do not hire any applicants with a felony record). Title VII of the Civil Rights Act of 1964 prohibits employers from treating job applicants with the same criminal records differently because of their race, color, religion, sex, or national origin. The new guidance from the EEOC clarifies the federal rule about using background screening to exclude broad groups of individuals, because by excluding "all applicants with felony records," for example, the employer could be disproportionately and unjustifiably excluding a particular race or national origin. In order to be in compliance with Title VII, the employer needs to determine that the exclusion is "job related and consistent with business necessity" for the position, for the exclusion to be lawful. Click here for a link to the EEOC's Q&A page on this new guidance: http://www.eeoc.gov/laws/guidance/qa_arrest_conviction.cfm en-us $date http://www.checkmatepayroll.com/news.html?news_id=89&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Employers in 22 states may not be eligible to claim the maximum amount of state unemployment tax credits on their 2012 federal unemployment (FUTA) tax return, because their state has had an outstanding federal unemployment insurance (UI) loan for at least two years. Employers pay FUTA tax at a rate of 6.0% on the first $7,000 of covered wages paid to each employee during a calendar year, regardless of when those wages were earned. This tax may be offset by credits of up to 5.4% against their FUTA tax liability for amounts paid to a state unemployment fund by January 31 of the subsequent year. The net FUTA tax rate for most employers is 0.6% (i.e., 6.0% − 5.4%). Under Title XII of the Social Security Act, states with financial difficulties can borrow funds from the federal government to pay unemployment benefits. If a state defaults on its repayment of the loan, the amount of state unemployment tax credits that employers in the state may claim is reduced. Employers in "credit reduction states" pay FUTA tax at a 0.3% rate higher than other employers, beginning with the second consecutive January 1 in which the loan is not repaid by November 10 of that year. For each succeeding year in which there is a balance, the credit is further reduced by an additional 0.3%. The following states will be credit reduction states in 2012, unless they repay their outstanding federal UI loans by Nov. 10, 2012, because, according to the Department of Labor, they have had an outstanding federal UI loan for at least two years: Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Kentucky, Missouri, Nevada, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Vermont, and Wisconsin. If you have employees in a credit reduction state your FUTA tax payment for the fourth quarter of 2012 will be increased to cover the additional FUTA tax owed. en-us $date http://www.checkmatepayroll.com/news.html?news_id=85&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Checkmate is pleased to announce that we are now a part of the Green Alliance. As a family owned, NH based business, Checkmate is an ardent believer in the concept of doing well by doing good. Partnering with the Green Alliance will help us to spread the word about the ways in which our services and technology can help our clients become more sustainable. Click Here to visit Checkmate's page on the Green Alliance website. en-us $date http://www.checkmatepayroll.com/news.html?news_id=86&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Governor Lynch has signed into law SB 49 - Relative to Tip Pooling Arrangements. This new legislation revises New Hampshire law, effective July 22, 2012, to state that tips are wages that are the property of the employee receiving the tip, and must be retained by the employee, unless the employee voluntarily and without coercion from his or her employer agrees to participate in a tip pooling or tip sharing arrangement. The legislation allows employers to offer a valid tip pooling or tip sharing arrangement at the request of the employee, including suggesting reasonable and customary practices, and mediating disputes between employees regarding a valid tip pooling or tip sharing arrangement. Click Here to access the bill text as amended. en-us $date http://www.checkmatepayroll.com/news.html?news_id=87&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Many businesses have initiated "Job Reference" policies restricting the nature of information that may be provided about current and former employees to third parties. While it is at times tempting to feel obligated to provide detailed information regarding a former employee's performance in an effort to help the prospective employer, doing so may expose the company to some liability. Former employees have successfully sued their past employers for libel, slander, defamation, or negligent misrepresentation arising out of job references. Therefore, it is recommend proceeding with caution with job references and verifications in order to reduce the company's exposure. Reference Checks from Prospective Employers: What Information Should You Provide? A fairly common company policy is to only release information that is completely objective in nature, such as the former employee's dates of employment and job title. If the prospective employer would like additional information (such as salary information), generally employers require the prospective employer to send a written request for such information that includes the former employee's written authorization to release the information. Company policies should prohibit the release of information that is subjective in nature. While the "less is more" approach has been taken by most employers, some HR Professionals recommend taking a more "need to know" approach. The premise behind this approach is that the company's failure to provide critical information may in fact expose the company to liability. For example, if a current employer gives a reference check with limited information about an employee, and is aware that the employee committed a work-related crime (such as employee theft), a court could argue that the former employer had an obligation to disclose that information. This would apply if the employer was asked specific questions such as, "Is this employee rehireable?" Or, "Has this employee committed a crime at your work site?" There may be some ethical obligation for a former employer to disclose certain information. For example, if an employer states a former preschool teacher was an excellent employee and never had performance issues, yet chose not to mention this same teacher was convicted of molesting a student, the company may have mislead the inquiring prospective employer. Therefore, the goal is to ensure reference checks are generally neutral; unless extenuating circumstances are present. Many states have adopted some type of Reference Immunity Laws that ensure employers are protected who opt to provide reference checks. The state laws vary considerably in how they "limit" information to be disclosed by former employers. For example, California limits immunity to the disclosure of "job performance" information to be stated in an objective or subject manner. Maryland suggests employers acting in good faith may not be held liable for disclosing to a prospective employer any job information about job performance or the reason for the termination of employment. Since there are several states with reference immunity laws, it is recommended to check your state laws or consult with a HR Professional. Remember, if a reference check is conducted on behalf of a federal, state or regulatory authority, employers may not be held liable for any information that is requested/required or provided to the agency. Employers who knowingly disclose information that is false or misleading are not protected under these laws. It is always a best practice to document employee actions, act in good faith, exercise restraint and always obtain written consent from the applicant. Another tip is to insert a waiver in a departing employee's severance package releasing the business from all claims based on the voluntary disclosure of information about the employee to a third party. Reference immunity laws essentially protect employers from civil liability if they provide good-faith references or negative truthful information regarding former employees. Therefore, both employers and employees may or may not be in favor of this law. en-us $date http://www.checkmatepayroll.com/news.html?news_id=83&module_params[name]=news&module_params[mode]=default&module_params[action]=detail With more than 8,000 organizations statewide, nonprofits make up a significant portion of NH's workforce. More than 1 in 7 employees in the State work for a nonprofit. Recently, an interesting question was posed to me - is it ever appropriate to withhold pay from an employee's paycheck if that deduction is being made to benefit the nonprofit organization that the employee works for? Can Employees Donate to their Nonprofit Employer via Payroll Deduction? Many employers provide their employee's with the ability to donate to a good cause like the United Way or March of Dimes, via payroll deduction. It would seem to make sense that an employee of a nonprofit could use the convenience of payroll deduction to make contributions to the organization that they work for. In 2011, the Governor Lynch signed a new law revising RSA 275:48, which defines what is a legitimate deduction from an employee's paycheck. Prior to this revision, deductions from employee paychecks had been limited to a specific list of allowable decoctions. With the revisions to RSA 275:48, effective August 6, 2011, deductions may be made from an employee's paycheck... "For any purpose on which the employer and employee mutually agree that does not grant financial advantage to the employer, when the employee has given his or her written authorization and deductions are duly recorded. The withholding shall not be used to offset payments intended for purchasing items required in the performance of the employee's job in the ordinary course of the operation of the business." Due to the fact that the deduction cannot provide a financial benefit to the employer, the withholding of wages for a charitable contribution to the organization that an employee works for is not legitimate under NH law. One possible way around this is to have the employee contribute to the United Way, designating the employee's employer as the recipient of the contribution. en-us $date http://www.checkmatepayroll.com/news.html?news_id=84&module_params[name]=news&module_params[mode]=default&module_params[action]=detail The NH High Tech Council (NHHTC) produces a series of educational programs to support entrepreneurship and provide high-level resources to rapidly growing companies. At the Entrepreneur Forum, companies present their business challenges to a panel of industry experts, and receive board-level and executive advice on how best to address their challenges, all in front of a live audience. Two New Hampshire companies at different stages of development, Siege Technologies and Trendslide, will be featured at the next NH High Technology Council Entrepreneur Forum on Wednesday, May 30, 2012 The event will be held at the FIRST headquarters located at 200 Bedford Street, Manchester, NH from 5:20 pm to 8:30 pm on Wednesday, May 30. The Forum includes a cocktail hour with hors d'oeuvres and networking opportunities, as well as a "sky dive pitch" from one or two early stage companies or a non-profit or student-driven entity that focuses on a specific challenge or opportunity they are facing. The cost for the event is only $25 for NHHTC members, $30 for non-members, and only $10 for students. Individuals can register at NHHTC.org. en-us $date http://www.checkmatepayroll.com/news.html?news_id=77&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Compliance with state and federal employment laws can pose big challenges. To help ensure your business is compliant, informing your management team members of their responsibilities and obligations is crucial. Built specifically for those in supervisory roles, Checkmate's HR Academy business education and training webinars will engage participants with timely information that can protect your business. Each webinar also allows you to ask questions and interact live with experienced and trusted HR Professionals. The topic for Checkmate's next HR Academy training webinar is "Leaves of Absence" and this will be held on Friday, May 25 from 12-1pm EDT. Checkmate clients and others interested in attending this webinar can register online by clicking here. Please note: the retail cost for Checkmate's HR Academy training webinars is $115 per registration. As HR Academy is a new product offering, we are interested in feedback from our clients and prospects regarding these webinars, the quality of the content and the pricing. A discount code will be provided to anyone interested in attending the webinar on May 25, reducing the cost for this HR Academy session to $50. To take advantage of this offer, send an email to josh@checkmatenh.com and include "HR Academy" in the subject line. Leaves of Absence Training Session Details The legal requirements and practical challenges for family and medical leaves are one of the biggest headaches for businesses, and employers that make missteps continue to get hit with big verdicts. During this 60-minute webinar, you'll learn about basic requirements as well as best practices. Focus areas include: Types of Leaves of Absence Reasonable Accommodations Medical Certifications Performance Expectations Workload Management The webinar is designed and led by the trusted HR Pros of the HR Support Center. Benefits of attending this webinar include: Copy of the presentation slides Handouts for additional reference Live questions and answers session en-us $date http://www.checkmatepayroll.com/news.html?news_id=78&module_params[name]=news&module_params[mode]=default&module_params[action]=detail The 2012 Stonyfield Entrepreneurship Institute was a success. Meg Hirshberg started things off with a fascinating discussion of the family impacts of entrepreneurship, which is the basis for her new book For Better of For Work, A Survival Guide for Entrepreneurs and their Families. Tom First, founder of Nantucket Nectars, gave great insights and anecdotes from his experiences, and a variety of brave entrepreneurs presented cases studies on topics including redesigning the packaging of a retail food product that already has some traction in the organic world; how to expand a brilliantly popular cookie dough product from a regional level, when the quality of family life is the reason why the owners started the company in the first place; and the concept of slow money and whether or not this is a good road to take for a locally owned, sustainability focused farm. As in years past, SEI 2012 was a great venue for networking and inspiration...and was proudly sponsored by Checkmate. en-us $date http://www.checkmatepayroll.com/news.html?news_id=79&module_params[name]=news&module_params[mode]=default&module_params[action]=detail There is now a March 2012 version of the IRS guide called "Audit Techniques and Tax Law to Examine COBRA Cases (Continuation of Employee Health Care Coverage)" on the IRS website. Background. Title 10 of the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), requires employers with 20 or more employees to offer COBRA coverage and to notify their employees of the availability of such coverage. COBRA applies to plans maintained by private-sector employers and by most state and local governments. COBRA requires employer group health plans to offer qualified beneficiaries (certain employees, ex-employees, their spouse/ex-spouse and dependents) the option to continue their health care insurance despite "qualifying events" that would otherwise cause the loss of that coverage. A "qualifying event" includes: the "covered employee's" death; the termination of the "covered employee" (for reasons other than gross misconduct on the part of the employee), or a reduction in the "covered employee's" employment hours; the divorce or legal separation of a "covered employee" from his or her spouse; the "covered employee" becoming entitled to Medicare benefits under Title XVIII of the Social Security Act. A "covered employee" is an individual who is, or was, provided coverage under a group health plan by virtue of his or her performance of services for one or more employers maintaining the plan. The COBRA provisions in the Internal Revenue Code (IRC) consist of: operating requirements (what an employer/plan administrator and its group health plans must do to be in compliance) tax sanctions (what happens in the event of noncompliance). The operating requirements are in Code Sec. 4980B(f). A group health plan meets the continuation coverage requirements of Code Sec. 4980B(f) if each qualified beneficiary who would lose coverage under the plan due to a qualifying event is entitled to elect, within the election period, health care continuation coverage under the plan. The group health plan should offer the beneficiary health care coverage that is provided to non-COBRA individuals similarly situated. Normally, it would be the same coverage that the qualified beneficiary had on the day before the qualifying event happened. Code Sec. 4980B(f)(6) provides the notice requirements that must be followed to ensure that qualified beneficiaries are aware of their rights to health care continuation coverage. Employers must notify the plan administrator within 30 days after the occurrence of most qualifying events. The plan administrator is then required to notify the employee of their eligibility. The tax sanctions for noncompliance are covered in the rest of Code Sec. 4980B. Employers not in compliance with the COBRA rules will be subject to an excise tax of $100 per day, per qualified beneficiary, for each day of the noncompliance period. Generally, the employer who maintains the plan is the person liable for the excise tax; however, if the plan is a multi-employer plan (that is, a plan of more than one employer covering union employees), then the plan is the liable person. Certain third parties (in other words, insurance companies and third party administrators), in some cases, may also be liable for the excise tax. The Guide. The guide has separate sections on: the continuation coverage requirements, computing the excise tax, and definitions. In addition, there are links to revenue rulings on COBRA, and Form 8928, Return of Certain Excise Taxes Under Chapter 43 of the Internal Revenue Code. IRS examination procedures. The guide also has a separate section on IRS examination procedures. The IRS recommends that its examiners look at the continuation coverage procedures that the taxpayer currently has in place. Examiners are advised to obtain the following information from the taxpayer: (i) a copy of the health care continuation coverage procedures manual; (ii) copies of standard health care continuation coverage form letters sent to the qualified beneficiaries; (iii) a copy of the taxpayer's internal audit procedures for health care continuation coverage; (iv) copies of all group health care plans; and (v) details pertaining to any past or pending lawsuits filed against the taxpayer for failing to provide appropriate continuation coverage. Based on the procedures in place, IRS examiners should probe specific areas for noncompliance. Examiners may also want to ask taxpayers to provide copies of federal and state employment tax returns filed during the current period under examination and the preceding year. These returns will show changes in the number of employees on the payroll between the two years. Changes in the comparative lists may reveal potential qualifying events that the taxpayer has not accounted for. In addition, examiners should review the employer's personnel records and confirm whether or not qualified beneficiaries were properly notified of their rights to continuing health coverage. The material contained in this article has been prepared by Checkmate Payroll Services, Inc for informational purposes only and does not constitute legal advice and the information is not guaranteed to be correct, complete, or up-to-date. Before taking action on any of the information in this article it is advisable to speak with a licensed attorney. For more information about the services offered by Checkmate contact Josh Robinson at (603) 225-2004 or by e-mail at josh@checkmatenh.com. en-us $date http://www.checkmatepayroll.com/news.html?news_id=80&module_params[name]=news&module_params[mode]=default&module_params[action]=detail The NH Senate agreed to the House-passed version of SB 49 this past Wednesday. Back in January, the House passed SB 49 with amendment. As amended, the bill clarifies the role and responsibilities of employers when it comes to tip pools. It says that, "Tips are wages and shall be the property of the employee receiving the tip and shall be retained by the employee, unless the employee voluntarily and without coercion from his or her employer agrees to participate in a tip pooling or tip sharing arrangement." It then goes on to say that, "No employer is precluded from administering a valid tip pooling or tip sharing arrangement at the request of the employee, including suggesting reasonable and customary practices, and mediating disputes between employees regarding a valid tip pooling or tip sharing arrangement." The bottom line is that it remains voluntary on behalf of the employee to participate in a tip pooling or sharing arrangement, but employers can suggest reasonable practices. The bill now goes to the governor for his signature. Checkmate would like to thank the NHLRA and Sheehan Phinney Bass + Green for providing the content for this article. For more information about the services offered by Checkmate contact Josh Robinson at (603) 225-2004 or by e-mail at josh@CheckmateNH.com. en-us $date http://www.checkmatepayroll.com/news.html?news_id=81&module_params[name]=news&module_params[mode]=default&module_params[action]=detail For calendar year 2013, a High Deductible Health Plan (HDHP) is a health plan with: an annual deductible of at least $1,250 for individual coverage ($1,200 in 2012), or $2,500 for family coverage ($2,400 in 2012) maximum out-of-pocket expenses of $6,250 for individual coverage, ($6,050 in 2012) or $12,500 for family coverage ($12,100 in 2012) For 2013, the maximum annual contribution to an HSA is $3,250 for self-only coverage ($3,100 in 2012) and $6,450 for family coverage ($6,250 in 2012). For more information about the services offered by Checkmate contact Josh Robinson at (603) 225-2004 or by e-mail at josh@checkmate-payroll.com en-us $date http://www.checkmatepayroll.com/news.html?news_id=82&module_params[name]=news&module_params[mode]=default&module_params[action]=detail This weekend is the 4th Annual Concord Area Bicycle Swap, and time is running out to donate your old bike to a great cause. Do you have a dusty old clunker with no chain that is just occupying garage real-estate? Swing it by S&W Sports by May 11, and the dedicated volunteers of the CNHBC will breathe life into its creaking bones, and sell it on May 12th and 13th. Click Here for more information. en-us $date http://www.checkmatepayroll.com/news.html?news_id=74&module_params[name]=news&module_params[mode]=default&module_params[action]=detail 4th Annual Upstairs, Downtown Walking Tour Returns Bounty of new locations await participants on Thursday, May 10 Intown Concord’s 4th Annual Upstairs, Downtown Walking Tour, presented by Merrimack County Savings Bank, returns to downtown Concord on Thursday, May 10th from 5:30 – 7:30 pm. A ticket to this popular event grants participants access to spaces they typically wouldn’t see. New locations abound on the 2012 Tour, including two historic carriage houses. Attendees will view undeveloped spaces rich with potential, from a 3rd floor studio with giant arched windows to the Cyrus Hill Block, where multiple levels await office and residential renovations. Tour goers will experience a piece of radio history while visiting a unique upper story station, and can envision living downtown while touring a home on Hills Avenue. A perennial favorite, Phenix Hall returns as a tour stop, allowing participants a chance to sit in the theatre where Theodore Roosevelt spoke in 1912. Phenix Hall also played host to boxing and wrestling matches, firemen’s dances, agricultural fairs, lectures, and theatre productions. Participants will be led through the tour by a knowledgeable guide, and met at each location by a host with thorough knowledge of the space’s history and potential use. Following the Tour, attendees are invited to attend a wine and cheese reception in an undeveloped area of the Smile Building’s second floor, and also to view Intown Concord’s new office space on that same level. Tickets for the tour, $20 each or (2) for $35, can be reserved now by e-mailing info@intownconcord.org or calling 226-2150. Tickets will also be available for purchase at Merrimack County Savings Bank at 89 North Main Street beginning April 25th. The Upstairs, Downtown Walking Tour is made possible through the support of many volunteers, and generous contributions from sponsors. We are grateful for presenting sponsor Merrimack County Savings Bank, reception sponsors Checkmate Workforce Management Solutions, Lincoln Financial Group, and Unitil, and refreshment sponsors Concord Housing + Redevelopment, Corey Garland Photography, John S. Jordan Design, and R.C. Brayshaw & Company. Thanks also extend to tour supporters Cobb Hill Construction, the Duprey Companies, Fairway Real Estate, Sheer McCrystal Paulson Architecture, Sovereign Engineering, and Taylor Rental. en-us $date http://www.checkmatepayroll.com/news.html?news_id=75&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Compliance with state and federal employment laws can pose big challenges. To help ensure your business is compliant, informing your management team members of their responsibilities and obligations is crucial. Built specifically for those in supervisory roles, these HR business education and training webinars will engage participants with timely information that can protect your business. Each webinar also allows you to ask questions and interact live with experienced and trusted HR Professionals. The topic for Checkmate's next HR Academy training webinar is "Leaves of Absence" and this will be held on Friday, May 4 from 12-1pm EDT. Checkmate clients can sign up to attend this session by going to the "Resources" page in the HR Support Center and clicking on " HRAcademy Education and Training Webinars " under Business Training. Anyone who is not currently a Checkmate client can still register to attend, by contacting Josh Robinson via email to josh@checkmatenh.com. Leaves of Absence Training Session The legal requirements and practical challenges for family and medical leaves are one of the biggest headaches for businesses, and employers that make missteps continue to get hit with big verdicts.   During this 60-minute webinar, you'll learn about basic requirements as well as best practices.   Focus areas include:   • Types of Leaves of Absence • Reasonable Accommodations • Medical Certifications • Performance Expectations • Workload Management   The webinar is designed and led by the trusted HR Pros of the HR Support Center.   Benefits of attending this webinar include:   • Copy of the presentation slides • Handouts for additional reference • Live questions and answers session   en-us $date http://www.checkmatepayroll.com/news.html?news_id=76&module_params[name]=news&module_params[mode]=default&module_params[action]=detail A D.C. federal court has blocked the actions of the National Labor Relations Board (NLRB), which last year imposed a new requirement that employers post a notice to employees informing them of their rights under the National Labor Relations Act (NLRA). This new NLRB poster requirement was supposed to take effect as of November 14, 2011, but that deadline was later delayed until January 31, 2012, and then again delayed until April 30, 2012.   The most recent delay resulted from the D.C. court's request to postpone the effective date pending a legal challenge to the new requirement. The court concluded that the NLRB could not make an employer's failure to post alone an unfair labor practice but rather the NLRB would have to show that the failure to post actually interfered with employee NLRA rights. However, the NLRB encourages employers to have the poster displayed as a best practice regardless of what the finalized decision will be (expected on or before September 2012). en-us $date http://www.checkmatepayroll.com/news.html?news_id=73&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Concord Young Professionals Network - Philanthropy In the Community. Want to be more involved? CYPN is your connection! Wednesday, April 18 5:30—7:30 PM The Office Suites 211 Loudon Road in Concord, NH Come meet an array of nonprofit exhibitors interested in connecting with the young professionals in the Concord area.   en-us $date http://www.checkmatepayroll.com/news.html?news_id=72&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Checkmate has partnered with the NH Hospitality Compensation Trust (NHHCT) to offer its members an opportunity to ease workers' compensation premium payment options. Learn more click here. en-us $date http://www.checkmatepayroll.com/news.html?news_id=71&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Please take note of the following: From February 1, 2012 to April 30, 2012, the Occupational Safety and Health Administration (OSHA) requires many employers to post the OSHA Form 300A, a summary of the total number of job-related injuries and illnesses that occurred in 2011. An employer subject to this requirement must post OSHA Form 300A even if the employer had no reportable injuries/illnesses in the prior year. In addition to the posting requirement, employees with no fixed work site or no access to posted sites must be provided with a copy of the report. However, if an employer has 10 or fewer employees or falls within one of the industries exempted from OSHA recordkeeping and posting requirements, the regulations do not apply to those employers. en-us $date http://www.checkmatepayroll.com/news.html?news_id=70&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Four years ago, I had the privilege of presenting a case study at the Stonyfield Entrepreneurship Institute. This was also the first SEI that I attended. While I would encourage anyone with a relevant business case to submit it to SEI – the value of being on the hot seat and getting input from the likes of Gary Hirshberg and Howard Brodsky is invaluable – just attending the SEI has enormous value in itself. The high level of energy that is created during this event is contagious and inspiring, and gives me the fuel that I need to juggle my roles in running a small business while remaining active in the community through board service and volunteer work (and maintaining a personal life too). This is why Checkmate will be sponsoring the Stonyfield Entrepreneurship Institute for the second year. I am looking forward to another great event this April, and I hope to see you there. – Joshua Robinson Click Here for more information about the Stonyfield Entrepreneurship Institute and to register online. en-us $date http://www.checkmatepayroll.com/news.html?news_id=69&module_params[name]=news&module_params[mode]=default&module_params[action]=detail On May 17th, Checkmate is participating as a team in the 2012 Rock 'N Race in downtown Concord. The race, selected by the editors of New Hampshire Magazine as the "Best Community Running Event of 2010", is sponsored by Merrimack County Savings Bank and benefits Concord Hospital Payson Center for Cancer Care. If you would like to support us in our fundraising effort for this great cause, please use the following steps to donate on our personalized web page. Checks may also be sent to our office at 112 South State Street, Concord NH 03301, made payable to Concord Hospital Trust. To Donate: Go to www.rocknrace.org On the right hand side of the screen, click "More" under Team Rank Click on our team name - "Keep Cancer in Check - Checkmate Payroll" Click on "General Team Donation" Enter the donation amount and click "Continue" Follow through to the payment screens Last year, nearly 6,000 runners and walkers raised $458,350! Since the Rock 'N Race began in 2003, it has raised more the $2 million to support the Payson Center for Cancer Care. Funds raised through the 2012 Rock 'N Race will benefit complimentary and supportive services provided through the HOPE resource center and will provide financial assistance for cancer patients in need. Your help in sponsoring our team is greatly appreciated! Checkmate Team at 2011 Rock 'N Race en-us $date http://www.checkmatepayroll.com/news.html?news_id=67&module_params[name]=news&module_params[mode]=default&module_params[action]=detail The Concord Family YMCA invites you to the 8th Annual Spring Social. Thursday, March 29, 5:30-8pm at the Grappone Conference Center. All proceeds benefit the Y's Kids Campaign Fund. This year's fundraising goal is to provide over $250,000 in financial assistance to these families. Click Here for more information and to register online.   en-us $date http://www.checkmatepayroll.com/news.html?news_id=68&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Sponsored by Checkmate, the festival includes a selection of films from the largest environmental film festival in North America. This is an opportunity to become a Rivers Council member, support NH rivers, and have a fun and educational evening of viewing eight short movies spanning the world, celebrating rivers, nature, and the good work that people are doing to inspire us all. Click Here to learn more about this on the New Hampshire Rivers Council home page. en-us $date http://www.checkmatepayroll.com/news.html?news_id=60&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Checkmate Payroll has been selected as a winner in New Hampshire Business Review’s 2012 BOB Awards, which honor the “Best of Business” in New Hampshire in over 80 categories. Checkmate was honored in a statewide readers survey in the Payroll Services category. All of the winners will be honored at a celebration to be held from 5:30 to 8:00 p.m. on Thursday, March 8 at the Grappone Conference Center in Concord. “With more than 3,600 ballots cast for the 2012 Awards, the BOBs have really become a standard of excellence in New Hampshire’s business community,” said Jeff Feingold, Editor of NHBR. “If other business owners have named your business a BOB business, it really says something about the high caliber of the company you’re running.” The Best of Business Awards are presented by NHBR and are sponsored by: FairPoint Communications, Centrix Bank, Anthem Blue Cross and Blue Shield, Comcast Business Class, AutoFair, Public Service of New Hampshire, KBW Financial Staffing & Recruiting, The Nagler Group, NH Business Resource Center, and WZID. Cost to attend the BOB Awards celebration -- the most talked about networking event of 2012 -- is $17/person through February 17, and $23/person thereafter. Corporate discounts are available for groups of 10 or more. Register to attend at www.nhbr.com/bob. For registration questions, contact Katy Miles at kmiles@nh.com or 603-413-5113. New Hampshire Business Review is the state’s only business newspaper, reaching over 50,000 readers every other week. It is part of McLean Communications of Manchester, a publishing company that also includes New Hampshire Magazine, New Hampshire Home Magazine and Parenting New Hampshire. Checkmate is an independent provider of comprehensive payroll services and workforce management solutions with a strong focus on customer service, data security and innovative technology. Founded in 1994, Checkmate serves more than 500 clients in greater New Hampshire, is growing rapidly, and is actively involved in the community. en-us $date http://www.checkmatepayroll.com/news.html?news_id=64&module_params[name]=news&module_params[mode]=default&module_params[action]=detail The House Labor Committee votes on Employer Safety Programs and Employee's Lunch or Eating Period. EMPLOYER SAFETY PROGRAMS: The House Labor Committee has voted 17-0 to recommend passage of HB 1587 with amendment. As amended, the bill would increase the employee threshold from 10 employees to 15 before requiring a safety program to be in place and on file with the NH Department of Labor. The full House will vote on the bill next week. EMPLOYEE'S LUNCH OR EATING PERIOD: The House Labor Committee has voted 11-4 to recommend passage of HB 1574 with amendment. As amended, the bill would increase from 5 to 6 the number of hours an employee may be required to work before being granted a ½ hour lunch or eating period. The original bill would have repealed the requirement that employees be granted a lunch period. The full House will vote on the bill next week. en-us $date http://www.checkmatepayroll.com/news.html?news_id=65&module_params[name]=news&module_params[mode]=default&module_params[action]=detail   Health insurance coverage that must be reported on Form W-2 includes: The cost of major medical insurance; The health flexible spending allowance (FSA) value for the plan year in excess of the employee's cafeteria plan salary reductions for all qualified benefits; The cost of hospital indemnity insurance, or the amount paid for a specified illness (insured or self-funded) through salary reduction (pre-tax) or by the employer; and Domestic partner health insurance coverage included in gross income.   Health insurance coverage that does not have to be reported on Form W-2 includes: Health FSAs funded solely by salary reduction amounts; Health savings arrangement (HSA) contributions (employer or employee); Archer medical savings account (MSA) contributions (employer or employee); The cost of hospital indemnity insurance, or the amount paid for a specified illness (insured or self-funded) on an after-tax basis; Accident or disability income; Long-term care; Workers' compensation; Automobile medical payment insurance; and Payments/reimbursements of health insurance premiums for a 2% shareholder employee that was included in the employee's gross income.   It is optional for the employer to report the following insurance coverage on Form W-2: Dental or vision plan not integrated into another medical or health plan; Dental or vision plan which includes the choice of declining or electing and paying an additional premium; Health reimbursement arrangement (HRA) contributions; and Self-funded plans not subject to the federal Consolidated Omnibus Budget Reconciliation Act (COBRA).   The chart also indicates that it is optional to report the aggregate cost of employer-sponsored health insurance coverage on Form W-2 if: Employers are required to file fewer than 250 W-2 forms for the preceding calendar year; and A W-2 form was furnished to an employee who terminated before the end of a calendar year, and the employee requested in writing a W-2 form before the end of that year.   In addition, it is optional for third-party sick-pay providers that provide W-2 forms to employees of other employers to report the aggregate cost of employer-sponsored health insurance coverage on Form W-2. Here is a link to the IRS chart.   en-us $date http://www.checkmatepayroll.com/news.html?news_id=66&module_params[name]=news&module_params[mode]=default&module_params[action]=detail   WASHINGTON — Secretary of Labor Hilda L. Solis today announced the availability of approximately $75 million in YouthBuild grant funds to develop programs that will help out-of-school youth complete high school or General Educational Development programs, as well as learn critical occupational skills in construction, health care, information technology and other fields. "The YouthBuild programs that will be funded through this grant competition will help provide youth at risk of falling through the cracks with the opportunity to develop not only the jobs skills they need, but also the leadership qualities that will enable them to be valuable, productive members of their communities," said Secretary Solis. The U.S. Department of Labor anticipates serving more than 5,200 young people through 75 grants, ranging from $700,000 to $1.1 million each, to be awarded to organizations that oversee education and employment services for disadvantaged youth in their communities. This solicitation for grant applications is the first to incorporate new regulations for the YouthBuild program that expand required skills training beyond construction to include training in high-demand occupations such as health care and information technology, among others. YouthBuild is a nonresidential, community-based alternative education program that provides classroom instruction and occupational skills training to at-risk individuals ages 16-24. Participants have been in the juvenile justice system, are aging out of foster care, are high school dropouts, and are otherwise at-risk of failing to reach key educational milestones and opportunities that lead to career fulfillment. Participants learn valuable skills as they build or rehabilitate housing for low-income or homeless individuals and families in their communities. Non-construction skills training programs also must include leadership development and community service elements to ensure that youth maintain a connection to their communities through service and volunteerism. The solicitation for grant applications will be published in the March 8 edition of the Federal Register. Both the solicitation and information on how to apply for a grant are available at http://www.doleta.gov/grants/find_grants.cfm. For more information on YouthBuild and other Labor Department youth employment programs, visit http://www.doleta.gov/youth_services. Source U. S. Department of Labor en-us $date http://www.checkmatepayroll.com/news.html?news_id=61&module_params[name]=news&module_params[mode]=default&module_params[action]=detail   Overcoming some bipartisan bickering,Congress finally agreed to extend the federal "payroll tax holiday" through the remainder of 2012. The Middle Class Tax Relief and Jobs Creation Act of 2012 was signed into law by President Obama on February 22, 2012. Thanks to the new law, employees can continue to bask in the glow of a 2 percent reduction in FICA (Federal Insurance Contributions Act) tax for the next ten months. Plus, employers are relieved of The Payroll Tax Cut Legislation Also: Extends expanded unemployment benefits through the end of the year but reduced the maximum number of checks jobless people can receive. Delays a scheduled 27 percent cut in Medicare payments to physicians accounting hassles for high-wage earners and changes to their payroll tax systems. Absent the legislation, this tax break would have expired on March 1, 2012. Let's quickly recap the sequence of events. Normally, you have to pay the OASDI (Old Age, Survivors and Disability Income) portion of FICA tax at a rate of 6.2 percent on amounts up to the annual "wage base," which is adjusted for inflation. In addition, you must pay the 1.45 percent HI (Hospital Insurance) portion of FICA tax on all of your wages. Therefore, the combined FICA tax rate is 7.65 percent on amounts up to the annual wage base. Both employees and employers must pay the FICA tax. A self-employed individual effectively pays both the "employee" and the "employer" shares of the tax for a combined tax rate of 15.3 percent. Saving grace: If you're self-employed, you can deduct half of your self-employment tax payments "above the line" on your return. Under the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, the usual 6.2 percent OASDI rate for employees was reduced by 2 percent, but only for the 2011 tax year. A comparable tax break was granted to self-employed individuals for 2011, although employers did not benefit from any reduction. For employers, the regular 6.2 percent OASDI tax rate continued to apply to amounts up to the wage base of $106,800 in 2011. Initially, the payroll tax cut reduction was envisioned as a one-shot deal. But late last year, lawmakers began arguing about extending it for another year, or even longer. Political bickering ensued about how to finance this tax cut as well as extending unemployment benefits. On December 23, 2011, a last-ditch measure was passed, the aptly-named Temporary Payroll Tax Cut Continuation Act of 2011, extending the payroll tax holiday for two more months through February 29, 2012. And the tax-law writing members of Congress promised to revisit the issue when they returned from their holiday adjournment. Now, after a second round of contentious debates, another "compromise law" has been approved. The latest legislation, which includes a further extension of unemployment benefits, continues the payroll tax holiday through December 31, 2012. In other words, the regular 6.2 percent rate for employees is reduced by 2 percent to an effective 4.2 percent rate on wages for all twelve months of 2012 on amounts up to the inflation-adjusted wage base of $110,100. How much will you save under the extended payroll tax holiday? It depends on the amount of your wages. For example, a worker earning $50,000 saves approximately $1,000 this year. The maximum savings for a high wage-earner in 2012 is $2,202 (2 percent of $110,100). Without the new law extension, your company would have been required to adjust its payroll tax systems after February 29. The legislation also avoids problems relating to employees who earned more than the equivalent of the wage base amount over the first two months of the year. Those employees would have been required to recapture the excess tax savings on their 2012 returns. Consult with your tax adviser if you have questions about your personal situation or the impact on your business or organization. en-us $date http://www.checkmatepayroll.com/news.html?news_id=62&module_params[name]=news&module_params[mode]=default&module_params[action]=detail The VOW to Hire Heroes Act of 2011 made changes to the Work Opportunity Tax Credit (WOTC). The Act added two new categories to the existing qualified veteran targeted group and made the WOTC available to certain tax-exempt employers as a credit against the employer's share of social security tax. The Act allows employers to claim the WOTC for veterans certified as qualified veterans and who begin work before January 1, 2013. Recent legislation adds two new categories and makes the Work Opportunity Tax Credit available to qualified tax-exempt organizations that hire qualified veterans who begin work before Jan. 1, 2013. Tax-exempt employers will claim the credit against the employer share of social security tax by separately filing Form 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans. The credit can be as high as $9,600 per qualified veteran for for-profit employers or up to $6,240 for qualified tax-exempt organizations, but the amount of the credit will also depend on a number of factors, including the length of the veteran's unemployment before hire, the number of hours the veteran works, and the veteran's first-year wages. The amount of the credit for qualified tax-exempt organizations may not exceed the organization's employer social security tax for the period for which the credit is claimed. en-us $date http://www.checkmatepayroll.com/news.html?news_id=58&module_params[name]=news&module_params[mode]=default&module_params[action]=detail The NH Department of Labor recently issued a revision to the NH Minimum Wage Law notice that employers are required to have on display for their employees. The revised notice includes new verbiage due to legislation that was passed last year, related to the minimum wage and tipped employees. The revised notice includes the following statement regarding the minimum wage in NH: Unless otherwise provided by statute, no person, firm of corporation shall employ any employee at an hourly rate lower than that set forth in the federal minimum wage law, as amended. Additionally, the revised notice includes the following new detail (in red, bold text, below) relative to tipped employees. Tipped employees of a restaurant, hotel, motel, inn or cabin, who customarily and regularly receive more than $30 a month in tips directly from the customers will receive a base rate from the employer of not less than 45 percent of the applicable minimum wage. Restaurant shall include an establishment in a temporary or permanent building, kept, used, maintained, advertised, and held out to the public to be a place where meals are regularly prepared or served for which a charge is made and where seating and table service is available for customers or where delivery services are available. The term does not include establishments which do not primarily prepare and serve food. Tipped employees shall also include employees who deliver meals prepared in a restaurant to the customer's home, office, or other location. If an employee shows to the satisfaction of the commissioner that the actual amount of wages received at the end of each pay period did not equal the minimum wage for all hours worked, the employer shall pay the employee the difference to guarantee the applicable minimum wage. For Checkmate clients who use our PosterLink service, this should be a non-issue, as you should have received a new, laminated, NH labor law poster with the revised notice, last week. Checkmate will also be sending a new version of the laminated NH Labor Law poster to clients who recently purchased the 2012 poster from us, within the next couple of weeks. You can download a free version of the revised New Hampshire Minimum Wage Law notice from the NH DOL website, by clicking here. Please contact Joshua Robinson by email to josh@checkmatenh.com or call 603.225.2004 for more information about PosterLink. en-us $date http://www.checkmatepayroll.com/news.html?news_id=59&module_params[name]=news&module_params[mode]=default&module_params[action]=detail It appears as though the U.S. Congress will pass legislation this week to extend the 2% social security tax reduction on employee wages through the end of 2012. Without this action the social security tax rate for employees will revert back to the regular 6.2% on the first $110,000 in wages, on March 1. In addition, if the payroll tax cut is not extended and an employee's wages during the first two months of 2012 exceed $18,350, an amount equal to 2% of those excess wages will be recaptured on the employee's 2012 personal income tax return (we are not really sure what this means). Stay tuned to Checkmate E-News for updates on this. en-us $date http://www.checkmatepayroll.com/news.html?news_id=56&module_params[name]=news&module_params[mode]=default&module_params[action]=detail The exempt verses non-exempt employee classification issue continues as a common area of confusion among employers. Often, many employers who are unfamiliar with the nuances of the issue also face practical challenges, including when and how to track hours for exempt employees. To be classified as exempt, the employee’s job generally must satisfy both a salary basis test and a duties basis test. Exempt employees generally must be paid on a salary basis, meaning they must be paid a fixed salary each week. The U.S. Department of Labor (DOL) enforces regulations that define the salary basis requirement to satisfy the exempt status tests. Exempt, Administrative, Executive, and Professional employees must be paid a predetermined amount each pay period that is at least the minimum weekly salary required by the regulations. The current federal minimum is $455 per week; however some states require a higher minimum weekly salary to satisfy this test. The amount paid may not be reduced because of a variation in the quality or quantity of the work performed. Non-exempt employees are typically paid on an hourly basis and entitled to overtime compensation. According to the federal Fair Labor Standards Act (FLSA), employers are required to track the hours worked and meal periods for nonexempt employees. This requirement ensures that such employees earn at least minimum wage plus overtime compensation for any hours worked above 40 in a work week (and in some states, for any hours worked above eight in a workday). However, nothing in the law prohibits an employer from keeping track of an exempt employee's hours. Some valid reasons for tracking exempt employee hours can still be compelling. For example, an employer may opt to track an exempt employee’s hours for purposes of client billing, Family Medical Leave Act (FMLA), 401(k), hours-based benefits calculations, attendance, paid time off (PTO) benefits, etc. Some employers opt to track exempt employees’ hours simply to ensure the equitable treatment of all employees regardless of classification in the company. With a few exceptions, exempt employees must receive their full salary for any week in which they perform work without regard to the number of days or hours worked. Accordingly, if exempt employees clock in late to work or leave early at the end of the day, the employer may not dock their pay as they may for non-exempt employees. If an employer does dock an exempt employee’s wages, such a deduction may jeopardize the individual’s exempt status. Should an employer opt to track the hours of exempt employees, the company will need to be very careful with respect to how it uses this information. As explained above, the exempt employee’s salary should not fluctuate based on the number of hours worked within the workweek. Prorating an exempt employee’s salary based on hours worked may result in the loss of the exemption, which may be very costly for the business. The company may only take a deduction from an exempt employee’s salary under limited circumstances without jeopardizing the exempt status. These circumstances are listed below: • When an employee is absent from work for one or more full days for personal reasons other than sickness or disability; • For absences of one or more full days due to sickness or disability if the deduction is made in accordance with a bona fide plan, policy or practice of providing compensation for salary lost due to illness; • To offset amounts employees receive as jury or witness fees, or for temporary military duty pay; • For penalties imposed in good faith for infractions of safety rules of major significance; • For unpaid disciplinary suspensions of one or more full days imposed in good faith for workplace conduct rule infractions; • In the employee's initial or terminal week of employment if the employee does not work the full week, or • For unpaid leave taken by the employee under the federal FMLA. While the company may opt to track the hours of exempt employees, the company must ensure that such information is not used to take deductions from their employees’ regular salaries, unless such deductions comply with the relevant guidelines. en-us $date http://www.checkmatepayroll.com/news.html?news_id=57&module_params[name]=news&module_params[mode]=default&module_params[action]=detail As a reminder, the Occupational Safety and Health Administration (OSHA) launched its “National Emphasis Program (NEP) on Recordkeeping” last year after various studies revealed that many companies were underreporting or incorrectly reporting workplace-related injuries and illnesses. OSHA plans to increase enforcement of accurate reporting requirements through the NEP pilot program that continues through February 2012.   en-us $date http://www.checkmatepayroll.com/news.html?news_id=54&module_params[name]=news&module_params[mode]=default&module_params[action]=detail The Concord Young Professionals Network (CYPN), an initiative of the Greater Concord Chamber of Commerce, has experienced dramatic growth from its launch over five years ago and is celebrating with a classic cocktail party at the Grappone Conference Center on Friday, February 17, from 7-11 pm. Music will be provided by Nazzy Entertainment DJs. "Black Tie" Sponsors are: Lincoln Financial Group, Northway Bank and Northwestern Mutual. "Cheers to the Future of CYPN" Sponsors include Merrimack County Savings Bank, Paige Insurance Agency and Parker Education. Nassau Broadcasting is CYPN's Radio Media Sponsor and the Concord Monitor is CYPN's Print Media Sponsor. The fifth anniversary celebration will include an award presentation to the Young Professional of the Year. This is an award created by the Concord Young Professionals Network in conjunction with the Chamber of Commerce to recognize the area's top young professional who demonstrates excellence and a commitment to the community. CYPN hosts monthly networking events in the Concord area. Attendance has grown considerably in the last three years and averages around 100 to 125 young professionals each month at various venues around the city. The organization has also expanded its networking opportunities to include "Enrichment-Infused" events, designed to bring cultural and educational offerings to young professionals in Concord, and a monthly "Lunch & Learn" series on a variety of business and professional development topics. The cost to attend the 5th anniversary cocktail party is $15 per person ($25 at the door) and includes appetizers, music, dancing, and a cash bar. Pre-registration is requested at www.concordypn.org. For more information contact the Greater Concord Chamber of Commerce at (603) 224.2508. en-us $date http://www.checkmatepayroll.com/news.html?news_id=55&module_params[name]=news&module_params[mode]=default&module_params[action]=detail In order to allow your employees to pay health insurance premiums on a pre-tax basis, you need to have what is referred to as a Section 125 Plan, in place. Section 125 is the section of the IRS tax code where the items that can be deducted from employee pay on a pre-tax basis are defined. In the context of Section 125, "pre-tax" means that a deduction is exempt from Federal Income Tax Withholding, Social Security and Medicare Taxes. The employer also saves, because a Section 125 deduction reduces the employer's Social Security and Medicare tax liability. The Section 125 Plan is just a document that describes the specific ways in which the employer is allowing employees to take advantage of these pre-tax deduction options. A Section 125 Plan is something that the employer must maintain separately from the health insurance policy or any other benefit program that their employees participate in, and the Section 125 Plan includes a Summary Plan Description, which should be updated annually. Who Provides Section 125 Plan Administration? Often, the Section 125 plan itself and the Summary Plan Description are provided by a third party administrator, for an annual fee. Depending on the complexity of the Section 125 Plan, there may also be a per employee, per month fee for this administration work. A per participant fee is most commonly charged when the Section 125 Plan includes the ability for employees to deposit pre-tax money into a Flexible Spending Account (FSA). In this case, the plan administration includes more than just an annual update to the Section 125 plan document. The third party administrator for a plan that includes FSA is also responsible for handling the processing of receipts that employees submit for legitimate FSA expenses like child care expenses. Premium Only Plan A Premium Only Plan (POP) is the simplest type of Section 125 Plan. It is the easiest type of Section 125 Plan to maintain and it involves little or no annual discrimination testing. A POP plan is used when health insurance, dental insurance and/or vision insurance are the only benefits that the employees will be paying for on a pre-tax basis. Much like 401k, the maintenance of a Section 125 Plan is required to ensure compliance with the IRS tax code. Often, Section 125 Plan Administration can be taken care of for you by the employee benefits specialist who you purchased the health insurance policy (or other benefits program) from. Some payroll companies also offer solutions for this. At Checkmate, we work with a third party administrator to provide these services to our clients at a discounted rate. en-us $date http://www.checkmatepayroll.com/news.html?news_id=53&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Effective February 6, 2012, Massachusetts employers are no longer permitted to request criminal offender information on the initial written employment application form. There are a few limited exceptions to this law that mainly apply to industries with governmental reporting requirements for job applicants (such as service providers to children or the elderly). This new law poses limits on an employer’s right to inquire about criminal history in the interviewing process. In addition, employers who conduct in excess of four (4) criminal background checks per year must maintain a written criminal record information policy with specific content requirements. en-us $date http://www.checkmatepayroll.com/news.html?news_id=52&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Please take note of the following: By February 1, 2012, an employer subject to the Occupational Safety and Health Administration (OSHA) recordkeeping provisions for 300 logs regarding workplace injuries and illnesses must post its 2011 annual summary (Form 300A). en-us $date http://www.checkmatepayroll.com/news.html?news_id=51&module_params[name]=news&module_params[mode]=default&module_params[action]=detail The IRS publication 15, (Circular E) provides guidance on the requirements for withholding, depositing, reporting, paying, and correcting employment taxes. The publication includes information on the forms that employers must give to employees, and the forms that employees must give to employers, as well as the forms that must be sent to the IRS and the Social Security Administration. Publication 15 also includes the 2012 wage bracket withholding tables and the previously-released percentage method withholding tables. Publication 15 also notes the following recent developments: (1) Withholding allowances. An annual withholding allowance is valued at $3,800 in 2012. (2) FUTA tax rate. The federal unemployment tax (FUTA) rate, before consideration of state unemployment tax credits, is 6.0% in 2012. It was 6.2% through June 30, 2011, but the rate was lowered to 6.0% after the expiration of the 0.2% FUTA surtax on June 30. (3) Tip reporting programs. The IRS discontinued the Attributed Tip Income Program (ATIP), effective Dec. 31, 2011. (4) Work opportunity tax credit. The VOW to Hire Heroes Act of 2011 was signed into law by the President on Nov. 21, 2011. It provides an expanded work opportunity tax credit to employers that hire eligible unemployed veterans, and, for the first time, also makes part of the credit available to tax-exempt organizations. The credit may be claimed on eligible unemployed veterans who begin work after Nov. 21, 2011, and before Jan. 1, 2013. The credit may only be claimed on unemployed veterans in the 2012 tax year, unless Congress enacts legislation that allows the credit to be claimed on other targeted groups. (5) New change of address form. Beginning in 2012, employers must use new Form 8822-B, Change of Address - Business, to report any address changes.   en-us $date http://www.checkmatepayroll.com/news.html?news_id=48&module_params[name]=news&module_params[mode]=default&module_params[action]=detail   Checkmate has 2012 federal/state labor law posters available for purchase. The cost for each set of posters is $27.50. We are also happy to announce Checkmate's PosterLink Program. PosterLink allows us to provide our clients with the ability to automatically receive a new poster whenever there is a change to the required federal and state specific labor law poster requirements. The cost for the PosterLink subscription service (which includes one new set of posters upon signing up), includes a one-time fee of $25.00, plus $7.50 per month, ongoing. Why do employers need labor law posters? Are there fines associated with not displaying current posters? Federal and state government regulations require all employers with at least one employee on payroll to post these documents in a conspicuous area at each of their locations. Failure to keep these notices up-to-date can result in substantial fines or frivolous employee lawsuits. The amount varies by state, agency and case, but fines have been imposed up to $10,000 per incident. Why should an employer purchase these posters when they can print them from the government sites for free? Printing from these government sites can be a time consuming hassle. There are a number of different pages you need to assemble, they're in black and white and they are easily ruined. Through the poster program, you are provided with space saving, full color and laminated posters. Does my state change often enough to warrant using the Subscription Program? While it is impossible to forecast what changes are going to be made, it is fair to say that the poster updates do occur on a regular basis. Since January of 2004, there has been an average of 2-3 significant changes per year per state. Ongoing compliance demands vigilance in keeping on top of the changes, and this can be complicated and time consuming. The PosterLink Subscription Program ensures that you are always in compliance by providing you with new posters as laws change, without the added hassle and uncertainty. Please contact Joshua Robinson josh@checkmateNH.com or phone at 603.225.2004 for more information on the PosterLink program. en-us $date http://www.checkmatepayroll.com/news.html?news_id=49&module_params[name]=news&module_params[mode]=default&module_params[action]=detail 1) Form 1099-Misc is required for non-corporate service providers. Employers must provide a Form 1099-Misc, Miscellaneous Income, by Jan. 31, 2012, to any non-corporate service provider who was paid at least $600 for services during 2011. The Form 1099-Misc does not have to be provided to a corporate service provider. Employers should look at the completed Form W-9, Request for Taxpayer Identification Number and Certification, that they received from the service provider to determine whether the service provider is "non-corporate" or "corporate." Employers must provide Form 1099-Misc to sole proprietorships, partnerships, attorneys, and medical service providers who do business as corporations. (2) Form 1099-Misc not required if contractor paid electronically. There is no requirement to send a Form 1099-Misc to any contractor that was paid electronically, such as by credit card, debit card, PayPal, or gift card. The bank or credit card company that made the actual payment to the contractor will send the contractor Form 1099-K,Merchant Card and Third Party Network Payments. (3) Pilot program for truncation of TIN numbers has been extended. The IRS pilot program that allows for the truncation of taxpayer identification numbers (TINs) on 1099 forms has been extended to include 1099s through the 2012 calendar year (filed in 2013). This means that the first five digits of the TIN can be replaced with ***** or xxxxx on the payees' paper copies of Form 1099, but copies filed with the IRS must have their full TIN. (4) Better safe than sorry. The APA advises employers who are unsure whether a Form 1099-Misc is required to go ahead and send one. Employers can't go wrong by sending more 1099s than are required, but could be subject to penalties if they do not send all qualified service providers their Form 1099-Misc. (5) File forms on time. Paper copies of Forms 1099-Misc must be mailed to the IRS no later than Feb. 28, 2012. Forms 1099-Misc filed electronically must be submitted to the IRS by April 2, 2012. [APA Press Release, 5 Tips for Businesses to Avoid Compliance Penalties When Paying Contractors, 1/4/12]. en-us $date http://www.checkmatepayroll.com/news.html?news_id=45&module_params[name]=news&module_params[mode]=default&module_params[action]=detail IRS Mileage Rate Beginning on January 1, 2012, the Internal Revenue Service (IRS) standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be 55.5 cents per mile for business miles, 23 cents per mile for medical or moving purposes miles, and 14 cents per mile for service of charitable organization miles. HHS Final Rule on Medical Loss Ratio Requirements Regarding the Affordable Care Act's Medical Loss Ratio (MLR) requirements, the Department of Health and Human Services (HHS) Centers for Medicare & Medicaid Services issued a final rule that is effective January 3, 2012. The new health care law mandates that health insurance companies in the small group markets spend at least 80% of premium dollars on medical care and health care quality improvement. In addition, employer-sponsored group health plans receiving rebates must ensure that the enrollee portion of the rebate is properly distributed for the benefit of enrollees. Mobile Phone Use Restriction Effective January 3, 2012, a new Department of Transportation (DOT) regulation restricts commercial motor vehicle (CMV) drivers from holding, reaching for, or pressing more than one button to operate mobile phone devices while operating their vehicles. CMV drivers may still use devices as long as usage is in compliance with the new rule (i.e. devices must be mounted or securely within reach of the driver's control panel). Required NLRA Labor Law Posting As a reminder, do not forget that the National Labor Relations Board (NLRB) has issued a Final Rule that requires employers to notify employees of their rights under the National Labor Relations Act (NLRA). Private-sector employers, including labor organizations, are required to post the NLRA employee rights notice where other workplace notices are typically posted. Based on a recent NLRB announcement, this notice must be posted no later than April 30, 2012; the previous date was January 31, 2012. Form W-2 Employers must complete Form W-2, Wage and Tax Statement, to report wages, tips and other compensation paid to an employee. A copy of this form must be given to the employee by January 31st. en-us $date http://www.checkmatepayroll.com/news.html?news_id=46&module_params[name]=news&module_params[mode]=default&module_params[action]=detail On Dec. 23, 2011, the U.S. House and the Senate reached an agreement that will extend the "payroll tax cut" through Feb. 29, 2012. The "payroll tax cut" temporarily lowers the Social Security withholding tax rate on wages earned by employees from 6.2% to 4.2%. The cut originally was only supposed to last for one year, beginning with wages earned on Jan. 1, 2011. The new agreement extends the payroll tax cut through Feb. 29, 2012. Recapture Provision Under the new agreement, the 4.2% employee Social Security withholding rate may be used on the first $110,100 of wages earned by an employee through February 29. If an employee's wages during the first two months of 2012 exceed $18,350, and the payroll tax cut is not extended for the remainder of 2012, an amount equal to 2% of those excess wages would ultimately be recaptured on the employee's 2012 personal tax return. The new agreement calls for the House and the Senate to immediately appoint conferees to meet in the coming weeks to hopefully come to an agreement on a full-year payroll tax cut extension in 2012. Stayed tuned to Checkmate E-News for updates on this issue and many others that will impact payroll and workforce management in 2012. en-us $date http://www.checkmatepayroll.com/news.html?news_id=47&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Withholding Tax New Federal percentage method withholding tables have been issued. An annual federal withholding allowance is now valued at $3,800 (previously, $3,700). The 4.2% Social Security withholding tax rate on wages earned by employees will remain in effect at least through Feb. 29, 2012. Congress hopes to enact legislation in the coming weeks that will keep this rate in effect through Dec. 31, 2012. Fringe Benefits The standard mileage rate for computing the deductible cost of operating a car (including vans, pickups, or panel trucks) for business use will remain at 55.5¢ per mile. It has been at this rate since July 1, 2011. An employee may exclude from taxable income up to $240 a month for qualified parking expenses in 2012 (up from $230 a month in 2011). The tax-free exclusion for the combined value of transit passes and transportation in a commuter highway vehicle will decrease from $230 a month to $125 a month in 2012, unless Congress retroactively enacts legislation that keeps this exclusion equal to the amount of the qualified parking exclusion. It is now easier for an employer-provided cell phone, or a personally-owned cell phone used for business purposes, to qualify as a tax-free fringe benefit. Pension Plan Limitations The maximum amount that an employee may elect to defer to a 401(k) cash or deferred compensation plan is $17,000 in the 2012 tax year (up from $16,500 in 2011). The maximum amount that an employee/participant may elect to defer to a savings incentive match plan for employees (SIMPLE plan) remains at $11,500. The limitation on total annual contributions to defined contribution plans is $50,000 (up from $49,000 in 2011). The annual benefit limit for defined benefit plans is $200,000 (up from $195,000 in 2011). The limitation on deferrals for Code Sec. 457 deferred compensation plans of state and local governments and tax-exempt organizations increases from $16,500 to $17,000 in 2012. The limitation used in the definition of a highly compensated employee increases from $110,000 to $115,000 in 2012. The maximum aggregate annual contribution that can be made to a health savings account in 2012 is $3,100 for self-only coverage (up from $3,050 in 2011) and $6,250 for family coverage (up from $6,150 in 2011). The employee compensation amount used in the definition of "control employee" for purposes of the auto commuting valuation rule increases from $195,000 to $205,000 in 2012. The compensation amount used in the definition of company officers who are ineligible for the commuting valuation rule increases from $95,000 to $100,000 in 2012. W-2s. Employers may now submit up to 50 W-2 forms through W-2 Online (previously, up to 20 W-2 forms). Unemployment Tax The 0.2% federal unemployment tax (FUTA) surtax expired on June 30, 2011. The FUTA tax rate, before consideration of state unemployment tax credits, is 6.2% from Jan. 1, 2011 to June 30, 2011, and 6.0% after June 30, 2011. Employers in 20 states (and in the Virgin Islands) will see their state unemployment tax credits reduced on their 2011 FUTA return because their state failed to repay its federal unemployment insurance loans before the required deadline. Federal Minimum Wage Rate The federal minimum wage rate is still $7.25 per hour in 2012. Other The IRS has launched a "Voluntary Classification Settlement Program" that it says will allow many employers to resolve past worker classification issues under the tax law at a low cost if they voluntarily agree to reclassify their workers as employees. The work opportunity tax credit (WOTC) allows employers who hire members of certain targeted groups to receive an income tax credit. The WOTC may now only be claimed by employers who hire qualified veterans (i.e., no other targeted groups besides qualified veterans) between Jan. 1, 2012 and Dec. 31, 2012. It's possible that Congress will retroactively enact legislation that will allow employers who hire other targeted groups, besides qualified veterans, to claim the WOTC in 2012. Tax-exempt organizations are now allowed to offset the WOTC against their OASDI (Social Security) tax liability. en-us $date http://www.checkmatepayroll.com/news.html?news_id=44&module_params[name]=news&module_params[mode]=default&module_params[action]=detail On Dec. 23, 2011, the House and the Senate reached an agreement that will extend the "payroll tax cut" through Feb. 29, 2012. The "payroll tax cut" temporarily lowers the Social Security withholding tax rate on wages earned by employees from 6.2% to 4.2%. The cut originally was only supposed to last for one year, beginning with wages earned on Jan. 1, 2011. The new agreement extends the payroll tax cut through Feb. 29, 2012. Under the new agreement, the 4.2% employee Social Security withholding rate may be used on the first $110,100 of wages earned by an employee through February 29. If an employee's wages during the first two months of 2012 exceed $18,350, and the payroll tax cut is not extended for the remainder of 2012, an amount equal to 2% of those excess wages would ultimately be recaptured on the employee's 2012 personal tax return. The new agreement calls for the House and the Senate to immediately appoint conferees to meet in the coming weeks to hopefully come to an agreement on a full-year payroll tax cut extension in 2012. en-us $date http://www.checkmatepayroll.com/news.html?news_id=30&module_params[name]=news&module_params[mode]=default&module_params[action]=detail The Vermont Department of Labor has announced that the minimum wage rate will increase from $8.15 per hour to $8.46 per hour on Jan. 1, 2012. The minimum cash wage for tipped employees will increase from $3.95 per hour to $4.10 per hour in 2012, and the maximum tip credit will increase from $4.20 per hour to $4.36 per hour. Click on Link for more information: Vermont Department of Labor   en-us $date http://www.checkmatepayroll.com/news.html?news_id=42&module_params[name]=news&module_params[mode]=default&module_params[action]=detail It appears as if the payroll tax cut extension approved by the US Senate on Saturday might be blocked by Republicans in the House of Representatives. If the House of Representatives does not pass this legislation, the employee portion of the social security tax will increase from 4.2% to 6.2% on January 1. We expect that the payroll tax cut will eventually be extended, retroactive to January 1, 2012. Stay tuned for updates on this issue. en-us $date http://www.checkmatepayroll.com/news.html?news_id=43&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Each year, we put together a chart of the important tax and wage figures that NH employers should be aware of for the coming year. It contains valuable information on minimum wage figures, retirement plan contribution limits, standard mileage rates and much more. en-us $date http://www.checkmatepayroll.com/news.html?news_id=40&module_params[name]=news&module_params[mode]=default&module_params[action]=detail   Checkmate is pleased to bring you the 2011 Top Ten Wage & Hour Violations Holiday Hit List, by Attorney Jim Reidy.This is a must read for all NH employers. The stakes for noncompliance with these wage laws are higher than ever before, so employers need to pay attention to these if they want to avoid being on these DOL "naughty" lists. 2011 Top Ten List of Wage & Hour Violations in New Hampshire 10. Failure to have a written safety plan, joint loss management committee and safety summary form filed biennially, as required. *RSA 281-A:64 and Lab 602.01, 602.02, 603.02, and 603.03 Recommendation:Employers with more than five employees need to have a joint loss safety committee to receive and correct workplace safety problems. Employers with 10 or more employees must file a written safety plan with the state (NH DOL) and then file updates every two years. Plans can be filed electronically. Covered employers should check to be sure their plans and reports are up to date. 9. Failure to secure and maintain workers compensation coverage and misclassifying employees as independent contractors. *RSA 275:42, I & II, and RSA 281-A:5 Recommendation:To avoid costly fines and wage adjustments and uninsured workplace injury claims, employers should be certain to properly classify employees. For wages, benefits and workers' compensation purposes, employers should follow the statute's 12 point test to confirm whether the individual is an employee or an independent contractor. 8. Improper deductions from wages. Not following list of approved deductions. *RSA 275:48 and Lab 803.02(b),(e),(f) Recommendation:The list of approved deductions increased with the August 2011 amendment to the law but this is still an exclusive list with specific requirements. Even if the employee authorizes deductions from his/her wages, the deductions may only be for the purposes approved in the statute and following the requirements outlined in the statute and administrative rules. 7. Failure to pay minimum wage due for all hours worked. *RSA 279:21 Recommendation:Make certain that all employees are paid at least the correct (current) minimum wage for all hours worked and any exceptions provided for in the law are carefully reviewed and checked. 6. Failure to secure the proper youth employment paperwork or not abiding by work hours limitations or hazardous environment prohibitions for workers under age 18. *RSA 276-A: 4 & 5 and Lab 1000 Recommendation:Employers should not permit youth workers (ages 15 to 18) to start work before securing the required permits/certificates. Once these certificates are on file, youth workers should be restricted in the number of hours, days or work and types of work established under state (and federal) law. 5. Failure to pay 2 hours minimum pay at the employee's regular rate of pay on a given day when he/she reports to work at the request of the employer. *RSA 275:43-a and Lab 803.03(h),(i),(j) Recommendation:This applies to hourly employees. Employers should notify hourly employees when they are not needed at work on a particular day. If the notice is unsuccessful and the employee reports to work, the employer must pay the employee two hours pay for reporting to work or put the employee to work. One exception is when the employee's job or task requires less than two hours of work that day. The employee, in those cases, only needs to be paid for the time worked but this arrangement needs to be in writing in advance. 4. Failure to pay all wages due for hours worked, fringe benefits and breaks less than 20 minutes in duration. *RSA 275:43; RSA 275:42; Lab 803.01; Lab 803.03-04 Recommendation:Watch the clock and know what is due (for all hours worked) to your employees. Pay all wages due, when they are due and watch out for fringe benefits. These may be deemed as wages too. Be certain your employees get what they were promised and you provide employees with written notices of updates/changes to fringe benefit plans. Finally, remember that hourly and non-exempt employees must be paid for work breaks less than 20 minutes in duration. 3. Employing illegal aliens (and others who don't have proper documentation on file). *RSA 275-A: 4-a Recommendation:While this is commonly thought of as an issue involving federal law, many states, including New Hampshire, have laws prohibiting hiring or continuing to employ someone who is not a citizen of the United States OR doesn't have a valid work authorization. Be certain that all required paperwork is completed and in place before the employee starts work and the employee doesn't continue to work beyond a visa/authorization's expiration. 2.Failure to provide written notice to employees of their wage rate, pay period, pay day and a general description of fringe benefits when they are hired and in advance of any changes thereto. * RSA 275:49 and Lab 803.03 Recommendation:This is an easy one. When employers hire employees, they need to put in writing the employee's wage rate, pay period, pay date and a general description of fringe benefits. When those terms change, the employer needs to put the change in writing. Employees need to sign an acknowledgment of receipt of these notices. Employers should keep copies of those signed notices in the employee's personnel file. AND THIS YEAR'S BIG WINNER . . ....The Number One Worst Wage and Hour (NH) Violation From 2011... 1. Failure to keep accurate records of all hours worked. (Not recording meal breaks taken). *RSA 279:27 and Lab 803.03 Recommendation:Employers must permit employees to take a 30 minute (unpaid) meal break after five consecutive hours of work in a workday. Meal breaks must be recorded on daily time sheets just like the start and end time for non-exempt (FLSA/OT) employees. Meal waivers are possible, but exceptions to those waivers must be noted on time records. Copyright, Sheehan Phinney Bass + Green, 2011   en-us $date http://www.checkmatepayroll.com/news.html?news_id=41&module_params[name]=news&module_params[mode]=default&module_params[action]=detail The Internal Revenue Service recently issued the 2012 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on Jan. 1, 2012, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: 55.5 cents per mile for business miles driven 23 cents per mile driven for medical or moving purposes 14 cents per mile driven in service of charitable organizations The rate for business miles driven is unchanged from the mid-year adjustment that became effective on July 1, 2011. The medical and moving rate has been reduced by 0.5 cents per mile. The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs as determined by the same study. Independent contractor Runzheimer International conducted the study. Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates. A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously. These and other requirements for a taxpayer to use a standard mileage rate to calculate the amount of a deductible business, moving, medical or charitable expense are in Rev. Proc. 2010-51. Notice 2012-01contains the standard mileage rates, the amount a taxpayer must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that a taxpayer may use in computing the allowance under a fixed and variable rate plan. en-us $date http://www.checkmatepayroll.com/news.html?news_id=39&module_params[name]=news&module_params[mode]=default&module_params[action]=detail   As we get close to the end of the year we are writing to let you know what our Holiday Schedule will be and some things to keep in mind to help make the yearend process less stressful. Click Here for Our Year End Letter to Our Clients... en-us $date http://www.checkmatepayroll.com/news.html?news_id=38&module_params[name]=news&module_params[mode]=default&module_params[action]=detail   Social Security Benefit Increase. On October 19, 2011, the Social Security Administration (SSA) announced the monthly Social Security and Supplemental Security Income (SSI) benefits will increase in 2012. The 3.6 percent cost-of-living adjustment (COLA) will begin with the January 2012 benefit payments. Increased payments to SSI beneficiaries will begin on December 30, 2011. OSHA Whistle-Blower Claims. Published in the Federal Register on November 3, 2011, the U.S. Occupational Safety and Health Administration (OSHA) announced Sarbanes-Oxley Act whistle-blower claims may now be filed orally. The final rules revise existing regulations and public comments must be received by January 3, 2012. IRS Mileage Rate. The Internal Revenue Service (IRS) optional standard mileage rate of 55.5 cents/mile for business miles expires on December 31, 2011. The IRS has not yet announced if the rate will be different in 2012. OCR Privacy and Security Compliance Audits.The U.S. Department of Health and Human Services (HHS) Office for Civil Rights (OCR) is responsible for privacy and security enforcement under the Health Insurance Portability and Accountability Act (HIPAA) and the Health Information Technology for Economic and Clinical Health (HITECH) Act. The OCR is piloting a program to perform up to 150 audits of covered entities to assess privacy and security compliance. Audits are to conclude by December 2012. en-us $date http://www.checkmatepayroll.com/news.html?news_id=37&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Every two years, NH employers with 10 or more employees are required to submit a Safety Summary Form (SSF) to NH DOL. For employers who last filed in 2010, it's time to submit the form for 2012. Don't remember when you last filed?...No worries. NH DOL provides you with an easy way to verify your last SSF filing. In order to verify your last SSF filing, go to the NH DOL website and log into your NH DOL web account. Then go to the Safety Summary Form Page. From here, you can verify your last SSF filing by submitting your Federal Identification Number, your email address and year of submission. The SSF must be filed biennially; it can also be filed annually for your convenience. Methods of filing are: online, hardcopy or fax. en-us $date http://www.checkmatepayroll.com/news.html?news_id=36&module_params[name]=news&module_params[mode]=default&module_params[action]=detail A taxpayer who is required to file an information return (1099 etc..) with the IRS should request the individual who receives reportable income to complete Form W-9. The individual will enter their taxpayer identification number (TIN) on Form W-9. The TIN could be a Social Security number (SSN) or an employer identification number (EIN). The person must also certify that: (1) the number shown on the form is the person's correct TIN; (2) the person is not subject to backup withholding; and (3) the person is a U.S. citizen or other U.S. person (see Form W-9 instructions). After completing the form, the person gives the form to the requester. Either the December 2011 or the January 2011 version of the form may be used. The tax classification box, which indicates whether a person is an individual, C corporation, S corporation, partnership, etc., does not currently have to be completed. Here is a link to the new form W9 en-us $date http://www.checkmatepayroll.com/news.html?news_id=34&module_params[name]=news&module_params[mode]=default&module_params[action]=detail   On November 28, Senator Bob Casey (D-PA) introduced S. 1917, the “Middle Class Tax Cut Act of 2011,” which would cut 2012 payroll taxes for both employers and employees and pay for it via a millionaire's surtax. The legislation would: Cut in half (from 6.2% to 3.1%) the Social Security payroll tax paid by employees and the self-employed on their 2012 wages and salaries. Cut in half (from 6.2% to 3.1%) the payroll taxes paid by employers on the first $5 million of taxable payroll for 2012. Provide incentives to hire new workers by completely eliminating the Social Security payroll tax paid by employers on the first $12.5 million of an employer's increased taxable payroll for the fourth quarter of 2011 and $50 million in increased payroll for 2012. Offset the cost of the above payroll tax breaks by imposing a 3.25% surtax on income in excess of $1 million for single filers and married couples filing jointly. The surtax would be effective for tax years beginning after Dec. 31, 2012. en-us $date http://www.checkmatepayroll.com/news.html?news_id=35&module_params[name]=news&module_params[mode]=default&module_params[action]=detail The BOB Awards honor the best New Hampshire companies in over 80 business-to-business categories, as voted on by the readers of NHBR. Categories include best payroll company, best advertising agency, best corporate moving company, best bank, best place for a business lunch, best florist and more. Click Here and Cast You Ballot Today! en-us $date http://www.checkmatepayroll.com/news.html?news_id=33&module_params[name]=news&module_params[mode]=default&module_params[action]=detail   Settling Down or Not with the IRS Voluntary Classification Settlement Program In pursuit of employers who misclassify their workers, the U.S. Department of Labor (DOL) has been aggressively ramping up the number of investigations and its employment law enforcement efforts. In alignment, the Internal Revenue Service (IRS) announced last September its Voluntary Classification Settlement Program (VCSP), which may offer relief for employers from unpaid employment taxes, penalties, and interest resulting from worker misclassifications. To determine whether or not joining the VCSP would be a smart move, an employer needs to consider some key factors. Under the VCSP, an employer may voluntarily reclassify their workers as employees for future tax periods for employment tax purposes. To participate in the program, the employer must meet specific eligibility requirements, apply for the VCSP, and enter an agreement with the IRS. An employer may be considered eligible for the program if it: Is not subject to a worker misclassification audit currently engaged by a federal or state agency, Has consistently treated the workers in question not as employees (i.e. as independent contractors), and Has filed for the past three years the required Form 1099s regarding the workers. If the IRS approves the employer’s eligibility and participation into the VCSP, then the employer must establish a “closing agreement” with the IRS. The agreement’s provisions include but are not limited to: A three-year extension of the statute of limitations for collection of employer back taxes during the first three years upon participating in the program; A limit of 10 percent of the employer’s employment tax liability that may have been owed on compensation paid to the workers for the most recent tax year, without interest and penalties; No audit for employment tax purposes for prior years with respect to the classification of the workers in question; and Treatment the identified workers as employees moving forward. While the VCSP appears attractive at face value, other factors require employers like you to recognize potential risks and, if deciding to participate in the program, to proceed with caution: First of all, the IRS is not obligated to accept an employer’s application (IRS Form 8952) to the program. So, if an application is rejected, the employer may have in essence admitted to worker misclassification fault, thus creating a potential case for wage and hour lawsuit claims. The IRS relief does not apply to other federal or state agencies (i.e. the DOL) which have similar responsibilities for worker classification compliance enforcement. As established through recent “memorandums of understanding” with participating agencies, IRS information-sharing would likely increase exposure of an employer’s liabilities related to worker misclassifications. The employer must account for and remedy any previously avoided employee expenses (i.e. due to failure of complying with minimum wage and overtime laws, of providing company-sponsored employee benefits, of offering workers’ compensation and unemployment insurance, etc.). As the more details from the IRS regarding this newly-develop VCSP emerge, employers are encouraged to conduct preliminary research and internal assessment focused on the nature and degree of any worker misclassification issues. Review applicable state and federal classification standards, conduct a company-wide worker classification audit, and stay on top of relevant IRS notifications and employment law updates. en-us $date http://www.checkmatepayroll.com/news.html?news_id=31&module_params[name]=news&module_params[mode]=default&module_params[action]=detail January 1, 2012: Last Day to File the NH DOL Safety Summary Form All NH employers with 10 or more employees are required to file a Safety Summary Form with the NH Department of Labor every other year. Is yours due this year? The form can be submitted online or printed and mailed. View the form... en-us $date http://www.checkmatepayroll.com/news.html?news_id=32&module_params[name]=news&module_params[mode]=default&module_params[action]=detail December 31: Last Day to Opt Out of NH's Unemployment Tax System The Unemployment Services Trust (UST) is a grantor trust created by and for nonprofits, and works to provide nonprofits with a safe, cost-effective alternative to paying state unemployment taxes. To learn more about this potentially cost-saving option and request a quote, visit www.chooseust.org. en-us $date http://www.checkmatepayroll.com/news.html?news_id=29&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Reporting of Employer Provided Health Care Coverage on Form W-2 This is not required for any employer to report on 2011 W-2 forms. Employers that issued more than 250 W-2 forms in 2011 will be required to report health care coverage in Box 12 of the Form W-2 using code DD beginning with the 2012 W-2’s. In a nutshell the amount to be reported is the total cost of the health insurance coverage paid by both the employee and employer. It is not necessary to report any other type of insurance (including; dental, vision, etc.) if it is not a part of the health insurance coverage. There are a few ways to value the amount that is reported. The actual premium paid, should be used for employers with a health insurance policy. For self-insured employers the amount to report is the “COBRA Applicable Premium” amount. Unless the law is changed or deemed unconstitutional all employers that provide their employees with access to health insurance will be required to report on the 2013 W-2’s which will be issued in 2014. en-us $date http://www.checkmatepayroll.com/news.html?news_id=28&module_params[name]=news&module_params[mode]=default&module_params[action]=detail The value of providing training to managers throughout the employment life cycle cannot be overlooked. Training ensures that your managers are knowledgeable about your company’s workplace law obligations and skilled in delivering human resources best practices in order to become successful in their roles. Training further enables business costs to be low, employer liability to be controlled, and allows for successful organizations to emerge. Did you know that in 2010 the Equal Employment Opportunity Commission (EEOC) filed 99,992 charges against the private sector? Managers should be trained in various discipline areas, but some may or may not apply depending upon the company’s size and industry. Below are some suggested strategic and compliance training topics to assist managers in increasing effectiveness and reducing exposure. Business Execution. Monitoring business goals, supervising employees, and managing organizational changes may result in improved business effectiveness.   Leadership. Providing ample opportunities for employees to have open communication and share a common vision, mission and goal helps with decreasing employee turnover rates.   Performance Management. Learning to provide evaluations that are fair, objective, and based on the organization’s goals opens the door to feedback and conveys to employees they are valuable assets to the organization.   Diversity. Getting to know who your employees are, how to execute equal employment opportunities with non-discrimination tactics, and handling generational differences allows for increased employee satisfaction retention rates.   Business Crises Management. Planning, analyzing and evaluating how to handle stressful, harmful, or safety-related hazards that occur intentionally or un-intentionally (such as violence, injuries, accidents, fires, earthquakes, etc.) enables managers to take action rationally and rely on the team when needed.   HR Best Practices. Learning the basics about hiring, termination, harassment, business policies, employment laws, paperwork compliance, etc., sets forth better protection for managers and organizations. Often, the number and degree of EEOC complaints, OSHA violations, wage and hour penalties, or other claims are reduced when managers receive training on these topics to assist them in making informed decisions. It is vital to understand that once training is received, managers should be able to “transfer” the training into actual real life situations and settings when an opportunity presents itself. One way managers can transfer training learned is by utilizing action plans. Proper training can assist organizations by enhancing performance, productivity, employee satisfaction and customer service within a department. So, start training every day! en-us $date http://www.checkmatepayroll.com/news.html?news_id=20&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Scheduled to take effect on January 31, 2012, most private employers will need to post a new notice about employee workplace rights under the National Labor Relations Act (NLRA). The notice would state that employees have the right to act together to improve wages and working conditions, to form, join and assist a union, to bargain collectively with their employer, as well as to refrain from any of these activities. It also provides examples of unlawful employer and union conduct and instructs employees how to contact the National Labor Relations Boards (NLRB) with questions or complaints. Click Here to access a free, online version of this new posting. en-us $date http://www.checkmatepayroll.com/news.html?news_id=23&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Each year, some employers will find themselves faced with a dilemma caused by the calendar. Because a normal year has 365 days, one day of the week will occur 53 times in a year. In a leap year (2012 is one) two days of the week will occur 53 times. For weekly and bi-weekly employers whose payday occurs 53 times or 27 times during a calendar year, a number of decisions need to be made. The first decision is whether to adjust salaried employees' (hourly employees are not affected as they are paid based on hours worked) weekly/bi-weekly pay to account for the extra pay period. Many employers do not adjust the per pay period salary for employee relations reasons. In addition to regular earnings make sure to consider allowances like automobile, parking, club dues etc. If you decide to make an adjustment to the per pay period salary make sure that you comply with applicable labor laws. The next decision is how to compute deductions for things like health insurance. If you calculate the per payroll amount by dividing the annual amount by 26 or 52, adjustments will need to be made if you have an extra pay period during the year. For example if an employee's annual medical insurance deduction is computed to be $3,000, the per pay period deduction will be $57.69, if there are 52 pay periods during the year or $56.60 if there are 53 pay periods during they year. Common deductions impacted by the extra pay period include, medical and dental insurance, dependant care and other flexible spending deductions, health savings account contributions, etc.   The days of the week that will occur 53 times in 2012 are: Sunday and Monday. en-us $date http://www.checkmatepayroll.com/news.html?news_id=25&module_params[name]=news&module_params[mode]=default&module_params[action]=detail By law, the dollar amounts for a variety of tax provisions, affecting virtually every taxpayer, must be revised each year to keep pace with inflation. New dollar amounts affecting 2012 returns, filed by most taxpayers in early 2013, include the following: The value of each personal and dependent exemption, available to most taxpayers, is $3,800, up $100 from 2011. The new standard deduction is $11,900 for married couples filing a joint return, up $300, $5,950 for singles and married individuals filing separately, up $150, and $8,700 for heads of household, up $200. Nearly two out of three taxpayers take the standard deduction, rather than itemizing deductions, such as mortgage interest, charitable contributions and state and local taxes. Tax-bracket thresholds increase for each filing status. For a married couple filing a joint return, for example, the taxable-income threshold separating the 15-percent bracket from the 25-percent bracket is $70,700, up from $69,000 in 2011. Credits, deductions, and related phase outs: For tax year 2012, the maximum earned income tax credit (EITC) for low- and moderate- income workers and working families rises to $5,891, up from $5,751 in 2011. The maximum income limit for the EITC rises to $50,270, up from $49,078 in 2011.The credit varies by family size, filing status and other factors, with the maximum credit going to joint filers with three or more qualifying children. The foreign earned income deduction rises to $95,100, an increase of $2,200 from the maximum deduction for tax year 2011. The modified adjusted gross income threshold at which the lifetime learning credit begins to phase out is $104,000 for joint filers, up from $102,000, and $52,000 for singles and heads of household, up from $51,000. For 2012, annual deductible amounts for Medical Savings Accounts (MSAs) increased from the tax year 2011 amounts; please see the table below. Medical Savings Accounts (MSAs) Self-only coverage Family coverage Minimum annual deductible $2,100 $4,200 Maximum annual deductible $3,150 $6,300 Maximum annual out-of-pocket expenses $4,200 $7,650 The $2,500 maximum deduction for interest paid on student loans begins to phase out for a married taxpayers filing a joint returns at $125,000 and phases out completely at $155,000, an increase of $5,000 from the phase out limits for tax year 2011. For single taxpayers, the phase out ranges remain at the 2011 levels. Estate and Gift: For an estate of any decedent dying during calendar year 2012, the basic exclusion from estate tax amount is $5,120,000, up from $5,000,000 for calendar year 2011. Also, if the executor chooses to use the special use valuation method for qualified real property, the aggregate decrease in the value of the property resulting from the choice cannot exceed $1,040,000, up from $1,020,000 for 2011. The annual exclusion for gifts remains at $13,000. Other Items: The monthly limit on the value of qualified transportation benefits exclusion for qualified parking provided by an employer to its employees for 2012 rises to $240, up $10 from the limit in 2011. However, the temporary increase in the monthly limit on the value of the qualified transportation benefits exclusion for transportation in a commuter highway vehicle and transit pass provided by an employer to its employees expires and reverts to $125 for 2012. Several tax benefits are unchanged in 2012. For example, the additional standard deduction for blind people and senior citizens remains $1,150 for married individuals and $1,450 for singles and heads of household. Details on these inflation adjustments can be found in Revenue Procedure 2011-52. en-us $date http://www.checkmatepayroll.com/news.html?news_id=27&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Becoming an employer can be a daunting task. We’ve attempted to simplify things a little by compiling a list of the top 5 tips that new employers need to know. 1. To determine the general benefit "cost" of legally required employee benefits, approximate 12% of payroll. Legally required benefits include: • Socially security taxes – paid by both the employee and the employer. • Medicare taxes – paid by both the employee and the employer. • Federal and State unemployment taxes – paid by the employer. • Workers’ compensation insurance or state taxes – paid by the employer. • Contributions to short-term disability programs – may be required by the employer in certain states. 2. If your company is required to pay unemployment insurance taxes, your business must register with the state's workforce agency. 3. Determine which states may require your company to provide partial wage replacement insurance coverage to eligible employees for non-work related illness or injury. 4. Because an employer's workers' compensation premiums increase based on the utilization of the claims system, prevent unnecessary costs by scrutinizing the validity of each claim. 5. While generally not much can be done to offset the cost associated with legally mandated taxes and benefits, stay in touch with an HR Professional or your payroll provider for any crucial workplace law updates. en-us $date http://www.checkmatepayroll.com/news.html?news_id=24&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Monthly Social Security and Supplemental Security Income (SSI) benefits for more than 60 million Americans will increase 3.6 percent in 2012, the Social Security Administration announced, recently. The 3.6 percent cost-of-living adjustment (COLA) will begin with benefits that nearly 55 million Social Security beneficiaries receive in January 2012. Increased payments to more than 8 million SSI beneficiaries will begin on December 30, 2011. Some other changes that take effect in January of each year are based on the increase in average wages. Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $110,100 from $106,800. Of the estimated 161 million workers who will pay Social Security taxes in 2012, about 10 million will pay higher taxes as a result of the increase in the taxable maximum. Information about Medicare changes for 2012, when announced, will be available at www.Medicare.gov. For some beneficiaries, their Social Security increase may be partially or completely offset by increases in Medicare premiums. The Social Security Act provides for how the COLA is calculated. To read more, please visit www.socialsecurity.gov/cola en-us $date http://www.checkmatepayroll.com/news.html?news_id=22&module_params[name]=news&module_params[mode]=default&module_params[action]=detail All employers in New Hampshire with 10 or more employees (at any given time) are required to file a Safety Summary Form every other year with the NH Department of Labor (NHDOL). This is a 10-question form that is reviewed by NHDOL safety inspectors to ensure that companies are thinking about safety issues and have the proper mechanisms in place to deal with them. An employer can access the online safety summary form at http://labor.state.nh.us/safety_training_prompt.asp. From here, employers can choose to file the form electronically or print a copy and submit via mail. More information on the Safety Summary Form, a guide to putting together a written safety program and other NHDOL requirements can be found at www.labor.state.nh.us . Act now as the biennial Safety Form is due by January 1st. en-us $date http://www.checkmatepayroll.com/news.html?news_id=13&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Checkmate is pleased to welcome Julia Stavenger, Customer Service Specialist, to our team. Julia comes to us with extensive payroll and customer service experience and she is already becoming a vital resource to the Checkmate staff and our clients. Julia has recently started to work directly with our clients and she will be taking on more accounts as we move forward. We are very happy to have her on board and look forward to providing her with opportunities for growth and development as the newest member of the growing Checkmate family.   en-us $date http://www.checkmatepayroll.com/news.html?news_id=21&module_params[name]=news&module_params[mode]=default&module_params[action]=detail The IRS has launched a new program that it says will allow many employers to resolve past worker classification issues under the tax law at a low cost if they voluntarily agree to reclassify their workers as employees. The new program is called the “Voluntary Classification Settlement Program” (VCSP). It is part of the IRS “Fresh Start” initiative. The VCSP will allow eligible taxpayers to voluntarily reclassify their workers for federal employment tax purposes and obtain relief similar to that obtained in the current Classification Settlement Program. Participants who voluntarily reclassify their workers as employees in future tax periods will have limited federal employment tax liability for the past nonemployee tax periods. To participate in the program, the taxpayer must meet certain eligibility requirements, apply to participate in VCSP, and enter into a closing agreement with the IRS. Unlike the Classification Settlement Program, a taxpayer doesn't have to be under audit to participate in the VCSP. Eligibility requirements The VCSP is available for taxpayers who want to voluntarily change the prospective classification of their workers. The program is open to businesses, tax-exempt organizations, and government entities. The program applies to taxpayers who are currently treating their workers (or a class or group of workers) as independent contractors or other nonemployees, and want to prospectively treat the workers as employees. To be eligible, a taxpayer must have consistently treated the workers as nonemployees, and must have filed all required 1099 forms for the workers for the previous three years. The taxpayer cannot currently be under audit by the IRS. Furthermore, the taxpayer cannot be currently under audit with respect to the classification of the workers by the Department of Labor (DOL) or a state government agency. A taxpayer who was previously audited by the IRS, or the DOL, with respect to the classification of the workers, will only be eligible to participate in the program if the taxpayer has complied with the results of that audit. Program terms A taxpayer who participates in the VCSP must agree to prospectively treat the class of workers as employees for future tax periods. In exchange, the taxpayer will pay 10% of the employment tax liability that may have been due on compensation paid to the workers for the most recent tax year, determined under the reduced tax rates in Code Sec. 3509 . The taxpayer will not be liable for any interest and penalties on the liability and will not be subject to an employment tax audit with respect to the worker classification for prior years. Additionally, a taxpayer participating in the VCSP must agree to extend the period of limitations on assessment of employment taxes from three to six years for the first, second, and third calendar years beginning after the date on which the taxpayer has agreed under the VCSP closing agreement to begin treating the workers as employees. Application and closing agreement Eligible taxpayers who wish to participate in the VCSP must submit an application for participation in the program on Form 8952, Application for Voluntary Classification Settlement Program (VCSP), at least 60 days before they want to begin treating the workers as employees. Along with the application, the taxpayer should provide the name of a contact person or an authorized representative on Form 2848, Power of Attorney and Declaration of Representative. The IRS will contact the taxpayer or authorized representative to complete the process once it has reviewed the application and verified the taxpayer's eligibility. The IRS retains discretion on whether to accept a taxpayer's application for the VCSP. Taxpayers whose application has been accepted will enter into a closing agreement with the IRS to finalize the terms of the VCSP and will simultaneously make full and complete payment of any amount due under the closing agreement. There are frequently asked questions (FAQs) on the VCSP on the IRS website: http://www.irs.gov/businesses/small/article/0,,id=246014,00.html Use the following link to access IRS Form 8952: Application for Voluntary Classification Settlement Program: http://www.irs.gov/formspubs/article/0,,id=242970,00.html   en-us $date http://www.checkmatepayroll.com/news.html?news_id=18&module_params[name]=news&module_params[mode]=default&module_params[action]=detail The IRS has posted a draft version of a new change of address form on its website that will be used by business filers beginning in 2012. Form 8822-B, Change of Address - Business, will be used to report mailing address changes on employment, excise, income (including Forms 1065 and 1120), and other business returns. Currently, all address changes are reported on Form 8822, Change of Address. On the September 1 payroll industry conference call, the IRS advised employers to continue to use Form 8822 to report address changes until Form 8822-B is finalized. en-us $date http://www.checkmatepayroll.com/news.html?news_id=19&module_params[name]=news&module_params[mode]=default&module_params[action]=detail The U.S. Department of Labor (DOL) had launched its “DOL-Timesheet” smartphone application designed specifically for employees. The app marks another step in the DOL’s strategic “Plan / Prevent / Protect” initiative of increased workplace compliance enforcement efforts. This app also serves to warn employers to ensure that systems and processes account for accurate employees' hours worked. Interestingly, only 10% of those who participated in the HR Support Center’s August Poll of the Month stated that they have already seen the U.S. DOL’s timesheet smartphone app. However, 50% of the participants had no awareness of its existence until taking the poll. As news of this tool continues to spread, many more employees likely will be equipped with it and be more strongly positioned in wage and hour complaints. What else does this mean for employers as employee awareness grows? At minimum, it means that employers like you must make sure the business complies with its obligations under the federal Fair Labor Standards Act (FLSA) and can prove it in terms of: • Exempt versus non-exempt classifications • What constitutes hours worked • How overtime pay is calculated • Timekeeping documentation • Record retention requirements (e.g. certain payroll records must be kept for at least three years) What added challenges are anticipated? • Discrepancies may exist between the employer’s and employee’s records, due to record-keeping errors (whether intentional or not) as well as limitations in the app. For example, an employee may clock in/out of the app at times which may be different from the times clocked in/out of the company’s timekeeping system. • An employee may intentionally manipulate the app’s time entries with the intent to get more pay. • In the absence of employer records, the employee’s records could be used as a basis for wage and hour claims. What immediate actions can you take? • While you may set policies to regulate usage of company-provided devices including unauthorized downloads of applications, do not prohibit employees from using the app on their personal devices. Doing so may be perceived as an employer act of unlawful retaliation. • Require employees and their supervisors to verify (with signatures) the accuracy of time records. • Establish or revise any internal complaint and resolution process to allow employees to easily report pay issues. • Review and update as needed relevant employee handbook policies. • Make sure that the timekeeping and record retention systems are consistent and accurate. • Regularly audit the company’s time records, which need not be retained in their original form but must be accessible, clear, and identifiable. • Ensure that employees are properly classified as exempt or not exempt from state and/or federal overtime provisions. • Regularly educate and update supervisors and managers of any wage and hour law changes or related case law decisions. With employees who are now better equipped and thus more informed of their workplace rights through the DOL’s Timesheet app (and others to come), an employer’s best defense is to build a solid compliance system that produces better records than those made by employees.   en-us $date http://www.checkmatepayroll.com/news.html?news_id=16&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Effective Aug. 6, 2011, an employer can make deductions from wages for any purpose on which both the employer and employee agree, if it does not give a financial advantage to the employer. The New Hampshire Department of Labor (DOL) has created and posted on its website 2 forms that employers may give to their employees to obtain the employee's authorization for wage deductions: (1) Authorization for Voluntary Payroll Deduction; (2) Authorization for Accidental Overpayment Deduction. en-us $date http://www.checkmatepayroll.com/news.html?news_id=17&module_params[name]=news&module_params[mode]=default&module_params[action]=detail The New Hampshire Department of Employment Security (DES) anticipates that the 1.0% emergency surcharge will remain in effect through the second quarter of 2012. The rate is projected to be reduced to 0.5% in the third quarter of 2012, and to 0% in the fourth quarter of 2012. The DES also expects negative balanced employers to continue to pay the 1.5% inverse surcharge The DES does not expect employers to receive a fund balance reduction in 2012 [DES website, Schedule of Quarterly Fund Balance Reductions and Surcharges ].   en-us $date http://www.checkmatepayroll.com/news.html?news_id=15&module_params[name]=news&module_params[mode]=default&module_params[action]=detail CONCORD, NH – Families in Transition (FIT), a Manchester and Concord-based homeless housing and services provider, is the recipient of $27,000 in donations from People’s United Bank, Laconia Savings Bank, Northway Bank, Checkmate Workforce Management Solutions, Foothills Physical Therapy, and Peter Brankman CPA through the New Hampshire Community Development Finance Authority (CDFA) Tax Credit program. The donations will fund the expansion and relocation of OutFITters Thrift Store Boutique in Concord and help combat homelessness by enhancing Families in Transition housing and programming. Since opening in November of 2009, the OutFITters Thrift Store Boutique has become a popular retail destination in Concord’s Bicentennial Square, providing shoppers with new and gently used upscale women’s clothing, shoes, and accessories. The thrift store is a sustainable revenue stream for Families in Transition. In as early as August, OutFITters will expand, relocating to a larger, more central retail space on Concord’s historic Main Street. While aiding in Concord’s ongoing downtown revitalization efforts, the move will also increase sales revenue and strengthen the store as a stable source of funding for FIT programming. Each donating business has a presence in or near downtown Concord, and is committed to the area’s revitalization. The businesses have given in the following amounts: People’s United Bank, $10,000; Laconia Savings Bank, $5,000; Northway Bank, $5,000; Checkmate Workforce Management Solutions, $3,000; Foothills Physical Therapy, $3,000; and Peter Brankman CPA, $1,000. “It’s wonderful to see the community come out to support the store and agency in our efforts to improve the quality of life for Concord’s most disadvantaged,” said Director of Economic Development & Marketing Michele Talwani. “Our store’s new home in the heart of downtown Concord will really enable us to grow and expand our outreach to improve our housing and services for the homeless.” FIT has $48,550 worth of tax credits available for businesses that have a tax liability in New Hampshire and would like to target tax dollars that would be paid to the federal and state government anyway. For approximately 11% of the cost of the donation, investing businesses can support a great cause, increase positive public relations for their company, and receive an excellent return on investment through a host of investor incentives. Families in Transition is a nonprofit organization that provides safe, affordable housing and comprehensive social services to individuals and families who are homeless or at risk of becoming homeless, enabling them to gain self-sufficiency and respect. FIT also owns and operates two thrift stores in Manchester and Concord, NH which serve as an economic engine to help pay for services they provide. For more information about FIT, the stores, and the tax credit program, visit www.fitnh.org or call 603-641-9441.   en-us $date http://www.checkmatepayroll.com/news.html?news_id=14&module_params[name]=news&module_params[mode]=default&module_params[action]=detail The deadline for filing the Employer Information Report (also known as the EEO-1 Report) with the Equal Employment Opportunity Commission (EEOC) is September 30th. The report must be filed by: (1) employers with federal government contracts of $50,000 or more who have 50 or more employees; and (2) employers who do not have a federal government contract but have 100 or more employees. The report requires employers to provide a count of their employees by job category, ethnicity, race, and gender. Employment numbers may be obtained from any pay period in July through September of 2011. Ideally employers will file the report using the EEO-1 Web-based filing system. This system requires a login ID and password. Other filing options for private employers include submitting the report as a data file or filing the report as a computer printout. The EEOC will only allow the report to be filed on paper if so requested by an employer with no Internet access. The EEOC website (http://www.eeoc.gov/employers/reporting.cfm) contains a list of frequently asked questions on the report. Further information on the reporting process can also be obtained by calling the EEO-1 Joint Reporting Committee at: (866) 286-6440.     en-us $date http://www.checkmatepayroll.com/news.html?news_id=10&module_params[name]=news&module_params[mode]=default&module_params[action]=detail In 2011, thousands of concerned citizens in over 80 communities across the nation will walk together to raise money and awareness about our country's need for a world-class treatment and recovery system for people with mental illness. Checkmate is proud to sponsor NAMI Walks in NH on October 2, 2011. Click here to learn more about NAMI Walks and how you can get involved to support this great cause. en-us $date http://www.checkmatepayroll.com/news.html?news_id=11&module_params[name]=news&module_params[mode]=default&module_params[action]=detail The IRS is reminding employers that they are ultimately responsible for the payment of income tax withheld, and both the employer and employee portions of Social Security and Medicare taxes, even if they outsource their payroll responsibilities to a third party [IRS e-News for Small Businesses, Issue No. 2011-17, 8/3/11]. Outsourcing payroll to a third party can help ensure that filing deadlines and deposit requirements are met and greatly streamline business operations. However, it's the employer's ultimate responsibility to pay these taxes, even if the failure to pay is entirely due to the payroll service provider's negligence or fraud. The IRS offers the following advice: (1) It strongly suggests that the address of record with the IRS not be changed to that of the payroll service provider. If there are any issues with an account, the IRS will contact the employer. But changing the address may significantly limit the employer's ability to be timely informed of tax matters involving its business. (2) It advises employers to make sure that the payroll service provider is using the Electronic Federal Tax Payment System (EFTPS). EFTPS maintains a business's payment history for 16 months and can be viewed on-line. An employer can immediately confirm payments electronically, 24 hours a day, 7 days a week, through the Internet or by phone. Employers should register on the EFTPS system to get their own PIN and use this PIN to periodically verify payments. A red flag should go up the first time a payroll service provider misses or makes a late payment. Employers with an EFTPS account will also be able to make additional tax payments that their payroll service provider isn't making on their behalf (e.g., estimated tax payments). The IRS cautions that there have been instances of individuals and companies acting under the guise of payroll service providers who have stolen funds intended for payment of employment taxes. See http://www.irs.gov/compliance/enforcement/article/0,,id=228085,00.html for some recent IRS employment tax fraud investigations. Employers who believe that a bill or notice received is a result of a problem with their payroll service provider should contact the IRS as soon as possible by calling the number on the bill, writing to the IRS office that sent the bill, calling (800) 829-4933, or visiting a local IRS office.   en-us $date http://www.checkmatepayroll.com/news.html?news_id=12&module_params[name]=news&module_params[mode]=default&module_params[action]=detail   Effective August 2, 2011: Relative to Post Secondary Training for Workers with Disabilities (HB 401) Effective August 6, 2011: Relative to Withholding of Wages (HB 647) Effective August 13, 2011: Relative to the Department Issuing Warnings of Certain Violation Prior to Imposing Fines (SB 86) Effective August 21, 2011:Relative to Minimum Wage (HB 133) Effective January 1, 2012: Relative to the WARN Act (SB 121) en-us $date http://www.checkmatepayroll.com/news.html?news_id=9&module_params[name]=news&module_params[mode]=default&module_params[action]=detail HR Support Center Tool of the Month   Anti-Harassment Policy Checklist Every business should understand the implications of workplace harassment and, if it occurs, how to address them. 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 of taking action and accountability to address adverse harassment behaviors in the workplace. The Anti-Harassment Policy Checklist addresses areas including: Content Areas Employee Communication Monitoring Commitment The Anti-Harassment Policy Checklist can be found in the HR Support Center, under the Essentials Tab, and within the Checklist area. For more information about the HR Support Center, call Josh at 603.225.2004.     Checkmate E-News is a free, bi-weekly newsletter provided by Checkmate Payroll Services. For more information about Checkmate, please visit www.checkmate-payroll.com, or call Joshua Robinson at (603) 225-2004.       en-us $date http://www.checkmatepayroll.com/news.html?news_id=8&module_params[name]=news&module_params[mode]=default&module_params[action]=detail New legislation, effective Aug. 21, 2011, ties the New Hampshire minimum wage rate to the federal minimum wage rate and eliminates the state specific minimum wage rate. Both rates are currently $7.25 per hour, so there will be no immediate effect to most employees as a result of this legislation. However, the components of the NH minimum wage law relative to tipped employees remain in effect.This means that the tipped minimum wage in NH is still 45% of the applicable minimum wage, or $3.27 per hour. en-us $date http://www.checkmatepayroll.com/news.html?news_id=4&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Are you interested in running a United Way Campaign in your workplace? Each year, hundreds of businesses and organizations support Granite United Way by running a workplace campaign. Granite United Way is an organization that pools together resources (i.e. money) from different facets of our local community and distributes these funds to 40+ nonprofits in Merrimack County that are striving to improve quality of life for all and are able to show a measurable value and real progress towards achieving their missions. Checkmate is an ardent supporter of Granite United Way because through our campaign we are enabling our employees to become part of the solution and get more engaged in their community - at no cost to my company. By allowing your employees to pay their pledges through payroll deduction, you empower them with the ability to support essential programs serving thousands of individuals, children and families for only a few dollars a week. Participation in the campaign is a great way for employees to easily demonstrate their support for the community! The Resource Development staff at Granite United Way would be happy to help you customize your campaign, making it fun and engaging regardless of the size of your organization. For more information, we invite you to call any of our regional offices to connect with the team in your area! Southern Region – (603) 625-6939 Merrimack County Region – (603) 224-2595 Upper Valley Region – (603) 298-8499 North Country Region – (603) 444-1555 en-us $date http://www.checkmatepayroll.com/news.html?news_id=5&module_params[name]=news&module_params[mode]=default&module_params[action]=detail NH Wage Deduction Law Revised - What You Need to Know Effective Aug 6, 2011, an employer can make deductions from employee wages for any purpose on which the employer and employee mutually agree that does not grant financial advantage to the employer, when the employee has given his or her written authorization and deductions are duly recorded. The withholding shall not be used to offset payments intended for purchasing items required in the performance of the employee's job in the ordinary course of the operation of the business. For more information on this law, Click Here. en-us $date http://www.checkmatepayroll.com/news.html?news_id=6&module_params[name]=news&module_params[mode]=default&module_params[action]=detail The Internal Revenue Service recently announced an increase in the optional standard mileage rates for the final six months of 2011. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business and other purposes.   The rate will increase to 55.5 cents a mile for all business miles driven from July 1, 2011, through Dec. 31, 2011. This is an increase of 4.5 cents from the 51 cent rate in effect for the first six months of 2011, as set forth in Revenue Procedure 2010-51.   For more information on the impact of the increased standard mileage rate, click here. en-us $date http://www.checkmatepayroll.com/news.html?news_id=7&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Beginning July 1, the 0.2% federal unemployment tax (FUTA) surtax is no longer in effect. The surtax was part of the 6.2% gross unemployment tax rate that employers pay on the first $7,000 of wages paid annually to each employee (6% permanent tax rate, 0.2% temporary surtax). The surtax had been in effect in every year since 1976, when it was enacted by Congress on a temporary basis. Click here for more information on what this means for employers. en-us $date http://www.checkmatepayroll.com/news.html?news_id=1&module_params[name]=news&module_params[mode]=default&module_params[action]=detail Checkmate Payroll has joined NH Children's Trust Fund in preventing the abuse and neglect of our nation's children by participating in Pinwheels for Prevention. To learn more about NH Children's Trust Fund, Click Here. To learn more about the Pinwheels for Prevention program, Click Here. en-us $date http://www.checkmatepayroll.com/news.html?news_id=2&module_params[name]=news&module_params[mode]=default&module_params[action]=detail EEOC Final ADA "Disability" Regulations. Effective May 24, 2011, final regulations issued by the U.S. Equal Employment Opportunity Commission's (EEOC) issued expand how the definition of "disability" is interpreted under the Americans with Disabilities Act (ADA). USCIS Final Rule on Form I-9. Effective May 16, 2011, final rules from the U.S. Citizenship and Immigration Services' (USCIS) include a prohibition of employers from accepting expired documents, revision of the acceptable documents list, and removal of outdated documents when completing the Employment Eligibility Verification Form I-9. Early Retiree Reinsurance Program Applications Closed. Effective May 6, 2011, the Early Retiree Reinsurance Program (ERRP) will no longer accept new ERRP applications. Any sponsors wishing to apply to the ERRP must complete an application which must be received by the ERRP Application Center on or before 5:00PM ET on May 5, 2011. Updated FLSA Regulations. Effective May 5, 2011, final rules issued by the U.S. Department of Labor (DOL) update regulations relating to the Fair Labor Standards Act (FLSA) and the Portal-to-Portal Act. For more information, please review the featured article below. SSA Issuance of "No Match" Letters. On April 6, 2011, the Social Security Administration (SSA) reintroduced the issuance of social security no-match letters to notify an employer (and the affected individual) that the social security number information reported by the employer does not match the information in the agency's database. The letters give employers and their workers notice of a discrepancy, so that employee earnings can be credited to the right individual and social security benefits can be calculated correctly. en-us $date http://www.checkmatepayroll.com/news.html?news_id=3&module_params[name]=news&module_params[mode]=default&module_params[action]=detail On May 19th, Checkmate Payroll is participating as a team in the Rock 'N Race event here in Concord! If you would like to support us in our fundraising effort for this cause (benefits go to the Payson Cancer Care Center at Concord Hospital), please Click Here to donate on our personalized web page. Checks may also be sent to our office at 112 South State St., Concord, NH 03301, made payable to Concord Hospital Trust. The Rock 'N Race supports the Concord Hospital Payson Center for Cancer Care. Last year 5,985 runners and walkers raised nearly $400,OOO! Since the Rock 'N Race began in 2003, it has raised more than one million dollars to support the Payson Center . Funds raised through the 2011 Rock 'N Race will benefit complementary and supportive services provided through the HOPE Resource Center and will provide financial assistance for cancer patients in need. Your help in sponsoring our team is greatly appreciated! en-us $date