If you hired an employee after February 3, 2010, you may be eligible for tax benefits under the Hiring Incentives to Restore Employment (HIRE) Act.  StaffScapes will be filing the 2nd quarter 941 form next week and we want to remind you that HIRE tax credits from the first and second quarter must be filed with this quarters’ report.  If we do not receive the completed form W-11 by Friday, July 16th, any first or second quarter tax credits will not be received until late in the year.  Don’t miss out on money that is due to you! Submit your forms and we will take care of the rest. 

To recap, the HIRE Act provides an exemption from the employer’s portion of social security taxes (6.2%) paid on wages to qualified employees paid from March 19, 2010 through December 31, 2010. A qualified employee is an employee who begins employment after February 3, 2010, and before January 1, 2011; is not hired to replace an employee unless the other employee separated from employment voluntarily or for cause; and is not related to the employer. In addition, the law requires that the employer get a statement from each eligible new hire certifying that he or she was unemployed during the 60 days before beginning work or, alternatively, worked fewer than a total of 40 hours for someone else during the 60-day period. Employers should use the IRS form W-11 to meet the certification requirements of the HIRE Act.

Businesses, agricultural employers, tax-exempt organizations, tribal governments and public colleges and universities all qualify to claim the payroll tax exemption for eligible newly-hired employees. Household employers and federal, state and local government employers, other than public colleges and universities, are not eligible. IRS.gov has more details.
If you have any questions, please contact Jake at 303-466-7864 or jake@staffscapes.com.

Summer is here!  With no papers to write or tests to take, many high school and college students are hanging out at the pool enjoying their much anticipated time off.  But many others are looking to earn some extra money and a chance to improve their skills.  For many employers, this is a great opportunity to get caught up on tasks without the need to hire an employee long-term.  Due to the planned length of employment and the demographic involved, some employers easily confuse these jobs believing that the on the job training students receive qualifies as an internship and may offer the position as unpaid.  The Fair Labor Standards Act (FLSA) has specific requirements you need to know when evaluating the type of position you have available.  To qualify for an unpaid internship, the following criteria must be met according to the Department of Labor:

1.    The internship must be similar to the training the student would receive in an educational environment.
2.    The experience will benefit the intern.
3.    The intern does not take the place of another employee and is supervised by existing staff.
4.    The employer receives no immediate advantage from employing the intern and may in fact have their operations interrupted due to the training involved. Typically, more supervision and training is required for the intern compared to other employees. 
5.    The intern is not guaranteed a job at the end of the internship period.
6.    The employer and the intern understand that the intern is not eligible for wages for the time spent in the internship.

If all of the above criteria are not met, chances are the position would be viewed as an employment relationship and would be subject to wage and hour laws.  For more information, please review this Fact Sheet.

For further assistance or more information, please contact StaffScapes, Inc. at 303-466-7864 or info@StaffScapes.com

You probably walk by it everyday.  That wall in the break room that is covered with posters.  Posters that you probably never look at.  Posters that may not have been updated since parachute pants were popular.  Many businesses do not know what is required of them and many do not know the degree of fines that could be leveled upon them if they are not compliant. 

Did you know that posters must be visible in a common area where employees will visit frequently?  For example, the break room or by the time clock.  If your business has multiple locations or operates on several floors, each requires their own set of posters to be easily viewed and accessible.  Where applicants apply for employment, the FMLA (Family Medical Leave Act),  EEO (Equal Employment Opportunity), and EPPA (Employee Polygraph Protection Act) posters are required to be posted as well.

What about other languages in addition to English?  Posters are not required to be in another language unless your business employs a non-English speaking workforce.

What are some of the fines for not having or not updating required posters and not adhereing to their policies?

*Fines from $100 to $70,000 depending on the infraction.
*Not posting the OSHA Job Safety & Health poster can get you a fine of up to $70,000.
*Federal FMLA non-compliance gets you a fine of $100 per offense.
*Violations of the Fair Labor Standards Act, (Minimum Wage) are up to $10,000 per violation. 
*Violations of the Employee Polygraph Protection Act could result in you having to appear in court and pay a penalty of up to $10,000 per violation.

Can you afford to not be compliant?  Here at StaffScapes, one of the benefits that we provide our clients include a packet of all required posters as well as updates mailed as soon as new laws are passed that dictate changes.  You know, the changes you planned to make but never did.  Now, with StaffScapes, you don’t have to worry about it.

For an updated list of all required posters, including the FLSA (Fair Labor Standards Act), FMLA (Employee Rights and Responsibilities under the Family and Medical Leave Act) and the EEO (Equal Employment Opportunity is the Law), please view the following links for Federal and State of Colorado Requirements.

For further assistance or more information, please contact StaffScapes, Inc. at 303-466-7864 or info@StaffScapes.com.

Let’s face it, litigation is a fact we all have to deal with.  And, if you are a business owner, chances are even greater that at some point in your career you will be directly impacted.  Lora Manternach, Benefits Administrator for StaffScapes, Inc. recently attended a legal updates seminar presented by Fisher & Phillips, LLP.  Here’s a few key statistics that they shared that you need to know:
 
1.    Lawsuits are up almost 400% over the past 20 years
2.    Most common target for lawsuits is private employers with 5-100 employees
3.    In federal court, 67% of all awards exceed $100,000 with the average compensatory damages awarded at almost $500,000
One large area of litigation centers around EEOC (Equal Employment Opportunity Commission) claims.  As expected, filings have increased and in fact set a record high of 95,402 in 2008.  This marked a 15.2 % increase from the year before.  The response is that the EEOC has become more aggressive aided by a $23 million dollar budget increase.  After hiring an additional 300 employees, the EEOC has collected $274 million, filed 290 “merit” lawsuits, focused additional attention to class actions and systemic violations and worked to change enforcement policies.
What’s the best way to mitigate potential claims?  We recommend establishing policies and procedures and/or making sure current handbooks are up to date.  Keeping consistent is key in how you deal with daily operational situations.  For further assistance, please contact StaffScapes, Inc. at 303-466-7864 or info@StaffScapes.com.

Apple™ promotes its new Apple iPad™ as the “best way to experience the web, e-mail, photos and video.  Hands Down.”  We agree.  We also think that StaffScapes is the “best way to handle your human resources needs.  Period.”  Hundreds of people count on us weekly to be their “partners to answer questions regarding Human Resources, employee relations, process payroll, assist with workers’ compensation and unemployment claims and much more”, said Jim Thibodeau, President of StaffScapes, Inc. 
From today through Labor Day, StaffScapes will be providing one Apple iPad™ to any person or company that refers a qualifying* new client and who begins services by September 6, 2010.  This promotion is open to any client, employee, friend, relative or business associate of StaffScapes, Inc. Some restrictions apply.  For rules and regulations, please contact StaffScapes, Inc.  303-466-7864 or info@StaffScapes.com.

*see rules and regulations for qualified requirements.

During this economic recession, Colorado companies need to be aware of the CDLE’s ability to investigate companies looking for additional tax revenues.  The Colorado Department of Labor and Employment (CDLE) is required by House Bill HB09-1310, to accept complaints and conduct investigations regarding alleged misclassification of employees as independent contractors. An additional notification has also been added to the required Unemployment Notice Poster, alerting employees and contractors of their right to file a complaint.

Any person may file a written complaint alleging that an employer has misclassified an individual, who is performing work, as an independent contractor. After a complaint is received, the CDLE determines within 30 days whether an investigation is needed. If it is determined that an investigation is warranted, the CDLE will notify the company that an investigation will be conducted. Once the investigation is completed, the CDLE will issue a written order either dismissing the complaint or finding that the company has engaged in the act of misclassifying employees.

If an investigation finds that an employer has misclassified employees, the employer must pay all back taxes owed with interest. Additionally, the employer may be fined up to $5,000 per misclassified employee for the first misclassification and up to $25,000 per misclassified employee for a second or subsequent misclassification. In addition, upon a second or subsequent misclassification, the employer is prohibited from contracting with, or receiving any funds from, the state of Colorado for up to two years.

The law also allows an employer to request an advisory opinion. The opinion is available to employers seeking advice on proper classification of workers. If you would like to request an advisory opinion on whether you should classify individuals as employees or independent contractors a written, signed request must be submitted. Some of the questions CDLE will base their determination on are:

• Does the individual(s) have an independent trade, profession, or occupation? If so, what is that trade, profession, or occupation?

• How is the rate of pay determined? Is the individual paid a salary, hourly rate, fixed rate, contract rate, or by the completion of work?

• Does the individual(s) work exclusively for you?

• Do you oversee the actual work or instruct the individual as to how the work will be performed?

• Can you terminate the work the individual is performing at any time? If so, for what reasons?

• What training do you provide the individual(s)?

• What tools or benefits do you provide to the individual(s)?

• What materials and equipment do you provide to the individual(s)?

• What are the individual’s work hours? How is the time he or she works determined?

• How is the individual(s) paid? If by check, who is the check made payable to?

• Is the individual(s) business a part of your business? Is it separate and distinct?

I turned on the news last night and watched as picture after picture was displayed showing the aftermath of the violent storms and devastating tornados that made their way across Oklahoma.  It happens every year across our great nation.  Buildings are destroyed, people are killed, and families go from enjoying an evening meal together to figuring out where they will sleep after their homes have been demolished.  Having been through several severe storms myself including the tornado that hit Windsor, CO in May, 2008, I am reminded that it is important to have a plan in place to deal with natural disasters when they occur.  As a business, it is your responsibility to provide a safe environment for your employees at your location.  You can’t prevent a natural disaster, but your can prepare for how to respond when the need arises.  Here are 3 Keys to help you get started:

1.  Have a written emergency evacuation procedure that includes floor plans and indicate exit locations and fire extinguishers.  Communicate these procedures with your staff

2.  Have an emergency kit stocked and accessible in each building of your business.  Include in this kit, contact phone numbers for medical treatment facilities in your area

3.  Have a designated location for all staff members to report to immediately after an emergency is declared.  Keep a staff roster with emergency contact information in an easily accessible location and account for all individuals by roll call to ensure safety and well-being of all employees

For more tips and information on preparing for an emergency, please contact us at 303-466-7864 or Eugena.Bellamy@StaffScapes.com for a complimentary copy of our whitepaper on developing your Emergency Response Plan.

Millions of small businesses have or will receive postcards from the IRS alerting them to the new Small Business Health Care Tax Credit and encouraging them to check their eligibility. Even if you don’t receive a postcard, your business still may be eligible.

The Small Business Health Care Tax Credit, included in the health care reform legislation, signed by President Obama on March 23, is designed to encourage small employers to offer health insurance coverage for the first time or maintain coverage they already have. In general, the credit is available to small employers that pay at least half the cost of single coverage for their employees.

The maximum credit is 35 percent of premiums paid in 2010 by eligible small business employers and 25 percent for tax-exempt organizations. In 2014, this maximum credit increases to 50 percent of premiums paid by eligible small business employers and 35 percent for tax-exempt organizations.

Eligible small businesses can claim the credit as part of the general business credit starting with the 2010 income tax return they file in 2011. For tax-exempt employers, the IRS will provide further information on how to claim the credit.

Eligibility Rules
    • Providing health care coverage. A qualifying employer must cover at least 50 percent of the cost of health care coverage for some of its workers based on the single rate.
    • Firm size. A qualifying employer must have less than the equivalent of 25 full-time workers (for example, an employer with fewer than 50 half-time workers may be eligible).
    • Average annual wage. A qualifying employer must pay average annual wages below $50,000.
    • Both taxable (for profit) and tax-exempt firms qualify.
Amount of Credit
    • Maximum Amount. The credit is worth up to 35 percent of a small business’ premium costs in 2010. On Jan. 1, 2014, this rate increases to 50 percent (35 percent for tax-exempt employers).
    • Phase-out. The credit phases out gradually for firms with average wages between $25,000 and $50,000 and for firms with the equivalent of between 10 and 25 full-time workers.

Additional information can be found on the IRS’s website: Small business health care tax credit FAQ.

Stimulus Package Provision Reduces Employee Income Taxes

The “Making Work Pay” provision of the stimulus package will reduce income tax withholding for majority of employees.

Did you have to pay taxes on your 2009 tax returns?  StaffScapes is reminding you the “Making Work Pay” pay provision applies for the 2010 taxes as well.  The change comes from the $400 to $800 refundable tax credit provided under the stimulus package. This tax credit will be provided to employees through out 2010 by changing the tax withholding from their normal paychecks. This credit is for employees making less than $75,000 individually or $150,000 for married couples. A new W-4 form is not needed to claim this tax change.  StaffScapes recommends that employees with multiple jobs or couples that file a combined tax return should contact their tax advisor to verify and/or revise their W-4.

The effect of this change will result in more “take home” pay for most employees.  Additional information about the stimulus package, including the “Making Work Pay” provision, can be found on the IRS website.

Join us for a FREE workshop with two seasoned professionals in building a stable business formation and predictable growth. Starting at 3pm, you are invited to learn more about options available today and a price you can afford. After all it sure beats the alternative.

As seen on the cover of the March issue of New Business Denver; our panel includes:
Victor Amaya of Accounting & Consulting Services, LLC (http://www.acs-denver.com)
Jim Thibodeau of Staffscapes (http://www.staffscapes.com)

Both Jim and Victor have the knowledge and experience on building a sound foundation for growth and scalability for your new business.

See you on April 21th.

P.S. Although there is no charge for the event, your cost for admission is your business card. Also, please register for the event and complete the profile questions. This will help all of us learn more about you. Thanks!

Meet Up Registration Info