Does it seem as though you have two jobs?

StaffScapes gives you the freedom to focus on what you do best; growing your business. As a Professional Employer Organization (PEO) we take legal responsibility for a large part of your day-to-day duties letting you concentrate on your core business.

Between running your business and keeping up with ever-increasing administrative responsibilities, you may feel that you actually do have two jobs. Now imagine having only one job. For more details on how a PEO can make your business run better contact StaffScapes, Inc. 303-466-7864 or info@staffscapes.com.

Medical Marijuana has become a popular topic of discussion, especially in the work place. Employers are being forced to take a closer look at their drug policies and make decisions on how this could impact their policies.  Some interesting statistics below found on the Colorado Medical Marijuana Registry website.

• 33,614 new patient applications have been received to date since the registry began operating in June 2001. Twenty-seven (27) applications have been denied, 23 cards have been revoked, 279 patients have died, and 2,366 cards have expired, bringing the total number of patients who currently possess valid Registry ID cards to 30,919.
• Seventy-four percent of approved applicants are male.
• The average age of all patients is 40. Currently thirteen patients are minors (under the age of 18).
• Patients on the Registry represent all the debilitating conditions covered under Amendment 20. Severe pain accounts for 91% of all reported conditions

Are some of these patients in your workforce?  Maybe it’s time to review and update your policies.  Contact StaffScapes for assistance with policy development, drug free workplace programs, handbooks, and other human resource needs.

Recently reported by Americans for Tax Reform, beginning on January 1, 2011, virtually everyone will be affected by tax increases based on expirations of prior tax cuts and recently enacted laws. Below is a list of a few tax changes coming in 2011, however this by no means is a complete listing of tax changes:

Personal income tax table changes. The income tax rates for all Americans will be increased by increasing the rates for each bracket of income. The phasing out of itemized deductions and personal exemptions will also continue resulting in increased tax rates as well. If the tax rate tables revert back to pre-2001 rates the changes to the income tax tables are: The 10% bracket rises to 15%, the 25% bracket rises to 28%, the 28% bracket rises to 31%, the 33% bracket rises to 36%, and the 35% bracket rises to 39.6%.

Marriage tax increases. The correction made in 2003 to reduce the effect of the “marriage penalty” will expire, increasing taxes to a large portion of married couples. Also the standard deduction will no longer be doubled for married couples relative to the single level.

Family tax increases. The child tax credit that is currently $1,000 per child will be reduced to $500 per child. The dependent care and adoption tax credits will also be cut.

The AMT will affect more tax payers. The Alternative Minimum Tax, which was enacted in 1969 to affect very few taxpayers, continues to be un-indexed for inflation. This will lead to an estimated 28.5 million taxpayers to pay taxes at a higher level.

Over-the-counter medicine. The health care reform act will take away the ability of Americans to use tax-free health savings accounts (HSA), flexible spending accounts (FSA), or health reimbursement accounts (HRA) to pay for non-prescription, over-the-counter medicines.

HSA withdrawal tax. The additional tax on non-medical withdrawals from an HSA will increase from 10 to 20 percent. This is technically a penalty tax on top of the normal income taxes you will have to pay for this withdrawal amount.

Name-brand drug tax. Drug manufacturers will have an additional tax put on them for their brand-name drugs. This will obviously be passed down to the individuals who purchase these drugs, ultimately increasing the cost of needed medication.

A highly overlooked aspect of the health care reform, Patient Protection and Affordable Care Act, is the expanded 1099-MISC reporting requirements. The 1099-MISC reporting is being expanded in two different ways. The first expansion requires businesses to include payments made to corporations, and the second expands reporting to include payments of property.  The definition of “property” is still unclear, but IRS Commissioner Douglas Shulman recently made reference to “goods” instead of property which would suggest the IRS is looking at using a larger, more comprehensive definition.

This increased reporting requirement being placed on all businesses seems to be substantially burdensome in my opinion. How many businesses in this country will have to send 1099s to companies such as their local office supply store, and how many office supply stores want to receive potentially hundreds of thousands of 1099s from their customers? Businesses of all sizes will be required to report hundreds of 1099-MISC reports for any individual or corporation for which it pays $600 or more to in the year. Currently the requirement only applies to payments made to individuals, which makes sense, since individuals have the higher risk of not fully reporting income.  However, businesses already have reason to fully report their income to offset expenses and show owners and investors a return on their investment, not to mention potential SEC requirements and the fear of audits.

The AICPA, American Institute of Certified Public Accountants, is currently trying to influence Congress to repeal this section of the new health care law. If we are lucky, Congress will see the problems with this section and repeal it, however businesses in the mean time should review their systems to begin preparing for additional reporting burdens coming in 2012.

Cell phones are a way of life.  We update our Facebook accounts, check e-mail, find a restaurant, text our significant others and even occasionally talk to someone.  But increasingly, cell phones are becoming a vehicle for what is being labeled as “textual harassment” or harassment via text messages.  It’s easy to discount, thinking that this is a simple issue and one that won’t ever affect you, but “textual harassment” is becoming a problem for all age groups and it is an issue that employers must deal with.

Employees today are using their cell phones as new weapons for sending threatening and abusive messages to co-workers.  They are spreading non truths about others including their supervisors and/or the companies they work for.  They are sexually harassing colleagues and employees alike and even bullying co-workers.  Considering all of this, it is important for employers to have clear policies in their handbooks that detail what is and is not acceptable when it comes to texting.  This form of harassment can also apply to social media posting. When drafting your policies, consider the usage of not only personal cell phones but also privacy issues related to company paid for and company reimbursed cell phones as well. Once your policies are in place, you should establish training for staff members that explains your position and outlines procedures for complaints to management.  Dealing with reports immediately, documenting the complaint, investigating the claim and evaluating the evidence for potential corrective action will go a long way in defending you and your company should the EEOC get involved. 

StaffScapes is experienced in dealing with claims of textual harassment and works with its clients to have clear policies established.  For more information or assistance for your company, please call StaffScapes at 303-466-7864.

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?