It’s everywhere.  Every day you probably follow a group, friend someone you haven’t talked to in 15 years, tweet that your newest video is posted on You Tube TM and make sure that you are LinkedIn TM.  Keeping up with Social Media is a part-time job of its own.  It’s fun, it promotes you and what you are doing and it can keep you in touch with those in your life.  However, setting aside all of the positive aspects of Social Networking, as a business owner you must consider how this impacts you and your bottom line. 

Almost all employees have their own dedicated computer or access to a computer while on the job.  This makes it very easy to have access to the web and its opportunity for “surfing” when time should be devoted to work.  Surfing the internet while on a break or during a lunch hour is acceptable for some companies and can have positive effects on productivity.  Where it crosses the line is when an employee devotes more than their allotted break time to their social media status updates.  If you are paying your employees for time spent in non work related tasks, you are loosing revenue.  You don’t have to invest in surveillance equipment or micro-manage your employees.  But, what you should do is have a policy in place that clearly defines acceptable usage of company owned equipment and make sure that each employee clearly understands the consequences of unauthorized usage.  Should you need to reprimand an employee or terminate their employment, having a policy in place will pave the way to ensuring your decisions are supported by the Department of Labor. 

For more information on establishing company policies, contact StaffScapes at 303-466-7864 or info@staffscapes.com.

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.

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?

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.

The Department of Labor and Employment has submitted a draft proposed rule to establish fines associated with employee misclassification. If this rule is approved and enacted, an employer who willfully misclassified an employee as an independent contractor will be fined by the CDLE. The CDLE will fine first offenders 5% of each misclassified employees annual gross wages or $100, which ever is greater. Also, repeat offenders will be fined 25% of each misclassified employees annual gross wages or $500, whichever is greater. This is just the fine; employers should expect to pay the unemployment taxes on these misclassified employees as well as having the IRS and state revenue department being notified.

If you have questions concerning employee and independent contractor classifications feel free to contact your representative at StaffScapes to discuss further.

The proposed rule or amendment may be found here.

Recently, the Labor Department announced that they would be getting more aggressive on businesses that improperly pay workers.  In an effort to ensure employees receive all monies due to them, the Labor Department has signed agreements with several states and the Internal Revenue Service to share information unilaterally regarding businesses that improperly classify their employees as independent contractors when they are actually employees.  Some factors that may indicate an employment relationship could include:  the person is directed by you, they are paid an hourly wage, they receive training, they use your tools and supplies and they are required to work when scheduled.  Alternatively, an independent contractor is in business for themselves, has other clients, is able to direct themselves and does the job when scheduling works best for them and they can complete the project. 

To learn if you are compliant regarding the person you have hired, ask yourself: 
1. Do I pay my "employee" using a 1099?
2. Did I review the "IRS 20 factor test"?

If you answered yes to either of the above questions, you may be out of compliance. The IRS no longer uses what used to be called the "IRS 20 factor test". In its place, they now offer an essay style questionnaire in which your responses are submitted for their review. Improper classification of employees can result in large fines from multiple agencies.  As just one example, in August we reported that the Colorado Department of Labor and Employment had submitted a draft proposed rule to establish fines associated with employee misclassification.  If approved, The CDLE will fine first offenders 5% of each misclassified employees annual gross wages or $100, whichever is greater. Repeat offenders will be fined 25% of each misclassified employees annual gross wages or $500, whichever is greater. Do you really want to start a conversation with the IRS?

StaffScapes can help you determine the proper classification and avoid penalties from the IRS. Why not work with a local partner to ensure you are compliant?  StaffScapes is a full-service Human Resource and payroll company that helps small businesses with important tasks such as:
 

• Human Resources
• Workers' Compensation
• Employee Relations
• Unemployment
• Benefits
• Risk Management
• Payroll
 

For more information, please contact Jim Thibodeau at 303-466-7864 or info@StaffScapes.com.