The IRS has announced the 2007 cost-of-living adjustments (COLAs) to dollar limitations on benefits and contributions, annual compensation limits, and other dollar limitations applicable to retirement plans.

IRS issues 2007 retirement plan limits

The IRS has announced the 2007 cost-of-living adjustments (COLAs) to dollar limitations on benefits and contributions, annual compensation limits, and other dollar limitations applicable to retirement plans.

 Highlights of the 2007 maximum dollar limitations announced by the IRS include the following: 

• Annual defined benefit limit: $180,000 

• Annual defined contribution limit: $45,000 

• Annual compensation limit: $225,000 

• 401(k) elective deferral limit: $15,500 

• Highly compensated employee limit: $100,000. 

The full text of IRS New Release is available at

http://www.irs.gov/retirement/article/0,,id=96461,00.html

For more information on how start a 401k plan contact StaffScapes at 303-466-7864

See Also

• IRS Retirement Article
  IRS issues 2007 retirement plan limits

Pinnacol Assurance releases 2007 rates

The largest worker’s compensation carrier in Colorado, Pinnacol Assurance released the 2007 rates earlier this month. Did you find your rates moving upwards or your discounts slowly disappearing. Many companies do not take advantage of the discounts that Colorado has in place for small business. Some of the work comp discounts are simple to get others take a little more work from management and owners. Do you have a designated medical provider selected for when an employee gets hurt? Do you have a return to work policy in place to help employees re-enter the workforce. Have you ever tried to start a cost containment program?  These are all area that can benefit small business.

As Colorado’s leading PEO we have helped clients realize these benefits. If have questions on how to implement these programs contact StaffScapes and learn more about our programs and how they have helped business save thousands. We can be reached at 303-549-1860 or info@staffscapes.com

How can I make a work comp audit easy?

StaffScapes recently received a brochure from our Workers compensation provider Pinnacol Assurance. It got me thinking about the time we spend preparing for our Audit for all our clients. In a normal year we spend over 60 hours preparing ever year for our audit. Over the years we have we have fine tuned how we go about it and we always have a few suggested documents ready and available for the Audit. The suggested documents to have ready are:

Unemployment Insurance Tax Reports (UITRs)

941 Federal Tax returns.

Payroll records for the audit period

All subcontractor payments

Proof of Workers’ Compensation for subcontractors

Another thing to keep in mind is Overtime pay. Comp payments are not calculated on the full overtime pay rate. So it is a good idea to have detailed records of all overtime payed to employees during the audit period. This can save a company money by having good payroll records. The second and for some builders and companies that use subcontractors is proof of coverage from that Sub or contractor. If you can not track down proof of coverage for the time the contractor worked for you, you can be liable for the work comp premium. Most contractors have a policy so make sure you request it from them before work begins.

The above are just a few of the steps that StaffScapes takes in preparing for a Audit. As a Professional Employment Organization, PEO, we can show you how our programs have helped businesses like yours save thousands.  We can be reached at 303-549-1860 or info@StaffScapes.com.

See Also

• Pinnacol - Auditing Your Policy
  Recommended Audit information by Pinnacol Assurance

Welcome to the StaffScapes Professional Employer Organization (PEO) and Employee Leasing Blog site.

This is my First Blog for our Professional Employer Organization blog site. I thought it would be good to give you a little detail about StaffScapes, Inc. and what we do as a PEO. StaffScapes is a human resource solution center based in Westminster, Colorado.  As a PEO StaffScapes is able to offer benefits and strengths that other companies cannot.  PEOs have become a popular answer for small- and medium-sized business owners’ day-to-day human-resource issues and StaffScapes has become a leading PEO in Colorado.

In 1996 StaffScapes was founded by Jim Thibodeau & Partners with a singular goal: to offer complete, comprehensive, and cost-effective payroll and human-resources solutions.  Issues such as payroll, taxes, workers’ compensation, employee benefits, human resources management, and employee discipline/discharge are all managed by the StaffScapes team of professionals.  This allows small- to medium-sized business owners to remove the obstacles created by continual paperwork to do what they do best – foster the growth of a productive business. 

Timesheets are so tedious. Why do I even have to do them?

As a PEO, StaffScapes depends on accurate timesheets from their clients to ensure an accurate payroll.  Timesheets should be a fundamental and important aspect of every company that has hourly employees.  The DOL (Department of Labor) requires every FLSA (Fair Labor Standards Act) covered employer to keep records for every non exempt workers, including hours worked and wages earned.  While keeping track of hours worked may be a tedious task for the employee or employer, it protects both against fraudulent hours, unpaid hours, and can even minimize the chances of a DOL audit.

The timesheet protects the employee by verifying the hours worked and guaranteeing compensation for the hours worked.  All hourly employees should sign their timesheets, verifying the hours on the timesheet are correct.  This can help prevent mistakes such as not getting the right pay, missed overtime hours, etc.

Timesheets also protect the employer.  If an employee signs a timesheet and is paid accordingly, it can help prevent DOL claims and unhappy employees. 

For example, Company X always assumes its hours for its hourly employees.  Every week, they pay their full-time employees the standard 40 hours.  Marty works at Company X and thinks this is great. He can take a 2 hour lunch or come in late and not make up his time because he knows the company isn’t keeping track, and he will always get paid for 40 hours.  Sandra also works for Company X and is not too happy.  She clocks in an average of 5 overtime hours and is never compensated.  Sandra is fed up and decides to go to the DOL and files a claim against Company X for unpaid wages. Company X has no way to prove that Sandra didn’t work those overtime hours, but they also don’t have a way to prove she did.  Because the burden of proof is on the employer to prove the employee did not work the hours claimed, without time keeping records, the DOL will usually charge the employer for the amount of unpaid wages.  If the employer is unable to prove the hours and refuses payment, it can open them up to a DOL audit. 

The best way to encourage employees to fill out timesheets is stressing that it is for their protection and never making exceptions.  For example, employees should be tracking their time every day they go to work, not just for special projects, or when they have a deadline to complete something.  Making it a known policy and everyday task makes employees more willing to comply and complete their timesheets regularly.  Saving both the company and employee time and hassle just in case something goes wrong.

By T.Redding Payroll Specialist

See Also

• Recordkeeping and Reporting
  Every employer covered by the Fair Labor Standards Act (FLSA) must keep certain records for each covered, nonexempt worker.

Benefit of using a PEO for your Business, for your Employees and for the Government.

For your business, a PEO:

· Provides experienced professionals in HR, benefits, payroll and risk management.

· Assumes certain employment related liabilities.

· Delivers professional assistance with compliance (payroll, OSHA, EEOC).

· Provides secure Internet access to payroll, benefits and personnel data.

· Provides access to professional HR guidance and materials.

· Manages claims.

· Supplies clear, easy-to-read and professionally written employee handbooks, policies, procedures and practices.

· Improves cost control.

· Delivers access to better benefits.

· Reduces turnover.

· Provides quality benefits and recruiting assistance to attract and retain the best employees.

· Provides you more time to focus on your bottom line.

· Gives you the opportunity to grow your business faster.

PEOs provide may services that allow the business owner to concentrate on business and not the “Business of Employment”

Not all policies are black and white, be sure your PEO ask questions so you get out of that employment gray area.

During the years many PEO prospects have asked me "what is the real value of a PEO".  Most business see the value of HR outsourcing, Risk Management and Workers Compensation Administration, Employee Benefits and Payroll Administration. Every business owner wants to know the real value in a PEO relationship. The real value that StaffScapes clients realize is the fact that we are not afraid to them no. This is the area that a PEO must feel strong about the PEO client relationship.

Our goal as a PEO is to answer the client’s questions and to keep them on the right side of the law. If you are dealing with a "Yes" PEO or Person that is always saying “yes you can do that” you might want to look at what type of polices you now have in place. If a client calls and says I want to start a new policy in my shop we will ask what are you trying to accomplish with the new policy. After the clients explains what they are trying to do we will say no you can’t do that it violates this Department of Labor or other rule. But because we have asked the client what his end goal is we can say let’s do it this way. By doing it this way we stay within the intend of the law and your employees will not be confused about your intentions.  This is the real hidden value of a PEO relationship.

Open Enrollment for most companies offering FSA and Dependent Care accounts go’s on in December.

All enrollments for the FSA or Dependent Care Accounts for StaffScapes Professional Employer Organization (PEO) clients are due by December 22^nd 2006.  This is to enroll for expenses incurred in the 2007 calendar year.  FSA and Dependent Care are a benefit to have money set aside in an account for reimbursements.  The money is deducted from the employees check on a pretax basis.  Employees that participate will not have to pay Social Security, Medicare, Federal or State taxes on the money that is withheld.

As a Colorado PEO this is a standard benefit that is provided to all employees at no cost to the employer. Please contact StaffScapes Benefits Department to get a full list of reimbursable expenses or to request enrollment forms at 303 466 7864.

StaffScapes will remove all the administrative hassles of providing FSA and Dependent Care Accounts for your employees.  If you are interesting in offering this benefit and other great benefits to your employees please contact StaffScapes Sales Department at 303-466-7864.

Prevent slips and falls clear all walkways when winter weather is pounding at your door.

With winter weather hitting most of the US this week employers need to make sure that walk ways around there buildings are clear. An employee who has not clocked in to start his or her shift and slips or falls on the sidewalk or steps outside the workplace building will be considered a workers compensation claim against that business. Just because the employee has not started work or has just completed his shift does not mean the employer is exempt from a claim. Employers need to be sure walkways are clear and salted or sanded to prevent any type of slip or fall. Be sure all private property is clear and safe to walk on.  If an employee get huts be sure to report that injury to Pinnacol Assurance  in Colorado or your workers compensation Carrier immediately. The link below is to StaffScapes 1st report of injury. If you are not a client of StaffScapes contact your workers compensation provider for the correct forms to report an injury.

Encourage your employees to report any unsafe walkways or steps this winter.

In October the IRS determined your deposit requirement for 2007 from the total taxes you reported on your Forms 941 for the previous four quarter lookback period..This time year certain employers will receive from the IRS a letter explaining their tax payment responsibilities for the coming year.  If your business grew or you paid out some large bonuses your business may be required to change it’s Federal Deposit requirements that are reported on IRS form 941. Are you paying monthly now and moving to a semi-weekly schedule? One of the benefits with working with a PEO like StaffScapes is that this payment schedule falls on the shoulders of the PEO. Your business will no longer receive these type of employment letters from the IRS. If you are not using a PEO or payroll service company check out the IRS publication below to learn more. To eliminate this liability contact StaffScapes at 303-466-7864.

See Also

• IRS Form 931
  Deposit Requirement for Employment Taxes

From simple payroll processing to complex benefits and HR administration and risk management PEO’s will insure compliance.

As any employer knows, every day a new law, government regulation or rule that must be incorporated into a business. Keeping up with constantly changing legal aspect of being an employer has become a daily chore that diminishes your productivity. A Professional Employer Organization - (PEO) will keep you up to date with the most current and applicable state, local and federal laws. Threw a PEO co-employment agreement a PEO will ensure compliance with:

Federal and State labor laws

IRS Regulations

OSHA & COBRA

Federal & State labor Posters

American with Disabilities Act (ADA) & the Family Medical Leave Act (FMLA)

Allow a PEO to keep you current and legal is a great value added service for small employers. StaffScapes is capable and ready to assist your company with payroll outsourcing, human resources, employee benefits and workers compensation so that you can stay focused on expanding your business. Learn more about a PEO and the services they provide contact StaffScapes at 303-466-7864

Tax Calendars for 2007 (Publication 509), has been released by the IRS.

A tax calendar is a 12-month calendar divided into quarters. The calendar gives specific due dates for the following: Filing tax forms; Paying taxes; and Taking other actions required by federal tax law. Employers  are the primary users of this publication, however, the general tax calendar has important due dates for all businesses and individuals. Also, anyone who must pay excise taxes may need the excise tax calendar. To decide which calendar(s) to use, first look at the general tax calendar and highlight the dates that apply to you. If you are an employer, also use the Employer’s Tax Calendar. If you must pay excise taxes, use the Excise Tax Calendar. Depending on your situation, you may need to use more than one calendar.

Saturday, Sunday, or legal holiday.   Generally, if a due date for performing any act for tax purposes falls on a Saturday, Sunday, or legal holiday, it is delayed until the next day that is not a Saturday, Sunday, or legal holiday. These calendars make this adjustment for Saturdays, Sundays, and most legal holidays. But you must make any adjustments for statewide legal holidays. (An exception to this rule for certain excise taxes is noted under the Excise Tax Calendar.)

2007 Federal holidays.   Federal legal holidays for 2007 are listed below.

·         January 1— New Year’s Day

·         January 15— Birthday of Martin Luther King, Jr.

·         February 19— Washington’s Birthday

·         May 28— Memorial Day

·         July 4— Independence Day

·         September 3— Labor Day

·         October 8— Columbus Day

·         November 12— Veterans’ Day

·         November 22— Thanksgiving Day

·         December 25— Christmas Day

Fiscal-year taxpayers.   If you file your income tax return for a fiscal year rather than the calendar year, you must change some of the dates in this calendar. These changes are described under Fiscal-Year Taxpayers at the end of this calendar.

If you have a tax question contact the IRS at www.irs.gov or call 1-800-829-4933. If you would like to reduce your employment responsibilities and risks (including federal tax reporting and deposit requirements) please call StaffScapes, Inc. at 303-466-7864 and ask a representative how we can help.

See Also

• IRS Publication 509
  Tax Calendars for 2007