On March 18, 2010, President Obama signed into law the Hiring Incentives to Restore Employment (HIRE) Act.  This $17 billion jobs bill provides employers with financial incentives for hiring unemployed workers and retaining them for at least one year.  There are two provisions that will impact hiring employers.

1.  Social Security Tax Exemption – For eligible newly hired employees, the employer would be exempt from paying its share of 2010 social security taxes (6.2% of wages).  This exemption applies to all wages paid after March 18, 2010, but applies to all eligible new employees hired after February 3, 2010.  To be eligible, the new hire must have been unemployed for at least 60 days prior to their date of hire (or worked fewer than 40 hours during that 60 day period).
2. Business Income Tax Credit – The employer is also eligible for an income tax credit equal to the lesser of 6.2% of wages paid to the qualified worker over their first 52 weeks of employment, or $1,000.  To qualify, the employee must be retained for at least 52 weeks and wages during the last 26 weeks must be at least 80% of their wages during the first 26 weeks.

To qualify for these tax breaks, the employer must obtain a written statement from the employee certifying that they meet the aforementioned requirements of being unemployed for the prior 60 days.  The IRS will develop a form to facilitate this documentation, but in the interim, a sample certification letter is attached for you to use.

The HIRE Act also provides that for the balance of the month of March 2010, employers should continue to remit the social security taxes on qualified employees and that these payments may then be applied to their second quarter tax return. 

If you have any questions, please contact John Morlock at Total Team Solutions to discuss.

This e-mail address is being protected from spambots. You need JavaScript enabled to view it or 800-836-9678, x-17

With the vote ready for this Sunday....I am wondering where the real health care reform is. 

Where is the discussion of the technology necessary for doctors to gather patient information so that additional tests may not be necessary?  Where is the discussion of Malpractice so that we can reduce liability expense?  Where is the discussion on Medicare Fraud?  Where is the discussion on our society's problem with obesity and our need to make radical changes to our wellness & disease mgmt programs?  Where is the discussion on palative care vs. let's do everything possible to squeeze out another couple weeks for this terminal person? 

75% of our medical costs can be prevented or minimized.  With out addressing these issues - private or Federal - the system will go bankrupt and our fine federal leaders will just print more money.

More than half of workers admit to checking their smart phones while driving. 

While smart phones have made it easier for workers to stay connected to the office, they may not be a good idea for every commute. According to a new CareerBuilder survey, more than one-half (54 percent) of workers who have a smart phone or similar device said they check it when driving a vehicle. Comparing industries, sales workers (66 percent) used their smart phones while driving more than any other group surveyed, followed by 59 percent of professional and business services workers and 50 percent of health care workers. The survey was conducted among more than 5,200 workers between November 5 and November 23, 2009.

Cost to employer with Worker's Compensation claims up from distracted driving and employees injured or killed because they needed to check that text at 70MPH.  We need to reduce this risky behavior.

Need a Vacation?  Not taking one this year?  More than a third of American Workers will not take a vacation this year.  Vacation time for some has joined the ranks of gourmet coffee as it is an easy thing to strip from one’s household budget.

The trend for employers is to combine traditional sick/vacation/personal policies into one single PTO (paid time off) policy and letting the employee have the freedom to choose how their paid time off is used.

How do you handle those that are not using it all up?  Mandated Vacation Time?  Use It or Lose It? Carry Over? Short-Term Disability Bank? Convert to 401(k) contributions?  So many choices……

Work-life balance is now the second only to compensation as the most important driver of employee attraction and commitment. With the economic downturn, aging population, two-income households, the desire for flexibility in the workplace has become critical to an employee’s satisfaction. 

In fact, the economic downturn has placed tremendous pressure on employees over their long-term security. In 2006, 53% of employees felt they had a good work-life balance; that number fell to 30% in 2009.  Employees are responding by seeking out employers that offer a better work-life balance and research shows they work harder for those who do.  Employees with a better work-life balance tend to work 21% harder than those that don’t.  35% of employers say they plan to provide more flexible work arrangements in 2010.  That is up from 31% in 2009. 

These arrangements include:

Alternate schedules (come in early and leave early, come in later and leave later) 73%
Telecommuting options – 41%
Compressed workweeks (work the same hours but in fewer days) – 32%
Summer Hours – 18%
Job Sharing – 13%
Sabbaticals – 6%
Phased retirement (gradually reducing hours before full retirement) 5%

There has been a 400% increase in number of caregiver lawsuits since 1995.  Legal complaints by workers claiming unequal treatment based on caregiver status, also known as family responsibility discrimination (FRD) increased dramatically according to the Center for WorkLife Law, a nonprofit research and advocacy group. 

With the increase in special need children, young adults coming back from military duty seeking parental help with their traumatic injuries, those with older parents requiring significant day to day support are all examples of employees who may have significant caregiver responsibilities. 

 The EEOC (Equal Employment Opportunity Commission) has added caregivers to their list of systemic discrimination.  Lawsuits in the FRD arena have a 40% chance of the plaintiff prevailing with an average judgment of $800,000.

The EEOC has established some best practices so that employers may avoid employment decisions based on caregiver stereotypes:    http://www.eeoc.gov/policy/docs/caregiver-best-practices.html

Many New Year’s resolutions surround weight loss or smoking cessation.   More & more employers have taken a more serious look at employee health and wellness, and if such programs provide a good return on their investment.

Employers are also looking at the incentives they have in place for employees completing health surveys, smoking cessation programs, weight management, diabetes, etc.  The percentage of U.S. companies measuring ROI for health and wellness programs has increased from 14% in 2007 to 73% in 2009.  About 83% of those who measure say the programs return more than a $1 for each $1 invested in these programs.

The values of incentives are up, averaging $329 in 2009 and ranging from a $1 per pound for weight loss to annual premium reductions valued at more than $1,500 each.  The most common incentive is health premium reductions followed by merchandise gift cards.

While the American Recovery and Reinvestment Act of 2009 (ARRA) that provided a subsidy for COBRA premiums was intended to be a short term fix, the protracted downturn in the economy prompted lawmakers to extend these benefits.  On December 19, 2009, President Obama signed into law an extension of the COBRA premium subsidy law that was scheduled to end on December 31, 2009. 

Key aspects of the new law are as follows:

1. Assistance Eligible Individuals (AEI’s) may now receive the subsidy for up to 15 months, up from the nine months allowed under the initial ARRA law.

2. The eligibility period was extended from December 31, 2009, to February 28, 2010.  Additionally, the new law does not require that the COBRA coverage commence prior to February 28, 2010.  Instead, as long as the qualifying event occurs prior to February 28, 2010,  (i.e., involuntary termination of employment) and the individual is entitled to COBRA, then the subsidy would apply.

3. For any AEI for whom the subsidy extension applies, there is a transition period consisting of any period of coverage that begins before the extension’s enactment date. Plan administrators must provide all AEI’s notice of their rights under this extension and provide credits for any months during the transition period when the AEI’s may have paid the full premium.

For more information on the COBRA subsidy or any other benefit issue, please contact us at http://www.ttspro.com/contact-tts  or call us at 1-800-836-9678, x-13.

Tough economic times has given business leaders an unparalleled opportunity to attract, retain, support and fully engage their top talent.  What keeps the best employees devoted to their jobs in this difficult economic environment?

The answer according to Sylvia Hewitt is surprisingly not a steady salary or hefty bonus.  What truly satisfies employee’s needs and wants are:

1. Formalized Flexibility – Remote Work Options, staggered hours, reduced schedules and mini-sabbaticals can provide the employee greater value than a bigger paycheck.
2. Career Development – With skeleton workforces, giving capable employees more challenging assignments or cross-functional roles that boost skills and expand their professional capabilities is of greater value.

By revising rewards, smart employers can turn this economic challenge into a talent incubator.

Recovery from the current recession appears to be gaining traction in the US economy.  Unfortunately, this does not appear to be the case for the jobless workers.  Currently our nation's unemployment stands at 10.2% and is expected to continue at this level or higher, well into 2010.

CT Dept of Labor released the states unemployment statistics and even though we seem to be recovering, the unemployment rate rose from 8.1% to 8.4%  The greatest losses came in the trade, transportation, utilities, and professional/business service sectors.  Construction, leisure, and hospitality actually added jobs.
 
Overall, CT unemployment is currently at a level not seen in over 33 years!