Decide how to spend your training dollars to transform the new employee into an asset. This requires an understanding of the knowledge, skills, and abilities he brings to the job. Today’s successful pesticide applicator must be physically fit to work under less-than-ideal conditions, both indoors and out. In addition to meeting the job’s physical demands, the employee must be able to pass state and federal certification examinations; will-ing to use new technologies and methodologies; receptive to new ideas; capable of working harmoniously with others; and attentive to completing paper-work properly and professionally. It may take years for a person to achieve the level of training, education, and performance that meets your expectations.

• Make your company attractive to job applicants. You probably remember the good employee who got away, or the one who would have been a perfect fit for the job but declined your offer. Remember that, while you are evaluating a candidate’s qualifications, he is considering whether he really wants to work for your company. It is important to make a good, honest impression throughout the entire evaluation process to reflect the level of professionalism you maintain.
• Comply with all laws applicable to hiring employees. The hiring process poses legal pitfalls if conducted incorrectly. The more informal the process, the more vulnerable you are to regulatory investigation, charges of dis-crimination and negligent hiring, and lawsuits.

Taking the time and effort to training employees is an essential activity for all businesses big or small. Training provides employees with the key knowledge and skills that they need to perform their job especially in tough economy.

Benefits of training

• As the business world is continuously changing, businesses will need to provide their employees with training about the new product or services. If the employee is not well trained about the product or services the business offer to their customer or clients they will find it difficult to stay ahead of the competition and can be very expensive.

• The other benefit of training is that it will keep your employees motivated. New skills and knowledge can help to reduce boredom. It also demonstrates to the employee that they are valuable enough for the employer to invest in them and their development.

• Training can be used to create positive attitudes through clarifying the behaviors and attitudes that are expected from the employee.

• Training can be cost effective, as it is cheaper to train existing employees compared to recruiting new employee with the skills you need.

• Training can save the organization money if the training helps the employee to become more efficient.

Induction training

This is training that an employee will receive when they first join an organization or begin a new role. This type of training is designed to provide the employee with the essential skills needed to perform their job. Induction training can also include an introduction to the company ethos, values and culture so that the employee is aware of the behaviors expected of them.

On the Job training

As the name suggests, on the job training, is training provided during the regular performance of duties. This can take a variety of forms including:

• The employee being guided through a task or process by a colleague or supervisor, so that the employee knows how to perform the task and to what standard.

• Shadowing, spending time with an expert so that the employee can observe how the expert performs their daily duties.
• Observations, the employee is observed whilst they perform their duties. At the end of the observation, the observer will provide the employee with feedback on their performance.

• Coaching, the employee will learn new skills (not knowledge) and have the opportunity to practice the skills with the coach before using the skills in the workplace. An effective coach will review the employee’s performance to ensure that the employee uses the newly learnt skills until they become habit.

• Mentoring, the employee is partnered with an experienced employee so that they can discuss performance. The experienced person is known as the mentor and the employee they are partnered with we will call the mentoree. The mentoree will discuss their performance and problems with the mentor.

Off the Job training

This is training provided away from the employee’s usual work environment and the employee will stop their usual duties/work during the training. Off the job training may be in the same building or off site. This training may be provided by trainers working for the same employer as the employees being trained or an outside company hired by the employer.

No need for in-house payroll

Hiring a bookkeeper or accountant to do you payroll can be expensive. Salaried bookkeepers that perform tasks like invoicing, recording paid bills, and estimating job costs can run upwards of $45,000 a year, plus benefits if the person is a full-time employee in most cases. Even hiring a part-time bookkeeper will put a dent in your budget.
Bookkeepers are invaluable professionals when it comes to other financial functions of your business, but the simple fact is that a payroll company can perform the same administrative payroll tasks as a bookkeeper for less. With epay payroll Company there is no need to train a new employee your payroll methods, and no delay in paychecks or benefits if the bookkeeper is out or gets behind on work. Most businesses appreciate this important function being taken off their plate, as payroll is a tedious administrative task.
With a payroll company, you have a reliable source for payroll needs if your business gets busy, needs to hire a new bookkeeper, or doesn’t have the budget to hire an in-house payroll employee.

Expertise

Number one reasons businesses hire payroll companies is for the peace of mind that comes with hiring a professional. It’s hard to stay up to date on the myriad different tax laws, statutes, and state and federal regulations. Filing documents just a few days late or filing the wrong paperwork with the wrong agency can cost thousands in fees and penalties. A payroll company won’t make these mistakes. We at epay even guarantee to pay penalties or fees as a condition of a contract so you can rest at ease that you won’t incur any additional tax charges.

We at epay as payroll company also specialize in different types of industries and the services small business require. Some businesses offer flexible savings accounts, cafeteria plans, or retirement account contributions. Epay a payroll company has the necessary experience to guide you through what could be a complicated process.

Cost Savings

Outsourcing payroll help small business to frees up time for the business owner, or the bookkeeper time that payroll would take up. Time is money, and the more time you spend on payroll, or on hiring and training a bookkeeper, the less time you’re spending managing your business. Payroll companies can take advantage of years of specific experience in performing your payroll processing what takes most business owners or bookkeepers all day will take a payroll staff person a few hours. Outsourcing is a great way to take advantage of these savings.

To do that means to identify those business function, where the small business is best served relying upon outside help. Outsourcing payroll services is that one business function that helps to both reduce costs and free up company resources.

1. Is the worker required to comply with instructions about when, where and how the work is done?
2. Is the worker provided training that would enable him/her to perform a job in a particular method or manner?
3. Are the services provided by the worker an integral part of the business’ operations?
4. Must the services be rendered personally?
5. Does the business hire, supervise, or pay assistants to help the worker on the job?
6. Is there a continuing relationship between the worker and the person for whom the services are performed?
7. Does the recipient of the services set the work schedule?
8. Is the worker required to devote his/her full time to the person he/she performs services for?
9. Is the work performed at the place of business of the company or at specific places set by the company?
10. Does the recipient of the services direct the sequence in which the work must be done?
11. Are regular oral or written reports required to be submitted by the worker?
12. Is the method of payment hourly, weekly, monthly (as opposed to commission or by the job?)
13. Are business and/or traveling expenses reimbursed?
14. Does the company furnish tools and materials used by the worker?
15. Has the worker failed to invest in equipment or facilities used to provide the services?
16. Can the worker terminate his/her relationship without incurring a liability for failure to complete the job?
17. Does the worker perform services exclusively for the company rather than working for a number of companies at the same time?
18. Does the worker in fact make his/her services regularly available to the general public?
19. Is the worker subject to dismissal for reasons other than non-performance of the contract specifications?
20. Does the arrangement put the person in a position or realizing either a profit or loss on the work?

NOTE 1:  Be sure you are using the correct form.    There have been multiple revisions. 

Rev. 08/07/09 is the most recent revision, and has an expiration date 8/31/12.

Rev. 02/02/09 is also an acceptable version.

The revision date can be found on the lower right hand corner of the form.

The expiration date is posted in the upper right hand corner of the form. 

Use this Link  to download the current version of the Form I-9 Employment Eligibility Verification.

 http://www.epaypayroll.com/images/1306183078_I-9%20.pdf

NOTE 2:  I am frequently asked if there is a Spanish version of the Form I-9. 

Yes there is, but the Spanish version of Form I-9 may be filled out by employers and employees in Puerto Rico ONLY.  Spanish-speaking employers and employees in the 50 states and other U.S. territories may print a copy for their reference, but may only complete the form in English to meet employment eligibility verification requirements.

Section 1 of the Form I-9 in English has a space for Preparer and/or Translator Certification which is to be completed by a person other than the employee if such assistance is provided to the employee while completing the form.  

The Spanish version of the Form I-9 can be downloaded using the above link to the Form I-9.

Family & Medical Leave Act – FMLA

Significant changes have been made to the Family and Medical Leave Act (FMLA) which became effective January 16, 2009.  

A summary of the new changes and some useful links for helping you understand them can be found in the December 18, 2008 issue of HR Update. 

A copy of the new required FMLA poster is available for downloading from our Federal Posters page.

The Department of Labor has provided optional forms for use by employers and employees during the FMLA process:

The Department has revised its Certification of Health Care Provider form (WH-380), and divided it into two separate forms:

Employee’s Serious Health Condition (WH-380E) and

Family Member’s Serious Health Condition (WH-380F)

The Department has also revised its

Notice of Eligibility and Rights and Responsibilities form (WH-381) 

In addition, the Department has added new forms for

Designation Notice to Employee of FMLA Leave (WH-382)

Certification of Qualifying Exigency for Military Family Leave (WH-384) and

Certification for Serious Injury or Illness of Covered Servicemember for Military Family Leave (WH-385)

The new poster and forms became effective on January 16, 2009.  Additional FMLA compliance assistance materials are available from the U.S. Department of Labor at http://www.dol.gov/whd/fmla/index.htm

 http://www.dol.gov/whd/fmla/

FORM W-4 and W-9

Click here to download the 2011 Form W-4 directly from the IRS website.

Click here to download the 2010 Forma W-4 (SP) in Spanish directly from the IRS website.

Click here to download the Form W-9 from the IRS website.

Click here for other IRS forms available for search and download in both English and Spanish.

FEDERAL OSHA RECORD KEEPING FORMS

Be sure to post your OSHA Form 300A from February 1 to April 30 each year.

Use the links below to download theFederal OSHA 300, 300A and 301 recordkeeping forms directly from the OSHA website.  

PDF FILE of OSHA Form 300, 300A and 301:  http://www.osha.gov/recordkeeping/new-osha300form1-1-04.pdf

MS Excel file of OSHA Form 300, 300A and 301 (tabbed spreadsheet) http://www.osha.gov/recordkeeping/new-osha300form1-1-04.xls

TIP:  Download the PDF file even if you plan to use the spreadsheet version of the documents.  The PDF file contains the form instructions and “how-to” etc.

FOROREGON EMPLOYERS:  Oregon-OSHA Record Keeping Documents

The link below will allow you to download the required Oregon OSHA (OR-OSHA) recordkeeping documents directly from the OR-OSHA website.  You have several options to choose from:  a pdf file, an MS Word document or an Excel spreadsheet.  If you have difficulty downloading any of the forms, please contact me and I will email any of the forms directly to you. 

You can also obtain you own copy of the OR-OSHA Recordkeeping, Division 1 rules in an Adobe Acrobat file and the Workers’ Compensation forms by clicking the link below.  The rules also detail the industries that are partially exempt from the recordkeeping requirements, as described in the January 20, 2009 HR Update article.

http://www.orosha.org/standards/recordkeeping.html

As the year ends, it’s important for employers to be aware of some deadlines, reporting requirements and changes that may affect taxes, payroll, or benefits. Here are some highlights and links to more information.

Social Security Wage Base for 2011
For the second year in a row, the Social Security Administration will not be increasing the Social Security wage base which will remain at $106,800. At the newly released Social Security rate of 4.2%, the maximum amount an employee may have withheld in 2011 is $4,485.60.

Standard Mileage Rate Increases
Effective Jan. 1, 2011, the standard mileage rate employers can use to reimburse employees who drive their owned or leased automobiles for business purposes is 51 cents per mile, according to the IRS. This is up from a standard mileage reimbursement rate of 50 cents per mile for 2010.

HIRE ACT Changes for 2011
The deadline for qualifying individuals under the New Hire Tax credit is Jan. 1, 2011. The employer Social Security match on qualified new hire wages will be reinstated for wages paid after Dec. 31, 2010. Although the credit is expiring, employers should retain Form W-11 with payroll and income tax records in the event of an audit.

Additionally, businesses become eligible for the new hire retention credit of 6.2% of wages paid to each qualified employee retained for at least 52 consecutive weeks. The maximum credit is $1,000, contingent upon wages paid in the last 26 weeks equaling at least 80% of wages paid in the first 26 weeks. The credit will be claimed on the employer’s 2011 income tax return. The deadline for qualifying employees under the New Hire Retention Tax Credit is Jan. 1, 2011.

Pension & Retirement Plan Limits for 2011
The IRS will not increase pension plan limits for 2011. Plan limitations are as follows:

The annual compensation limit under Section 401(k) remains unchanged at $245,000, meaning no more than $245,000 of an employee’s compensation can be taken into account when figuring contributions.

There are other limits that restrict contributions made on your behalf. In addition to the limit on elective deferrals, annual contributions to 401(k), 403(b) accounts – this includes elective deferrals, employee contributions, employer matching and discretionary contributions and allocations of forfeitures to your accounts – may not exceed the lesser of 100% of your compensation, or $49,000 for 2011.

The limit on the annual benefit for a defined benefit plan under section 415(b)(1)(A) remains $195,000. The limit for defined contribution plans in that section remains $49,000. The definition of a highly compensated employee remains $110,000 and the definition of a key employee in a top-heavy plan remains at $160,000.

More information can be found at http://www.irs.gov/newsroom/article/0,,id=229975,00.html which contains a link to the revenue procedure http://www.irs.gov/pub/irs-drop/rp-10-40.pdf.

Advanced Earned Income Tax Credit Repealed
H.R. 1586 Education, Jobs, and Medicaid Assistance Act, signed into law Aug. 10, 2010, repeals the Advanced Earned Income Tax Credit (EITC) for tax years 2011 and after.

The credit had been designed to supplement the earnings of low income workers by allowing tax credits in small payments on each paycheck.

Employees will no longer receive advanced EITC on their paychecks after Dec. 31, 2010, although eligible individuals may still claim EITC on their income tax returns.

APS Customer Note: No changes are required to employee records that are claiming the advanced EITC. The APS payroll engine has been adjusted to exclude this income from employee paychecks after Dec. 31, 2010.

Reporting Coverage Cost Not Mandatory on 2011 W-2s
The Patient Protection and Affordable Care Act of 2010 will require the aggregate cost of applicable employer-sponsored health care coverage to be reported on Form W-2; however, the reporting requirement will not be mandatory on the W-2s issued for 2011, allowing employers time to prepare for compliance. See http://www.irs.gov/pub/irs-drop/n-2010-69.pdf for more information.

Let’s start with your “safety zone,” the IRS statute of limitations. This limits the number of years during which the IRS can audit your tax returns. Once that period has expired, the IRS is legally prohibited from even asking you questions about those returns.

The concept behind it is that after a period of years, records are lost or misplaced and memory isn’t as accurate as we would hope. There’s a need for finality. Once the statute of limitations has expired, the IRS can’t go after you for additional taxes, but you can’t go after the IRS for additional refunds, either.

The Three-Year Rule

For assessment of additional taxes, the statute of limitation runs generally three years from the date you file your return. If you’re looking for an additional refund, the limitations period is generally the later of three years from the date you filed the original return or two years from the date you paid the tax. There are some exceptions:

*

If you don’t report all your income and the unreported amount is more than 25% of the gross income actually shown on your return, the limitation period is six years.
*

If you’ve claimed a loss from a worthless security, the limitation period is extended to seven years.
*

If you file a “fraudulent” return, or don’t file at all, the limitations period doesn’t apply. In fact, the IRS can get you at any time.
* If you’re deciding what records you need or want to keep, you have to ask what your chances are of an audit. A tax audit is an IRS verification of items of income and deductions on your return. So you should keep records to support those items until the statute of limitations runs out.

Assuming that you’ve filed on time and paid what you should, you only have to keep your tax records for three years, but some records have to be kept longer than that.

Remember, the three-year rule relates to the information on your tax return. But, some of that information may relate to transactions more than three years old.

Here’s a checklist of the documents you should hold on to:

1.

Capital gains and losses. Your gain is reduced by your basis – your cost (including all commissions) plus, with mutual funds, any reinvested dividends and capital gains. But you may have bought that stock five years ago and you’ve been reinvesting those dividends and capital gains over the last decade. And don’t forget those stock splits.

You don’t ever want to throw these records away until after you sell the securities. And then if you’re audited, you’ll have to prove those numbers. Therefore, you’ll need to keep those records for at least three years after you file the return reporting their sales.
2.

Expenses on your home. Cost records for your house and any improvements should be kept until the home is sold. It’s just good practice, even though most homeowners won’t face any tax problems. That’s because profit of less than $250,000 on your home ($500,000 on a joint return) isn’t subject to taxes under tax legislation enacted in 1997.

If the profit is more than $250,000/$500,000, or if you don’t qualify for the full gain exclusion, then you’re going to need those records for another three years after that return is filed. Most homeowners probably won’t face that issue thanks to the 1997 tax law, but of course, it’s better to be safe than sorry.
3.

Business records. Business records can become a nightmare. Non-residential real estate is now depreciated over 39 years. You could be audited on the depreciation up to three years after you file the return for the 39th year. That’s a long time to hold on to receipts, but you may need to validate those numbers.
4.

Employment, bank, and brokerage statements. Keep all your W-2s, 1099s, brokerage, and bank statements to prove income until three years after you file. And don’t even think about dumping checks, receipts, mileage logs, tax diaries, and other documentation that substantiate your expenses.
5.

Tax returns. Keep copies of your tax returns as well. You can’t rely on the IRS to actually have a copy of your old returns. As a general rule, you should keep tax records for 6 years.

The bottom line is that you’ve got to keep those records until they can no longer affect your tax return, plus the three-year statute of limitations.
6.

Social Security records. You will need to keep some records for Social Security purposes, so check with the Social Security Administration each year to confirm that your payments have been appropriately credited. If they’re wrong, you’ll need your W-2 or copies of your Schedule C (if self-employed) to prove the right amount. Don’t dispose of those records until after you’ve validated those contributions.

You can confirm your payments and estimate your future benefits by filing Form SSA-7004 with the Social Security Administration. You can download the form, or apply online.

Contact us by phone or email if you have any questions about what records you need to keep this spring.

(07/23/10) Q1: What is the new hire retention credit and what does it apply to?
A1: This is a general business credit to encourage retention of new hires (retained workers). The employer may claim the credit for each retained worker. A retained worker is a qualified employee (as defined for purposes of the payroll tax exemption) who remains an employee for at least 52 consecutive weeks, and whose wages (as defined for income tax withholding purposes) for the last 26 weeks equal at least 80% of the wages for the first 26 weeks. The amount of the credit is the lesser of $1,000 or 6.2% of wages (as defined for income tax withholding purposes) paid by the employer to the retained worker during the 52 consecutive week period.

(07/23/10) Q2: If an employer chooses to claim the WOTC for a qualified employee, can the employer still claim the new hire retention credit for that qualified employee?
A2: Yes, an employer may claim the retention credit for a qualified employee even if the employer has also claimed the WOTC for the same employee.
The new hire retention credit can be claimed for any qualified employee, as defined for purposes of the payroll tax exemption, once the employee is employed for 52 consecutive weeks, so long as the employee’s wages (as defined for income tax withholding purposes) for the last 26 weeks of employment equal at least 80% of the employee’s wages for the first 26 weeks of employment.

(07/23/10) Q3: For what years can an employer claim the new hire retention credit with respect to a retained worker?
A3: The credit may be claimed for a retained worker for the first taxable year ending after March 18, 2010 (the date of enactment of the HIRE Act), for which the retained worker satisfies the 52 consecutive week requirement. However, since retained workers must be qualified employees, the credit applies only for workers hired after February 3, 2010, and before January 1, 2011.

Calendar Taxpayers – Calendar year taxpayers are not eligible to claim the New Hire Retention Credit (Form 5884-B) on their 2010 tax returns due to the 52 week retention period. As a result, calendar year taxpayers are first eligible to claim the credit on their 2011 tax returns due April 15, 2012.

Fiscal Year Taxpayers – For fiscal year filers, the earliest date to file a return claiming the credit would be fiscal years ending after February 3, 2011.

(07/23/10) Q4: Can a business carry back any portion of the new hire retention credit to use against a tax liability for years beginning before March 18, 2010, the date of enactment of the HIRE Act?
A4: No, the portion of the general business credit attributable to the new hire retention credit cannot be carried back to a taxable year that begins before March 18, 2010.

(07/23/10) Q5: Can the new hire retention credit offset the business Alternative Minimum Tax?
A5: No, the new hire retention credit cannot be used to offset the business Alternative Minimum Tax.

(07/23/10) Q6: Will the business deduction for compensation be reduced and or affected by the new hire retention credit?
A6: No.