IRS just published responsibilities for Health Coverage Providers!
http://1.usa.gov/1JbYVu4
Engagement! Are your employees engaged?
Employers need an engaged workforce. Human Resources develops the processes to train and retain employees. https://lnkd.in/batNakn
The IRS has finalized the 1095C
The IRS is using the 1095C to ensure compliance with the affordable care act. They have finalized the form for 2015 reporting. Employers will have to complete the 1095C in 2016. Employers with 100 (50+ in 2016) and more employees are required to file these reports by February 2016 for 2015. The new reports are similar to Form W-2 or 1099 in their request of employee demographic data. Form 1095c will also require an employer to identify whether or not health coverage was provided, the type, and to whom (employee only, or dependents too), on a month-by-month basis. It raises the question of do we have that information? How are you tracking this information?
Don’t get caught having to scramble to create data manually when the new reports are due. Employers need to invest in an HRIS system that will resolve the compliance problems of Health Care Reform.
When is the Last Time You Looked at Your Job Descriptions?
The Importance of Job Descriptions
Most of the time, when I conduct audit of the HR function, I find that they have a job description. It typically outlines the necessary skills, training and education needed by a potential employee. It will spell out duties and responsibilities of the job. It can be used for interviewing candidates, orienting a new employee and finally in the evaluation of job performance.
What I find is the job description does not have the essential functions of the job. Defining the essential functions of the job protects the company. Essential job functions are the fundamental duties of a position: the things a person holding the job absolutely must be able to do. Essential job functions are used to determine the rights of an employee with a disability under the Americans with Disabilities Act (ADA). An employee who can’t perform the essential job functions, even with a reasonable accommodation, isn’t considered qualified for the job and isn’t protected from discrimination. Job Descriptions without the essential functions of the job put the company at risk for discrimination, and ADA violations.
Minimum Wages
Minimum wages vary from state to state. There is a trend that cities within the states are passing their own minimum wages. Roughly 35 different locations have higher minimum wages than the Federal rate of $7.25. California not only has a state rate but different cities have passed minimum wage rates above the state rate.
It is really important that employers pay attention to minimum wage rates, In some states salary test for being exempt is tied to the minimum wage. California requires 2 times minimum wage to be exempt. This means employers with employees in Oakland, San Francisco, San Jose have higher rates. Details matter, employers should audit their pay practices, ensure that salaried exempt employee meets the salary test. If they do not meet the salary test it might be a good time to conduct a job analysis to ensure the jobs are classified correctly.
FEDERAL Nonexempt $7.25/hour $10.10/hour (federal contractors and subcontractors)
Executive $4551/week on a salary basis
Professional or Administrative $455/week on salary or fee basis
Computer $27.63/hour
Highly Compensated $100,000 total compensation (including minimum $455 minimum weekly salary or fee) Licensed practicing Medical Doctor or Attorney; Teacher None
Business Owner (20% minimum equity and engaged in management) None
Outside Sales None
In the following jurisdictions, rates higher than the federal rates prevail.
ALASKA Nonexempt $8.75/hour (increase from 2014)
ARIZONA Nonexempt .$8.05/hour (increase from 2014)
ARKANSAS Nonexempt $7.50/hour (employers with 4 or more employees) (increase from 2014)
CALIFORNIA Nonexempt $9.00/hour
Oakland $12.25/hour (increase from 2014, effective March 2, 2015)
San Francisco $11.05/hour (increase from 2014, effective January 1, 2015)$12.25/hour (effective May 1, 2015)
San Jose $10.30/hour (increase from 2014) Licensed Physician $75.19/hour (increase from 2014)
COLORADO Nonexempt $8.23/hour (currently under consideration; would be increase from 2014)
CONNECTICUT Nonexempt $9.15/hour (increase from 2014)
DELAWARE Nonexempt $8.25/hour (effective June 1, 2015)
FLORIDA Nonexempt $8.05/hour (increase from 2014)
HAWAII Nonexempt $7.75/hour (increase from 2014)
ILLINOIS Nonexempt $8.25/hour
MAINE Nonexempt $7.50/hour
MARYLAND Nonexempt $8.00/hour (increase from 2014)$8.25/hour (effective July 1, 2015)
MASSACHUSETTS Nonexempt $9.00/hour (increase from 2014)
MICHIGAN Nonexempt $8.15/hour (increase from 2014)
MINNESOTA Nonexempt $8.00/hour (employers whose annual gross volume of sales made or business done is at least $500,000)
$9.00/hour (employers whose annual gross volume of sales made or business done is at least $500,000; effective August 1, 2015)
MISSOURI Nonexempt $7.65/hour (increase from 2014)
MONTANA Nonexempt $8.05/hour (increase from 2014)
NEBRASKA Nonexempt $8.00/hour (increase from 2014)
NEVADA Nonexempt $7.25/hour (if qualifying health benefits available) $8.25/hour (all others)(increase may be announced in April 2014)
NEW JERSEY Nonexempt $8.38/hour (increase from 2014)
NEW MEXICO Nonexempt $7.50/hour Santa Fe $10.66/hour (increase may be announced in January 2015)
Albuquerque $7.75/hour (if qualifying healthcare and/or childcare benefits provided)$8.75/hour (all others)(increase from 2014)
NEW YORK Nonexempt $8.75/hour (increase from 2014, effective December 31, 2014)$9.00/hour (effective December 31, 2015)
OHIO Nonexempt $8.10/hour (employers with gross revenue of more than $297,000/yr) (increase from 2014)
OREGON Nonexempt $9.25/hour (increase from 2014)
RHODE ISLAND Nonexempt $9.00/hour (increase from 2014)
SOUTH DAKOTA Nonexempt $8.50/hour (increase from 2014)
VERMONT Nonexempt $9.15/hour (increase from 2014)
WASHINGTON, DC Nonexempt $10.50/hour (increase from 2014, effective July 1, 2015)
WASHINGTON STAT Nonexempt $9.47/hour (increase from 2014)
Seattle $10.00/hour (employers with fewer than 500 employees in the U.S.)2 $11.00/hour (employers with 500 or more employees in the U.S.)
(increase from 2014, effective April 1, 2015; subject to pending litigation)SeaTac $15.24/hour (hospitality/transportation employees) (increase from 2014)Outside Sales Exemption guaranteed salary, commission, or fee
WEST VIRGINIA Nonexempt $8.00/hour (increase from 2014)
Mileage Rates Increase in 2015
Beginning on Jan. 1, 2015, the standard mileage rates for the use of a car, van, pickup or panel truck will be:
- 57.5 cents per mile for business miles driven, up from 56 cents in 2014
- 23 cents per mile driven for medical or moving purposes, down half a cent from 2014
- 14 cents per mile driven in service of charitable organizations
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile, including depreciation, insurance, repairs, tires, maintenance, gas, and oil. The rate for medical and moving purposes is based on the variable costs, such as gas and oil. The charitable rate is set by law.
3 Tips for Managing Employee Records
The employer is the keeper of the record and needs to keep records required by the different laws. The first thing to do is to determine what records you need to have.
1. Determine which records you need to maintain. Employers may be required to keep certain types of records, such as payroll records and tax records, for a specified period of time in order to comply with federal and/or state law. Other documentation may be important to support disciplinary action or termination. The following are some examples of the types of records a personnel file may include:
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- Basic Information: Employee’s full name, social security number, address, and birth date.
- Hiring Documents: Job descriptions, employment applications, and resumes.
Job Performance and Development: Performance evaluations, disciplinary letters, awards, promotion records, and records of education or training.
- Compensation: Forms W-4, payroll records, and time cards for the prior year(s).
- Termination and Post-Employment Information: Exit interview forms and a record of documents provided to the employee along with the final paycheck (e.g., termination letter, benefits notices, and unemployment compensation forms).
2. Consider which documents need to be kept in a confidential file. It’s a good idea (and in certain instances may be legally required) to keep certain employee records and information in a confidential file separate from the personnel file. Examples of records that should be kept in a separate, confidential file include medical records, Forms I-9, wage garnishment documentation, and documents pertaining to sensitive matters, such as harassment investigation records.
3. Make sure you have a policy in place that outlines the procedures for how your company will manage employee records and files. At a minimum, your policy should:
- Clearly state which records to maintain and how long certain documents should be kept.
- Require that all employee records be maintained in a locked cabinet or office. The policy should also identify those individuals who are authorized to access personnel and confidential files, and ensure that safeguards are in place that restrict access to those individuals only.
- Define the specific circumstances by which an employee may access or copy files. Keep in mind that some states require employers to provide employees with access to their files (or to certain information contained in the file). Files should be accessed under the supervision of management.
- Develop procedures for handling third party requests for disclosure of employee information, including what information may be released. Consider obtaining the employee’s prior written authorization to release such information.
- Ensure that a proper procedure is in place for disposing of employee records in accordance with any applicable federal or state laws.
Minimum Wage Increases for 2015
State Minimum Wage Rates Set to Increase
The minimum wage will rise in a number of states next year. Unless otherwise noted, the following minimum wage rates (per hour) are scheduled to become effective on January 1, 2015:
Alaska: $8.75
Arizona: $8.05
Arkansas: $7.50
Connecticut: $9.15 (gratuity allowance for certain waitpersons rises to 36.8% of the minimum wage; 18.5% for bartenders)
Delaware: $8.25, beginning June 1, 2015
District of Columbia: $10.50, beginning July 1, 2015
Florida: $8.05 ($5.03 for certain tipped employees)
Hawaii: $7.75
Maryland: $8.00 ($8.25 beginning July 1, 2015)
Massachusetts: $9.00 ($3.00 for tipped employees)
Minnesota: $9.00, beginning August 1, 2015 ($7.25 for employers with an annual gross volume of sales less than $500,000)
Missouri: $7.65 ($3.825 for tipped employees)
Montana: $8.05
Nebraska: $8.00
New Jersey: $8.38
New York: $8.75, effective December 31, 2014 ($9.00 beginning December 31, 2015)
Ohio: $8.10 ($4.05 for tipped employees), except that the federal minimum wage of $7.25 per hour may be paid to employees whose employers gross $297,000 or less per year
Oregon: $9.25
Rhode Island: $9.00
South Dakota: $8.50 ($4.25 for tipped employees)
Vermont: $9.15
Washington: $9.47
West Virginia: $8.00, after January 1, 2015
Be sure to comply with any city or other local wage requirements (which may be higher than the state or federal minimum wage) that may apply to your business.