New Year’s Tips from Your Human Resources Professionals

The beginning of a new year is a great time to internally audit some of your HR-related practices. The following are a few tips to get you started:

Employee Handbook – It is not a bad idea to have an HR Professional review your handbook annually for compliance issues. Also, if there are any policies that you would like to edit, the beginning of the year makes for a clean break for new policy implementation. If you do not have a handbook, the first of the year is the perfect time to create and implement one into your organization.

Investigate Employee Complaints to Avoid Liability for Employee Wrong-doing

In the workplace, there may be employee complaints regarding harassment, fraud, theft, discrimination and other misconduct. When complaints are not handled appropriately, the company may experience increased exposure to employment-related liability. In the long run, there may also be financial loss, damages, and penalties issued (from regulating agencies). Every employer should take the initiative to investigate employee complaints to ensure a non-discriminatory and safe working environment.

There are many benefits in having an investigation procedure/policy in place, including:

Small Business Tax Credit under the Patient Protection and Affordable Care Act

If you are planning on offering or currently are offering health insurance to your employees we would like to remind you that small businesses who provide health insurance coverage can receive a tax credit.

 

In 2012 and 2013 you may qualify for a tax credit of up to 35% if you:

1. Employ 25 or fewer employees.

2. Average annual wages are less than $50,000 per employee per year.

3. Pay half or more of the cost of health insurance premiums.

Beginning in 2014 that tax credit increases to up to 50%.

This tax credit was put into place in 2010. If you have not previously taken that credit you may be able to file for an amended return. Below is a link to the inevitable fine print on the IRS website to review with your tax professional.

http://www.irs.gov/uac/Small-Business-Health-Care-Tax-Credit-for-Small-Employers

Workplace Perks: It’s more than Coffee and Doughnuts

January is a great time for making new resolutions and focusing on health and well-being. For some people, it may be a means to diminish the damage caused by the excessive imbibing during the holiday season, and, for others, it is a symbol of making a fresh start in a brand new year. Whatever the reason may be, an employer’s EAP or Employee Assistance Program is an effective tool in providing employees and their immediate family members with helpful resources. 

An Employee Assistance Program offers voluntary short-term counseling services on matters such as grief, stress and family relationship issues as well as free-of-charge referral services, advice on programs such as health club memberships, alcohol and substance abuse rehabilitation programs, mental health specialists and legal resources. These options and other beneficial sources provide a resource for employees and their immediate family members who may be in need of guidance regarding matters impacting their personal lives that potentially have an adverse impact on their work performance.

Payroll Tax Holiday EXPIRES

Effective January 1, 2011 employee’s have enjoyed a “tax holiday” on FICA (social security payroll taxes):

•“Holiday Rate” 4.2%

•“Regular Rate” returns back to 6.2%

Patient Protection and the Affordable Care Act (PPACA)

With the passing of the 2012 federal elections we now have a clearer picture of what will likely happen over the next year with the Affordable Care Act.  Barring any last minute surprises from the Supreme Court (see article on this topic dated 11/26/2012) we should expect that the most significant provision of the Affordable Care Act, the health insurance mandate, will be implemented on schedule by 2014. The individual and employer mandates in the Affordable Care Act are fairly complicated. 

The initial questions most employers have are, how will the employer mandate of Affordable Care Act affect me as well as will I owe a tax/penalty in 2014? To determine if you will need to offer coverage or likely owe a tax, three scenarios have been laid out. Start by counting all of your employees, including part time employees, and review the three categories.

Leave of Absence Terminations

Many times employers are hesitant to take action when an employee has been on an extended leave of absence due to a workers’ compensation claim arising from an injury or illness occurring while in the course of work duties or when the employee is unable to return from a protected leave, such as the federal Family Medical Leave Act (FMLA), or a state’s equivalent leave. Employers must look to the mandated leaves, organizational-internal policies, and past practices before taking an adverse employment action, such as disciplinary action or termination. Ensuring compliance with regulatory guidelines, and consistent application of internal policies and practices will generally protect an employer from any discriminatory practices.

• Workers’ Compensation Leaves - Employees who have sustained an on the job injury and are on a workers’ compensation leave of absence are protected under individual state non-discrimination regulations, and may enjoy protection under a state’s mandated leave or the FMLA. Employers must ensure that these employees are treated the same as other employees who are temporarily disabled and follow any internal policies or past practices related to the leaves. Further, employers should consult with the claims manager at their workers’ compensation carrier to discuss any adverse employment action prior to taking the action, to determine that there is agreement in terminating the employment of the individual, and to discuss the effect of such a termination on the claim.
• FMLA or State Equivalent Leaves - Employers must comply with the FMLA or a state equivalent leave if the employee is employed at a work site that has 50 or more employees within a 75-mile radius.· FMLA or the state equivalents often run concurrently with a workers’ compensation claim and/or internal leave of absence policies. The FMLA or the state equivalent provides a period of time of job protected leave.· After the expiration of the mandated leave, employers may rely on internal policies and practices related to the extension of time off if the individual is still unable to return to work. Otherwise, an employer may terminate the individual’s employment if he/she is unable to return after the expiration of the mandated leave.
• Internal Leave of Absence Policies – Many times an employer who does not have to comply with a mandated leave or who wants to provide an extended leave of absence will have an internal temporary disability leave policy that affords employees time away from work for recovery. These internal practices also may be used to extend an employee’s leave if he/she is still unable to return to work following an FMLA or state equivalent leave’s expiration.

The key with all leave of absence administration is that the employer’s policies and practices are consistently applied.· Consistent application of these policies and practices will ensure non-discriminatory practices when it comes to the termination of an individual who is unable to return to work from leave. If you have questions about your leave of absence requirements, or need assistance in the development of a policy in this regard, please reach out to your HR Professional for guidance.