Previously, we discussed the importance of classifying your workers properly, whether independent contractors or employees. Greater attention is being paid by the IRS, as well as a number of states, as to whether employers are misclassifying their workers; at the same time, the IRS has created the Voluntary Classification Settlement Program (VCSP) to allow employers to come into compliance relatively painlessly. Here’s the gist of how it works:
Under the VCSP, an employer that wants to reclassify one or more workers as employees going forward must complete an application form (Form 8952) 60 days in advance of the date it wishes to make the change. Note that, to be eligible, the employer must have consistently treated the workers in question as non-employees and must have filed all required Forms 1099 for the workers for the previous three years. Additionally, the employer must not be under current IRS audit by the IRS nor can it be under audit by the U.S. Department of Labor (DOL) or a state agency regarding the classification of such workers.
If accepted into the program, the employer:
will pay 10% of the amount of employment taxes calculated under the reduced rates of section 3509(a) of the Internal Revenue Code (IRC) for the compensation that was paid to the worker(s) for the most recent tax year;
will not be liable for any interest and penalties on the payment;
will not be audited for employment tax purposes for prior years with respect to the worker classification of the worker(s.)
Note that the IRS indicates that completing Form 8952 does not trigger an audit even if you are not accepted into the VCSP. You might, of course, be audited for other reasons but should not fear that completing the application will increase your chances. (See the IRS web site for additional FAQs.) Who needs the worry of failing an IRS or other worker classification audit? The VCSP is an excellent opportunity for employers wishing to come into compliance going forward and allay those fears.
COBRA Model Premium Subsidy Notices through May 31, 2010 are now available. ARRA, as amended by the Continuing Extension Act of 2010 (CEA), mandates that plans notify certain current and former participants and beneficiaries about the COBRA premium reduction.
The U.S. Department of Labor created model notices to help plans and employers comply with these requirements. Each model notice is designed for a particular group of qualified beneficiaries and contains information to help satisfy ARRA’s notice provisions, including those amended by CEA.
Here are the new COBRA Premium Subsidy Model Notices and Fact Sheet through May 31, 2010:
The law requires an employer to post notices describing the Federal laws prohibiting job discrimination based on race, color, sex, national origin, religion, age, equal pay, disability and genetic information. .
EEOC has revised its “Equal Employment Opportunity is the Law” poster. This new version reflects current federal employment discrimination law (including the Americans with Disabilities Act Amendments Act of 2008). The poster was revised to add information about the Genetic Information Nondiscrimination Act of 2008, which is effective November 21, 2009. The revised poster also includes updates from the Department of Labor.
There are several ways for employers to comply with the law:
1. Print the supplement poster and place it alongside EEOC’s September 2002 “EEO is the Law” poster or OFCCP’s August 2008 “EEO is the Law” poster.
2. Print and post the EEOC’s November 2009 version of the “EEO is the Law” poster.
Be sure that your Federal and State posters are placed in a conspicuous area in your workplace. If you need posters, they are all available to HR Made Simple members at no additional cost. Just type in posters in search and you will have immediate access to all Federal and State poster information.
In a recent case the Supreme Court put more pressure on employers in age discrimination lawsuits by placing the burden of proof on them. In the past employees have had to prove that age discrimination took place, which led to the dismissal of Meacham v. Knolls Atomic Power Laboratory. With this new ruling the courts have flipped the burden of proof onto employers, who now must prove that the age discrimination did not take place. What this essentially means is that managers must keep detailed documentation behind every firing to show the “disparate impact” was based on “reasonable factors other than age.” Previously, courts in similar cases ruled it was up to employees to prove there was bias.
With the workforce aging as baby-boomers near retirement, the issue of age discrimination is becoming increasingly prevalent. With this type of discrimination on the rise, employers need to address the situation before it becomes a problem. According to Aging Workforce News, “A Hewitt Associates survey of more than 140 mid-size and large employers has found that 55% have already evaluated the impact that potential retirements could have on their organization and 61% have developed or will develop special programs to retain targeted, near-retirement employees. Even though only 21% believe that phased retirement is critical to their company’s human resources strategy today, 61% believe so when looking ahead 5 years.”
To learn more about age discrimination, the impact on businesses, and what you can do about it visit the Department of Labor, AARP, or one of many events such as the Aging Workforce Summit.
Every year the United States Department of Labor releases a report on workplace safety that includes injury and illness rates. Knowing what your industries injury rate is and what tools can be used to reduce your risk can save thousands of unnecessary dollars in fines and lawsuits.
Industry 2006 annual average employment(in thousands)/Incidence Rate2005/2006
Nonclay refractory manufacturing 6.3 / – / 16.9
Motor home manufacturing 21.1 / – / 16.8
Iron foundries 58.4/ 17.1 / 15.1
Light truck and utility vehicle manufacturing 69.3 / 17.8 / 14.6
Prefabricated wood building manufacturing 27.2 / 14.3 / 14.3
Truck trailer manufacturing 38.5 / 16.8 / 13.9
Manufactured home (mobile home) manufacturing 49.1 / 12.9 / 13.2
Skiing facilities 34.0 / – / 13.2
Travel trailer and camper manufacturing 48.7 / 14.1 / 13.1
Sports teams and clubs 63.2 / – / 12.8
Animal (except poultry) slaughtering 146.3 / 12.6 / 12.5
Steel foundries (except investment) 20.9 / 10.7 / 12.1
Aluminum foundries (except die-casting) 22.5 / 13.3 / 12.1
Metal tank (heavy gauge) manufacturing 27.1 / – / 11.9
Motor vehicle body manufacturing 66.9 / 8.3 / 11.8
Beet sugar manufacturing 6.1 / 18.3 / 11.7
Amusement and theme parks 137.0 / – / 11.7
Couriers 528.0 / 12.4 / 11.0
Ambulance services 127.3 / – 11.0
Iron and steel forging 27.0 / 13.3 / 10.9
Heavy duty truck manufacturing 37.6 / 13.1 / 10.9
Scheduled passenger air transportation 426.8 / – / 10.8
Ship building and repairing 91.7 / 10.9 / 10.7
Soft drink manufacturing 79.7 10.4 10.6
Household furniture (except wood/metal) manufacturing 6.5 / – / 10.6
Private industry 111,273.1 / 4.6 / 4.4
Visit the Department of Labor homepage to see more stats on workplace incidents reports. For more information on risk management solutions, visit the HRSentry Homepage.
