Unemployment Challenges...SOLVED.


The Unemployment Line
                                                     Issue: 13
August 21, 2015 - In This Issue:
How Us4U Can Help 

Many of our clients found that after using Us4U's unemployment software applications, they have a significantly higher success rate on appeals due to the structure and functionality of our applications.  They have also lowered their Unemployment Tax Rate and have received over 13% of their audited charges credited back to their SUI account. 

Please reach out to me for a no cost and commitment free demonstration to experience the many benefits of our software application.  You can start saving your company precious time and money now!!


 

  
REQUEST A DEMO TODAY ON US4U's CLAIM AND BENEFIT CHARGE EXTRACTORS

Contact Us4U today for a quick demo of the Extractor 360 application.  See how efficiently and quickly you can validate and process your UI data!The application includes the following:

  • Unemployment claims extractor
  • Benefit charge extractor
  • Tax rate notice extractor

ARE YOU SIDES INTEGRATED?

Us4U is the 1st and Only Unemployment Insurance Software provider that is SIDES certified.  


Please call or email Us4U for a Free SIDES integration consultation. 

 

Act now and integrate your current systems with SIDES as this will be the future of all UI claim processing for employers. 


 

WHAT'S NEW - WOTC

Us4U is currently developing a new software product to manage Work Opportunity Tax Credits (WOTC). Employers will be able to manage, track certifications and allow employees to answer WOTC questions online and sign electronically.  


 

RANDOM AND INTERESTING FACTS

 

Banging your head against a wall burns 150 calories an hour.


 

A toaster uses almost half as much energy as a full-sized oven.


 

Recycling one glass jar saves enough energy to watch TV for 3 hours.


 

Hewlett-Packard's name was decided in a coin toss.


 

The average person walks the equivalent of twice around the world in a lifetime.

 

 

 

Employer and Its Third Party Payroll Provider Liable for Over $1 Million in Back Wages and Damages.

DOL

 An employer and the temporary staffing agency that it retained have agreed to pay $1.45 million in back wages and damages to more than 160 workers at a Philadelphia direct mail and printing company after an investigation by the federal Department of Labor's (DOL) Wage and Hour Division (WHD) uncovered overtime violations [WHD News Release, More Than 160 Direct Mail and Printing Workers Will Receive $1.4M in Back Wages, Damages for Overtime Violations, 7/9/15].

Direct mail processor ICS Corp., temporary staffing company New Century Integrity Corp., and New Century's owner Hokkito Teddy employed the workers jointly. The WHD discovered that some workers were paid in cash at straight time rates for all hours worked instead of being paid overtime when employees worked over 40 hours in a workweek. Other employees provided by New Century received checks for their first 40 hours from ICS. New Century then paid these employees in cash for their overtime hours at rates less than their regular rate of pay.

The consent judgment entered into by the parties awarded the workers $725,583 in overtime pay, and an equal amount in liquidated damages. Additionally, ICS is required to appoint a compliance officer to ensure that the company maintains proper records and pays employees in compliance with the Fair Labor Standards Act (FLSA).

In announcing the consent agreement, WHD Administrator Dr. David Weil noted that "Temporary staffing agencies are valuable contributors to our economy. These agencies should not be used by employers to attempt to avoid their obligations under the law. Those who do will be held accountable, as today's action shows."

 

Companies have found something to give their workers instead of raises

Washington Post 

Once a staple of the American workplace, the annual raise is turning into a relic of the pre-crisis economy as companies turn to creative and cheaper ways to compensate their employees.

More businesses are upping their spending on benefits such as one-time bonuses, health care and paid time off, according to recent survey data. Many are rolling out perks such as free gym membership, commuting subsidies, even pet health insurance.

Often, those benefits are being provided in lieu of higher salaries. Government data shows the growth in spending on benefits is outpacing gains in wages. Companies say they are catering to the growing workforce of millennials who seem to prize short-term flexibility over long-term financial security, and the change allows bosses to reward star employees without permanently increasing costs.

 

Proposed Updates to Overtime Regs Could Make More than 4.5 Million Currently-Exempt Workers Eligible for Overtime

THOMPSON RUETERS

The IRS has a web page that small businesses can check to see if the third party payroll provider they are outsourcing their payroll responsibilities to is complying with certain IRS requirements [SSA/IRS Reporter, Outsourcing payroll duties require an understanding, Summer 2015].

Background. Many employers outsource their payroll and related tax duties to a third-party payor (TPP), such as a payroll service provider (PSP), reporting agent, a Reg. § 31.3504-1 agent with an approved IRS Form 2678 (Employer/Payer Appointment of Agent), or a professional employer organization (PEO). The TPP may report, collect, deposit, or pay employment taxes with federal, state, and local authorities on behalf of the employer's clients. The IRS notes that the common law employer remains ultimately responsible for the deposit, payment, and reporting of federal employment tax liabilities, even if it outsources these responsibilities.

The IRS web page. The IRS web page lists payroll service providers that have passed the IRS Modernized e-File (MeF) Assurance Testing System (ATS) and/or Business Acceptance Testing (BATS) requirements for software developers, reporting agents, and transmitters of electronic business returns to the IRS.

The IRS is reminding employers that even when a payroll service is used, the employer is still responsible for filing returns and paying employment taxes. The IRS advises employers using a PSP to review their employment tax returns before they are filed to ensure they are accurate. They should also consider enrolling in the Electronic Federal Tax Payment System (EFTPS) in order to have the option of making any missed payroll tax deposits. EFTPS users can also monitor payroll tax deposits made on their behalf. EFTPS gives employers access to a 16-month history of deposits made under their employer identification number (EIN).

Don't change address to payroll service provider. The IRS also advises employers not to change their address of record with the IRS to the address of their PSP, and to not let their PSP do it either. Employers should review and respond quickly to any correspondence they receive from the IRS.

Employers may file IRS Form 14157, Complaint: Tax Return Preparer, if they suspect their PSP isn't doing everything it should.  

 

UNEMPLOYMENT NEWS FROM AROUND THE NATION
THOMSON RUETERS

Rhode Island - Unemployment. 

New legislation allows experience rated employers to make voluntary unemployment tax payments to lower their tax rate if they have filed all required reports, and paid all contributions, penalties, and interest. Payments are due 30 days after they receive their experience rate notice, or 120 days after the start of the calendar year for which rates are computed, whichever is earlier. Voluntary payments will not be refunded [L. 2015, S813].


 
Missouri - Unemployment.

The taxable wage base for unemployment tax purposes will continue to be $13,000 in 2016. The new employer rate for most employers in 2016 will remain at 3.51%. New employers in the construction industry will pay 4.362% (4.622% in 2015). New nonprofit employers will pay 1.3% (unchanged from 2015) [Missouri Dept. of Labor website, Tax Rates].


 
Georgia - Unemployment.

New legislation revises the definition of "most recent employer" for unemployment benefit purposes. With respect to unemployment benefit claims for benefit years that begin after June 30, 2015, it means the last employer for whom an individual worked. Prior to July 1, 2015, it meant the last liable employer for whom an individual worked and for whom the individual: (1) was separated from work for a disqualifying reason, or (2) was released or separated under nondisqualifying conditions and earned wages of at least 10 times the weekly benefit amount of the claim. It also included an employer that filed an unemployment benefit claim on behalf of the individual [L. 2015, H117].


 
Michigan - Unemployment.

The Michigan Unemployment Insurance Agency (UIA) has announced that, beginning with third quarter 2015 reports, the taxable wage base (TWB) for "non-delinquent contributing employers" will be reduced from $9,500 to $9,000. A "non-delinquent contributing employer" is an employer who is not delinquent in the payment of unemployment contributions, penalties, or interest. An employer is delinquent if on Aug. 15, 2015, the employer has an outstanding assessment for an unpaid balance of at least $25. The taxable wage base remains at $9,500 for delinquent employers. Reimbursing employers also do not qualify for the TWB reduction [UIA Questions and Answers about Changes to the Taxable Wage Base, 7/30/15].


 
New York---Unemployment.                                              

New York State (NYS) law requires employers to pay interest on federal unemployment loans that were in place during the current year. The New York State Department of Labor (NYSDOL) has announced that employers will pay a maximum 2015 interest assessment surcharge (IAS) of 93¢ per employee. Payment is due with the third quarter combined withholding and unemployment tax return (Form NYS-45) that is due on or before October 31. More than 123,000 employers that have an amount due of less than $1.00 will not receive an IAS bill at all. This is likely the final year that employers will pay the IAS as NYS has repaid its federal unemployment loans [NYSDOL website, Interest Assessment Surcharge (IAS): Frequently Asked Questions].

 

 

  
Contact:
Greg Keeton
[email protected]                                                  800.928.5750

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