|
|

|
Information Every
Business Needs to Know
HR
& Benefits Advisor
May 2009
|
|
Brought to you by: Law Offices of Travis Bowen, PC
|
|
|
|
The American Recovery and Reinvestment Act - New Tax
Credits, Subsidies & Incentives
The American Recovery and Reinvestment Act of 2009 (ARRA)
continues to dominate the news, and has garnered many inquiries from
our readers. To compound matters, the recent tax filing season confused
many people—including tax professionals—particularly with regard to
what benefits applied to 2008 tax filings, and which will first affect
2009 filings next year.
In light of the confusion, we list the following key highlights of the
Act, with links to additional information and government resources:
COBRA: Health Insurance Continuation Subsidy. The IRS has extensive guidance for
employers, including an updated Form 941, as well as information for
qualifying individuals.
Payroll Checks Increase. The Making Work Pay
Tax Credit translated into
a $400 to $800 for many paychecks. The IRS has issued new withholding
tables for employers.
Taxpayers can check the IRS withholding
calculator to make sure
enough tax is withheld from their pay.
Increased Transportation Subsidy. Employer-provided
benefits for transit and parking are up in 2009.
Up to $2,400 in Unemployment Benefits Tax Free in 2009. Individuals
should check their tax withholding.
$250 for Social Security Recipients, Veterans and Railroad
Retirees. The Economic
Recovery Payment will be paid by the Social Security Administration,
Department of Veterans Affairs and the Railroad Retirement Board.
Health Coverage Tax Credit. Credit increases
from 65 percent to 80 percent of qualified health insurance premiums,
and more people are eligible.
First-Time Home buyer Credit Expands. Home buyers who purchase in 2009 can
get a credit of up
to $8,000 with no payback requirement.
Money Back for New Vehicle Purchases. Taxpayers who buy certain new vehicles
in 2009 can deduct the state
and local sales taxes they paid.
Enhanced Credits for Tax Years 2009, 2010. Details on the earned income
tax credit, additional child
tax credit and American
Opportunity Credit, a new higher education benefit.
Energy Efficiency Incentives. What individuals
and businesses can do to reap tax rewards.
Net Operating Loss Carryback. Small businesses can offset losses by
getting refunds on taxes paid up to five years ago. Information on
the carryback, an expanded section 179 deduction and other
business-related provisions is now available.
Age Discrimination
When the topics are reduction in hours, employee layoffs
and termination, the issue that rears its head quite often is Age
Discrimination. An awareness of the following laws is crucial to a
successful workforce reduction implementation.
The Age
Discrimination Act of 1975 prohibits discrimination on the basis of age in programs
and activities receiving federal financial assistance. The Act, which
applies to all ages, permits the use of certain age distinctions and
factors other than age that meet the Act's requirements. The Age
Discrimination Act is enforced by the Civil Rights
Center.
The Age
Discrimination in Employment Act of 1967 (ADEA) protects certain applicants and
employees 40 years of age and older from discrimination on the basis of
age in hiring, promotion, discharge, compensation, or terms, conditions
or privileges of employment. The ADEA is enforced by the Equal Employment Opportunity Commission (EEOC).
Section 188 of
the Workforce Investment Act of 1998 (WIA) prohibits discrimination against applicants,
employees and participants in WIA Title I-financially assisted programs
and activities, and programs that are part of the One-Stop system, on
the ground of age. In addition, WIA prohibits discrimination on the
grounds of race, color, religion, sex, national origin, disability,
political affiliation or belief, and for beneficiaries only,
citizenship or participation in a WIA Title I-financially assisted
program or activity. Section 188 of WIA is enforced by the Civil Rights
Center.
For more information on this topic:
Civil Rights
Center - Monitors and
enforces the Age Discrimination Act in programs and activities
receiving federal financial assistance.
DOL Web Pages on This Topic
Other discrimination issues that must be taken into
consideration include:
Disability
Ethnic/National
Origin, Color, Race, Religion, Sex.
|
|
|
Recent Survey
Finds Employees Willing to Work Less Hours to Save Jobs
Ninety-four percent of full-time employees, in the
annual Work+Life Fit™ Reality Check survey are willing to save jobs
by changing or reducing their schedule, or taking a pay cut. The 2009
survey also found:
Nine in ten employees (90%) reported the recession has forced them to
change their employment plans including nearly half saying
they’re less likely to take a career break, for example to care for
children or aging relatives.
But what has not changed during the economic downturn is work life
flexibility. Most companies continue to offer the same or an
increased amount of opportunities, and most employees reported their
flexibility use has either increased or stayed the same during the
past year.
Change My Schedule,
Cut My Hours or My Pay Before You Cut My Job
In order to save their jobs and help their employers reduce costs,
nearly 8 in 10 employees would be willing to work a compressed work
week, while nearly 60 percent would take additional unpaid vacation days
or furloughs (several weeks off without pay). Nearly half would share
their jobs with colleagues (48%), or take a cut in both pay and hours
(47%).
The Recession
Forces Dramatic Changes in Employment Plans
While the recession has had little effect on work life flexibility,
it has forced 90 percent of those surveyed to change their employment
plans. Nearly 60 percent expect to stay with their current employer
longer than first planned (58%) and do some form of work during
retirement (58%). More than half (56%) reported saving more and
spending less in anticipation of future job changes. And, in what
could have significant consequences for child and elder care, 47% are
less likely to voluntarily leave the workforce for a period of time.
*Survey sponsored by Work+Life Fit, Inc. and conducted by Opinion
Research Corporation March 26 - 30, 2009. http://worklifefit.com/pdf/wlf_newsrelease_41609.pdf.
|
|
Dislocated Worker Program
The Adult and Dislocated
Worker Program, under Title I of the Workforce Investment Act of 1998,
was designed to provide quality employment and training services to
assist eligible individuals in finding and qualifying for meaningful
employment, and to help employers find the skilled workers they need
to compete and succeed in business.
The purpose of this program is to assist individuals who have been
laid off or terminated, or who are scheduled to be laid off and need
transition assistance to find or qualify for a new job. The program
is one of several DOL programs that have been expanded as a result
of an infusion of funding by the Recovery Act.
General
Program Requirements
In
order to qualify for this benefit program, you must be unemployed or
about to become unemployed. In addition, one of the following must
apply: your unemployment must be due to general declining economic
conditions, current conditions must make it unlikely for you to
return to your previous occupation or industry, or your job loss must
be because your employer is shifting production to or importing goods
you previously manufactured from Canada or Mexico.
Application
Process
For
information about the specific services available in your area,
contact your local State Dislocated Worker Unit. Contact information
for the unit nearest you can be found at:
http://www.doleta.gov/layoff or call 877-872-5627 or contact the U.S.
Department of Labor http://www.dol.gov.
For
additional information
|
|
Trade Adjustment
Assistance for Dislocated Workers
Trade Adjustment Assistance (TAA) provides transition
assistance to workers who have been determined by the U.S. Department
of Labor to have been adversely affected by imports from or shifts in
production to foreign countries. Benefits include training, job
search allowances, job relocation allowances and trade readjustment
allowances.
As a result of additional ARRA funding, all TAA programs have been
reauthorized through Dec. 31, 2010. Current Trade Adjustment
Assistance is expanded to trade-affected services sector workers and
workers affected by offshoring or outsourcing to all countries,
including China or India.
General
Program Requirements
In order to qualify for this benefit program, you must be unemployed,
about to be unemployed, or under-employed (working for very low
wages) because the good you manufactured is now being imported.
Application
Process
A petition for Trade Adjustment Assistance may be filed by a group of
three or more workers, by a company official, by One-Stop operators
or partners (including state employment security agencies and
dislocated worker units), or by a union or other duly authorized
representative of such workers. For petition forms and information on
how to file a petition for benefits visit:
http://www.doleta.gov/tradeact
Benefits for certified workers are generally available through the
employment One-Stop Centers in local communities across the country.
Locations and phone numbers for the One-Stop Centers can be found at:
http://www.servicelocator.org or call 202-693-3560; the hearing
impaired may call this toll-free TTY number: 877-889-5627. For more
information visit http://www.dol.gov/, call toll-free: 866-487-2365,, or
write to:
U.S. Department of Labor
Employment and Training Administration Division of Trade Adjustment
Assistance
200 Constitution Avenue, NW
Room C-5311
Washington, DC 20210.
|
|
Wages:
Severance Pay and Last Paycheck
Severance
Pay
Severance
pay is often granted to employees upon termination of employment. It
is usually based on length of employment for which an employee is
eligible upon termination. There is no requirement in the Fair Labor Standards Act (FLSA) for severance pay. Severance pay is a
matter of agreement between an employer and an employee (or the
employee's representative). Please contact EBSA if you have any questions.
For
more information
Last
Paycheck
Employers
are generally not required by federal law to give former employees
their final paycheck immediately. Some states, however, may require
immediate payment. The DOL also has mechanisms in place for the
recovery of back wages.
For
More Information:
|
|
|
|
|
|
Newsletter created by: Law Offices of Travis Bowen, PC
136 East South Temple, Suite 1050, Salt Lake City,
UT 84111
(801)364-0123
www.bowenlaw.com
Please Note: The information and materials herein are provided for general
information purposes only and are not intended to constitute legal or other
advice or opinions on any specific matters and are not intended to replace
the advice of a qualified attorney, plan provider or other professional
advisor. This information has been taken from sources which we believe to
be reliable, but there is no guarantee as to its accuracy. In accordance
with IRS Circular 230, this communication is not intended or written to be
used, and cannot be used as or considered a "covered opinion" or
other written tax advice and should not be relied upon for any purpose
other than its intended purpose.
The information
provided herein is intended solely for the use of our clients and members.
You may not display, reproduce, copy, modify, license, sell or disseminate
in any manner any information included herein, without the express
permission of the Publisher. Kindly read our Terms of Use and respect our
Copyright.
We respect your
on-line privacy. If you have received this mail in error or are not
interested in receiving this further, please accept our apology and reply
with a request to be removed in the 'Subject' from our mailing list.
|
|
|
|