Tip of the Month: Sometimes What You Don't Know Can Hurt You

It is that time of year when the words IRS start to become a concern for most of us. Whether it is your own personal tax return or tax issues for the corporation at which you work, the iron fist of the Internal Revenue Service is ready to "make you pay" one way or the other. 

A big topic of discussion around this time of year is the classification of independent contractors. 

According to the folks at SI Review over 25% of their recent survey respondents had no idea at all if all their workers were properly classified. Another 62% were confident that at least some of their workers were probably misclassified. Only 13% were confident that they nailed it and had everyone in compliance with the law. 

So why worry? Well, a whopping 40% of buyers reported that their independent contractor pools have been audited by an outside agency....usually you guessed, the IRS. And, these audits took place within the past six months. This translates in to high risk! 

Consider this as well. If the IRS doesn't get you, the individual just might. How you say? Most often it starts when the "independent" goes to file for unemployment benefits or a worker's compensation claim and is denied. Or a claim is made for overtime pay or other benefits paid to your full time staff. Can anyone say Microsoft? 

What do we suggest you do if you think this may be an issue? The first thing to do is visit the IRS.gov website and take a look at the qualifications needed for an individual to be properly classified as an independent contractor. 

If you think you have a problem, contact Ryan Staffing and we can help you establish the individual as a payroll employee of Ryan Staffing at a rate that is very affordable. This provides continuity of the employee's services and compliance with the law so that you can rest easy. And one less thing to worry about can't ever be bad right? 

Tim's Talking About Business Tax Hike, Manpower in Vietnam and Whistleblowers

THE BUSINESS TAX HIKE NOBODY IS TALKING ABOUT 

As many of you know, the Federal unemployment tax rate is 6.0% of the first $7,000 of an employee's wages which was reduced from 6.2% in the second half of 2011. Employers have normally received a credit of 5.4% from the payment of their state unemployment taxes making the net FUTA rate .6%. 

What you might not know is that because Ohio is one of 20 states that have not paid back borrowed funds from the Federal government that 5.4% credit will be reduced to 5.1% in 2012. This .3% reduction in the credit will continue to take place every year the money is not paid back by the State of Ohio. 

It could be worse. Michigan is now in its third year of "default" and their credit deduction for employers is down to 4.5%. This in effect represents a tax hike for all Ohio employers that nobody is talking about! 

ATTENTION ALL YOU MANPOWER USERS 

I suppose this should not bother me as much anymore. But growing up in the 60's and knowing about all the tragedies of the Vietnam War, I still said ouch when I came across this announcement. 

Manpower Group signs new deal with Vietnam

It seems that Manpower recently signed a new three year deal to partner with Vietnam to continue working to develop that country's local labor market. They are now the first 100% foreign owned employment services company with a license to operate in Vietnam. 

So aside from the war issue, Manpower is now working hard to exploit the low skilled, low wage labor force of Vietnam that continues to take jobs away from the United States. 

Something to think about. 

TEMP OR NOW TEMP YOU JUST CAN'T DO IT! 

This is the message sent out by OSHA recently in a case involving the termination of an employee for filing a worker's compensation claim. That message sent out by the Assistant Secretary of Labor for OSHA stated, "This case sends a clear message that OSHA will not tolerate retaliation against workers for reporting a work-related injury."

The case involved a Nebraska based Union Pacific Railroad Company employee and was filed as a whistleblower complaint. The company was ordered to pay back wages, compensatory damages, attorney fees and punitive damages. 

You can find detailed employee whistleblower rights information under OSHA at www.whistleblower.gov. 

IF YOU THINK TEMP COMPLAINTS ARE NOT YOUR RESPONSIBILITY...Think again! 

Blockbuster recently settled a discrimination lawsuit brought by the EEOC to the tune of $2 million that involved alleged sexual harassment and racial discrimination against female temps by male supervisors at one of its distribution centers. 

The incidents took place in 2004 and 2005 and involved seven female temporary employees, four of whom were Hispanic. The alleged acts included sexual favors, offensive racial remarks, yelling and forced resignations among other things. 

The EEOC attorney pointed out that "Employers who are customers of staffing agencies have a responsibility to protect their temporary workers from unlawful discrimination".