CPI-HR Named Best Employer in Ohio Three Consecutive Years

CPI-HR is pleased to be recognized as one of the best employers in Ohio for the third consecutive year as seen in the Best Companies Group publication April, 2013.

CPI-HR Cleveland Employee Benefits Consulting

“Earning this distinction three years in a row is humbling and a compliment to all of our great people,” said Jim Hopkins, CEO of CPI-HR. The company’s Great Place to Work Committee plans monthly functions ranging from charitable events, team-building activities, and inter-company contests with prizes.

Due to continued growth and expansion, CPI-HR has several new employment opportunities available. Anyone interested in a career at CPI-HR can review the current job postings here: http://cpihr.com/careers.php.

Candidates must display a strong inclination towards CPI-HR’s core values of Integrity, Commitment to Excellence, and Positive Culture.

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Jim Hopkins Explains Obamacare on the Mike Trivisonno Show

Jim Hopkins of CPI-HR OhioJim Hopkins, CEO of CPI-HR and President of the Benefit Advisors Network (BAN), was interviewed by Cleveland’s Mike Trivisonno on WTAM’s Triv Show on March 7th, 2013. Listen to how the Patient Protection and Affordable Care Act (PPACA), also referred to as “Obamacare,” will affect your business in this 18 minute broadcast of a comprehensive overview of the changes in store.

http://www.wtam.com/pages/trivpage.html?article=11038257

Please contact CPI-HR at 440-542-7800 for more information about healthcare reform and its impact on your organization..

 

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“Fiscal Cliff” Law: Key Highlights for Employers

The American Taxpayer Relief Act of 2012 (ATRA) was signed into law last month to avert the “fiscal cliff.” Key tax-related items that may be of interest to employers and employees include:

  • Adoption Assistance Benefits. ATRA permanently extends the federal tax rules which allow an employee to exclude from gross income qualified adoption expenses paid by an employer, as well as the tax credit for qualified adoption expenses paid by an employee, for taxable years beginning after December 31, 2012.
  • Dependent Care Tax Credit. The dependent care tax credit allows an employee a credit for a certain percentage of child care expenses for children under 13 and disabled dependents. ATRA extends the previous cap on the total expenses qualifying for the credit, at $3,000 for one child or $6,000 for two or more children, for taxable years beginning after December 31, 2012.
  • Qualified Educational Assistance Programs. Under ATRA, an employee may continue to exclude from gross income up to $5,250 for income and employment tax purposes per year of employer-provided education assistance for taxable years beginning after December 31, 2012.
  • Transportation Benefits. ATRA increased the monthly exclusion for employer-provided commuter-highway transportation and transit passes from $125 to $240 per participating employee (the same as the exclusion for qualified parking benefits), retroactively for the period of January 1, 2012 through December 31, 2012. (Note: The inflation-adjusted maximum monthly excludable amount for these benefits in 2013 is $245.)

Employee Payroll Tax Cut Not Extended
ATRA did not affect the payroll tax rates for 2013. As a result, employers are required to withhold Social Security tax at the rate of 6.2% of wages paid (up to the first $113,700 of earnings) following the expiration of the temporary two-percentage-point payroll tax cut in effect for 2011 and 2012.

Employers should correct the amount of Social Security tax withheld from employees’ paychecks as soon as possible in 2013, but not later than February 15. For any Social Security tax under-withheld before that date, employers should make the appropriate adjustment in workers’ pay as soon as possible, but not later than March 31, 2013.  Please contact CPI-HR at 440-542-7800 for more information about payroll services.

 

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Nearly 100,000 Employment Discrimination Charges Filed in Fiscal Year 2012

The U.S. Equal Employment Opportunity Commission (EEOC) received 99,412 private sector workplace discrimination charges during fiscal year 2012 (which runs from October 1 to September 30), down slightly from the previous year.

Retaliation, race, and sex discrimination (including allegations of sexual harassment and pregnancy discrimination) were the most commonly filed charges. Termination was the most frequently-cited discriminatory action under all the laws the EEOC enforces, followed by “terms and conditions” of employment and then discipline.

Nondiscrimination Laws Enforced by EEOC
The laws enforced by the EEOC apply to employers who meet the threshold number of employees for coverage. For example:

For more information on how you can avoid employment discrimination charges in Ohio, contact CPI-HR at 440-542-7800 or fill out our online contact form and a benefits adviser and HR services specialist will contact you.

 

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Health Insurance Exchange Deadline Postponed for Employer

The U.S. Department of Labor (DOL) has delayed the original March 1 deadline for employers to comply with the new requirement under Health Care Reform to provide employees a written notice explaining certain information related to Exchanges. The timing for distribution of the notices is now expected to be late summer or fall of 2013.

Notice Delayed Pending Further Guidance
The law originally contemplated that employers would need to begin providing the notice to new employees at the time of hire beginning on March 1, 2013, and to current employees not later than March 1. However, a new set of FAQs makes clear that employers are not required to comply until further guidance is issued.

Availability of Model Notice for Employers
The DOL is considering providing model, generic language that could be used to satisfy the notice requirement. As an alternative, employers may be allowed to comply by providing employees with information using an employer coverage template that would be available for download in connection with the application process for an Exchange, Medicaid, and the Children’s Health Insurance Programs (CHIP).

It’s expected that future guidance for complying with the health insurance exchange notice requirement will allow for more flexibility and adequate time to comply. For more information on Healthcare Reform requirements taking effect this year, please contact CPI-HR about our compliance services at 440-542-7800.

 

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When Weather Strikes: 3 Employee Pay & Attendance Issues

It’s that time of year again, when snow and slippery conditions may make it difficult for your employees to travel to work. Consider the following guidelines that can help your company be prepared when bad weather strikes.

1. When an employee misses work due to bad weather conditions, whether the employee is entitled to be paid for the absence may depend on the employee’s exempt or non-exempt status.
Under the federal Fair Labor Standards Act (FLSA), employers are not required to pay non-exempt employees for hours they did not work, including when the office is closed due to bad weather.

Exempt employees generally must be paid their full salary amount if they perform any work during a workweek. However, an employer that remains open for business during a period of bad weather may generally make deductions, for full-day absences only, from the salary of an exempt employee who chooses not to report to work because of the weather. Deductions from salary for less than a full-day’s absence are not permitted.

If the business is closed for the day as a result of inclement weather, the employer may not deduct the day’s pay from the salary of an exempt employee. The general rule is that an employer who closes operations due to a weather-related emergency or other disaster for less than a full workweek must pay an exempt employee the full salary for that week, if the employee performs any work during the week. This is because deductions may not be made for time when work is not available.

2. Some states require employers to pay employees for showing up even if no work is available or there is an interruption of work and the employee is sent home.
Although payment for time not worked may not be required for non-exempt employees under federal law, some states do require that employees be paid for a minimum number of hours for reporting to work, even if there is no work that can be performed (such as when the office is closed) or the employee is sent home early, for instance, due to an impending storm.

Often called “reporting time pay,” these laws may apply to specific industries (e.g., manufacturing) or certain employees only, so it is important to check with your state labor department for requirements that may apply to your company before implementing any policy.

3. Plan ahead so your employees know what is expected of them and to help minimize disruption to your business.
Make it a priority to notify all of your employees, both exempt and non-exempt, of your company’s policy regarding employee attendance and pay during periods of inclement weather. Your policy should include information on how your employees can find out whether the office is open or closed, such as by email, radio broadcast, calling in to hear a recorded message, or other methods that all employees can access. Be sure to apply your policy consistently and fairly to all employees.

It’s also prudent to remind employees to use their best judgment and not to put their safety at risk when it comes to traveling to work during or after a storm. If possible, see if you can arrange for employees to work remotely from home on days when the weather makes travel dangerous.

For more issues related to employee compensation and Human Resources, consider the HR Genius, a tool offered by CPI-HR giving you access to HR topics every business should know.  Please contact CPI-HR at 440-542-7800 or fill out the online contact form and one of our benefit advisers will be in touch.

 

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Reminder: Employee Payroll Tax Cut Expires

The Social Security payroll tax cut for employees (which had been in effect since 2011) has expired as of the end of December 2012. As a result, the combined FICA tax rate for employees in 2013 is 7.65%, with the Social Security portion of the tax at 6.2% of earnings up to the first $113,700 of wages. And don’t forget that under Health Care Reform, for taxable years beginning after December 31, 2012, employers are required to withhold an Additional Medicare Tax (at a rate of 0.9%) from wages paid to an employee in excess of $200,000 in a calendar year.

Employers should confirm that payrolls will reflect the new tax rate(s) and watch for further updates on IRS.gov.  If you need further assistance, please call CPI-HR at 440-542-7800 or visit our HR Payroll Services page of our website.

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5 HR Compliance Resolutions for 2013

The New Year is a great time to take stock of your company’s compliance with important federal and state labor law requirements. Keep these resolutions in mind to help your company stay in shape in 2013:

  1. Give your poster wall a thorough check-up. Make sure all of your federal and state posters are up-to-date and the correct size. Check with your state labor department for any industry-specific poster requirements that may apply to your business.
  2. Stay on top of notice requirements. From summary plan descriptions (SPDs), to COBRA-related and FMLA-related notices, employers are required under various federal and state laws to provide employees with certain information about their benefits and responsibilities. Confirm that your employee communications are accurate, consistent, and in compliance with applicable law.
  3. Keep up with record-keeping. In addition to being a good business practice, employers are required to maintain certain types of employee records in order to comply with both federal and state law. Verify that your record-keeping procedures address any requirements related to confidentiality and how long to keep records.
  4. Review policies and procedures. Be sure your company policies and procedures comply with federal and state labor laws related to employee leave, equal employment opportunity, sexual harassment, worker safety and other requirements.
  5. Confirm that your workers are classified properly. Misclassifying employees as independent contractors can result in costly legal consequences. Also remember that an employee’s exempt or nonexempt status is based on his or her compensation and specific job duties–not job title.

Employers who have specific HR compliance concerns are encouraged to call CPI-HR, their trusted benefits advisor, at 440-542-7800 or fill out our contact request from online here: http://cpihr.com/contact.php.

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2013 Standard Mileage Rates

The IRS has issued the 2013 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on Jan. 1, 2013, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

  • 56.5 cents per mile for business miles driven
  • 24 cents per mile driven for medical or moving purposes
  • 14 cents per mile driven in service of charitable organizations

The rate for business miles driven during 2013 increases one cent from the 2012 rate. The medical and moving rate is also up one cent per mile from the 2012 rate. Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

 

Limitations on Use of Standard Mileage Rates
A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.

These and other requirements for a taxpayer to use a standard mileage rate to calculate the amount of a deductible business, moving, medical or charitable expense are found in Rev. Proc. 2010-51.

Additional Information
Notice 2012-72 contains the standard mileage rates, the amount a taxpayer must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that a taxpayer may use in computing the allowance under a fixed and variable rate plan.

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10 States Adjust Minimum Wage Rates for 2013

The following states have announced increases in minimum wage rates effective January 1, 2013:

  • Arizona: The minimum wage in Arizona will increase to $7.80 per hour, and $4.80 for tipped employees.
  • Colorado: The proposed state minimum wage is $7.78 per hour, and $4.76 for tipped employees.
  • Florida: The minimum wage rate will increase to $7.79 per hour in Florida, and $4.77 for tipped employees.
  • Missouri: The state minimum wage will rise to $7.35 per hour, and $3.675 for tipped employees.
  • Montana: The minimum wage rate in Montana will rise to $7.80 per hour.
  • Ohio: The state minimum wage will increase to $7.85 per hour, and $3.93 for tipped employees (except that the federal minimum wage of $7.25 per hour may be paid to employees whose employers gross $288,000 or less per year).
  • Oregon: The minimum wage will rise to $8.95 per hour in Oregon.
  • Rhode Island: The minimum wage rate in Rhode Island will increase to $7.75 per hour.
  • Vermont: The state minimum wage will rise to $8.60 per hour, and $4.17 for tipped employees.
  • Washington: The minimum wage in Washington will increase to $9.19 per hour.

Be sure to comply with any city or other local wage requirements (which may be higher than the state or federal minimum wage) that may apply to your business.

For more information, please contact your CPI-HR, Ohio benefits advisor , with any questions at 440-542-7800.

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