I find it interesting……..

that there are actually ads on tv with companies promoting the fact that they have gotten taxpayers out of paying their various tax liabilities.  “I owed the IRS $180,000 in back taxes, and so-and-so (insert advertiser name here) made it so I only had to pay $3,500!”  They act as if they just won the lottery or something.  What has society come to when we can go on national television and BRAG about how we got out of paying our tax obligations to the federal government?!  It used to be that keeping money from the IRS was done “under the table” , offshore, or whatever……  Now it’s done with a call to 1-800- SCAM.

Does it still make sense to play by the rules anymore when those that just don’t care are rewarded??

Paying Employees During Inclement Weather

Here we go…..bad weather.  Next time your organization does payroll, it may be necessary to ask the question:  do you have to pay your employees if they don’t come to work due to severe weather conditions?  The answer depends on a couple of factors:  (1) Is the employee exempt or non-exempt, and (2) was the business open or closed? If the employee is non-exempt, it’s simple.  These employees do not have to be paid for time taken off due to bad weather, even if you close the business.  Your obligation to non-exempt employees is to ensure they are paid appropriately for hours worked.  So, outside of any policies you may have stating otherwise, there is no requirement to pay these employees for time not worked. Exempt employees are different.  If you close your business for the day, you still must pay exempt employees their full pay.  You can charge the time to vacation, but if you don’t offer vacation or if you provide vacation but the employee has no time off available, you still must pay the employee for the entire day.  (Exceptions exist if you are closed for a full week, but the above applies for anything less than a full week). If your business is open and exempt employees do not come in because of the weather, they can be docked for a full day’s absence (or count it as a vacation day, if available).  Deducting an employee for a partial day’s absence is not permitted — if they come in late or leave early due to the weather, they still must be paid for the entire day if any work was performed during the day. The concern over whether or not your business is closed is because the Department of Labor says exempt employees cannot have their pay docked when they are “ready, able, and willing to work”, which would include if your business is closed.  If your business is open, however, and the employee does not come in, the DOL recognizes that as an absence for personal reasons, which can be docked (again, only in full-day increments). This is a general overview, and there are some additional quirks, depending on the circumstances.  If you have any questions about handling a specific case in your business, please let me know.

Cole James Associates, Inc. provides Human Resources services and support to small and medium sized businesses.  To learn more about these services, please visit our website at www.colejamesassociates.com or call (804) 339-5576.

HR To-Do’s for 2010

It’s hard to believe we are rapidly closing out 2009. As you plan your activities for 2010, I’ve outlined some critical HR-related items that need to be on your to-do list. As always, I am here to assist your organization in any of the processes below, and I encourage you to contact me if you would like to take some proactive steps on these matters. 1. Harassment Training: The EEOC and courts have ruled time and again that having a policy against harassment that is well communicated, coupled with periodic employee training is at the top of a short list of things employers can do to defend themselves in a harassment claim. If your employees have never been trained, or if it has been more than a year since your policy was last clearly and visibly communicated, make this a first quarter must-do. 2. Job Descriptions: Job descriptions are critical for many reasons — they help establish a baseline for acceptable performance and what functions are essential for the job (a legal necessity for employers with 15+ employees). Such measures help protect the business by defining expectations and providing a vehicle for documenting poor performance. If you already have job descriptions, now is a great time to review them to ensure they still accurately reflect what the employee is actually doing, including whether the job has evolved into a non-exempt (“hourly”) position and can no longer be considered exempt (“salaried”). For example, has a job become more automated by software? If so, it’s possible that a position that was once exempt no longer meets the requirements for that status. Even if you don’t have job descriptions, going through the exempt vs. non-exempt exercise is absolutely critical for all employers. 3. Handbook Development or Review: A handbook is essential for protecting employees and protecting the business from its employees. In just about any termination or other claim, the attorney, unemployment office, or anyone else will want to see the written policy the employee violated. Don’t put yourself in a position where you can’t prove that the employee knew about the policy – “common sense” is not a winnable defense. If you already have a handbook, this is the time to review it for legal updates – there were critical changes in the law in 2009. Also ensure it continues to reflect the actual practices and values of the organization. 4. I-9 Forms: Audit each form to ensure that every employee hired or rehired after November 6, 1986 has a form and that it is completed in its entirety. An increase in audits in 2010 has been announced, and the 72-hours notice you will receive of an audit is not enough time to correct any problems. Other Resolutions You Should Make 1. Document everything. Whether it’s on paper, in your Outlook calendar, or another method, document all employee issues and conversations, including verbal warnings. You never know what will come back to haunt you, and when the burden of proof is on you, your memory isn’t considered a reliable witness. 2. Under-reacting to a situation is just as dangerous as over-reacting to it. Letting issues go sets you up for claims of discrimination and arbitrary treatment. Further, problems tend to gradually increase in severity, and you can’t use against an employee what you have previously failed to document or address. 3. Keep emotions out of employment decisions. Giving a merit increase to a poor performer because times are tough, overlooking policy violations because the employee is having a hard time at home, or keeping employees who should be terminated because it seems easier than starting over are examples of good intentions that have dangerous consequences. Wanting to do right by your employees is normal, but not doing what is best for the health of the business may eliminate the need for any employees.

Cole James Associates, Inc. provides Human Resources services and support to small and medium sized businesses. To learn more about these services, please visit our website at www.colejamesassociates.comor call (804) 339-5576.

Check it out – SBS pen!

Here’s a sample of what we’ve done with promotional materials in 2009.  Pretty nice….you want one, don’t you!

2009 Reflections

I figured since I’m homebound due to a major snowstorm this weekend, now would be a good time to share a few thoughts.  I haven’t been very good with my blog posts, but how can an entreprenuer be expected to own & manage several businesses AND keep up with all his social media responsibilities!!??  I started with this blog – moved onto LinkedIn & Facebook – and have recently gotten started on Twitter.  Finding time & content to keep all four sites current is nearly impossible.  My favorite of the bunch is Twitter.  I haven’t gotten any new business out of it yet, but the jury is still out.

Steiner Business Solutions has had a great 2009.  Our revenue growth over last year will probably end up around 60%.  Due to the increase in clients, I’ve been able to bring my tax work in-house.  This will benefit both my business and the service I can provide to clients.  I’ve also managed to run the business with minimal overhead.  We don’t need large offices, fancy paintings on the wall, expensive clothes, and mahogany desks to properly serve our clients.  Great rates, convenience, and superior customer service (not very common in our industry) will continue to be the foundation and driving force of Steiner Business Solutions.  There haven’t been enough options for business owners, and I feel many are being taken advantage of.  I’ve witnessed this first hand on too many occasions since starting this business 3 years ago and I’m determined to “weed out” these providers.

I devoted a great deal of money this year to Sales & Marketing – participating in trade shows, new brochures, updated website, company shirts, and various other promotional items to hand out.  I truly feel that if I get the opportunity to sit down with a business owner for 30 minutes and explain our concept and services, we’ll earn their business.  My confidence is backed up by a closing ratio near 100%.  I know of only one instance this year when I lost out on a bid to a competitor – and believe me, I’ll never forget it.  For those that know me – I hate to lose.  Losing business only motivates me and focuses me on the things I need to do to grab more market share in 2010.

Just as important as getting new clients is servicing and retaining our current clients, and we’ve been very successful in doing that this year.  We’ve got some great clients!  They have been receptive, cooperative, and fun to work with.  I value their business and loyalty and we take great pride in watching them successfully grow their companies.  Thank you SBS clients for a great 2009!

Dan Steiner

New Homebuyer Credit Available

On November 6, the President signed into law H.R. 3548, the ”Worker, Homeownership, and Business Assistance Act of 2009.” The new law could it make it easier for you or someone in your family to buy a home, or to sell a home.  The new law makes four important changes to the homebuyer credit:

(1) New lease on life for the homebuyer credit. The homebuyer credit is extended to apply to a principal residence bought before May 1, 2010. The homebuyer credit also applies to a principal residence bought before July 1, 2010 by a person who enters into a written binding contract before May 1, 2010, to close on the purchase of the principal residence before July 1, 2010. In general, a home is considered bought for credit purposes when the closing takes place.

(2) The homebuyer credit may be claimed by existing homeowners who are “long-time residents.” For purchases after November 6, 2009, you can claim the homebuyer credit if you (and, if married, your spouse) maintained the same principal residence for any 5-consecutive year period during the 8-years ending on the date that you buy the subsequent principal residence. There is no requirement for your current home to be sold in order to qualify for a homebuyer credit on the replacement principal residence. The maximum allowable homebuyer credit for qualifying existing homeowners is $6,500 ($3,250 for a married individual filing separately), or 10% of the purchase price of the subsequent principal residence, whichever is less.

(3) The homebuyer credit is available to higher income taxpayers. For purchases after November 6, 2009, the homebuyer credit phases out over much higher modified AGI levels, making the credit available to a much bigger pool of buyers. For individuals, the phaseout range is between $125,000 and $145,000, and for those filing a joint return, it’s between $225,000 and $245,000.

(4) There’s a new home-price limit for the homebuyer credit. For purchases after Nov. 6, 2009, the homebuyer credit cannot be claimed for a home if its purchase price exceeds $800,000. It’s important to note that there is no phaseout mechanism. A purchase price that exceeds the $800,000 threshold by even a single dollar will cause the loss of the entire credit.  The new purchase price limitation applies whether you are buying a first-time principal residence or are a qualifying existing homeowner purchasing a replacement principal residence.

Other homebuyer credit changes. The new law includes a number of new anti-abuse rules to prevent taxpayers from claiming the homebuyer credit even though they don’t qualify for it. The most important of these are as follows:

• Beginning with the 2010 tax return, the homebuyer credit can’t be claimed unless the taxpayer attaches to the return a properly executed copy of the settlement statement used to complete the purchase of the qualifying residence.
• For purchases after Nov. 6, 2009, the homebuyer credit can’t be claimed unless the taxpayer has attained 18 years of age as of the date of purchase (a married person is treated as meeting the age requirement if he or his spouse meets the age requirement).
• For purchases after Nov. 6, 2009, the homebuyer credit can’t be claimed by a taxpayer if he can be claimed as a dependent by another taxpayer for the tax year of purchase. It also can’t be claimed for a home bought from a person related to the buyer or the spouse of the buyer, if married.
• Beginning with 2009 returns, the new law makes it easier for the IRS to go after questionable homebuyer credit claims without initiating a full-scale audit.

What hasn’t changed. The tax law still gives you the extraordinary opportunity to get your hands on homebuyer credit cash without waiting to file your tax return for the year in which you buy the qualifying principal residence. Thus, if you buy a qualifying principal residence in 2009 you can treat the purchase as having taken place this past December 31, file an amended return for 2008 claiming the credit for that year, and get your homebuyer credit cash relatively quickly via a tax refund. Similarly, you can treat a qualifying principal residence bought in 2010 (before the new deadlines) as having taken place on December 31, 2009, and file an original or amended return for 2009 claiming the credit for that year.

What also hasn’t changed is the need for getting expert tax advice in negotiating through the twists and turns of the new beefed-up homebuyer credit. Please call us today for details on how the homebuyer credit can help you or your family members.