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| BestHR Solutions for Management |
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Spring 2009 Volume 75 Published By: JorgensenHR Editor: Deborah Hildebrand | |
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Linda Harris, President
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The following turnover costs summary was mainly sourced from Jack Phillips Center for Research. The study puts turnover cost ranges as percentage of annual base salary for different job types and categories:
Entry level-non skilled worker; 30-50%
Service/Production worker; 40-70%
Skilled Hourly; 75-100%
Clerical/Administrative; 50-80%
Professional; 75-125%
Technical; 100-150%
IT Specialist 200-400%
Supervisor; 100- 50%
Department Manager; 125-200%
Source: April 2009 blog. Human Capital Strategy | |
JORGENSENHR 25 YEARS OF SERVICE
JorgensenHR has reached the quarter-century mark!
JorgensenHR started off in a spare bedroom of
Karen Jorgensen's La Crescenta home as a labor of love, providing consulting services to a handful
of local clients. The business grew by adding a
handful of consultants to the practice and expanding
the client list tenfold. Having grown into and out of a few
offices, the company is now located in a suite of
offices in beautiful and bustling Valencia, CA.
We have reached out to well over 2500 clients and
have assisted thousands of organizations in over eighteen industries with support on a project-by-project
basis, monthly retainers, investigations
(CA Private License # 23947) and ongoing management consulting securing our spot among the HR elite.
We thank each of you for your business and support over
the past 25 years and for helping
us achieve the success to be where we are now.
JorgensenHR is making headlines!
May 2009, Linda Harris, President of JorgensenHR,
was awarded "Best Business Leader - Small Company" by San Fernando Valley Business Journal.
Congratulations Linda! |
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NEW I-9 FORM
Last December, the Department of Homeland Security issued an interim final rule regarding the types of documents employers may accept for new employees or for re-verifying current employees when there is a need due to expiring documents. There is no need to re-verify all existing employees.
The interim rule went into effect April 3, 2009 with a new I-9 form, with a revision date of 2-02-09. That means that your firm should be using the new I-9 form and should accept only the documents listed on this new form as of that date. No other version of the I-9 form is valid and you will be subject to financial penalties if you continue using older versions for new or re-verified employees.
As an employer, you should:
- make sure you understand all acceptable documents for proof of eligibility to work in the United States;
- never specify the forms an employee must provide as their proof;
- always maintain I-9 forms in a secure file separate from the employee's personnel file;
- carefully examine documentation to verify that every new hire is either a U.S. citizen or authorized to work in the U.S.;
- properly complete I-9 forms (available in English and Spanish) for each new employee.
- ensure that any expiration date on a document provided is not prior to the employee's date of hire.
Forms can be downloaded from the USCIS.gov website or provided to you by JorgensenHR. If you have questions regarding I-9 forms or the verification process, contact Linda Thibodeaux at JorgensenHR at (661) 600-2070.
Source: Wildman Harrold, http://www.wildman.com/bulletin/010509 | |
COBRA SUBSIDY MODEL NOTICES
The new stimulus package, called the American Recovery and Reinvestment Act of 2009 (ARRA), provides COBRA subsidies for certain employees terminated or laid off between September 1, 2008 and December 31, 2009. The subsidy reduces an employee's COBRA premium by 65 percent for up to nine months provided that the employee meets the eligibility requirements. Employers could receive a credit for all subsidy payments made on behalf of COBRA participants.
The U.S. Department of Labor (DOL) issued new model COBRA notices that employers must send to all employees who have separated from employment since September 1, 2008, and to employees who separate from employment in the future. The four new COBRA Subsidy Model Notices include:
- The COBRA General Notice. This full version form contains both the subsidy language and the COBRA General Notice. Plans subject to the Federal COBRA provisions must send the General Notice to all beneficiaries, not just covered employees, who experienced a qualifying event at any time from September 1, 2008 through December 31, 2009, and who have not yet elected COBRA coverage.
- The COBRA General Notice (abbreviated). This shorter version contains only the additional information relating to the subsidy that employers must send to eligible employees. This version may be sent to individuals who have left since September 1, 2008, AND who have already elected and still have COBRA coverage.
- The Alternative Notice. For insurance issuers that provide group health insurance coverage this Alternative Notice must be sent to those who become eligible for continuation coverage under State law. This form should be used by employers who have 2 to 19 employees and are subject to Cal-COBRA.
- Notice in Connection with Extended Election Periods. If you have a benefit plan subject to the federal COBRA provisions, you must send this notice by April 18, 2009 to assistance-eligible individuals or those who would be eligible if COBRA continuation election were in effect AND who had a qualifying event between September 1, 2008 and February 16, 2009 and either didn't elect COBRA continuation or elected it and subsequently terminated it.
Be sure your company is up to date on the latest COBRA notices and send out those that are appropriate to each situation. For assistance with specific questions regarding COBRA coverage and the new COBRA notices, please contact JorgensenHR at (661) 600-2070.
Source: California Chamber of Commerce, 2009 |
ECONOMIC STIMULUS PACKAGE AND PAYROLL ADMINISTRATION
Wondering how the new economic stimulus package affects you and your business beyond just impacting COBRA administration?
In addition to the previously mentioned COBRA notices, most workers should be getting a little extra in their paychecks, thanks to the Making Work Pay credit included in the stimulus bill.The credit is equal to 6.2 percent of earned income - from a job or self-employment - up to a maximum of $400 per person per year. A married couple can get up to $800 total, even if only one spouse works. Income limits apply. The credit is good for 2009 and 2010.
The government is issuing this credit by slightly reducing the amount of federal income tax withheld from employee paychecks. The Internal Revenue Service published new withholding tables reflecting the credit, and employers had to start using them by April 1.
Unfortunately, some people might have to pay all or some of the credit back when they file their taxes next year. Some people are not eligible for the credit, including high-income households, dependents and nonresident aliens. But some of these people might be getting the credit in error because the withholding tables can't always distinguish between who is eligible and who is not.
If an employee gets the credit in error and does nothing about it, they could get a smaller-than-normal refund or a bigger-than-usual tax bill when filing their 2009 return. The credit phases out between $75,000 and $95,000 in adjusted gross income for single filers and between $150,000 and $190,000 for joint filers. If the adjusted gross income, which includes income from investments and other sources outside their job, exceeds those amounts, they are not eligible.
The people most likely to have this problem are couples with two working spouses, workers holding two jobs at the same time, dependents, retirees having tax withheld from their pension payments and people who are working and receiving Social Security.
The people least likely to have this problem are couples with one working spouse and single people who have one job at a time and don't have a lot of unearned income.
Who gets the credit?
How can an employee tell if they are getting the credit? Compare a paycheck from after April 1 with one from February and see if the federal income tax withholding has dropped. For most people getting the credit, the sum withheld will drop by about $10 to $15 per week.
If it appears that employees are getting the credit in error, they can file a new Form W-4 to avoid a tax surprise. Rather than using the Form W-4 instructions, they should use the new withholding calculator the IRS has provided: IRS Witholding Calculator. Since this is all new and complex, employers are urged to consult with a specialist in payroll tax matters, or their payroll provider to fully undersatnd their obligations and the potential impact for their employees under this new law. |
CAL-OSHA HEAT REGULATIONS
While Cal-OSHA's heat regulation for companies with outdoor workers are extensive, as summer approaches we thought it would be the perfect time to remind those of you affected about your obligations.
The basic requirements are that you must provide access to drinking water and shade, and that all your procedures must be in writing. More specifically you need to provide:
- Four cups of cool, sanitary drinking water per employee per hour for the entire shift;
- Access for a period of no less than five minutes to a shaded area that is either open or provides ventilation or cooling;
- Your compliance procedures in writing with clear and precise directions, which may be included in your Injury and Illness Prevention Program (IIPP).
For assistance with specific questions regarding Cal-OSHA and general safety issues or to get assistance preparing or updating your IIPP, please contact JorgensenHR at (661) 600-2070.
Source: California Chamber of Commerce, 2009 |
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ADJUSTING WORK SCHEDULES AND PAY MAY JEOPARDIZE EXEMPT STATUS
Without intending to do so, sometimes employers jeopardize the exempt status of employees by requiring them to work less than a full week of work AND then make corollary deductions from their salaries.
Any time an exempt employee is ready, willing and able to work and the employer does not have work available, deductions may not be made for the time when the work is not available. If an employer does not pay the exempt employee his full salary, the employee will lose his exempt status.
Therefore, you should not reduce the salary of an exempt employee and mandate time off from work or you will cause the employee to lose his exempt status.
If you are considering altering working arrangements for your staff, please free to contact JorgensenHR for assistance.
Source: California Chamber of Commerce, 2009
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| ARBITRATION AGREEMENTS
Here's a reminder that all California employers should review their arbitration agreements to make sure they are up to date with current law. If you're like many employers you may require employees to sign agreements to arbitrate employment related claims. However, if the arbitration agreements contain invalid clauses, you could still wind up in court.
Two recent California court cases found that the arbitration agreements for two companies were invalid, just a reminder that employment arbitration agreements continue to be a subject of litigation and close judicial scrutiny. Employers should be sure to review their policies and agreements with their legal counsel to ensure they are carefully drafted and enforceable.
Source: California Chamber of Commerce, 2009 |
REMINDERS: Sexual Harassment Training - California companies employing 50 or more workers are still required to provide mandatory Sexual Harassment Training to all supervisory staff every two years. JorgensenHR is fully qualified under AB1825 and subsequent defining regulations to provide this 2 hour interactive training session. We offer onsite classes to client companies with 10 or more supervisors, and provide group public sessions to clients with only a few supervisors, for those newly hired or transferred supervisors, or those who missed the onsite session.
If you last received training prior to the summer of 2007 or now a covered employer, call Linda Thibodeaux to book an onsite session for your company now! To check dates and reserve a spot in our public group sessions click on the link below. | |
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