Gordon A. Carpenter, Attorney and Counselor at Law
Legal Alerts - Legal Reliefs
No. 8 -- November 2009
In This Issue
Employee Gifts and Parties
My Gift!!
Year-end Reviews
Employees

Quick Contacts

508-771-6272
  401-486-4002 [Cell]
gordon@gacarpenter.com

401-453-1700 [RI office]
Greetings!

The Holiday Season is  here!  Time to remind all about employee gifts and parties.  And for me to give most of you a gift, as well.

Then, for many readers a pique - the typical year-end/next-year planning should include a look at entity status.  And a review of wireless communication policies.

Finally, ideas for your employment hiring procedures.

I urge each business owner to visit my website and prior Newsletters archived on my website where you will find additional items of interest to business owners, including more Alerts and Reliefs.  Feedback is welcome of course, and if there is an issue you would like me to discuss, just ask.  Find out if I can meet your challenge.  I'm only an e-mail away and never a charge for an initial telephone or face-to-face consultation.
 
Thanks for your attention.

To each and all, a safe and sane Holiday Season!!
smiley 5.06Gordon
EMPLOYEE GIFTS AND PARTIES
 
GIFTS -- Many businesses reward employees with Holiday Bonus checks.  Run through payroll, of course!  This is the proper way.  Long ago, the government successfully concluded that employees are not people to whom a business gives gifts!  So, the $50 fine restaurant gift certificate is really compensation and is subject to all normal payroll withholdings and payments and income reporting.  That may turn your nice gesture to anger when the employee finds out!

By the way, "gifts" to customers or vendors must be less than $25 per year to be expensable! 

The lesson -- don't let your intended generosity create problems for you or your employees -- the standard Holiday Bonus check is the safest route!

PARTIES -- Holiday parties pose additional risks!  Liability risks!!  If you leave a trail that suggests that attendance is "expected," that can leave your business exposed to liability [workers comp, third party liability, etc.] for whatever happens at or after that event.  Best practices -- Be clear that attending an event is purely voluntary.  Limit company paid drinks to two.  Monitor all drinking and provide cabs or rides for those who should not be on the road.  Stop any inappropriate behavior.  Exercise common sense!!
MY GIFT!!!

Pssst.  My gift is to share a secret.

Ready?  As a Massachusetts small business, you can stop paying sales taxes on purchases of electricity, gas and heating fuel!!

If your annual revenues are less than $1 Million and you have less than 6 employees you can --and quite easily.  Press this link, download the form, read instructions and complete [one for each supplier].  Then deliver to NStar, National Grid and your fuel oil dealer [keep copies for proof].  Be sure to check your future bills to be sure your exemption is being honored.  Do this before January and it's good for all of 2010 [unless you fail the ongoing threshold tests].  Then do it again for 2011.

Oh, by the way, you're most welcome!!
YEAR-END REVIEWS

ENTITY STATUS -- If your business is in a corporation or limited liability company [LLC] you're smart.  But if you are not, please pause and realize that every move you or any employee makes for your business exposes you to losing everything you have -- yes, more than your business, lots more, everything!!!

You need to limit your liability and you can and should with the entity structure right for your business.  I've led many business people through this complicated minefield -- and with my experience I can help you make the right choice.  Do not try to do this yourself, please, and unfortunately many accountants give incorrect guidance.  In other words, plain and simple, call or e-mail me.  I never charge for an initial face-to-face consultation.

WIRELESS COMMUNICATION POLICY -- First we had "T" and rail accidents, then pilots overshooting Minneapolis!!  Some sad, some stupid, some even a little funny! 

It's time for you to adopt a firm use policy for your business!  [All 3 million federal employees are now subject to similar rules.]  This ought to improve employee productivity and protect you from lawsuits arising from accidents.

General recommendation -- Limit cell phone use only for direct company business.  No texting or e-mailing by a driver unless vehicle is parked!

Consider this or similar and be sure all employees are aware.
EMPLOYEES

First
You likely are aware that Wal-Mart just suffered a $2 Million judgment in a Massachusetts discrimination suit.  How could such a large company have messed up so badly?  It's easy if you don't follow your common sense rules in dealing with employees.  These are
  • Whatever rules you have - Communicate And Follow Them
  • Treat employee complaints seriously - Investigate Them
  • Do not complicate terminations - Be Straightforward and Document Them.
  • Avoid Disparate Treatment.
Second
As we struggle out of our economic malaise, many will be hiring employees.  The labor candidate pool should be large -- but how to find the "right" one, and not the "problem"?
  1. Be clear about what's needed for the job.  A bookkeeper needs different qualities than the landscape assistant, not only in skill sets but also in background.  [A minor theft conviction for the landscaper may be OK, but surely not for the bookkeeper!]
  2. Use an application that itself complies with law.  [These are easy to get -- check major employers (CVS, Dunkin Donuts, Best Buy, etc.) on the the internet for forms.]
  3. Do a background check - planned and done with intelligence.
    • You ought to get the prospect's consent to a full background check, including if desired pre-employment drug screening.  I can provide a standard form.
    • Some adult conviction records are available in Massachusetts [CORI] [push this link] and Rhode Island [BCI] [procedure explained here]. 
    • Hiring must be conditional on proof of eligibility to work.  This is an employer's responsibility.  I've written on this before - Aye, aye - I-9!
Your business recovery and growth depends on your having the best people to help.  Find them!!

Third
Speaking of  I-9s, in July 2009 the US Immigration and Customs Enforcement [ICE] announced that it is actively conducting random and targeted audits of employer I-9 compliance in every state, a policy shift focusing on employers!  This would be a very good time to review your employee records for compliance.  Need I say more?

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My website has much more information about my practice and credentials as a seasoned business attorney and counselor. Just click on the link below and you'll be there.
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REMEMBER --
Other Legal Alerts and Legal Reliefs and all prior Newletters are available at my website.