In the past couple months quite a few changes have been made in the HR arena and the time for implementation is now.

Regardless of the profitability of your business, the recently passed American Recovery and Reinvestment Act of 2009 (ARRA) has two provisions that impact you and your employees.  Rather than being paid out in a lump sum, the economic stimulus package is to be delivered throughout the year through adjusted tax withholding tables beginning no later than April 1, 2009.

"Making Work Pay" is a tax credit that is 6.2 percent of earned income, up to $400 per person per year. A married couple can get up to $800 total, even if only one spouse works. The credit is only good for 2009 and 2010.  Those who are self-employed can get the credit by reducing their estimated tax payments or claiming it when they file their 2009 tax return.

ARRA also provides for a 65% reduction in COBRA premiums for certain assistance eligible individuals for up to 9 months. An assistance eligible individual is a COBRA "qualified beneficiary" who meets all of the following requirements:

• Is eligible for COBRA continuation coverage at any time   during the period beginning September 1, 2008 and ending December 31, 2009; 
• Elects COBRA coverage (when first offered or during the additional election period),
  
• and Has a qualifying event for COBRA coverage that is the employee's involuntary termination during the period beginning September 1, 2008 and ending December 31, 2009.

And, it's not too early to recognize that the minimum wage increases on July 24 from $6.55 to $7.25

For forms and more information, contact your payroll provider or visit the following federal websites:  ARRA or  COBRA.