employeeMAX Newsletter

All The News Our Clients Need to Know
May, 2012

NLRB Employee Rights Posting Requirement Delayed---AGAIN

The DC Circuit Court of Appeals has ruled that employers do not have to place posters in the workplace informing employees of their rights to unionize - at least for now. The rule, which had been scheduled to take effect on April 30, 2012, will not take effect until the legal issues are resolved. There is no new deadline for the posting requirement at this time.

Employee Business Expenses May Qualify for a Tax Deduction

An employee who itemizes deductions may be able to deduct certain work-related expenses. The IRS provides information that can help an employee determine which expenses may be deducted as employee business expenses.

Qualifying Expenses for Itemized Deductions
Expenses that may qualify for an itemized deduction for employees include: 

• Business travel away from home
• Business use of the employee's car
• Business meals and entertainment
• Travel
• Use of the employee's home
• Education
• Supplies and tools
• Miscellaneous expenses

Employees must keep records to prove the business expenses deducted. Only employee business expenses that are in excess of 2% of the employee's adjusted gross income can be deducted.

Reimbursement of Expenses
If an employer reimburses an employee under an accountable plan, the employee does not include the payments in his or her gross income, and may not deduct any of the reimbursed amounts. In an accountable plan, an employee must meet the following three requirements:

The employee must have paid or incurred expenses that are deductible while performing services as an employee,

 The employee must adequately account to the employer for these expenses within a reasonable time period, and

 The employee must return any excess reimbursement or allowance within a reasonable time period.

If the plan under which the employee is reimbursed by an employer is non-accountable, the payments received should be included in the wages shown on Form W-2. The employee must report the income and itemize deductions to deduct these expenses.

For more information, please see

IRS Publication 529, Miscellaneous Deductions

FaceBook and an Employer's Right to Policies

 by: Maria L. Novak

According to a new federal appeals court ruling, employers can put limits on what employees can post on social media sites.  The decision comes on the heels of the National Labor Relations Board's charge that a company violated labor laws after firing an employee who posted negative comments about her supervisor on Facebook. That case was settled in the employee's favor before it got to the hearing stage. And it made a lot of employers nervous about just how far they could go to set limits on employees' use of social network sites. 

The recent case, as heard in federal appeals court in Georgia, involved a probationary firefighter in Savannnah who posted photos of herself in uniform on her Facebook page. Problem was, she also posted revealing photos of herself, including at least one in which she appeared to be nude.

An anonymous tipster let Savannah Fire Department officials know that the woman's postings might conflict with the way the department wished to be portrayed. Her superiors decided to give her an oral reprimand, the mildest step in the department's progressive discipline process. When confronted, however, the woman became "defensive and combative," claiming she'd been singled out -  other male firefighters had posted photos related to the department. But she refused to name them. She was fired for insubordination.

The woman sued, claiming gender discrimination. That claim was dismissed. But here's the part that's of real interest to employers: The court confirmed that an employee can be fired for violating an employer's policies on photos posted on a public website.

So what do you do?  An employer's social media policy should clearly define the limitations on employees' work-related use of social media channels. Areas to cover include:  Requiring employees to identify their association with the employer if using social media to comment on products and services,

Unless the employee's blogs and posts as reviewed by the employer, employee should be required to use disclaimers that his or her views do not represent the views of the employer, Set specific rules on the use of photographs and names of co-employees or customers, and Remind employees of the employer's right to monitor their social media postings and other online activities for compliance with the employer's policies.

One word of caution: Make sure your policy doesn't restrict employees' right to engage in "protected concerted activity" under the National Labor Relations Act - -  in other words, you can't stifle your workers' rights to discuss workplace issues.

For more information on your Employee Handbook and Social Media Policies, please contact Maria Novak at MariaNovak001@yahoo.com.

News For employeeMAX Clients

We strive to provide our clients with pertinent information on our Company, the Payroll Industry, and other Human Resource information.  In particular, in this issue, we discuss the IRS Rules for retaining payroll records, Tax Deductions for Employee Business Expenses, FaceBook Policies for Employers, and our ongoing feature article from our benefits partner, The Business Benefits Group (BBG) Fairfax VA. On behalf of the entire EMPLOYEEMAX team, I thank you for your business and we look forward to providing you with superior payroll and HR services and exceeding your expectations.  Sincerely, Bob Curran, President & CEO Upcoming Classes         Report Writer       06/07/2012    11 AM ET      HR & Benefits Class       05/24/2012  11 AM ET                                                    06/21/2012  11 AM ET                   To register or for more information, please contact Bobbie Smith, CPP at Bobbie.Smith@EmployeeMax.com

Spring Cleaning Your Payroll Records (IRS Rules)

Spring is a great time to clean up old files. Which records can you destroy, and which records must you retain? The Internal Revenue Code (IRC) requires all employers that withhold and pay federal income, social security, and Medicare taxes maintain certain records for each employee. Failure to meet these requirements can result in sizable penalties and large settlement awards if you are unable to provide the required information when requested by the IRS or in an employment-related lawsuit. Income, Social Security, and Medicare taxes:  Employers must keep income, social security, and Medicare tax records for at least four years after the due date of the employee's personal income tax return (generally, April 15) for the year in which the payment was made: · The employer's Employer Identification Number (EIN). · Employee name, address, occupation, and social security number. · The total amount and date of each payment of compensation and any amount withheld for taxes or otherwise. This should include reported tips and the fair market value of non-cash payments. · Amount of compensation subject to withholding for federal income, social security, and Medicare taxes, and the corresponding amount withheld for each tax (also the date withheld if withholding occurred on a different day than payment). · The pay period covered by each payment of compensation. · If applicable, the reason(s) why the total compensation and the taxable amount for each tax rate are different. · The employee's Form W-4. Employee's Withholding Allowance Certificate. · Each employee's beginning and ending dates of employment. · Any statements provided by the employee reporting tips received. · Information regarding wage continuation payments made to the employee by an employer or third party under an accident or health plan. This should include the beginning and ending dates of the period of absence from work and the amount and weekly rate of each payment (including payments made by third parties). Request for Federal Income Tax Withholding from Sick Pay. · Fringe benefits provided to the employee and any required substantiation. · Employee requests to use the cumulative method of wage withholding. · Adjustments or settlements of taxes. · Copies of returns filed (on paper or electronically), including Forms 941 (with Schedules B, D, and/or R, as applicable), 943, 944, 945, 941-X, W-3, Copy A of Form W-2, and any Forms W-2 sent to employees but returned as undeliverable. If you can electronically reproduce the undeliverable Forms W-2, you may destroy the originals. · Amounts and dates of tax deposits. Unemployment tax: Employers subject to the Federal Unemployment Tax Act (FUTA) must also keep the following records for at least four years after the due date of Form 940 or the date the required FUTA tax was paid, whichever is later: · The total amount of employee compensation paid during the calendar year. · The amount of compensation subject to FUTA tax. · State unemployment contributions made, with separate totals for amounts paid by the employer and amounts withheld from employees' wages. Currently, Alaska, New Jersey, and Pennsylvania require employee contributions. · All information shown on Form 940. · If applicable, the reason why total compensation and the taxable amounts are different. DOL, State Requirements, There are also record retention requirements set by the Department of Labor (DOL), as well as wage-hour and unemployment insurance agencies at the state level. You can read the DOL.s rules by visiting www.dol.gov/dol/topic/wages/wagesrecordkeeping.htm.   Links to state agencies can be found by visiting www.americanpayroll.org/weblink/statelocal-wider [SSA/IRS Reporter, Spring 2012; www.irs.gov/pub/irs-pdf/p1693.pdf].

Interviewing Applicants: "5 Do's & Don'ts"

Business Benefits Group Conducting effective interviews helps to ensure you are hiring the best-qualified candidate for the job. An interview should provide as much information as possible about an applicant's potential to perform the duties of a particular position. As an employer, it is also important to understand the types of questions and topics that should be avoided in an interview to prevent potential claims of discrimination. The most valuable interview is objective and permits the interviewer to determine the knowledge, skills, and all other qualifications of a prospective employee relevant to the position. The following do's and don'ts can help you make the most of your interviews and stay in compliance with the law: · DO create a comfortable environment for interviewing. Whether you conduct the interview in an office or conference room, make sure the area is neat and quiet. When the interview begins, be sure not to take any calls or respond to emails. Offering the candidate something to drink - water or coffee - is a small courtesy that demonstrates consideration and thoughtfulness. · DON'T ask personal questions. Be especially careful of this at the beginning of the interview. Although it is important to have a friendly demeanor when you meet the candidate to help put him or her at ease, engaging in too much small talk may lead you to inadvertently ask a question that can border on areas that may potentially be considered discriminatory (such as questions relating to the applicant's marital status, political beliefs, etc.). · DON'T ask discriminatory questions. Any questions regarding race, religion, age, ethnic group, national origin or ancestry, political affiliations, military service, disability or other sensitive topics may be discriminatory and should be avoided. Also be careful not to ask any questions that could elicit such information (for example, questioning an applicant about the origin of an unusual surname). If an applicant volunteers irrelevant or inappropriate information during an interview, disregard the information and do not write it down. · DO keep the conversation focused on job-related information. In reviewing your interview questions, ask yourself if the information you are seeking is really needed to evaluate the candidate's qualifications, skills, and ability to meet the challenges of the job. Ask only for information you intend to use in making a hiring decision and know how you will use the information to make that decision. You should also be prepared to discuss the responsibilities and functions of the job opening and your company. Avoid asking questions that are not relevant to the performance of the essential functions and responsibilities of the position. · DO provide the candidate with information regarding next steps. After you have finished asking all of your questions, be sure to give the candidate an opportunity to ask any final questions. To close the interview, provide a general timeframe for getting back in touch with the candidate regarding any next steps and decisions. Be sure to also thank the candidate for his or her interest in the job and your company. If you have specific questions regarding illegal interview questions or how to conduct a lawful interview, please consult with a knowledgeable employment law attorney. BBG, offering a full line of services from integrated HRIS to full business insurance products, is a proud Payroll Partner with Employer Services Online.   For further information, please contact Anthony Stefanakis 703.385.7200 ext 101 or toll free at 877-785-7200 ext 101. You can also email Anthony at Anthony@bbgbroker.com.  Feel free to visit BBG's websites at www.bbgbroker.com and www.bbghr.com.

We Appreciate Your Referrals

Employer Services Online would like to thank you for being a valued customer.  We appreciate your business and enjoy servicing your payroll and HR needs.  In addition to building relationships throughout our business communities, referrals are the heart of ESO.   The biggest compliment we can receive is having our existing clients refer us to others, so if you have enjoyed the EmployeeMAX experience and savings, we would appreciate you telling others!  Thank you again for your continued commitment to Employer Services Online.