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Social
Security Benefits to increase in 2012 - Changes Taxable Maximum
Monthly Social Security and Supplemental Security Income
(SSI) benefits will increase 3.6 percent in 2012. The 3.6%
cost-of-living adjustment (COLA) will begin in January 2012, while
increased payments to SSI beneficiaries will begin on December 30,
2011.
Based on that increase, the maximum amount of earnings
subject to the Social Security tax
(taxable maximum) will increase from $106,800 to $110,100
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8 States Adjust Minimum
Wage Rates for 2012
The following
states, and the City of San
Francisco, have announced increases in
minimum wage rates effective January 1, 2012:
Arizona:
The minimum wage in Arizona
will increase to $7.65 per hour.
City
of San Francisco, California: The City of San Francisco 's minimum wage rate will rise to $10.24 per
hour.
Colorado:
The proposed state minimum wage is $7.64 per hour, and $4.62
for tipped employees.
Florida:
The minimum wage will increase to $7.67 per hour in Florida , and $4.65 for tipped employees.
Montana:
The state minimum wage will rise to $7.65 per hour.
Ohio:
The state minimum wage will increase to $7.70 per hour, and $3.85 for
tipped employees. The federal minimum wage of $7.25 per hour may be
paid to employees whose employers gross $283,000 or less per year.
Oregon:
The minimum wage will rise to $8.80 per hour in Oregon.
Vermont:
The state minimum wage will increase to $8.46 per hour, and $4.10 for
tipped employees.
Washington:
The minimum wage in Washington
will increase to $9.04 per hour.
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Do You Use the Power of Referral
Chains to Create a Stronger Business?
by Bill Ringle
Amanda
sat at the conference table and had the five documents with her that
members of my top end Business Owner Growth Program are asked to
prepare in advance of their first 1:1 coaching session.
As
we were evaluating the strategies she had used to grow her business,
she shared that referrals were one of her top three ways of getting
project leads. I asked her about her best projects in the last year
and where they originated. Many did come from referrals. What was
even more surprising to her was how many of those referrals kept
coming from a few really good sources.
"Without
knowing it, you've done a great job creating strong referral
chains," I said. The quizzical look on her face invited
elaboration.
"A
referral chain is created by simply asking someone you know to
introduce you to someone else for a specific purpose, then repeating
the process over time," I explained. "When it happens
naturally, it's serendipity. By cultivating
more of these relationships, you can skyrocket your business growth."
Size,
speed, and potential are the three biggest reasons why you want to
use referral chains to grow your business.
The
size. Each person you know has relationships with at least
200 other people, on average, according to social research studies
that were conducted pre-social media. Because you're interested in
this topic, I think it's fair to say that with one link on the
referral chain, you have access to over 200 people directly. If each
of these people give you access to their
first level networks of 200 people, that's 40,000 potential people
with whom to do business. LinkedIn does a terrific job of making this
network effect apparent; look on the bottom right corner of your
profile page to see your second level contact number.
The
speed. Warm introductions from someone who knows, likes, and
trusts you bring you past the initial hurdles of skepticism and
defense in a business relationship. Imagine telling me that you were
going to launch a new venture and wanted a great looking web site
launched fast. I know dozens of people who could do a terrific job
for you. Maybe after a few more questions, I say,"OK,
you've got to meet Erin Hyland. Work with her and the Jack Out of the
Box team. They've done work for us and they are perfect for what you
want to accomplish." Then I tap my iPhone and send you her
contact info on the spot. If you take people with whom you've done
business or supported, such as vendors, past clients, and
associations, into account, that speed in jump-starting a business
relationship adds up fast.
The
potential. All too often, business leaders
acknowledge that a particular channel, relationship, product, or
project is top priority and then fail to support it with time,
attention, and resources. With businesses either on the verge of the
growth stage or well past it, knowing where and when to step on the
pedal is vital. For example, if a single referral chain is worth
$200,000 to your business, a) it doesn't hurt to spend time together
periodically and show your appreciation, and b) it's
very much worth your while to cultivate other similar relationships.
Once you really decide to grow your business and can see the way that
referral chains work, you're much more committed to developing them
ever more deliberately and skillfully.
When
you are building links in your referral chains, you're creating both
short term growth and long-term value in your business, just like
Amanda.
Your
Steps to Success
Reach
out to the people you know through business and find a way to serve
them. Offer information, resources, contacts, and the benefit of your
experience. Accept that not everyone will be equally enthusiastic or
clear on what to do next, but reward those who do respond and
participate and engage with even more value, appreciation, and ways
of improving their business conditions and personal lives.
Embrace your role as a referral source and gladly seek to offer your
best advice, contacts, and resources to colleagues and friends and
any others whom you encounter.
About
Bill Ringle
Bill
Ringle is a CEO coach and business growth
strategist to high performing executives and entrepreneur
owners/founders. He is the author or contributing author to four
published business books and has over 400 articles online and in
print, and has provided leaders with business growth assistance
around the world through his consulting, speaking, and coaching
programs. To join Bill's free monthly call where he shares practical
advice to grow your business, please visit www.AskBillRingle.com.
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News For employeeMAX Clients
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As the holiday season is upon us,
I want to extend a thank you to all our clients. This has been
an exceptional year at Employer Services Online, and it couldn't
have happened without the trust and support of our wonderful
clients. On behalf of the entire ESO team, we thank you for
giving us the opportunity to be of service to you and our goal is to
exceed your expectations everyday.
Thank you for being part of the EMPLOYEEMAX family and best wishes
for a safe and joyous holiday season.
Sincerely, Bob
Curran, President & CEO
Upcoming Classes
Report
Writer 01/19/2012 11
AM ET
HR&
Benefits Class
01/26/2012 11 AM ET
To register or for more information, please contact Bobbie Smith, CPP at Bobbie.Smith@EmployeeMax.com
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2011
YEAR END NEWS & CHECKLIST
Denise
Lewis,
CPP
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Please note that our offices
will be closed on Monday December 26,2011 and Monday January 2, 2012,
in observance of the Holidays
In order to
ensure you have addressed all the critical items which must be taken
care of for smooth Year-End processing, we have provided below a
summarized checklist to help you keep track of what you need to
complete.
Verify Accuracy
of Jurisdiction Tax Identification Numbers
Verify the
accuracy of your Federal Employer Identification Number and each
State Tax Identification Number that EmployeeMax has on file
for your company. You can find this data in your Quarterly Tax
Package in your normal reports folder. Contact our Tax department
before December 28th, 2011 to make any corrections at tax@employeemax.com
Review Employee
Addresses and Social Security Numbers
Review the
accuracy of all Employee Addresses and Social Security numbers.
Run Report "YE" in Report Writer to easily get this data by
changing your selection criteria. If any last minute address changes
are made, pay close attention to the input of manual checks on
employees who have moved to a new state. Because the employee may
have moved to a new state for mailing address purposes only, this may
not be the state to which you want the adjustment posted.
Review W-2
Reconciliation Report
Review the W-2
Reconciliation Report for accuracy. This report represents in
total by W-2 Box the amounts that will be printed on your employee
W-2 forms in detail. The report will be produced after your last
payroll processing for 2011. In addition, verify that your
company legal name and address are correct. This information,
as it appears on the report, will be printed on your employee W-2's.
Contact our Client services department before December 28th,
2011 to make any address corrections.
Third Party Sick
Pay
If you have not
been faxing to EmployeeMax your Third Party Sick Pay employee
payments throughout the year, you need to fax this information to
EmployeeMax as soon as possible before your last
processing of 2011. EmployeeMax will include this information
on the employee's W-2. Please ensure your third party insurance
company will not issue a W-2 as that will result in a
duplicate reporting of the sick pay.
Fringe Benefits,
Vehicle Personal Use and Group Term Life
Where
applicable, input adjustments to employees with taxable fringe
benefits, vehicle personal use and group term life (GTL) before your last
payroll of 2011 in order to collect any associated FICA tax before
the end of the year. This will avoid creating FICA variances
and late payments of taxes to the appropriate agencies.
2011 W-2 Item
Change Form (if applicable)
If after
reviewing the W-2 Reconciliation Report you determine your company
requires any additions or omissions to one or more W-2 print items
shown on the report, fax to (413) 553-6005 or emailtoService@EmployeeMax.Com
the 2011 'W-2 Item Change Form'.
Authorization to
Process Prior Year Adjustments Form
If you expect to
process prior Year-End adjustments after the December
28th, 2011 deadline, you will need to fax to (413)
553-6005 or email to Service@employeemax.com.
If you do not
require Year-End adjustments after the December 2011 deadlines, do
not fax this form to EmployeeMax.
PLEASE CLICK HERE TO OPEN OUR 2011
YEAR-END GUIDE FOR MORE INFORMATION
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Tax Department News for Year-End 2011
and Beginning of 2012
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Robert
Hayner, CPP
There
are payroll tax changes affecting the end of the 2011 tax year and
beginning 2012. The following changes are already implemented
that the employer can expect during this time period.
Year
End 2011:
Many
states federal loans are now due, but unable to repay them.
This is referred to as "Credit Reduction", which indicates
states that did not repay the money they borrowed from the federal
government to pay unemployment benefits.
As
a result, the Federal government has implemented a credit reduction
tax that will require the loans to be repaid as an employer
unemployment tax.
As
part of the credit reduction tax imposed by FUTA, employers that are
subject to the unemployment tax laws of a credit reduction state, the
employers must pay additional FUTA tax. The states affect for
2011 are as follows including the additional rate. This rate is
calculated by the FUTA taxable wages for the year by the additional
rate and reported on the schedule A of the 940. The state and
rates affected is as follows:
States
Reduction Rate
Arkansas,
California, Connecticut,
Florida,
Georgia, Illinois,
0.003
Kentucky,
Minnesota, Missouri,
Nevada,
New Jersey, New
York, North Carolina, Ohio,
Pennsylvania,
Rhode Island, Virginia,
& Virgin Islands
Indiana............................................................0.006
Michigan.........................................................0.009
Beginning 2012:
Here are some of
the highlighted taxes that "AS OF NOW" will go into effect
01/01/2012. They are:
· Social
Security Wage limits increase to $110,100 from $106,800. Rate
appears to stay at 4.2% for EE and 6.2% ER.
· Elected
Deferrals in 401K is expected to increase to $17,000 from 2011 of
$16,500, and catch-up deferral is the same for EE 50 or older at
$5,500.
· ACT
32 - This only applies to employers that have employees in Pennsylvania
for local tax. An email communication was sent to only
employers directly affected by this new regulation in November
2011.
These are only some of the highlighted changes; please
refer to the Federal, State, or Local websites or any other resources
available to you for additional information and guidance.
As a reminder, please send all tax notices immediately
to ESO. They can be sent via fax (832) 204-8421 or by email at Tax@employeemax.com. If you
have any questions on this process, please do not hesitate to contact
the tax dept.
(571) 209-5340.
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Holiday Time
Off - What Employers Should Know
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Business Benefits Group
The holiday season has begun
and many employers have questions about whether they're required to
provide time off or holiday pay. Here's a look at some frequently
asked questions and answers.
Are employers required to provide employees time off for a
holiday?
Although not generally required by federal or state law, many
employers choose to grant employees time off for certain holidays or
to close the business on those days.
Companies with 15 or more employees are subject to federal religious
discrimination laws and may need to allow employees time off for
religious observance, unless such time off would be an undue hardship
for the business. Employers should also consult their state's
nondiscrimination laws to learn if there are similar requirements for
time off related to religious observances for employers of fewer than
15 employees.
Do employers have to pay
their employees if the business is closed for a holiday?
Federal law and most state laws do not require employers to pay
employees if time off for holidays is granted. Whether or not
employees are paid for holidays is generally a matter of company
policy.
What about employees scheduled to work on a holiday if the
business remains open?
Extra compensation (above and beyond an employee's regular rate of
pay) for work on holidays is also generally a matter of company
policy, although employers must comply with any specific state law
requirements regarding holiday pay. Although some companies pay
employees at a special rate (such as time-and-a-half) for holiday
shifts, generally an employee is only entitled to his or her regular
pay, plus any overtime.
Remember that states will generally enforce an employer's written
policy regarding holiday pay, so it's important to follow company
policy and to apply the rules consistently and fairly to all
employees.
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.
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We Appreciate Your Referrals
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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.
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