April 2013
Welcome!
It is April! Let’s embrace the colorful seasonal changes while also staying organized and updated through the latest content available to you in the HR Support Center.
HR Alerts
IRS Tax Filing Deadline.The Internal Revenue Service (IRS) tax return filing deadline is April 15, 2013 for 2012 tax forms.
OSHA Summary Posting.We have almost reached the end of the 2013 OSHA Summary Posting Period. The Occupational Safety and Health Administration (OSHA) requires certain employers to post the OSHA Form 300A in a conspicuous workplace location from February 1, 2013 through April 30, 2013.
This form is a summary of the total number of job-related injuries and illnesses that occurred in 2012. Employers with ten or fewer employees during all of the last calendar year (2012), or businesses that are classified in a specific low-hazard industry are generally not required to post OSHA Form 300A. However, an organization subjected to this requirement must post the OSHA Form 300A, even if the employer had no reportable injuries/illnesses in the prior year. In addition to the posting requirement, the employer must provide a copy of the report to any employee with no fixed work site or no access to the posting location.
USCIS Revises Employment Eligibility Verification Form I-9.As a reminder, in early March 2013, the U.S. Citizenship and Immigration Services (USCIS) published a revised Employment Eligibility Verification Form I-9 for use. All employers are required to complete a Form I-9 for each employee hired in the United States. Employers should not complete a new Form I-9 for current employees if a properly completed Form I-9 is already on file. Effective 03/08/13: Employers should begin using the newly revised Form I-9 (Rev. 03/08/13) for all new hires and re-verifications. Employers may continue to use previously accepted revisions (Rev.02/02/09) and (Rev. 08/07/09) until May 7, 2013. After May 7, 2013, employers must only use Form I-9 (Rev. 03/08/13). The Form I-9 Instructions and Form I-9 document are available in the HR Support Center, under the Essentials tab.
Going for a Test Ride in the Workplace: Independent Contractors
Independent Contractors have been a common addition to many organizations for years, but have increased in use over the past several years as companies have shed their staff headcount. Independent Contractors are secured either directly and work in a 1099 capacity or they are brought into an organization via the route of a third party staffing or placement agency.
The use of Independent Contractors is cost effective for organizations as the employer is not burdened with withholding payroll taxes, making matching payroll tax contributions, or covering the cost of the employee’s health and retirement benefit plans. Additionally, this is a great opportunity to see if an Independent Contractor will fit in with the organization’s culture as well as whether the individual will be successful in the role for which he or she was contracted. Independent Contractors who find success in their roles and fit in well with a company’s culture hold an advantage should they be hired to become regular employees of an organization as their learning curve is substantially shorter than that of an individual who is hired into the company from the outside. The Independent Contractor has already had an opportunity to become acquainted with the organization’s industry as well with the dynamic of its employees.
Additionally, opting to allow an Independent Contractor’s contract to expire if he or she is not a good fit for the organization is a simpler task than terminating a regular employee of the company. Some disadvantages, though, are that the employer has substantially less control over an Independent Contractor. In addition, an Independent Contractor will not have the loyalty to the organization as would a regular employee. This can be problematic when employers need to strategize for succession planning and cross-training. With an Independent Contractor, employers do not have the same incentive to retain and train these workers as they would a regular employee of the organization.
If you are a business owner or contractor who provides services to other businesses, then you are generally considered self-employed. If you are a business owner hiring or contracting with other individuals to provide services, you must determine whether the individuals providing services are employees or Independent Contractors and ensure that the workers are categorized in line with their status.
It is extremely important to note that the IRS does not allow all workers to be classified as Independent Contractors. The IRS has strict guidance regarding the classification of W-2 Employees verses 1099 Independent Contractors. The basic premise behind the determination is the amount of control that the company has over the worker and how the work is performed. Another large contributing factor is how important to the work is to the company’s core business.
The IRS uses a 20-step statutory test to determine whether an individual should be classified as an employee or contractor. This is certainly an area of the law where the IRS is increasing enforcement efforts. Therefore, it is critically important to ensure that workers are not misclassified as 1099 Independent Contractors when they should be W-2 Employees. Misclassification could result in substantial back taxes, IRS penalties, liability for workplace injuries, retroactive benefits, attorney’s fees, and other monetary damages. To see a summary of the IRS guidelines, please see the IRS Independent Contractor Checklist in the “Checklists” section under the “Essentials” tab in your HR Support Center.
Question & Answer
Taking a Second Look at Bloodshot Eyes: Random Drug Testing in the Workplace
Q: Should employers conduct random drug screening on their employees? Does there need to be a reason to ask an employee to submit to a drug test?
A: Many companies, especially those whose line of business involves interacting directly with vulnerable populations, as well as those who employ workers whose responsibilities include driving or operating machinery and equipment, may be inclined to enforce a strict policy against the usage of drugs or alcohol during business hours. Some employers may go as far as to enact random drug screenings of their employees without any specific reason, while others may incorporate the practice of drug and alcohol screenings only when there is “reasonable suspicion” or if an employee has become injured while in the course of work duties. If an organization chooses to incorporate the practice of random drug and alcohol screening, it is recommended that the policy has been disseminated to all employees. The Employee Handbook is a great place to communicate this company practice. The company’s guidelines, its stance on not tolerating drug and alcohol use during business hours, as well as the rehabilitative (if applicable) or disciplinary consequences of being under the influence of drugs and alcohol during work should all be clearly communicated within the employer’s policy on drug and alcohol use.
Another key point is to ensure that the employer is consistent in its practices; the company should be mindful in ensuring that its practices are in line in how it treats all of its employees regarding drug and alcohol screening. This will help prevent any discriminatory behavior on the organization’s part if all employees are treated consistently with respect to the company’s procedures on drug and alcohol use in the workplace.
A final note is that drug testing laws vary widely among states. Therefore, it is critical to check your state law to ensure that random, reasonable suspicion and post-accident drug testing are permitted in your state.
Is it Vacation or Paid Time Off?
Traditionally, employers offered separate paid time off benefits to employees, such as paid vacation, sick leave and personal days. However, in the past decade, many companies have moved to a more flexible Paid Time Off or “PTO” benefit that incorporates all policies into one all-inclusive PTO plan.
The debate as to whether employers benefit from offering PTO verses separate vacation, sick and personal leave plans is constantly being researched. In an effort to assist employers in making an informed decision in this regard, below are some advantages and disadvantages of combining the company’s separate paid time off benefits into a single Paid Time-Off (PTO) plan.
Advantages of a Paid Time Off Policy (PTO):
- Employees are not incentivized to lie about being sick or having a doctor’s appointment in order to use all of their annual sick days, resulting in more transparency in the employee/employer relationship.
- Research consistently illustrates that incorporating a PTO policy will result in employees taking more vacation time and less sick days. This benefits employers in two ways; first, employers typically receive more notice about scheduled vacations, affording more time to plan for adequate coverage. Second, most mental health professionals agree that employees return to work more refreshed and productive following vacation leave. The same results do not hold true for employees utilizing sick days.
- Employees tend to value the flexibility that PTO provides.
- Employers only have to track PTO hours, as opposed to separately tracking hours for vacation, sick and personal days.
Disadvantages of a Paid Time Off Policy (PTO):
- Employees are more likely to consume all of their PTO, whereas they may not have expended all of their sick or personal days in the past.
- Employees tend to save all of their PTO time for vacations and come to work when they are sick, at times causing illness among other employees.
- In some states, all earned PTO must be paid out upon separation of employment. Should the company enforce separate sick leave and vacation policies, state law often mandates that unused, accrued vacation time be paid out upon separation of employment, sparing the employer from compensating the departing employee for his/her unused, accrued sick leave.
Please refer to the HR Support Center’s Policy Library under the “Essentials” tab to view sample separate paid time off policies (such as vacation, sick and personal leave policies) and also a sample all-inclusive PTO policy.
Tool of the Month:
Sample Interviewing Questions Guide
When interviewing multiple candidates, hiring managers should be mindful in incorporating consistent criteria to evaluate each candidate for the position in question. Closely consider the candidates’ answers and reasoning behind them in terms of appropriateness for your company, work environment and job position priorities. As situations vary, select questions that best fit the job position according to subject areas. Consider and review the following subject areas to hire the right talent from the Sample Interviewing Questions Guide we have developed:
Subject Areas:
- Method-specific (telephone pre-screen)
- Behavioral-based
- Skill-based
- Position specific (Managerial/Executive)
- Functional/Industry-specific
To download the Sample Interviewing Guide, visit the HR Support Center, Essentials tab.
HRCast of the Month
Balancing the Civil Rights Act and Bona Fide Occupational Qualifications
Bona fide occupational qualifications (BFOQs) are employment qualifications that employers may take into consideration while making decisions about hiring and retention of employees. The qualification should relate to an essential job duty and is considered necessary for operation of the particular business. For example, a BFOQ to an organization that is hiring a female restroom attendant, but is considering only female applicants for this position.
The Bona Fide Occupational Qualifications rule allows for the hiring of individuals based on race, sex, age and national origin if these characteristics are bona fide occupational qualifications. This is an exception and complete defense to Title VII of the Civil Rights Act of 1964, which protects employees from discrimination based on religion, sex, age, national origin and color in the workplace.
On April 15th, be sure to visit the HR Support Center, and listen to this month’s HRCast to learn more about this topic.
HR Tip of the Month
Making an Impact with Employment Applications
As an employer, it is recommended that you routinely review your employment application process and ask yourself the following questions: Is your application process navigable? May jobs be submitted via a Company website application process, or is there an available alternative option to mail or fax for job application submission? Are employment applications initially reviewed manually by Human Resources staff and hiring managers, or through an Applicant Tracking System (ATS)? Employment applications are the first impression that a prospective candidate obtains of your organization, so it is crucial to create a practical application template in order to obtain key data about the applicant’s candidacy without making the form excessive in length or discriminatory in nature.
Did You Know?
700
According to statistics provided by the Equal Employment Opportunity Commission (EEOC), over 700 caregiver discrimination claims have been remitted in the last five years. More than 500 of those cases have been resolved in favor of the complaining parties. Please note: the range of responsibilities performed by caregivers includes workers who assist with child care, elder care and care for immediate family members.
Quote of the Month
“A satisfied customer is the best business strategy of all.”– Michael Leboeuf
A Look Ahead
April 1st-30th:
- Sexual Assault Awareness and Prevention Month (observed)
- Records and Information Management Month
- Stress Awareness Month
- Keep America Beautiful Month
April 1: April Fools’ Day
April 2: National Employee Benefits Day
April 5: National Walk to Work Day
April 7: World Health Day
April 15: Income Tax Day
April 16: National Stress Awareness Day
April 22: Earth Day
April 24: Administrative Professionals Day
April 25: Take Your Daughter to Work Day
April 26: National Arbor Day
Contact Us
Paragon Business Services, Inc.
7610 N Stemmons Frwy
Suite 600
Dallas,TX 75247
Additional Contacts
Phone: 866-444-4615
Fax: 214-951-1920
Legal Disclaimer: This message does not and is not intended to contain legal advice, and its contents do not constitute the practice of law or provision of legal counsel. The sender cannot be held legally accountable for actions related to its receipt.
Paragon Business Services, Inc 