Archive for the ‘PCS Newsletter Articles’ Category

2013 FUTA Credit Reduction Impacts 14 States

Tuesday, December 3rd, 2013

FUTA Credit Reduction

This article will briefly discuss FUTA Credit reduction and how this may affect your business.

Federal Unemployment insurance tax is a flat rate of 6.0% on the first $7000 in employee wages.  However, the federal government provides a 5.4% tax credit to companies that pay their state unemployment taxes on time.  This results in an effective federal unemployment tax rate of 0.6% on the first $7000 in wages (or $42 per employee, per year).

According to federal law, states with a high rate of unemployment and difficulty meeting their benefit obligations can borrow money from the FUTA account. If a state has an outstanding loan on January 1 for two consecutive years, and does not repay the full amount by November 10 of the second year, the FUTA credit rate for employers in that state will be reduced until the loan is repaid.

A state with an outstanding loan can avoid a credit reduction by repaying the loan by November 10th of the year the reduction is scheduled to take effect.  If the loan is not repaid by that date, a credit reduction of 0.3% goes into effect, with employers in that state having their maximum credit reduced to 5.1% (5.4% – 0.3%) and their effective FUTA tax rate increased to 0.9% (0.6% + 0.3%) or $63 per employee in the first year of reduction.  Each year a loan remains unpaid, the credit reduction increases by 0.3%, although there are limits for states that have made efforts to keep their balances in check.

How will this affect your company?

If you were required to pay state unemployment in any of the impacted states during 2013, you should expect to pay additional Federal Unemployment Tax on the wages paid in these states when the 940 return is filed for 2013 (due January 31, 2014).

The credit reduction increase of 0.3% is an additional $21 per employee, 0.6% is an additional $42 per employee, 0.9% is an additional $63 per employee and 1.2% is an additional $84 per employee.  The FUTA liability will appear on the Schedule A form, which is filed with the 940 return in the 4th quarter packet.

States

Reduction Rate

Additional Amt Per Employee

 Arkansas

.009

$63

 California

.009

$63

 Connecticut

.009

$63

 Delaware

.006

$42

 Georgia

.009

$63

 Indiana

.012

$84

 Kentucky

.009

$63

 Missouri

.009

$63

 New York

.009

$63

 North Carolina

.009

$63

 Ohio

.009

$63

 Rhode Island

.009

$63

 Virgin Islands

.012

$84

 Wisconsin

.009

$63

Legal Disclaimer:  This article is intended for informational purposes only and by no means should replace or substitute other legal documents (governmental or non-governmental) reflecting similar content or advice. If you have any questions concerning your situation or the information provided, please consult with an attorney, CPA or HR Professional.

Know Your Limitations; Do Something About Them

Thursday, October 31st, 2013

BobWilbanksLearn to Let Go of What You’re Not Good At and Give It To a Professional Who Is

By Bob Willbanks, CBIZ Inc.

Apologies to Clint Eastwood as Dirty Harry: A business owner’s got to know his limitations. New business owners have a tendency to do everything by themselves. At first it might make sense, especially when revenue is slow in coming. But successful entrepreneurs are those who figure out their weaknesses and seek outside help so they can focus on what they do best.

That is a trait we at CBIZ see among successful entrepreneurs. They recognize when a task has become a distraction and is hurting their business. Many of our Clients didn’t recognize the areas they were neglect­ing or needed help with until they took the time to meet with us. As we talk about their goals and the challenges they face, they be­gin to realize that they need additional help. That leads to broader discussions about in­surance, benefits, accounting, payroll and HR issues; services they need now or will in the future.

I have spent most of my professional ca­reer helping entrepreneurs deal with these issues and believe I’ve helped contribute to their success. Along the way, I have learned a lot about how successful businesses run, how they make decisions and how they compete.

The following are some of the common traits that I believe are behind their ultimate success.

(more…)

Preparing for Year-End

Wednesday, October 30th, 2013

In an effort to help your 2013 year-end process run smoothly, we have prepared a number of important resources that can be accessed at:  
http://www.pcspayroll.com/client-resources/year-end.

There you will find helpful forms, checklists and reminders to aid you in preparing for year-end. We strongly encourage you to download and use these resources to help you manage your year-end payroll process. Important resources available on the site include:

  • Year-End “To Do” Checklist (important steps to take to ensure an error free year-end)
  • Bonus/Unscheduled Payroll Request Form
  • Complete 2013 Year-End Packet
  • 2014 Federal Reserve Holidays
  • 2014 CBIZ Payroll Holiday Schedule and Processing Guidelines
  • Employee FAQ – How Do I Read My W-2?
  • Fringe Benefit & Third Party Sick Pay Reporting Guidelines

(more…)

W-2 Reporting of Employer-Provided Health Coverage

Wednesday, October 30th, 2013

The Affordable Care Act requires many employers to report the cost of coverage under an employer-sponsored group health plan on employees’ W-2s. If you need to have a new earning code setup for this, please contact your Client Account Manager before processing your final 2013 check date.

All employers that provide “applicable employer-sponsored coverage” under a group health plan are subject to the reporting requirement, except as provided in the transition relief described below. This includes federal, state and local government entities (except with respect to plans maintained primarily for members of the military and their families), churches and other religious organizations, and employers that are not subject to the COBRA continuation coverage requirements, but does not include federally recognized Indian tribal governments or, until further guidance, any tribally chartered corporation wholly owned by a federally recognized Indian tribal government. Those that were not required at this time may choose to voluntarily comply this year and could be required in future years but the IRS will give at least six months of advance notice of any changes to the transition relief.

In general, the amount reported should include both the portion paid by the employer and the portion paid by the employee whether or not it was pre-tax. In the case of a health FSA, the amount reported should not include the amount of any salary reduction contributions.

The cost of these health care benefits will be reported in Box 12 of the Form W-2, with Code DD. It is listed for informational purposes only, and is not taxable.

The transition relief applies to the following:

  • Employers who filed fewer than 250 Forms W-2 for the previous calendar year (employers who filed fewer than 250 W-2s for 2012 tax year, determined without application of any entity aggregation rules for related employers) will not be required to report the cost of coverage on the 2013 W-2s.
  • Multi-employer plans.
  • Health Reimbursement Arrangements.
  • Dental and vision plans that are not integrated into another group health plan or that give participants the choice of declining the coverage or electing it and paying an additional premium.
  • Self-insured plans of employers not subject to COBRA continuation coverage or similar requirements.
  • Employee assistance programs, on-site medical clinics, or wellness programs for which the employer does not charge a premium under COBRA continuation coverage or similar requirements; and
  • Employers furnishing W-2s to employees who terminate before the end of a calendar year and request their W-2 before the end of that year.

Employers are not required to create a W-2 for the sole purpose of reporting health coverage.

For more detailed information on this topic and other Affordable Care Act Tax Provisions for Employers, visit: http://www.irs.gov/uac/Form-W-2-Reporting-of-Employer-Sponsored-Health-Coverage

Legal Disclaimer:  This article is intended for informational purposes only and by no means should replace or substitute other legal documents (governmental or non-governmental) reflecting similar content or advice. If you have any questions concerning your situation or the information provided, please consult with an attorney, CPA or HR Professional.

 

Are You On Top of the Affordable Care Act Requirements?

Wednesday, October 30th, 2013

Employee AbsenteeismImplementation of the Affordable Care Act occurs in stages, with many of the reforms and requirements taking effect in 2013 and 2014.  There is a lot of information out there but it can be difficult to filter through it all.  Here are some great resources to help you make sure you are on top of the requirements that affect your business specifically.

Employers with fewer than 25 employees:

http://www.sba.gov/content/employers-with-fewer-25-employees

Employers with 50 or fewer employees:

https://www.healthcare.gov/what-do-small-businesses-need-to-know/

Employers with 50 or more employees:

http://www.sba.gov/content/employers-with-50-or-more-employees

What if I am self employed?

http://www.sba.gov/content/self-employed

Glossary of key Health Care Reform terms:

https://www.healthcare.gov/glossary/

 

Legal Disclaimer:  This article is intended for informational purposes only and by no means should replace or substitute other legal documents (governmental or non-governmental) reflecting similar content or advice. If you have any questions concerning your situation or the information provided, please consult with an attorney, CPA or HR Professional.

Heroes Against Hunger Fundraiser

Wednesday, October 30th, 2013

Food Drive Logo Dear Friends & Colleagues,

We are proud to announce that CBIZ Payroll is taking part in a Food and Fund Drive to support CEAP.

Last year CEAP served an average of 900 families per month. Visits to food shelves have increased 164% over the last decade. Let’s do our part to make sure no child, senior or family goes hungry this holiday season. I invite you to participate in supporting our community.

Now through November 15th we are collecting food and monetary donations.

Monetary Donations can be submitted by going to http://www.razoo.com/story/Cbiz-Heroes-For-Hunger.  With your donation of $25, CEAP can purchase over $125 worth of food through their network of suppliers.

Food Donations can be taken to CBIZ Payroll located at 6040 Earle Brown Drive, Brooklyn Center, MN 55430.

The most-needed foods include:Heroes Against Hunger

  • Meals in a can (stew, chili, soup)
  • Peanut butter
  • Low-sugar cereals
  • Canned fruit packed in juice
  • Tuna & canned meat
  • Canned foods with pop-top lids
  • 100% fruit juices in single serving boxes
  • Canned vegetables (low salt)

Giving a monetary donation provides individuals with the most basic human need: food.  Donations go directly toward programs that feed hungry people, so you can rest assured your contribution will make a difference.

FUTA Credit Reduction – Anticipated States and Rates

Wednesday, October 30th, 2013

There are 14 states and one territory (Virgin Islands) that are anticipated to have FUTA credit reductions imposed for 2013 unemployment taxes.  “Credit reduction” states are states that did not repay the funds borrowed from the federal government to pay unemployment benefits and as a result have additional federal unemployment tax due in January with their 2013 quarter 4 returns.

The 14 states projected for 2013 are: Arkansas, California, Connecticut, Delaware, Georgia, Indiana, Kentucky, Missouri, Nevada, New York, North Carolina, Ohio, Rhode Island and Wisconsin. This is based on a projection from the Department of Labor.  CBIZ Payroll will send additional notifications after the official list is released at the end of November.

These projected credit reductions would increase the 2013 Federal Unemployment rate by 0.6% for Delaware (an additional $42 per employee), 1.2% for Indiana (an additional $84 per employee), 1.8% for the Virgin Islands (an additional $126 per employee) and 0.9% for the remaining states (an additional $63 per employee).

Employers in credit reduction states would need to calculate the credit reduction as an adjustment to their FUTA tax on their 2013 Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return.  CBIZ Payroll clients with the Full Tax Service will have debits in January to collect any additional FUTA tax needed for the quarter 4 deposits.

States Reduction Rate
Arkansas .009
California .009
Connecticut .009
Delaware .006
Georgia .009
Indiana .012
Kentucky .009
Missouri .009
Nevada .009
New York .009
North Carolina .009
Ohio .009
Rhode Island .009
Virgin Islands .018
Wisconsin .009

Legal Disclaimer: This article is intended for informational purposes only and by no means should replace or substitute other legal documents (governmental or non-governmental) reflecting similar content or advice. If you have any questions concerning your situation or the information provided, please consult with an attorney, CPA or HR Professional.

Federal Law Alert – Health Care Reform FAQ

Friday, May 10th, 2013

Please take note of the following Federal Law Alert, courtesy of HR Support Center:

Question: We have over 50 employees. Is it true that we may face health care reform penalties even if we do offer health insurance coverage in 2014?

Answer: Yes, an organization with 50 or more employees may still face Health Care Reform penalties from the Federal Government if it does not offer “minimum essential coverage” at an “affordable rate”.

So what is “minimum essential coverage”? And what is an “affordable rate”? “Minimum essential coverage” refers exclusively to the health insurance plan design, not how much the employer contributes to the plan. In order to offer minimum essential coverage under the federal law, the health insurance carrier must pay for at least 60% of treatment costs, commonly referred to as a health plan with a 60% actuarial minimum value. In the coming months, you will probably hear this level of plan referred to as a “bronze level” plan. On the other hand, “affordable” coverage has everything to do with how much the employer contributes to the plan. It is a common misconception that a large company is required to contribute a specific percentage to each employee’s health insurance plan (such as 50%, 60% or 75%). Rather, the federal law requires that the organization contributes enough so that the employee’s portion of the premium for employee-only health insurance coverage for the “bronze level or richer” plan is no more 9.5% of the employee’s total household income. Since employers generally do not know an employee’s total household income, there is a safe harbor in place for 2014 stating that employees have access to “affordable coverage” as long as the employee’s portion of the premium for single coverage for the “bronze level or richer” plan is equal to or less than 9.5% of the employee’s reported W-2 wages.

If you have questions regarding penalty amounts and calculations, please reach out to your Human Resources Professional, Accounting Professional or Health Insurance Broker.

This information is provided courtesy of your HR Pros.  If you have questions about how to access your HR Support Center account, please contact your Client Account Manager.

Legal Disclaimer: This article is intended for informational purposes only and by no means should replace or substitute other legal documents (governmental or non-governmental) reflecting similar content or advice. If you have any questions concerning your situation or the information provided, please consult with an attorney, CPA or HR Professional.

Federal Law Alert – Form I-9 Change

Friday, May 10th, 2013

Please take note of the following Federal Law Alert, courtesy of HR Support Center:

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 03/07/13:  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.  As of 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, or in the forms section on our website.

This information is provided courtesy of your HR Pros.  If you have questions about how to access your HR Support Center account, please contact your Client Account Manager.

Legal Disclaimer: This article is intended for informational purposes only and by no means should replace or substitute other legal documents (governmental or non-governmental) reflecting similar content or advice. If you have any questions concerning your situation or the information provided, please consult with an attorney, CPA or HR Professional.

Webinar Series 2013

Tuesday, April 9th, 2013

CBIZ Webinar SeriesProgramming With Your Business Growth in Mind

Welcome to our CBIZ Employee Services (ES) webinars for 2013!

Experts representing many of our ES services – from benefits, wellness, human capital services, retirement plan services and property and casualty insurance – will share information and insights on timely and important topics during one or more of the programs listed here. Whether you’re in need a refresher or just an overview of a new topic, sign up today!

TO REGISTER for upcoming 2013 webinars, click here.

April

Emerging Trends in Onsite Health Clinics

Fri., April 12 – 10:30 to 11:30 a.m. Central Time

This webinar will look at the current trend of onsite health care as a potential total rewards strategy for employers, including new models for developing onsite clinics, patient-centered medical homes, options for reaching employees located in geographically remote areas and ancillary-clinic services that can optimize an employer’s return on investment. Larger employers especially may find this program of interest, but even smaller employers may benefit from several strategies discussed.

Presenter:  Polly Thomas, Director, CBIZ Onsite Clinic Consulting

Who Should Attend:  HR Executives, COOs, CFOs, and Occupational Health and Safety Directors – especially at companies with 400 or more employees (or two or more smaller companies interested in partnering to implement these solutions)

Credit:  This program has been approved for 1 General recertification credit hour toward PHR, SPHR and GPHR recertification through the HR Certification Institute.

State of the Property and Casualty Insurance Market

Tues., April 30 – 10:30 to 11:30 a.m. Central Time

While property and casualty clients are experiencing rate increases across many industries, this webinar will look at expectations for 2013 and beyond, what this means for all companies as they budget for upcoming renewals, alternatives to the commercial insurance market, and strategies that may mitigate risk.

Presenter:  Tony Consoli, President, CBIZ Insurance Services/Mid-Atlantic Region, Damian Caracciolo, VP, CBIZ Risk and Consulting Services, and Practice Leader, CBIZ Executive and Protection Practice

Who Should Attend:  Chief Financial Officers, General Counsels, Treasurers, Risk Managers, and anyone involved in budgeting for the risk management process or insurance procurement

Credit:  This program has been approved for 1 General recertification credit hour toward PHR, SPHR and GPHR recertification through the HR Certification Institute.

MAY

Health Care Reform Update: Shared Responsibility in Focus

Tues., May 21 – 10:30 a.m. to Noon Central Time

The so-called centerpiece of the Affordable Care Act – concerning exchanges and individual and employer shared responsibility – takes effect in about half a year. Are you ready?

Presenters:  Karen McLeese, Esq., VP of Regulatory Affairs, CBIZ Benefits & Insurance Services, Inc.; Bill Smith, Esq., Managing Director, CBIZ National Tax Office

Who Should Attend:  HR Execs, COOs and CFOs

Credit: This program has been approved for 1.5 General recertification credit hours toward PHR, SPHR and GPHR recertification through the HR Certification Institute.

JUNE

Wellness for Small and Medium-Sized Employers

Tues., June 18 – 10:30 to 11:30 a.m. Central Time

Small and mid-sized employers struggling with increasing health care expenses and productivity- related costs can benefit from this webinar, which focuses on turning wellness costs into an investment that enhances the value of an organization’s workforce. The session will include a look at affordable, cost-effective actions that small and mid-sized employers can implement.

Presenter:  Gina Payne, CBIZ National Director of Wellness

Who Should Attend:  HR Managers, Benefits Managers, Executive and Financial Officers of organizations with 500 or fewer employees

Credit: This program has been approved for 1 General recertification credit hour toward PHR, SPHR and GPHR recertification through the HR Certification Institute

JULY

Data Security and Privacy Liability

Tues., July 16 – 10:30 to 11:30 a.m. Central Time

This webinar will give you an overview of the risks associated with network security, as well as the privacy liability that companies face in the digital age – and what to do to protect your organization.

Presenter:  Damian Caracciolo, VP, CBIZ Risk and Consulting Services/Practice Leader, CBIZ Executive and Protection Practice

Who Should Attend:  Chief Technology, Chief Information and Chief Financial Officers; Risk Managers, HR Executives and other corporate leaders filling these roles

Credit: This program has been approved for 1 General recertification credit hour toward PHR, SPHR and GPHR recertification through the HR Certification Institute.

AUGUST

Closing the Fiduciary Gap

Tues., Aug. 20 – 10:30 to 11:30 a.m. Central Time

This webinar will focus on strategies to lower retirement plan liability and improve plan participant outcomes. We will identify six primary risk areas involving fiduciaries, look at best practices and discuss new fee-disclosure regulations.

Presenters:  Eric M. Endress, CFA, AIF®, CBIZ Senior Investment Analyst; Jennifer Kennedy Ontko, QKA, QPA, CBIZ Senior Retirement Plan Consultant; Kevin J. Kocsis, AIF®, CBIZ Investment Analyst; Alexandra LoPresti, CBIZ Investment  Analyst; Bradley J. Sieniawski, CBIZ Investment Analyst

Who Should Attend:  Finance and HR Executives; anyone else who makes decisions on behalf of an ERISA-regulated retirement plan

Credit: This program has been approved for 1 General recertification credit hour toward PHR, SPHR and GPHR recertification through the HR Certification Institute.

SEPTEMBER

Health Care Reform Update: The State of Shared Responsibility

Tues., Sept. 17 – 10:30 a.m. to Noon Central Time

As we approach the cusp of the Affordable Care Act’s shared responsibility requirement for individuals and employers, are you ready for new reporting Code Section 6056 and more?  Join us to explore the status of the law.

Presenters:  Karen McLeese, Esq., VP of Regulatory Affairs, CBIZ Benefits & Insurance Services, Inc. ; Bill Smith, Esq., Managing Director, CBIZ National Tax Office

Who Should Attend:  HR Execs, COOs and CFOs

Credit:  This program has been approved for 1.5 General recertification credit hours toward PHR, SPHR and GPHR recertification through the HR Certification Institute.

OCTOBER

Delivering Benefit Solutions, Not Renewals: A Look at Hybrid Funding, Self-Insured Plans and Captives

Tues., Oct . 15 – 10:30 to 11:30 a.m. Central Time

This webinar will take a look at several alternatives to traditional group health insurance plans. Learn about reducing the financial volatility of self-insured plans through captives, reducing benefit plan costs through hybrid funding, and more. Depending on the plan, groups both smaller (25 to 99 employees) and larger (100+ employees) may discover opportunities that can benefit their circumstance. Be sure to sign up to learn more.

Presenters:  Ed Belt, President, CBIZ Primarily Care; Courtney Claflin, CBIZ National Captive Insurance Practice Leader

Who Should Attend:  HR Executives and C-level Executives, especially CFOs

Credit:  This program has been approved for 1 General recertification credit hour toward PHR, SPHR and GPHR recertification through the HR Certification Institute.

NOVEMBER

Are Your Benefit Plan Ps and Qs in Order? Participant Notices and More…

Tues., Nov. 19 – 10:30 a.m. to Noon Central Time

This webinar reviews the myriad of calendar year, plan year, and other notices and disclosures applicable to welfare benefit plans. Join us for a look at the ever-changing world of welfare benefit compliance.

Presenter:  Karen McLeese, Esq., VP of Regulatory Affairs, CBIZ Benefits & Insurance Services, Inc.

Who Should Attend:  HR Directors or anyone responsible for HR compliance, COOs and CFOs

Credit:  This program has been approved for 1.5 General recertification credit hours toward PHR, SPHR and GPHR recertification through the HR Certification Institute.

TO REGISTER for upcoming 2013 webinars, click here.

Legal Disclaimer: This article is intended for informational purposes only and by no means should replace or substitute other legal documents (governmental or non-governmental) reflecting similar content or advice. If you have any questions concerning your situation or the information provided, please consult with an attorney, CPA or HR Professional.

All information listed on these pages, including dates, times, presenters and other webinar details, is subject to change without notice.