This week’s question comes from Hillary, a restaurant manager. I know the federal minimum wage increased to $7.25 last week. How does the increase in the minimum wage affect the tip credit? Answer: Under §45B of the Internal Revenue Code of 1986 (IRC), employers are...
Unemployment Insurance Weekly Claims Report Update for July 25, 2009
According to the US Department of Labor, in the week ending July 25, the advance figure for seasonally adjusted initial claims was 584,000, an increase of 25,000 from the previous week’s revised figure of 559,000. The 4-week moving average was 559,000, a decrease of...
Tip of the Week: Department of Labor Unveils New Disability Website
The US Department of Labor (DOL) recently launched Disability.gov, the federal government’s Web site for people with disabilities, their family members, veterans, caregivers, employers and others. According to the DOL, the new site features comprehensive information...
IRS Rules Distributions from Tip Jars Are Tips, Not Wages
In the recently released Chief Counsel Advice (CCA) 200929004, the Internal Revenue Service ruled that money distributed from a company’s tip jar should be considered tips, not wages. The company requires that all its retail locations maintain a tip jar to collect...
US Department of Labor Issues Opinion Letter on Compensating Employees for Web-based Classes Taken at Home
The US Department of Labor (DOL) recently issued Administrator signed Opinion Letter FLSA 2009-13. Although Opinion Letters only apply to the exact set of facts and circumstances presented in each case, they are a valuable aid in understanding current interpretations...
US Department of Labor Issues Opinion Letter on Barbacks
The US Department of Labor (DOL) recently issued Administrator signed Opinion Letter FLSA 2009-12. Although Opinion Letters only apply to the exact set of facts and circumstances presented in each case, they are a valuable aid in understanding current interpretations...
US Department of Labor Issues Opinion Letter on Concessionaires
The US Department of Labor (DOL) recently issued Administrator signed Opinion Letter FLSA 2009-11. Although Opinion Letters only apply to the exact set of facts and circumstances presented in each case, they are a valuable aid in understanding current interpretations...
Question of the Week: How Are Wage Garnishments Affected by the Increase in the Minimum Wage?
This week’s question comes from Amy, an HR manager. Several of our employees have wage garnishments that are limited based on their earnings. How are wage garnishments affected by the increase in the minimum wage? Answer: A wage garnishment is when an employer,...
Unemployment Insurance Weekly Claims Report Update for July 18, 2009
According to the US Department of Labor, in the week ending July 18, the advance figure for seasonally adjusted initial claims was 554,000, an increase of 30,000 from the previous week’s revised figure of 524,000. The 4-week moving average was 566,000, a decrease of...
Tip of the Week: Minimum Wage Hikes Take Effect this Week
The federal minimum wage will increase to $7.25 on Friday, July 24, 2009. Therefore, all work performed after July 23, 2009 should be compensated at the higher rate. In addition, the minimum wage will also increase to $7.25 in the following areas: Delaware, Idaho,...
US Department of Labor Issues Opinion Letter on Coaches Qualifying as Teachers
The US Department of Labor (DOL) recently issued Administrator signed Opinion Letter FLSA2009-10. Although Opinion Letters only apply to the exact set of facts and circumstances presented in each case, they are a valuable aid in understanding current interpretations...
US Department of Labor Issues Opinion Letter on Overtime for State Police Civilian Helicopter Pilots
The US Department of Labor (DOL) recently issued Administrator signed Opinion Letter FLSA2009-9. Although Opinion Letters only apply to the exact set of facts and circumstances presented in each case, they are a valuable aid in understanding current interpretations of...
US Department of Labor Issues Opinion Letter on Overtime for Plumbing Company Employees
The US Department of Labor (DOL) recently issued Administrator signed Opinion Letter FLSA2009-8. Although Opinion Letters only apply to the exact set of facts and circumstances presented in each case, they are a valuable aid in understanding current interpretations of...
IRS Provides Guidance to State Agencies for Allocating COBRA Credits
The Internal Revenue Service (IRS) has released Notice 2009-27, Premium assistance for COBRA benefits. Pursuant to the American Recovery and Reinvestment Act of 2009 or ARRA, certain involuntarily terminated employees are eligible for employer-provided subsidies to...
Question of the Week: How Quickly Must I Pay a Terminated Employee?
This week’s question comes from Marco, a small business owner in Massachusetts. I terminated an employee. He wants to get his paycheck before he leaves the building. How quickly must I pay a terminated employee? Answer: Under Massachusetts General Law (MGL) c. 149...
Unemployment Insurance Weekly Claims Report Update for July 11, 2009
According to the US Department of Labor, in the week ending July 11, the advance figure for seasonally adjusted initial claims was 522,000, a decrease of 47,000 from the previous week’s revised figure of 569,000. The 4-week moving average was 584,500, a decrease of...
Tip of the Week: Who Needs a Vacation?
Employers are often thrilled to have those employees who are always on time, never take a sick day, and never take a vacation. But are they model employees, necessary employees, or a stress case waiting to happen? Does returning to a desk-full of unfinished work worry...
IRS Provides Guidance to Controlled Groups for Allocating COBRA Credits
The Internal Revenue Service (IRS) has released Notice 2009-27, Premium assistance for COBRA benefits. Pursuant to the American Recovery and Reinvestment Act of 2009 or ARRA, certain involuntarily terminated employees are eligible for employer-provided subsidies to...
IRS Provides Guidance to Health Plans for Allocating COBRA Credits
The Internal Revenue Service (IRS) has released Notice 2009-27, Premium assistance for COBRA benefits. Pursuant to the American Recovery and Reinvestment Act of 2009 or ARRA, certain involuntarily terminated employees are eligible for employer-provided subsidies to...
IRS Provides Guidance on Information Reporting For COBRA Premium Subsidies
The Internal Revenue Service (IRS) has released Notice 2009-27, Premium assistance for COBRA benefits. Pursuant to the American Recovery and Reinvestment Act of 2009 or ARRA, certain involuntarily terminated employees are eligible for employer-provided subsidies to...
IRS Provides Guidance on Documentation Required by Insurers and Multiemployer Plans
The Internal Revenue Service (IRS) has released Notice 2009-27, Premium assistance for COBRA benefits. Pursuant to the American Recovery and Reinvestment Act of 2009 or ARRA, certain involuntarily terminated employees are eligible for employer-provided subsidies to...
Question of the Week: Is a Non-student Holding a J-1 Visa Exempt from FICA Tax Withholding?
This week’s question comes from Norma, an HR manager. I know that students with J-1 visas are exempt from FICA tax withholding in certain circumstances. We hired a non-student with a J-1 visa. Is a non-student holding a J-1 visa exempt from FICA tax withholding?...
Unemployment Insurance Weekly Claims Report Update for July 4, 2009
According to the US Department of Labor, in the week ending July 4, the advance figure for seasonally adjusted initial claims was 565,000, a decrease of 52,000 from the previous week’s revised figure of 617,000. The 4-week moving average was 606,000, a decrease of...
Tip of the Week: Lay Off Using Layoffs to Manage Poor Performing Employees
Many employers are tempted to use layoffs as a method for avoiding problem employees. By failing to follow proper procedures for disciplining and terminating problem employees, however, employers may create more problems in the long-run. Employers should remember...
IRS Provides Guidance on Credits for Employers Using Form 2678 Agents
The Internal Revenue Service (IRS) has released Notice 2009-27, Premium assistance for COBRA benefits. Pursuant to the American Recovery and Reinvestment Act of 2009 or ARRA, certain involuntarily terminated employees are eligible for employer-provided subsidies to...
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