I love working with AmCheck! My account director is great. If I have a question she is right on it. She makes me feel like I'm her only client. No matter what day of the week or time, she is always there to help me. - Michelle S
- Thu | 05 Jan 2012
The National Labor Relations Board Dec. 23 announced that it is postponing until April 30, 2012, a requirement for employers subject to NLRB jurisdiction to post a notice informing employees of their federal labor law rights.
The NLRB regulation, issued Aug. 30, 2011, would require employers to post an 11-by-17-inch notice describing employee rights and to publish the notice on an intranet or internet site if the employer customarily uses such media to communicate with employees about rules and policies (62 BTM 273, 8/30/11).
The posting requirement originally was to have gone into effect in November, but the board moved the effective date to Jan. 31, 2012 (62 BTM 321, 10/11/11), stating that additional time was needed "in order to allow for enhanced education and outreach to employers."
The rule has been challenged in lawsuits filed in the U.S. District Court for the District of Columbia (National Association of Manufacturers v. NLRB, D.D.C., No. 11-cv-1629) and the U.S. District Court for the District of South Carolina (Chamber of Commerce v. NLRB, D.S.C., No. 11-cv-2516).
Judge Amy Berman Jackson held a hearing Dec. 19 in the District of Columbia proceeding and told NLRB lawyers that the legal issues "deserve more time" than the Jan. 31 effective date gave her.
Jackson held the hearing to consider legal arguments of NLRB and the National Association of Manufacturers, the National Right to Work Legal Defense and Education Fund Inc., the Coalition for a Democratic Workplace, and the National Federation of Independent Business, along with several small businesses that joined in challenging the NLRB rule.
Actively questioning lawyers on both sides of the dispute, Jackson pressed the challengers on their arguments that the National Labor Relations Act does not expressly give the board authority to require notice postings.
But the judge also questioned NLRB's authority to treat a failure to post the new employee rights notice as an unfair labor practice. "Aren't you amending the statute in the way they're complaining about?" Jackson asked a board attorney.
In a statement announcing the new April 30 effective date, NLRB said "postponing the effective date of the rule would facilitate the resolution of the legal challenges that have been filed with respect to the rule." (Source - BNA)
Attention AmCheck Client Poster Subcribers - 2012 State Labor Law Posters will be distributed in the next 2-3 weeks.
- Tue | 03 Jan 2012
Payroll Tax Cut Temporarily Extended into 2012
IR-2011-124, Dec. 23, 2011
WASHINGTON — Nearly 160 million workers will benefit from the extension of the reduced payroll tax rate that has been in effect for 2011. The Temporary Payroll Tax Cut Continuation Act of 2011 temporarily extends the two percentage point payroll tax cut for employees, continuing the reduction of their Social Security tax withholding rate from 6.2 percent to 4.2 percent of wages paid through Feb. 29, 2012. This reduced Social Security withholding will have no effect on employees’ future Social Security benefits.
Employers should implement the new payroll tax rate as soon as possible in 2012 but not later than Jan. 31, 2012. For any Social Security tax over-withheld during January, employers should make an offsetting adjustment in workers’ pay as soon as possible but not later than March 31, 2012.
Employers and payroll companies will handle the withholding changes, so workers should not need to take any additional action.
Under the terms negotiated by Congress, the law also includes a new “recapture” provision, which applies only to those employees who receive more than $18,350 in wages during the two-month period (the Social Security wage base for 2012 is $110,100, and $18,350 represents two months of the full-year amount). This provision imposes an additional income tax on these higher-income employees in an amount equal to 2 percent of the amount of wages they receive during the two-month period in excess of $18,350 (and not greater than $110,100).
This additional recapture tax is an add-on to income tax liability that the employee would otherwise pay for 2012 and is not subject to reduction by credits or deductions. The recapture tax would be payable in 2013 when the employee files his or her income tax return for the 2012 tax year. With the possibility of a full-year extension of the payroll tax cut being discussed for 2012, the IRS will closely monitor the situation in case future legislation changes the recapture provision.
The IRS will issue additional guidance as needed to implement the provisions of this new two-month extension, including revised employment tax forms and instructions and information for employees who may be subject to the new “recapture” provision. For most employers, the quarterly employment tax return for the quarter ending March 31, 2012, is due April 30, 2012.
- Wed | 07 Dec 2011
Insurance company rebate checks for employers are starting to arrive by mail, leaving employers puzzled. On December 7, 2011, the Department of Health and Human Services (HHS) issued final rules on the calculation and payment of medical loss ratio (MLR) rebates to health insurance policyholders. Employer’s must use precise methods to determine how much of the rebate checks are to be refunded to both active and terminated employees. Additionally, the taxation of the checks must be processed in a strict manner. For assistance with processing MLR Rebate Checks and for more information contact AmCheck.
- Mon | 12 Dec 2011
The Internal Revenue Service announced the standard mileage rates to begin on January 1, 2012. The rates are used to calculate the amount that will be deducted for operating an automobile, whether for business, charity, medical or moving.
- Wed | 23 Nov 2011
A new franchise in Bolingbrook, Illinois, opened this month. The new office is owned and operated by business partners Mark Weaver and Bryan Headley, who combined have more than 28 years of experience in payroll services and sales management.