The HR Team May 2010 Newsletter
Happy May. As many of you know, this time last year, I was in the throngs of planning for the upcoming Bat Mitzvah of my daughter. Since then, a lot of you have asked me about how it all went (April 2009 Newsletter.) My response is pretty much the same, "It's over."
In all seriousness, it was a great event, I'm glad it's over, but somewhat (very small somewhat) sad it's a distant memory.
Lessons learned - wisdom to share? You bet, and here it is:
· Be organized. Create a budget and a systematic way of keeping track of what needs to happen. I created a giant spreadsheet to keep track of my budget, contact information, payments, invites, responses, table assignments, addresses, thank you's, and more. When stuff happened (see item 4) and it does, you're prepared; or at least as prepared as you can be.
· Commit to what you know you need quickly. We got our date 2 years ahead of time. Did you know that we were able to lock in 2007 prices for the food, venue, DJ, and photographer? Even though we were in a recession at the time of the Bat Mitzvah, food prices increased dramatically over the 2 year period.
What else did we save? Piece of mind. I've always said that I detest the decision of no decision. Meaning, many times we are forced to go forward with a particular plan, not because it is the best plan, but simply because it is the only plan left.
· People don't RSVP and sometimes they hedge their responses. Meaning, you would get an email saying "I think it's just going to be the...of us" or "I'm trying to find a way to make it." Do you think or do you know? Was that a yes or a no? My wisdom to those of you out there is to respond "great, could you send your response card back, I've got someone keeping track of that for me and he/she is a stickler for the response cards." Or, "I've got so much going on right now; I would appreciate it if you could send the card back for my stack. That way, I can count you properly."
In business, of course, the same holds true for "verbal contracts," right? When someone tells me something important, I will generally ask them to put it in writing so that we both can remember.
· Stuff happens. I'm pretty sure there was some kind of mini crisis every day that we had to overcome. I honestly don't remember what they were, except one. Three days before the Bat Mitzvah (also known as T-3), my son woke up with a fever. Was there panic in the house? Yes! But that brings me to my next point...
· Don't make dramatic changes until you have all the facts. When my son woke up at T-3 with a fever, everyone wanted a decision on what we were going to do. I said, do for what? Right now, we don't have enough information. A phone call was quickly made to the doctor, and an appointment was had ASAP. The illness - strep. Antibiotics were quickly dispensed, fever was gone by T-2, and by T-0, he was partying like it was ---well 2009.
· It's not your party. As much as I would have liked to have been a guest, and partied it up all day, that wasn't realistic. You need to greet your guests, be available for last minute caterer questions, introduce guests to each other, etc.
· Don't forget about the world around you and give back. The word "mitzvah" means good deed. As part of her becoming a Bat Mitzvah, my daughter raised money for Braille literacy. She's had some visual challenges, and she was able to relate the challenges of others with vision impairments. I'll never forget the look of achievement and pride on her face when she got an email from the National Federation of the Blind telling her that she was one of the top 20 individual fundraisers nationwide for 2009.
In the corporate world, we too have the awesome responsibility to not forget about the world around us, and many times need a reminder on the importance of giving back and getting involved in causes that are important to us.
Did my daughter have a great time? You bet, it was without a doubt, a day she'll remember forever. And for my husband and I, watching her up on the bema (aka stage in front of the synagogue) reading and singing so beautifully in Hebrew, it too was a day to remember. Her poise and stamina were something to be proud of. After the service, I was able to watch her party with friends and family, and my day was complete. It was certainly a day I too will remember. But, I'm glad it's over.
For those looking for a laugh, click this link and view the second video on the list, and you'll understand what I mean by it's not your party.
Hiring Interns This Summer?
With the summer coming, the Wage and Hour Division of the Department of Labor has issued information for employers on determining compensation for interns.
The Fair Labor Standards Act (FLSA) defines the term "employ" very broadly as "to suffer or permit to work." Covered and non-exempt individuals who are "suffered or permitted" to work must be compensated under the law for the services they perform for an employer.
Internships in the "for-profit" private sector will most often be viewed as employment. Generally, interns in the "for-profit" private sector who qualify as employees rather than trainees typically must be paid at least the minimum wage and overtime compensation for hours worked over forty in a workweek.
Details can be found in the new fact sheet. Concerned? Why not contact The HR Team to help you with this matter.
Upcoming Seminar
Howard Technology Council- Executive Breakfast Series - "How To Protect Your Investment In People And Intellectual Property"
Wednesday, June 16th 8:30 - 10:00am
Come and learn about high impact issues such as:
· Key Employee Retention · How to react to a breach of Intellectual Property · Social Media Liability · Social Media implications on the hiring process
We all have limited resources, where do you spend your time?
This event will take place at the Center For Business and Technology Development, 9250 Bendix Rd. (north side of the building) Columbia, MD 21045.
The Panelists:
Jonathan Wachs
Attorney
Eileen Levitt
The HR Team
A full breakfast with omelet station is included. For more information and to register for this event please click here.
COBRA Subsidy Extended until May 31, 2010.
On April 15, 2010, the President signed into law an extension of unemployment benefits and the COBRA premium assistance that helps with the cost of health benefits for Americans who lost their jobs. This extension provides a COBRA premium subsidy for eligible individuals who are involuntarily terminated from employment through May 31, 2010.
The new law also provides retroactive eligibility for individuals who lost their jobs after the prior COBRA subsidy expired on March 31, 2010. These programs are vitally important to the economic wellbeing of workers who lost their jobs and their family members.
ARRA provides a 65 percent tax subsidy for the cost of health benefits, making them much more affordable for the unemployed and their families. Millions of individuals may be eligible to receive a premium subsidy for up to 15 months.
Additional information is available on the Department of Labor website.
Health Care Bill - Some of What It Will Do In 2010 through 2015.
Because the health care bill is thousands of pages long, these are just the main features of various provisions.
In 2010
- Business tax credits: Small employers can receive a tax credit if certain conditions are met. (For further details, see article in newsletter on tax credit)
- Temporary reinsurance: A $5 billion program will be created for employers to provide health insurance for retirees over age 55 who are not eligible for Medicare.
- Temporary high-risk insurance pool: A $5 billion pool will provide health coverage for pre-existing conditions.
- Adult dependent children: Insurance companies have to provide coverage for dependent children up to age 26 on their parent's health insurance.
- Insurance coverage limits: Insurers will be prohibited from placing lifetime limits on coverage and from rescinding coverage except in cases of fraud.
- Medicare drug rebates: Medicare patients who face a gap in prescription coverage receive a one-time, $250 rebate to help pay for medicines.
- Tanning salon tax: A 10 percent tax will be imposed on the cost of indoor tanning services.
- Preventive services: Health insurance plans will be required to cover preventive services, such as immunizations for children and cancer screenings for women.
In 2011
- Health Care Savings Accounts: The federal tax on individuals who spend money from health care savings accounts for ineligible medical expenses will be 20 percent. (In 2013 contributions to these accounts will be limited to $2,500 per year.)
- Medicare "doughnut hole:" Drug companies will provide a 50 percent discount on brand name drugs for those who face a gap in coverage.
- Primary care doctors and general surgeons: Will receive a 10 percent bonus payment under Medicare.
- Long-term care: A voluntary program. After at least five years of contributions, enrollees will get $50 a day in cash to help pay for long-term care.
- Insurance rebates: Health insurers will give rebates to enrollees who spend less than 85 percent of their premium dollars on health care.
- New annual fee on drug makers: A total of $2.5 billion will be imposed on pharmaceutical manufacturers.
- Community health centers: Receive $11 billion in additional funds to provide medical care for the poor.
In 2013
- Annual fee on drug makers: Rises to $3 billion per year through 2016.
- Itemized deductions allowed for uninsured medical expenses: Will rise to 10 percent of adjusted gross income.
In 2014
- Individual mandate: Most Americans will be required to buy health insurance or pay fines of $95 per individual up to $285 per family or 1 percent of taxable household income.
- Medicaid expansion: Eligibility for low-income Americans would increase to 133 percent of federal poverty, $29,327 for a family of four.
- Health Insurance Exchanges: A state-based health care marketplace will be created where individuals and small businesses could comparison shop for insurance policies.
In 2015
- Individual mandate: Penalties for not carrying health insurance rise to $325 per individual, $975 for families or 2 percent of taxable income.
Health Care Tax
The Internal Revenue Service has begun mailing postcards to more than four million small businesses and tax-exempt organizations to make them aware of the benefits of the recently enacted small business health care tax credit.
Included in the Patient Protection and Affordable Care Act approved by Congress, the credit is one of the first health care reform provisions to go into effect. The credit, which takes effect this year, is designed to encourage small employers to offer health insurance coverage for the first time or maintain coverage they already have.
For tax years 2010 to 2013, the maximum credit is 35 percent of premiums paid by eligible small business employers and 25 percent of premiums paid by eligible employers that are tax-exempt organizations. The maximum credit goes to smaller employers -- those with 10 or fewer full-time equivalent (FTE) employees -- paying annual average wages of $25,000 or less. Because the eligibility rules are based in part on the number of FTEs, not the number of employees, businesses that use part-time help may qualify even if they employ more than 25 individuals. The credit is completely phased out for employers that have 25 FTEs or more or that pay average wages of $50,000 per year or more.
Eligible small businesses can claim the credit as part of the general business credit starting with the 2010 income tax return they file in 2011. For tax-exempt organizations, the IRS will provide further information on how to claim the credit.
More information about the credit, including a step-by-step guide and answers to frequently asked questions, is available on the IRS Web site.
Upcoming Event - j-ref Fundraiser On June 3rd, j-ref will be having its annual fundraiser. This year's event is titled "WIFM," What's In It For Me?
j-Ref is a not-for-profit organization that creates jobs by providing risk-oriented financing for businesses in Howard County who are unable to receive financing from traditional sources.
Since its founding in 1992, j-ref has provided over $5 million in loans to 60 businesses and helped to create 500 new jobs in Howard County.
Tickets are $50 per person in advance; $65 at the door. Contact Eileen for details on how to purchase tickets.
Quote of the Month - From one of our clients
"HR is like a parking lot - In a parking lot, 25% of people don't look when they back up in the parking lot until they hit something. Like HR - there are companies that don't think HR is necessary until they have an issue."
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