The HR Team November 2010 Newsletter

It's hard to believe that we are in November; pretty soon 2010 will be a thing of the past. Good riddance. For many, the economic climate of these last 2 years has been stressful, to say the least. We all cope and deal with stress in different ways. How do I cope? I keep a list from the most stressful 2 week period of my life. The list is from 2003 and it says: Dad sick, leg stuck, lost child care, son's hearing, dad died, hubby lost job, and cat died.

Odd list, isn't it? I guess I should explain this list and more importantly, how it all worked out.

My father had been ill for a while and had actually been in hospice care in New Jersey. I knew his days were numbered, so I made a point to spend a lot of time with him. At times, I traveled by train. One day, upon returning from New Jersey, I somehow managed to slip and get my leg lodged in the train before it took off. The next day, I discovered that I no longer had child care for my son and was told by an audiologist that my son appeared to have some sort of hearing loss. Upon return from the audiologist, my mother called to tell me that I may want to return to New Jersey; which I did (along with my husband and two children). My father died that next morning. When we all returned home, my husband learned that he was out of a job, which was soon followed by the death of our beloved "Blue" kitty.

If this was the most stressful 2 week period that I can remember, why am I reminding myself of it on a regular basis? Because it reminds me that whatever is going on, it's not as bad as "2003" and everything worked out, or at least I made it through. Let me explain. My leg turned out to have no permanent damage. My son's hearing loss turned out to be temporary. I didn't need full time child care, because my husband lost his job. Bonus, the child care I moved to later that year was amazing. My husband found a new job a bit later that year that he loved and still loves (yes, he's still in that job today). The cat was 18 years old and lived a long, happy and cherished life. My father, well, he's still dead. However, he had been ill and in a lot of pain for a number of years. During that "horrible" week, he was able to rest peacefully while being surrounded by his loved ones.

How do you cope with stress? Do you have a unique approach? We want to know. Give us a call or drop us an email.

IRS Releases Draft W-2 Form for 2011

The IRS has issued a draft Form W-2 for 2011, which employers use to report wages and employee tax withholding. The IRS also announced that it will defer the new requirement for employers to report the cost of coverage under an employer-sponsored group health plan, making that reporting by employers optional in 2011.

The draft Form W-2 includes the codes that employers may use to report the cost of coverage under an employer-sponsored group health plan. The Treasury Department and the IRS have determined that this relief is necessary to provide employers the time they need to make changes to their payroll systems or procedures in preparation for compliance with the new reporting requirement. The IRS will be publishing guidance on the new requirement later this year.

Although reporting the cost of coverage will be optional with respect to 2011, the IRS continues to stress that the amounts reportable are not taxable. Included in the Affordable Care Act passed by Congress in March, the new reporting requirement is intended to be informational only, and to provide employees with greater transparency into overall health care costs.

I-9 Process / New Puerto Rico Birth Certificate Law

On July 1, 2010, the Vital Statistics Office of the Commonwealth of Puerto Rico began issuing new, more secure certified copies of birth certificates to U.S. citizens born in Puerto Rico because of a new Puerto Rico birth certificate law. After Oct. 30, 2010, all certified copies of birth certificates issued prior to July 1, 2010, will become invalid. This new law does not affect the U.S. citizenship status of individuals born in Puerto Rico. It only affects the validity of certified copies of Puerto Rico birth certificates.

As a result, employers must NOT re-verify the employment eligibility of existing employees who presented a certified copy of a Puerto Rico birth certificate for Form I-9 purposes and whose employment eligibility was verified on Form I-9 prior to Oct. 31, 2010.

Federal Contractors
Employers awarded a federal contract that contains the Federal Acquisition Regulation (FAR) E-Verify clause have special Form I-9 rules for the verification of existing employees.

See the E-Verify Supplemental Guide for Federal Contractors for more information on E-Verify and FAR requirements.

How will this law affect the retention of documents with Form I-9?
Existing federal law governing the Form I-9 process prohibits employers from keeping original certified copies of birth certificates, including those issued in Puerto Rico, but allows employers to keep photocopies of these documents. Employers who choose to make photocopies of documents their employees present when completing Form I-9 must do so for all employees, regardless of national origin or citizenship status.

For more information about Form I-9, visit www.uscis.gov. More information about birth certificates issued in Puerto Rico can be found at PRFAA (English) and PRFAA (Espańol).

Emergency: ID is Lost on a Business Trip

Having your passport, driver's license or travel documents come up missing while you're on a business trip can turn into a nightmare situation.

Travel advisors recommend carrying copies of these documents, but that could be a cumbersome pack to carry around.

A new Internet service called AccessMyID can help to solve the problem by providing copies of your photo IDs, health insurance cards, passports and other important documents. The company takes security of your information very seriously.

After you sign up for the service, you upload high-resolution images of your IDs to their encrypted site. It can be secured by as many passwords as you want, up to 20. Then if your passport or document is lost, you can print out the image.

Travel advisors for INC. magazine caution that, while getting replacements is easier, you won't get through airport security with the copies. But you could use them as proof of identity at a hotel or office building.

IRS Announces Pension Plan Limitations for 2011

The Internal Revenue Service announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2011. In general, these limits will either remain unchanged, or the inflation adjustments for 2011 will be small.

Highlights include:

The elective deferral (contribution) limit for employees who participate in section 401(k), 403(b), or 457(b) plans, and the federal government's Thrift Savings Plan remains unchanged at $16,500.

The catch-up contribution limit under those plans for those aged 50 and over remains unchanged at $5,500.

The elective deferral (contribution) limit for those who participate in SIMPLE plans remains unchanged at $11,500; with the catch up contribution for those aged 50 and over remains unchanged at $2,500.

Further details can be found on the IRS website.

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