President Obama, on Dec. 19, 2009, signed the Fiscal Year 2010 Defense Appropriations Act which includes amendments to the federal American Recovery and Reinvestment Act of 2009 that provided health care premium assistance for certain individuals. ARRA revised the federal Consolidated Omnibus Budget Reconciliation Act of 1985 to require employers with COBRA-covered group health plans to pay 65 percent of health care premiums for up to nine months for assistance eligible individuals who lose health care coverage due to employees’ involuntary employment termination between Sept. 1, 2008, and Dec. 31, 2009. The new law expands the duration of the 65 percent premium assistance from nine to 15 months, and extends premium assistance to individuals who lose health care coverage due to employees’ involuntary employment termination between Sept. 1, 2008, and Feb. 28, 2010.

by National Association of State Workforce Agencies

NASWA has released a survey of the state unemployment trust fund solvency and tax rates. The survey’s findings underscores the significant impact that the current economic recession is having on Unemployment Insurance (UI) costs for all employers.

A total of 24 states will increase their taxable wage base in 2010. Of these 24 states, seven states (AR, FL, IN, NH, TN, VT and WV) have enacted legislation to increase the state’s “taxable wage base,” the level of wages subject to a payroll tax on employers. The remaining 17 state programs (AK, HI, ID, IA, MN, MT, NV, NJ, NM, NC, ND, OK, OR, UT, VI, WA and WY) index their taxable wage bases to the state’s average wages and will automatically increase their taxable wage bases for 2010.

Of the 51 state programs surveyed, 28 states (AK, AL, AZ, CO, GA, HI, IA, ID, IL, KS, MA, MD, ME, MN, MT, ND, NE, NH, NJ, NY, OH, OR, PA, PR, VA, VT, WI and WY) indicated the tax schedule in their state will see an increase in 2010 compared to 2009. The majority of these increases will be automatic; adjustments often triggered by low levels of reserve funds in the state accounts used to finance unemployment benefits. While it is normal for states to recalculate tax rates each year, the magnitude of these rate increases for most states is unusual.

In addition, ten states (CA, CT, DE, KY, MI, MO, NC, RI, SC and TN) indicated their tax rate schedules were already at the highest tier, which would prevent them from automatically increasing in 2010. Consequently, the state legislatures would need to enact changes in state laws – either increasing the tax rates by changing tax rate schedules or increasing the state taxable wage bases.

Six of the 51 state programs surveyed (AR, CA, CT, FL, HI and MA) indicated they will automatically increase their tax rates due to a solvency tax already in state law. The majority of these solvency taxes also activate when states’ trust fund balances fall below specified levels.

Of the 51 state programs surveyed, 35 states estimated the level of UI tax revenue collected in 2010 would surpass the level collected in 2009; with a median projected increase of 27.5%. The range of these projected increases was 2.5% to 600%.

More information can be found at www.workforceatm.org

Human resources outsourcing is a strategic move to improve the quality and flexibility of your workforce, while improving your organization’s ability to accommodate change and stay ahead of market forces. Today, many companies are outsourcing their human resource functions. The benefits affect owners and executives, HR managers and employees and can include cost savings, access to highly skilled professionals and advanced technology, which collectively result in a sustainable competitive advantage.

BENEFITS TO OWNERS & EXECUTIVES

• Reduce Liability - A single poorly handled employee incident can imperil your entire organization. Issues from wrongful termination to a hostile workplace need never be an issue in an organization that is doing all the little things necessary to prevent them. The problem is that many organizations are not aware of their responsibilities, and this can lead to disaster. Our clients sleep well at night knowing that these things are being professionally and competently handled.
• Increase Employee Productivity - Staff One implements strategic performance management plans for every employee in your organization which are aligned with your business goals. We then put systems in place to monitor, report and review the performance of each member of your team. Employees appreciate knowing exactly what is expected of them, and will rise to exacting standards when they know their performance is being measured and reviewed.
• Decrease Total Cost of Labor - Staff One will analyze your entire cost of labor from benefits, workers’ compensation, compliance management, payroll administration, low productivity and more, and find the places where your organization could be more efficient. Depending on the size of your firm, that could mean hundreds of thousands of dollars a year in savings.
• Increase Profits - Staff One’s strategic human resources solutions lower your overall cost of labor, and our performance plans and metrics mean your entire organization will be operating at higher levels of output.
• Strategic Decision Making - Making good decisions requires good information. Our HR systems management makes strategic planning and efficient allocation of scarce resources much easier for our clients.
• Reduce Turnover - One of the biggest hits to your productivity and profitability is employee turnover. Keeping good employees happy doesn’t happen by accident. It is planned! Our clients benefit from thoroughly planned and proven HR administration that dramatically reduces turnover. From recruiting the best people, to designing effective compensation plans, to regular performance reviews to training and development programs, we can help.
• Focus On Business - Staff One handles HR, freeing you up to focus on growing your business.

BENEFITS TO HR MANAGERS

• Focus on People - You got into human resources because of your dedication to your employees. But over time you spend more and more of your time on paperwork. It doesn’t have to be that way. Our proven systems reduce the paperwork dramatically. Get back to what matters – your employees.
• Reduce Workload - Imagine what your career would be like if you could eliminate or dramatically reduce the paperwork. You would have more time to focus strategically, instead of stomping out fires. Our web based HRIS system includes full employee self-service functionality. Your employees can access payroll records, W-2s, benefits plans, performance reviews, company policies and more any time of the day or night securely over the Web. How much time would that save you every day?
• Data Driven Management - We provide HRIS reliable reports specifically designed to keep you informed of all information critical to doing your job. Good information is critical to making good decisions.
• Eliminate Administrative Burden - Are the certain aspects of HR that you just don’t like? COBRA? FMLA? Regulatory compliance? We handle the things you don’t like so you can get back to focusing on your business.
• Keep Within Budget - You have budgetary responsibilities, and keeping within budget is critical to your success. We provide budget tracking reports that help you stay informed. Furthermore, our solutions may help cut your costs. We will also improve your organization’s productivity, which means you will have to hire fewer people in the future to get the same output.

BENEFITS TO EMPLOYEES

• “Big Company” Benefit Plans - Our benefits plan design and administration provides enhanced benefits to your employees without significantly increasing costs. An attractive benefit and compensation plan is crucial to attracting the best people.
• Clear Expectations - Employees truly appreciate knowing exactly what is expected of them. When communication between management and staff is clear, everyone benefits.
• 24-Hour Access To Records - Your employees will appreciate being able to access important data online securely any time of the day or night. They can see their own payroll records, personal profiles, learning and development resources and more.
• A Better Workplace - The goal of any HR Department is to provide a friendly and rewarding workplace for all employees. Employees who love their job and their company stick around and produce more.