The Internal Revenue Service announced a mid-year increase in the optional standard business mileage rate. This rate is suggested by the government for employees, self-employed individuals, or other taxpayers to use when computing the tax-deductible costs of operating an automobile for business, charitable, medical, or moving expense purposes. The increase will raise the allowance for business travel by 4.5 cents. Previously, the rate was 51 cents per mile. It will now be 55.5 cents per mile. This rate will apply from July 1, 2011 to December 31, 2011. It’s the highest IRS standard rate since late 2008.

The standard mileage rate can be used by employers to:

• Reimburse employees who use their own vehicles for business.
• Place value on personal use of some employer-provided vehicles.

The change comes after a significant increase in gas prices over the past few months. It aims to better reflect the actual cost of operating an automobile during a time of rapidly increasing gasoline prices. Keep in mind, because the rates for the first and second halves of the year will be different, taxpayers must be diligent about keeping good gas mileage records, including dates of travel.

So, what does this change mean for everyone? As an employee, how do you feel this rate change may affect you? Are you an employer? What affect do you think it might have for your business?

Owning a business can be a financial and personally rewarding experience. As with every entrepreneurial endeavor, the positive aspects of running your own business are tempered with the other requirements that are necessary components of a successful endeavor.  A few of the challenges facing you as the CEO include attracting and retaining the best employees, determining the right blend of cost and value when calculating salaries and employer sponsored benefits, achieving and maintaining profitability, managing growth and cash flow as well as insuring that you are in compliance with the ever changing universe of legislative mandates and regulations.

Most business executives wish they had more time to focus on growing and managing their businesses and less time devoted to those activities that didn’t contribute to their bottom line profits. For many entrepreneurs, the answer is to outsource those things that take up your time but don’t really help your business grow or become more profitable. If you’re concerned about the time, cost and liabilities  associated with managing your employees, it might it might make sense to take a look at outsourcing specific accounting, HR and benefits management functions to a reliable, competent and time tested business partner.

Processing payroll especially is a high risk, low reward business activity. If you run internal payroll software, you need to keep up with annual maintenance, perform periodic data backups, create business continuity plans, define and protect  accessibility to insure confidentiality and have competent staff to manage the maze of tax deposit requirements, new hire reporting and wage garnishment calculations and disbursements to name a few.  In addition, you need to find a solution that goes beyond core payroll functionality to include integrate time collection, HR recordkeeping and reporting functionality among other things. As if that not enough, you have to purchase a scalable solution that can grow with you and not obsolete your investment.

Although web based in house programs can answer some of these issues (like annual updates and business continuity) many of the same issues cited above are just as applicable when you use cloud computing.  And business continuity is only as good as the processes and technology that your hosted provider utilizes.

Even small mistakes are costly. Employee morale dips when you give an employee a check or a W2 late or with errors.  If payroll records are accidently accessed by the wrong staff person, pay rate differentials or other confidential information can be breached.  Employees may forgive but they don’t forget.  Fines for mistakes with wage garnishment payments and filings, inaccurate hours tracking and overtime calculations, COBRA mismanagement or failing to file new hires correctly are costly and unnecessary.

File late or with an incorrect amount and you’ll have to pay a payroll penalty. Every year, four out of ten small businesses pay fines for payroll tax calculation errors. When it’s added up, we’re talking  billions of dollars in annual payroll tax fines. And even if you file correctly, states and federal agencies can question the timeliness and accuracy of your payments.  It’s up to you to research when your tax payments were made and respond to their requests.

When you consider the potential penalties and liabilities as well as the value of your time, processing payroll and HR tasks internally can be a very costly proposition. Even if you’re already outsourcing these operational requirements, there may be room for improvement. Vendor service levels, technology and functionality change over time, and there are new capabilities that are worth checking out.

We are pleased to announce our first series of Webinars.  These webinars will cover a variety of topics from trainings to helpful hints.  Whether you simply want to brush up on the basics or have specific questions, we’ve got it covered.  Attend 4 webinars in one month and receive a free gift from Netchex!

 New Hire Process

Tuesday, May 31, 10 a.m. and Tuesday, June 21, 10 a.m. Central Time

Have you ever forgotten to add direct deposit information to a new hire?  Learn all aspects of the new hire process from entering employee address to assigning log in information.

Time and Attendance Administration

Tuesday, May 31, 3 p.m. and Friday, June 24, 2 p.m. Central Time

This session will highlight the employee timecard.  Review adding punches, editing missed punches, department changes, etc.  It will also cover time and attendance reports.

Garnishment Set Up

Thursday, June 2, 10 a.m. and Monday, June 20, 3 p.m. Central Time

Learn the difference in setting up child support orders versus tax levies and creditor garnishments.  Learn how to set up third party payees and attach to the employee deduction.

W2 Preview and Year End Reports Preview

Friday, June 3, 2 p.m. and Tuesday, June 7, 9 a.m. Central Time

See how to preview your W2 and see how earnings and deduction codes are routed.

Also, see where you can update your W2 shipping information.

Accrual Set Up and Maintenance

Monday, June 6, 3 p.m. and Thursday, June 23, 9 a.m. Central Time

Learn how to set up your companies accrual policies and make adjustments to employee record if need.  See how employees can request time off through the employee self service portal and what accrual reports are available.

Managing the Employee Lifecycle

Thursday, June 9, 2 p.m. and Thursday, June 30, 3 p.m. Central Time

From new hire to termination, learn how to track important employee events; pay rate changes, position changes, department changes, etc.

Timesheet Grid Options

Friday, June 10, 2 p.m. and Monday, June 27, 2 p.m. Central Time

How do you customize your payroll grid to show only the earnings and deduction codes you need?  You’ll learn how to choose specific earnings codes and how to change the sort order of your employees as they appear in the payroll grid. 

Homepage Configuration

Monday, June 13, 10 a.m. and Tuesday, July 12, 9 a.m. Central Time

Improve communication with employees and managers with the Netchex homepage.  Customize notes and reminders, upload important files and links and reduce phone calls from employees looking for information.

Primary Payroll Reports

Tuesday, June 14, 2 p.m. and Monday, July 11, 3 p.m. Central Time

Learn the difference between the Payroll Detail Register and the Payroll Summary Register.  Review our most popular and most requested primary payroll reports

Importing Options      

Thursday, June 16, 3 p.m. and Friday, July 1, 10 a.m. Central Time

Tired of typing in direct deposit information for each employee?  Save time with our importing options.  See what fields are available for import via Mass Update Import.

 General Ledger Maintenance

Friday, June 17, 9 a.m. and Tuesday, July 19, 10 a.m. Central Time

This session will show you how to configure/edit general ledger account numbers to fit your company needs.

 Email Event Configuration/Contact Information

Tuesday, June 28, 9 a.m. and Thursday, July 14, 2 p.m. Central Time

Learn how to set up email notifications when an employee requests time off as well as where to add/edit various contact information for different departments within your company.

To register for webinars click Netchex.webex.com

 If you would like to schedule a client visit or a webinar to review the specifics of your company, please email our field service representative, Laura Traina, at ltraina@netchexonline.com

 http://evilhrlady.blogspot.com/2011/04/dont-ban-pre-employment-credit-checks.html

You’ve always paid your bills on time and even put a little bit of money in the bank. But, when you lost your job and unemployment stretched for weeks and then months and then over a year, the mortgage didn’t always get paid and neither did your reasonable cell phone bill, that you had signed a two year contract on. You’re not irresponsible, but your credit is shot. The only thing that you need to be back to your old, responsible self is a job.

http://www.workday.com/innovation/featured_articles/three_hr_technology_trends_in_2011/hr_warms_to_social_media.php

What better way to start our blog than to take a look at how social media impacts HR? Social media has engrained itself into our personal AND professional lives-and it looks like it’s here to stay. What does that mean for HR? Many HR professionals see social media as a gray area-there are company policies in place that block social media sites like Facebook and Twitter because they are thought to decrease productivity, but some HR professionals are looking at social media as a free tool for their company or organization. More and more HR professionals are using these sites to find qualified candidates who not only look good on paper but also fit in well and have proven integrity. In addition, businesses are encouraging their employees to use social networks to expand their list of contacts.  One the other end of the spectrum, there are HR professionals who see these sites as more of a danger to their organization. HR has many different responsibilities, one of them, of course, is to protect the company they work  for from legal issues. Content posted to an employee’s social media page can negatively impact the employers. This has led to company policies and restrictions on what type of content, pictures, etc. can be posted on an employee’s page.

 What is YOUR company’s stance on social media in the workplace? Are you embracing this technology or still on the fence? Does your company currently have any policies on social media? Do you use it as a recruiting tool?

Netchex will be sponsoring LSU baseball this spring. Look for us on TV during a few upcoming games, starting tonight. Mention the inning that you see our advertisment and you will enter to win a gift card from Netchex. See below for a schedule of games we are sponsoring. Go Tigers!!

JSN will produce a limited number of LSU Baseball games for television in the spring of 2011.  JSN will syndicate the games to local (COX4 N0, BR & LAF) and regional sports networks CST and CSS.  The schedule of games is below: 

Date                       Match-up                                               City                                         Start CT

4/20                       So. Miss vs. LSU (WP Jr. Game)   Metairie, LA        7:00 PM

5/6                         LSU @ Alabama                   Tuscaloosa, AL                      6:35 PM

5/8                         LSU @ Alabama                   Tuscaloosa, AL                      1:00 PM

5/15                       Tennessee @ LSU               Baton Rouge, LA                   1:00 PM

NCAA Regionals (Only If LSU Advances and NCAA Awards TV Rights Games Will Air LIVE on CST)

June 4-7 NCAA Regional Games (Six Total)     TBD                                         TBD

Louisiana Major Market Affiliate List

New Orleans (LIVE ON COX 4) (Delay on CST) 

Baton Rouge (LIVE ON COX 4) (Delay on CST) 

Lafayette (LIVE ON COX 4) (Delay on CST) 

Lake Charles (Delay on CST) 

Alexandria (Delay on CST) 

Bossier City (Delay on CST) 

Shreveport (Delay on CSS)

Ruston (Delay on CST)

Monroe (Delay on CSS)

Natchitoches (Delay on CST)

Houma (Delay on CSS)

North shore (Delay on CSS)

 Games will also be broadcast to over 6 million households outside of Louisiana thru CST and CSS!!

First and foremost-WELCOME to the Netchex Blog! We’ve finally gotten on the social media bandwagon & plan on making the most out of this new platform. Check in for the latest at Netchex-from team outings to HR compliance issues to tax law changes-we’ll keep you up to date & in the loop.

What better way to kick off our blog than to give ourselves a pat on the back for making THE LISTS. What lists you ask? The lists of Top Companies in New Orleans & the surrounding area-kudos to the entire team here at Netchex for making this happen!

10:12 Magazine Top 25 Fastest Growing Companies

http://www.1012corridor.com/news/2011/jan/24/25-fastest-growing-companies-corridor/

New Orleans City Business Top 100 Private Companies

New Orleans CityBusiness listed Netchex in its annual ‘Top 100 Private Companies’ in the New Orleans area (based on revenue). The Special Focus article was featured in the March 18-24, 2011 issue of CityBusiness.  

Of course, we couldn’t be more excited about the growth we have seen as a company within the last few years. We look forward to contiuing that growth while maintaining our core values that this company was built upon: SERVICE (always with a smile!), best in class TECHNOLOGY all while culitivating a fun , family oriented environment.

Welcome to our blog-we look forward to showing you what makes Netchex The Difference in Employer Services!

Here’s the very latest in Human Resources news! These are a few things we think you should know.

FLSA Right to Know Proposal. In April 2011, the Right to Know proposed rulemaking of the federal Fair Labor Standard Act (FLSA) is expected to be released. The proposal covers aspects including updated recordkeeping regulations, as well as disclosure to workers about their status as employees or independent contractors.

OSHA Summary Posting. From February 1 to April 30, 2011, OSHA requires that employers post a summary (OSHA Form 300A) of the total number of job-related injuries and illnesses that occurred in 2010.

IRS Tax Filing Deadline. The traditional tax return filing deadline is April 15 of each year, but the IRS has approved April 18, 2011 as the tax filing deadline for 2010 tax forms.

H-1B Filing Season. On April 1, 2011, the filing period begins for new H-1B petitions to be counted toward the annual cap of 85,000 new H-1Bs for fiscal year 2012.

Final ADAAA Regulations. On March 24, 2011, the Equal Employment Opportunity Commission (EEOC) published its final regulations concerning the Americans with Disabilities Act Amendments Act (ADAAA) which established a broad definition of “disability.” (For more information, please see second article below.)

A few employers may be familiar with a recent U.S. Supreme Court ruling on March 1, 2011, regarding the case of Staub v. Proctor Hospital and how “cat’s paw” liability played a part. Cat’s paw liability involves an employer being held liable for unlawful discrimination, even though the “motivating factor” in the employment decision-making process stems from an unlawful bias of a supervisor with no employment decision-making authority.

“Cat’s paw” relates to a fable about how a monkey convinces a cat to steal chestnuts from a fire, steals the same nuts from the cat, and then leaves the cat with empty but burnt paws. In the context of the workplace environment, the supervisor is the monkey as the employer is the cat.

At times, it may be difficult to determine what is considered to be an unfair discriminatory situation. Staub had sued the hospital under the Uniformed Service Employment and Reemployment Rights Act (USERRA), which prohibits discrimination against employees serving in the military based on their military status. However, courts may apply similar “motivating factor” tests and decisions in cases under other federal employment laws. Therefore, employers need to be aware of members of all “protected classes” (based on sex, religion, race, etc.) in the workplace in order to make sure that equal opportunities and fair practices are consistently administered.

To help minimize the company’s risks of cat’s paw liability, an employer may apply various preventative measures, such as the following:

• Revisit your company’s mission statement and values.
• Consistently employ fair hiring practices regarding job candidates and employees seeking new job opportunities within the company.
• Review and update the company’s discrimination and harassment policies to ensure they cover clear steps for reporting complaints.
• Assess the company’s process of weighing recommendations and making decisions resulting in adverse employment actions.
• Train managers and non-managerial workers (especially those with recruitment duties) on how to conduct fair hiring practices and procedures toward maintaining equal opportunity compliance.
• Train all members of management on how to effectively investigate for facts, substantiate the findings, and objectively decide on any employment action.
• Conduct independent investigations when appropriate.

In all, remain diligent in ensuring that each adverse employment decision is supported and documented by legitimate nondiscriminatory reasons and evidence.

Every business should consider providing or updating their company employee handbooks to reflect current trends that are highly relevant in today’s workplace. The perception that employee handbooks are bland stacks of standard policies lead some employers to become static in routines and forget to employ creative and strategic policies that can provide important benefits to the company. Consider, at least, the following five policy areas recognized as major areas of focus for 2011:

Employment Classifications. The U.S. Department of Labor (DOL) has been increasing its compliance enforcement efforts, and employers must understand how to initiate proper assessment in various areas of wage and hour laws (e.g. employee vs. independent contractor, exempt vs. non-exempt, full-time vs. part-time).

Health and Safety. Another area of DOL attention involves safe and productive workplace environments.  The federal Occupational Safety and Health Act (OSHA) requires covered employers to maintain a workplace that is free of hazards.  Having specific policies in place is a key part of the process.

Social Media. With the increasing usage of social networking sites and technological equipment (i.e. smart phones), employers should remain mindful of how their employees are using the internet and thus how they may be promoting your business and the image of the company.  In addition, social media can cross barriers between confidentiality and privacy rights. So, a sound policy would be able to pinpoint the functionality and appropriate time frames that allow for social media usage during work as well as non-work hours.

Telecommuting. Telecommuting can be used as an important recruitment and retention tool, and more companies are allowing more workers to work remotely more often.

Benefits. Whether trying to stay on top of various health care reform laws, apply family medical leave updates, or provide vacation and sick leave time-off, it is vital for employers to ensure that their benefits-related policies remain current.

To be sure your Employee Handbook is up to speed, conduct a thorough review, at least, on an annual basis with the guidance from an HR Professional, if needed.