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Affordable Care Act, Group Health Insurance

IRS delays 1094/1095 form filing deadlines

During the holiday season, the IRS published Notice 2016-4 and extended the deadlines that apply to employers and coverage providers for reporting health coverage through the 2015 Forms 1094/1095.  The notice stated:

  • Deadline for Forms 1095-B and 1095-C to individuals are extended from February 1, 2016 to March 31, 2016; and
  • Deadline for Forms 1094-B, 1095-B, 1094-C, and 1095-C  filed with the IRS are extended from March 31, 2016 to June 30, 2016 (if electronic filing), and from February 29, 2016 to May 31, 2016 (if paper filing).

These extensions are automatic, and supersede the 30 day permissive extensions employers were previously able to request.

Employers that fail to submit and/or provide the forms within these new deadlines will be subject to penalties.  The IRS has announced that it may reduce or waive penalties if an employer makes reasonable efforts to comply with the 2016 reporting requirements.

Of course, this extension will likely result in employees not having their Forms 1094/1095 at the time they file their federal income tax returns.  Although these Forms are not required to be attached to income tax filings, the information on these Forms could differ from information individuals had previously received from their employers or coverage providers with respect to whether they have affordable, minimum essential coverage. So, the IRS Notice states that individuals will not need to re-file their returns if they file their income tax returns before receiving these Forms from their employer and the Forms contain information that differs from the information they had relied upon in completing their returns.  Click here for IRS Notice 2016-4.

Injury Statistics, OSHA, Safety

OSHA Severe Injury Reporting rules

In 2015, the U.S. Occupational Safety and Health Administration revised its reporting requirements and mandated increased reporting of severe employee injuries.  Employers must report all workplace fatalities within eight (8) hour (preexisting rule).  The new requirements state that employers report the hospitalization of a single employee — rather than three or more employees as previously required — as well as all amputations and loss of an eye within 24 hours of learning of the incidents by management.

In the first year of increased reporting (2015), OSHA received more than 10,000 reports.  About 40% resulted in on-site inspections, while 50% resulted in a rapid response investigation that requests more information about the incident and the employer’s corrective action (phone and fax procedure).  OSHA recently stated that the employer response information would not be used when issuing citations or fines.  However, the agency may decide to conduct an inspection based on the nature of the event and the sufficiency of the response. OSHA will use inspection information to determine whether citations should be issued.  Check out more information on OSHA reporting here.

Goal Setting, Performance Review, Self Appraisal

Preparing to conduct an Annual Performance Review

As we approach the end of the year, many companies are preparing for and conducting annual performance reviews and discussions with employees.  To support good employee relations and healthy employee relationships, here are some good reminders and actions items that will help make your performance review sessions a success this year.

First, good preparation is needed from both the manager and the employee.  Therefore, both parties should have ample notice of the date and time for the session, and have clear expectations about the agenda.  The trend is to spend 25 percent of the time looking back (assessing and rating) on the past year, and the majority of the time on the performance goals and development plans for the upcoming year.  Future focus and the demeanor of a coach will leave the employee empowered with your support, but knowing they are personally accountable for results.

To prepare, a manager may consider the following:

  1. What documents or information should you bring to the conversation? What’s new since the last conversation?
  2. After reviewing the current job/position description—does it accurately reflect the current key responsibilities of the position? If not, plan to update it.
  3. Review last year’s performance review, especially the employee’s goals and objectives for the year.  How did they do?  Were you tracking and encouraging them during the year?  Have they grown and advanced themselves professionally and added new value to the organization?
  4. Refer to your notes and emails that accumulated during the year, feedback from customers or coworkers, etc… to have a full picture of performance and growth.
  5. Has the employee encountered any obstacles since the last review? How did they respond?
  6. What were the employee’s performance goals or development goals for the year? What is the status of these goals and progress?  Do these goals still connect to the company’s goals and objectives, or the department’s goals and objectives?
  7. Has all training objectives been accomplished?
  8. Is the employee following the company values? If so, how?
  9. Looking forward, how can you (the manager) assist the employee in achieving their goals?

Length of time for the review.

  1. Allocate sufficient time to probe past performance and to discuss future goals and development. Usually at least one hour is needed.
  2. Meet in a private space, preferably away from your office and distractions. Avoid interruptions.
  3. Turn off devices and focus 100% on your employee.

Conducting the review

  1. Your meeting is a conversation about performance, not a monologue by the manager. The purpose of the annual performance review form, self-appraisal, performance stats or other material is to help guide the conversation.
  2. Listen and do not dominate the session. A time proven method is to ask more questions and listen – but always maintain control of the session.
  3. When discussing performance, avoid generalities and instead provide as much specific factual data as possible. Provide specific examples of positive and negative feedback, whenever possible. Although examples may bring up the past, emphasize the future as much as possible, and use examples to help identify goals and objectives for the upcoming year.
  4. Provide positive reinforcement, as opposed to criticism, when possible. Work on building morale whenever possible.  For instance, review recent successes since the last review, making sure to identify the specific results achieved.
  5. Review any agreed-upon “next steps” or commitments from the most recent performance planning and review conversation.
  6. Discuss any obstacles encountered since the last review. When, how and why did they arise? What are some possible ways to deal with them?

Performance review objectives

  1. The accomplished manager and performance reviewer will: (1) focus on observable behavior; (2) listen well; (3) coach; (4) maintain an atmosphere of open honest dialogue; and (5) accurately document the review and help develop a roadmap for the upcoming year of performance.
  2. Help employees set SMART goals, professional objectives and a career roadmap
  3. A true manager wants to cultivate the strengths of all employees, and to impress upon your team that you are going to help them attain greater experience and success in the upcoming year.
  4. Take pride in developing people who go on to greater levels of responsibility. Ask yourself “what can I do to help you improve your performance and achieve your professional goals?”
  5. Ensure that your employees are provided with specific performance standards and objectives, to guide them into next year. These goals are tied to your departmental objectives and the company’s overall objectives.  If you are not clear about these objectives, ask your boss.  It’s your job to pass along this type of information to your team.
  6. Challenge your employees to move out of their comfort zone. Provide challenging assignments that will push them to grow.  Help them prepare by providing a safe environment to learn from mistakes and improve their performance of new skills.

Summary:  Annual performance discussions are critical to the growth of your employees and the organization.  Successful coaches encourage, support and offer guidance.  They are patient and genuinely interested in the people they coach.  Restate expectations and clarify the benefits and consequences associated with meeting standards.   Leave the session with a shared understanding, specific goals and a firm plan for moving forward.   In sum, provide details, celebrate achievement and discuss the company’s values.

HR for Business – Consultstu LLC provides fractional HR services to small/mid businesses, and helps those companies comply with HR mandates, minimize HR costs and improve HR efficiency.  We assist our clients with customized HR solutions that provide protection from expensive HR mistakes and strategies for improving employee engagement.  Contact Stuart Charlson at 727-350-0370, or email [email protected]

Employment Poster, Minimum Wage

New 2016 Florida Minimum Wage Poster

The Florida minimum wage will remain at $8.05 per hour, effective January 1, 2016.  Florida law requires the Florida Department of Economic Opportunity to calculate a minimum wage rate each year.  The annual calculation is based on the percentage increase in the federal Consumer Price Index.

Action item: All Florida employers need to download the new 2016 Florida Minimum Wage poster available free from the Florida Department of Economic Activity, and post it on the employee bulletin board, or in another conspicuous place for employees.  Posters are in English, Spanish and Creole.  Compliance deadline to update is January 1, 2015.
Click here for the free downloadable poster courtesy of the Florida Department of Economic activity.
HR for Business – Consultstu LLC provides fractional HR services to small/mid businesses, and helps companies minimize HR costs and improve HR efficiency.  It assists clients with customized HR solutions that provide protection from expensive HR mistakes and strategies for improving employee engagement.  Contact Stuart Charlson at 727-350-0370, or email[email protected]
HR Costs, Workers Compensation

Florida’s Work Comp rates to drop 4.7% in 2016

On November 12, 2015, the Florida Office of Insurance Regulation (Office) approved an overall decrease of 4.7% in workers’ compensation insurance rates in Florida (press release). Following the disapproval of its original rate filing request, the National Council on Compensation Insurance (NCCI) submitted additional information for the Office’s consideration and asked that the Office re-evaluate three specific items pertaining to its annual rate filing: expense constant, indemnity trend, and the profit and contingency factor. The final order re-confirms the Office’s denial of the requested modifications to the expense constant and indemnity trend. However, the Office granted an increase in the profit and contingency factor from the current approved 2.5% to 2.75%, which lowered the decrease in workers’ compensation rates from 5.1% to 4.7% overall. The new rates become effective January 1, 2016 for both new and renewal workers’ compensation rates.

According to the Florida United Businesses Association (FUBA), the decreases in the class codes among the 5 main industry groups are as follows:

  1. Manufacturing (-7.5%)
  2. Contracting (-1.8%)
  3. Office and Clerical (-7.8%)
  4. Goods and Services (-4.4%)
  5. Miscellaneous (-4.6%)

The Office also approved an increase in the annual payroll amount used to determine premium for partners and sole proprietors.­ This amount is increasing by $800, from $43,000 to $43,800.

Lastly, the Expense Constant (flat per-policy fee that is charged for every policy), will stay at $200 for 2016.

HR for Business – Consultstu LLC provides fractional HR services to small/mid businesses, and helps companies minimize HR costs and improve HR efficiency.  It assists clients with customized HR solutions that provides protection from expensive HR mistakes and strategies for improving employee engagement.  Contact Stuart Charlson at 727-350-0370, or email[email protected]

Compensation, HR Costs, Training

What employee training time needs to be paid?

Non-exempt (overtime eligible) employees are entitled to pay for all hours worked for their employer. Under the rules, this means pay is required for all hours spent performing work for the employer, even if it is not required. Work is “suffered or permitted” when an employer is aware that additional work is performed (beyond scheduled hours), accepts the benefit and does not take action to stop it. So generally, an employee is compensated for all the hours spent working on their “principal activity” at work, which may extend beyond normal working hours, and away from the workplace. Today, there are so many professions that require special training and certification. This means lots of questions about the compensability of employee training. When is an employer required to pay for employee training time?

Four factors to consider:  According to regulations from the Wage and Hour Division, employee training at lectures, meetings and training programs does not need to be paid (or counted as hours worked) only if four (4) specific criteria are met: (1) the training is outside regular work hours; (2) it is voluntary; (3) it is not directly related to the employee’s job; and (4) the employee does not perform any productive work during the training.

For example (from the regulations), training is not considered directly related to an employee’s job when it is teaching them a new skill, trade or profession. So for instance, an employee taking an online course (after work hours) on medical coding, that is not geared toward their performance as a receptionist is not directly related to the job. Where a training course is instituted for the bona fide purpose of preparing for advancement through upgrading the employee to a higher skill, and is not intended to make the employee more efficient in present job, it is not considered directly related, even though it may incidentally improve their general skill level.

Independent training and educational courses taken by an employee after hours, on their own initiative (even if related to their present job) is not considered hours worked. For example, an employee taking an online accounting class at USF to improve their skills, when it is not required by the employer.

Lastly, the regulations explain that certain “special situations” are also not compensable training. When an employer establishes a training program for the benefit of employees which corresponds to courses offered by independent bona fide institution of learning, voluntary attendance by an employee at such courses outside of working hours would not be worked hours even when they are directly related to his or her job, or paid by the employer. There is also a special provision for apprenticeship training.

Example One: What about child care center employees in State-mandated training programs, offered by the employer and required of the employee as a condition of maintaining her State certificate? As long as in service training/continuing educaiton (which was comparable to courses offered by bona fide institutions of learning) was offered outside work hours, employees could choose to attend and no productive work done – FLSA Administrator opined that it was not compensable training time.

Example two: Are technicians required to be paid for the time spent completing several web based training courses that were pre-requisites for attending company paid training on several new products. The online training was voluntary and not required in order to perform their present position. The pre-qualification sessions would take an estimated 10 hours to complete. FLSA Administrator opined that this time must be compensated because if completed because the pre-requisite sessions were directly related to the employee’s present job and were not courses offered by general bona fide learning institutions (too product specific).

HR for Business – Consultstu LLC provides fractional HR services to small/mid businesses, and helps companies minimize HR costs and improve HR efficiency.  It assists clients with customized HR solutions that provide protection from expensive HR mistakes and strategies for improving employee engagement.  Contact Stuart Charlson at 727-350-0370, or email[email protected]

Drug Free Workplace, Employee Misconduct

Confronting a suspected drug using employee

I recently received a question, asking for suggestions on how to confront a suspected drug using employee.  First, I would review all applicable company policies, such as workplace conduct, attendance and drug free workplace policies.  Are there performance issues, work rule violations, attendance problems, behavior at work that is inconsistent with your customer service standards, etc…  If the employee’s performance is below standard, then the manager has a great opening to discuss the employee’s problems & performance and share his/her observations about conduct at work and ask the employee for improvement.  This is objective data.

Second, if the company has a drug free workplace (with a provision for reasonable suspicion testing) and the employee is showing demonstrated signed of possible drug use, then the manager should document the observations (good to have another management member confirm too – so it is not viewed as “personal”).  Signs include: mood changes, altered appearances, diminishing performance, disappearances during the shift, extended periods in the bathroom, problems with relationships at work, irritability, etc.  If these are sustained and recurring, or big changes from previous behavior, these may be signs of substance problems.  All documentation should be factual and not contain personal opinion, conclusions or unsubstantiated accusations.  Be objective.  Once documented, the manager has a good reason to question the employee about his/her observations.

Third, review the drug free workplace policy and the procedures for how and when a reasonable drug test can be administered.   Often, the policy procedures will have some information showing the things that may be signs of drug abuse, to help confirm reasonable suspicion.  If you have a relationship with an occupational medical provider, you can also ask for their professional opinion about your observations.  Did the employee sign a consent form?  You want to know your tools to handle the situation.

When you approach the employee, it is best to initial focus on your performance related observations and personal conduct observations, as well as any impact on customers.  You can directly confront the employee, and ask if they are involved in drug use.  If you approach it from the perspective of wanting to help and assist them (not just threatening to fire them), you may be able to learn about the problem(s) and focus on solutions.  Be concerned about their well-being, and express your desire to try and help them.  But be warned, that while you are concerned and want to help, you are the employer and not their parent.  There are consequences for their actions and this is a serious breach of policy.  The down side of directly confronting the employee about allegations of drugs, is that you may learn other medical information, or personal information.  Illegal drug use is not protected under any employment laws, but depending on the answers or the situation, ADA and other laws can be implicated.

To help the employee (regardless of answer), they can be referred to an Employee Assistance Program, or resources under the group health plan.  You should have a list of community resources available to share with this employee (but it is their problem to solve and address).  If you have the ability to drug test them under company policy, you can send them to test.  If they admit to drug use, document the admission and outline the consequences.  I suggest that you will need some concrete evidence (drug test result, admission, direct observation of drug use, etc…) to support taking action as a violation of drug free standards.  If this evidence does not exist and/or the employee does not embrace the opportunity to confront his/her challenges, then you can deal with performance or on-the-job behavior issues under policies and disciplinary rules.

Obviously, if you suspect an employee is under the influence at the time of your confrontation, do not sent the person home on their own, but be sure to offer the opportunity for a cab ride or some other safe means of transportation (either home or to the specimen collection site).

HR for Business – Consultstu LLC provides fractional HR services to small/mid businesses, and helps companies minimize HR costs and improve HR efficiency.  It assists clients with customized HR solutions that provide protection from expensive HR mistakes and strategies for improving employee engagement.  Contact Stuart Charlson at 727-350-0370, or email[email protected]

Commercial Motor Vehicle Driver, OSHA, Record Keeping

Workplace Injury rates drop in 2014

On November 19, 2015, the Occupational Health and Safety Administration (OSHA) released statistics for 2014 showing that the overall incidence rate of non-fatal occupational injury and illnesses cases requiring days away from work to recuperate was 107.1 cases per 10,000 full time workers.  In total, there were 1,157,410 days away from work cases in private industry, state and local government.  This was essentially unchanged from the number of cases reported in 2013.  Read OSHA press release.

Here is some interesting data from the OSHA statistics:

  • For private industry, the incidence rate for number of days away from work cases was 97.8 cases per 10,000 full time workers.  Median days away from work for all types of injuries and illnesses was 9 days.
  • Rate of falls on the same level in private industry is larger than in 2011 and 2012.
  • Musculoskeletal disorders (MSDs) accounted for 32 percent of al injury and injury cases in 2014.
  • MSD incidence rate decreased to 33.8 cases per 10,000 full time workers.
  • The private sector occupations with the highest injury rates were construction laborers and tractor trailer truck drivers.
  • Leading type of injury or illness in 2014 was sprains, strains or tears with 420,870 (about 1/3 of all cases).  Median days away from work for this type of case was 10 days away.
  • Falls, slips and trips accounted for 27 percent of all cases.

 HR for Business – Consultstu LLC provides fractional HR services to small/mid businesses, and helps companies minimize HR costs and improve HR efficiency.  He assists clients with customized HR solutions that provide protection from expensive HR mistakes and strategies for improving employee engagement.  Contact Stuart Charlson at 727-350-0370, or email[email protected]

I9 Form

Is a new I9 coming in 2016?

Just before Thanksgiving, the United States Citizenship and Immigration Services (USCIS) published its plan to make new changes to the existing I9 form.  The I9 form is a mandatory form that must be completed for all newly hired employees within 3 days of hire.  The form was last changed in 2013, when the form was revised to add a second page and add additional requests for information.

What are the proposed changes to the I9?

  • To cut down on errors and mistakes, the new I9 form will be completed on a computer (using a writable pdf form) after it is downloaded from the USCIS webpage.  Some fields will be changed for accuracy before it can be completed.
  •  Some sections of the form will use drop down menus and calendars to improve accuracy and ease of use.
  • Some on-screen instructions will provide guidance and information to employees and employer representatives.
  • Once complete, the form will still need to be printed by the employer.  The new form is not an electronic I9.
  • Once printed, the form will generate a quick-response matrix barcode, or QR code, which will be used to streamline audit processes by investigators.
  • Form eliminates the “other names used” box.
  • Additional spaces are added to enter multiple preparers and translators.
  • Streamlines the certification in Section 1 for certain foreign nationals.

There are no proposed changes to the 3 day deadline for completion, the type of documents required to prove employment eligibility, the rules for storing the I9s and how to make correct mistakes on the forms.

After the 60 day comment period, the USCIS may make changes to the form and publicize an implementation schedule for the public.  See the new proposed I9 form by clicking here.

HR for Business – Consultstu LLC provides fractional HR services to small/mid businesses, and helps companies minimize HR costs and improve HR efficiency.  He assists clients with customized HR solutions that provide protection from expensive HR mistakes and strategies for improving employee engagement.  Contact Stuart Charlson at 727-350-0370, or email[email protected]

HR Resources

Patient Protection and Affordable Care Act (PPACA)

On March 23, 2010, President Obama signed comprehensive health reform, the Patient Protection and Affordable Care Act, into law. The following summary of the law, and changes made to the law by subsequent legislation, focuses on provisions to expand coverage, control health care costs, and improve health care delivery system.

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