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Are Your Employees Looking to Leave in 2014?

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With the economy strengthening, businesses need to review their talent management practices or risk losing workers. According to a Career Builder survey, “21 percent of full-time employees plan to change jobs in 2014, the largest amount in the post-recession era and up from 17 percent in 2013.”

Regardless of your notion about the economy’s growth, the numbers suggest a positive outlook and companies should be cautious.

Job Satisfaction Declined    

Career Builder’s survey queried 3,008 full-time employees of varying industries and company sizes in the private sector, and found that a drop in job satisfaction may be a leading cause of the high turnover expectancy. The survey found that while 59 percent are satisfied with their current job, it represents a drop from 66 percent last year.

Up from last year, 18 percent claim that they are completely dissatisfied at work, citing concern over salary (66 percent) and not feeling valued (65 percent) as the top reasons.

While these numbers may not seem staggering, people are more likely to risk leaving a job when chances of finding other work are positive; with a healthier economy, that’s cause for concern. That extends to the pocketbook: The cost of losing an employee is one and a half times their burdened salary, and three times that for top performers.

The Goal

As managers, how can you deflate these numbers and retain your performers? How to redirect workers’ focus back to your company and away from the competition? Simple: Having a clear vision in place and defining how employees fit into the bigger picture is one of the most valuable solutions you can adopt.

In addition, offer regular feedback and recognition, develop ongoing training programs, reward bonuses or incentives whenever possible and make it a priority to create a good company culture.

According to the survey, several factors contribute to employees staying in their jobs. Among them are:

  • liking co-workers (54 percent),
  • having a good boss who cares (32 percent) and
  • feeling valued and being recognized (29 percent).

The Solution

As we’ve discussed in previous articles, the need for talent management software is real. Utilize a tool that gives you the power to execute performance reviews that align your organization’s goals with those of your workforce. This helps in preventing the exit of employees who don’t feel appreciated.

Performance reviews allow you to show your employees you value them and are a great opportunity for compensation based on performance. By crossing the top reasons for employee dissatisfaction off the list, you are well on your way to keeping your employees.



Author Bio: As a Human Resource Professional with over 20 years of experience, Jenny has extensive experience in management, mentoring, policy development and recruiting. Jenny's team player mentality and leadership abilities make her an elite HR Director who is always on top of the latest HR trends. She relentlessly directs associates and executives to achieve their maximum potential for both themselves and their companies.

Death of an employee

Staying Compliant After the Death of an Employee

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When an employee passes away, you need time to process your emotions. But as an HR professional, there are also timely actions you should take to help your workforce grieve, and a few things you’ll need to address to remain compliant. While the death of an employee is never easy, it’s important to ensure any compliance matters are handled consistently with your current policies but with added grace.

Initial Steps

Although your employee wasn’t actually terminated, it’s still a best practice to follow your existing termination checklist. The checklist will help you determine what security access the deceased had so you can disable or redirect it. It will also help with remembering what keys and technology (like a laptop or cellphone) the employee may have had. Be respectful of the employee’s family and ask for these items in as sensitive a manner as you can. You may work with your internal IT department to secure devices remotely, which can protect your sensitive data while you work to connect with the right family member.

In some instances, you’ll also need to obtain a death certificate from the family. This may seem like a uncomfortable request, but you’ll need the certificate before you can proceed with many of the following steps you need to take for the employee.

Paycheck

Check your state laws to make sure you’re following the correct procedure about paying final wages. For example, some states require you to pay out unused vacation. If your state doesn’t have a law, follow your company policy.

You’ll also need to find out who the deceased’s beneficiary is so you will know who should receive his or her final wages. This should be documented either in your HRIS system or on a form in the employee’s personnel or benefit file.  If a paycheck has already been issued, but not cashed, you should reissue the check to the deceased’s beneficiary or estate.

COBRA and Life Insurance

If the employee is covered on the benefit plans, their death is a COBRA-qualifying event. If you sponsor group health plans, you must offer a continuation of group health insurance for up to 36 months to the deceased’s surviving spouse and dependents. The family must be notified about coverage within 30 days of the deceased’s death.

Prepare any relevant information for life insurance claims, if the employee had a policy in effect. They will be dealing with so many decisions that pulling this information together for them before they request it can help give those grieving one less thing to worry about. Employers may also choose to include EAP information or other company sponsored grief resources for eligible family members.

Employee Retirement Income Security Act (ERISA)

The Employee Retirement Income Security Act of 1974 requires that retirement, pension and other plans provide survivor benefits to the surviving spouse of an employee who worked after reaching the earliest possible retirement date under the plan but passed away before retiring. Since this law only pertains to employees who were able to retire but hadn’t yet, you’ll need to refer to your company’s policies to ensure compliance if the deceased was of retirement age. Benefit administrators should contact their plan providers to confirm if there is any additional action required on the deceased employee’s behalf.

To learn more about how your business can start to build procedures for an employee’s death so you can navigate the difficult time as smoothly as possible, visit our blog, “4 Questions to Consider When Handling the Death of an Employee.”

 

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Posted in Blog, Compliance, Employment Law, Featured

Callie Johnson

by Callie Johnson


Author Bio: As a writer for Paycom, Callie Johnson creates content for the company’s various marketing and communications initiatives. Having earned her bachelor’s degrees in journalism from the University of Oklahoma and web design/development from Full Sail University, she has written for companies of all sizes. Outside of the office, she enjoys hand-lettering, going to the movies and spending time with her family and dogs.

Office Relationships

How HR Could Have Helped 3 Complicated On-screen Office Relationships

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With Valentine’s Day right around the corner, love is in the air and sometimes that romantic air makes its way into the office. Workplace romances may seem like something only seen in film or on TV, but according to Career Builder, 38% of American workers said they have dated a co-worker at least once in their career. That’s over a third of employees, which makes workplace romance an item every organization should have on its radar.

To better understand how HR can prepare and handle potentially tricky conversations, let’s take a look at three complicated workplace romances from film or television – and how HR could have helped.

Subscribe to HR Break Room to hear more about managing office romance.

Mulder and Scully – The X-files

For almost 25 years, special agents Mulder (David Duchovny) and Scully (Gillian Anderson) from The X-Files have been solving supernatural and extraterrestrial cases on television. This pair of government agents work for one of the most well-known organizations in the country, the Federal Bureau of Investigation (FBI). Throughout the series, they slowly become more than just friends or coworkers and have even become romantically involved in the most recent seasons. Each episode features a case that often involves aliens, weird occurrences … and yet another development in Mulder and Scully’s evolving relationship.

How HR can help: The on-again, off-again relationship between Mulder and Scully has left audiences wondering about their status for years. That ambiguity is what makes their relationship unhealthy for the workplace. It’s important for an organization’s policy to hold employees accountable for reporting a romantic relationship with a co-worker. This transparency allows HR to hold a consistent policy that can protect both employees if they break up.

Tom and Summer – 500 Days of Summer

The greeting card industry can be tough, but a brutal breakup in the office can make it even harder! Just ask Tom Hansen (Joseph Gordon Levitt) and Summer Finn (Zooey Deschanel) from the 2009 hit romance film, 500 Days of Summer. The romance that sparked between this on-screen couple turned out to be a bad fit that eventually led to Tom’s depression and complete disengagement from his work. It’s a classic example of how even the most beautiful romances can sometimes go sour.

 How HR can help: It’s important for HR to treat their employees like adults who are allowed to make their own mistakes. It is equally important for managers and supervisors to know about office romances so they can be prepared to handle potential drama.

In this film, Summer is the personal secretary of Tom’s manager, Vance. As the long and painful breakup unfolds, Vance is not clued in on the reason behind Tom’s disengagement, which leads to awkward workplace encounters and poor productivity. By incorporating some form of documentation confirming a workplace relationship into your organization’s policy for managers and team leads, you can foster a culture that equips leaders to better address the impact of those painful breakups.

Lois and Clark – Superman

The iconic comic book couple Lois and Clark have appeared on the screen together many times over the last several decades, but let’s take a look at the 1975 film Superman starring Christopher Reeve and Margot Kidder. Pulitzer Prize-winning reporter Lois Lane works closely with Clark Kent, who (unbeknownst to her) lives a life of fighting criminals. In the workplace, they are coworkers with great chemistry, but Lois’ professional-turned-romantic relationship with Clark’s alter ego, Superman, eventually makes her and the entire Daily Planet a target of his rivals. Clark’s dual identities complicate the root of the problem within the workplace, so that his interest in Lois puts the entire organization at risk.

How HR can help: Krypton’s last son may be great at hiding his identity, but ultimately living a life of two identities endangers people in both. That includes his coworkers Jimmy Olson, Perry White and most importantly, his romantic interest, Lois Lane.

It’s up to The Daily Planet’s HR department to screen their candidates through an applicant tracking system with thorough background checks before making a hiring decision. This can help identify potential red flags or conflicts of interest before a new employee joins the team.

 This Valentine’s Day, take the opportunity to look closer at your existing workplace romantic relationship policies. These stories make for great entertainment – but an effective policy on workplace romance can help you make sure the drama stays on the screen and out of your office.

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Posted in Blog, Featured, Talent Management

caleb.masters

by Caleb Masters


Author Bio: Caleb is the host of The HR Break Room and a Webinar and Podcast Producer at Paycom. With more than 5 years of experience as a published online writer and content producer, Caleb has produced dozens of podcasts and videos for multiple industries both local and online. Caleb continues to assist organizations creatively communicate their ideas and messages through researched talks, blog posts and new media. Outside of work, Caleb enjoys running, discussing movies and trying new local restaurants.

Understanding the Tax Cuts and Jobs Act

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With the Tax Cuts and Jobs Act (TCJA) being signed into law by President Donald Trump on Dec. 22, 2017, several changes to individual and business taxation were made. How those changes affect each taxpayer depends on that individual’s specific situation.

Below is a “big-picture” overview of various provisions affecting businesses and individuals, with more focused guidance on how the new law will affect employer withholding of employee income taxes.

 

Changes for individuals

The TCJA affects individual income taxes in a number of ways. While the law maintains the seven income brackets used in tax calculation, it reduces the tax rate for five of the brackets:

Previous Rates 10% 15% 25% 28% 33% 35% 39.6%
New Rates 10% 12% 22% 24% 32% 35% 37%

 

The new law has also changed the withholding rates for supplemental wages. For wages up to $1 million, the current rate is 22%, and for wages over $1 million, the current rate is 37% (previously 25% and 39.6%, respectively).

TCJA has eliminated the personal exemptions for individuals, spouse and dependents. Previously, a married taxpayer filing jointly could claim two exemptions: one for his or her spouse and another for themselves. In that instance, two exemptions of $4,050 each would reduce taxable income by $8,100 total.

While that exemption is gone, the TCJA nearly has doubled the standard deduction. Last year, the standard deduction was $6,350 for single filers and $12,700 for joint filers. For 2018, these levels increased to $12,000 for single and $24,000 for joint filers.

The TCJA makes several other specific changes to individual income taxes, including:

  • The individual shared responsibility mandate within the Affordable Care Act (ACA) essentially has been removed, as the penalty for noncompliance will become $0, effective Jan. 1, 2019.
  • Individuals no longer will be able to claim unreimbursed business expenses as itemized deductions.
  • A $10,000 limit has been placed on the deductibility of other taxes (state income tax, property taxes, etc.).
  • Donations to universities for athletic seating privileges are no longer deductible.
  • The child tax credit will double from the previous $1,000 value, up to $2,000 per child.

 

Changes for businesses

Businesses will need to take note of several changes within the TCJA as well. One key change: The corporate tax rate has been reduced from 35% to 21%.

Additionally, a new short term incentive is in place for businesses who offer FMLA paid leave to their employees. Such businesses will receive a credit of 12.5% for every dollar paid for FMLA leave, up to 50% of an employee’s pay, with an additional 0.25% credit for every 1% paid above 50% of an employee’s pay.

Among various reductions or removal of deductible expenses that businesses should note include:

  • transportation fringe benefits
  • limitations for employer-operated eating facilities
  • deduction limitations for pay to highly paid employees and C-level employees
  • limitations to the write-offs for sexual harassment settlements
  • limitations for the deductibility of entertainment expenses

 

All of the above items will need to be discussed with your CPA or tax counsel to determine how they apply to your situation.

 

Frequently asked questions from employers

Some of the most frequent questions we have received since the president’s signing of the law pertain to the withholding tables and Form W-4 questions.

Withholding tables

The IRS released the new 2018 withholding tables on Jan. 11 in Notice 1036, with more detailed guidance released on Jan. 29 in Notice 2018-14 and Publication 15. (These changes already have been implemented in the Paycom system, ahead of the Feb. 15 implementation deadline from the IRS.)

The IRS designed the 2018 withholding tables so that employees’ existing Form W-4 data could continue to be used. Therefore, the IRS does not require employees to complete a new W-4 for 2018.

Extensions to the 2017 Form W-4

The IRS currently is working on a new 2018 Form W-4 that will allow employees to modify their withholding to take full advantage of the changes in the TCJA. The new form’s expected release is after Feb. 15.

As a result, Notice 2018-14 highlights these items relating to the 2017 Form W-4:

  1. Existing 2017 Forms W-4 furnished to claim exemption from withholding for 2017 would be extended to Feb. 28, 2018.
  2. The 2017 Form W-4 may continue to be used temporarily to claim exemption from withholding in 2018.
  3. The agency temporarily has suspended the requirement that employees must furnish new Forms W-4 to employers within 10 days of changes in states that would reduce withholding allowances they may claim.

 

Allowances and exemptions

When discussing the effects of the TCJA, it is important to understand the distinction between “allowances,” as claimed on the W-4 that are used for withholding, and “exemptions” that an individual claims on a year-end tax return.

Historically, these numbers are usually the same. For instance, last year they were $4,050 per allowance in withholding and exemptions in year-end tax returns. The number of allowances claimed on the 2017 Form W-4 were multiplied by $4,050, and an employee’s annual wages were reduced by that product to arrive at taxable wages used in withholding calculations. If the employee claimed exemptions on his or her annual return, the number of exemptions claimed likewise was multiplied by the same $4,050 to reduce taxable income on the Form 1040 year-end return.

While the TCJA has eliminated exemptions for 2018, the allowances (as used in calculation of withholding) have not been eliminated; in fact, they were increased to a value of $4,150 per allowance claimed on the W-4. Thus, for every W-4 allowance claimed, an employee’s gross income will be reduced by $4,150 to arrive at taxable wages for use in the withholding calculation. However, no exemptions will be allowed on the employee’s Form 1040 at year-end; moving forward, it is anticipated the worksheet on the 2018 Form W-4 will not include exemptions in the calculation of withholding allowances.

Voluntary submission of 2018 Form W-4

While submitting a 2018 Form W-4 is not required by the IRS at this time, an employee may elect to do so. Employees should look at the 2018 W-4 once it is released, because of the removal of exemptions from the income tax provisions. Employees should calculate the allowances on the new form to determine if they would benefit by submitting a new Form W-4 to their employer to adjust their withholding.

Until the 2018 Form W-4 is released, an employee may voluntarily choose to submit a copy of the 2017 Form W-4 if he or she wants to adjust their withholding for the period prior to the 2018 form’s release.

The recent tax reform is complex, leaving many items to consider for your employees as they head into 2018. Businesses and employees alike would benefit from consulting tax counsel to help determine the most appropriate next steps for their specific situations.

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Posted in Blog, Compliance, Featured


Author Bio: Robert Barclay has been the Tax Research Team Lead at Paycom since 2012, and has been instrumental in such company projects as the development of its Affordable Care Act compliance product, implementation of geolocation services and redesign of Form W-2. He joined Paycom in 2011, bringing more than 20 years of experience with the capital markets consulting practices of Ernst & Young in Memphis, Tenn., and Birmingham, Ala.; and Causey Demgen & Moore in Denver, Colo. A native Oklahoman, Barclay is a graduate of Rhodes College in Memphis, where he played football as linebacker.

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