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Volume 18 | Issue 4 Source for Employer Empowerment April 2010

The Hiring Incentives To
Restore Employment Act:
What It Is, How It Affects You, And RMI's Role

As many of you may know already, Congress recently passed (and the President recently signed into law) the Hiring Incentives to Restore Employment (“HIRE”) Act, also know as the Jobs Bill. Essentially, the HIRE Act is Congress and the Administration’s way to try to help reduce unemployment and jump-start the country’s hiring process. In short, the Act provides employers who hire qualified employees with both a payroll tax forgiveness and an employee retention credit.

More specifically, the Act provides for a payroll tax forgiveness of the 6.2% OASDI Social Security tax liability for “qualified employees” for any 2010 time period starting after the commencement date of the Act, which is March 18, 2010.

So, what is a qualified employee under the Act? Well, there are several requirements that must be met. First, that qualified employee must start work after February 3, 2010 but before January 1, 2011. Second, they must not have been an employee (for anyone) for more than a total of 40 hours during the 60 days prior to their start date with you. Third, they cannot be replacing one of your current employees, unless that current employee was separated from their employment with you either voluntarily or for cause. And, finally, they cannot be related to the owner of the business; nor can they own more than 50% of the business. In addition, a qualified employee can be an employee who was previously laid off by you, as long as they fit within the other requirements above. Also, they can be part-time, or less than full time employees.

The Act states that you won’t be able to receive any of the payroll tax forgiveness for the first quarter of 2010. But, any amount that would have been allowed in the first quarter (that is, any wages that were paid after the March 18, 2010 enactment date) would be credited against your Social Security tax for the second quarter. Then, for the new hire wages paid beginning on April 1, 2010 (i.e., the start of the second quarter), RMI will provide you with an invoice adjustment in the second month after the end of each quarter in which you had qualified employees.

So, how will all this work for RMI? Simple. First, you will need to make the initial determination of whether or not a particular new hire is a “qualified employee.” You will do this when you submit the Employee Compensation Acknowledgement Form to RMI indicating the new employee’s job title, hire date and wage. You will simply need to make sure that the employee meets the requirements set forth above in order to receive the Social Security tax forgiveness. That new employee, however, will be responsible for signing the form, under penalty of perjury, certifying that they have not been employed for more than 40 hours during the previous 60-day period before their new employment with you began. So, as you can see, if you have a qualified employee, it will be quite easy to obtain that tax forgiveness.

Now, there is one final aspect to the Act for which you will potentially be eligible. If you hire a qualified employee, and you keep them on your payroll for 52 consecutive weeks, then you can receive an additional tax credit. This credit can be up to $1,000 per employee. This will be a credit that you take when you file your company’s annual tax return. As such, you will want to consult with your accountant to make sure that you are receiving this retention credit if you are eligible for it. Thankfully, RMI’s trade organization, the National Association of Professional Employer Organizations (“NAPEO”), worked hard during the passage of the Act to ensure that this retention credit would inure to the benefit of the PEO client, rather than the PEO.

Well, that’s it. It’s really pretty simple. If you have a qualified employee, you’ll be eligible for the Social Security tax forgiveness under the ACT. RMI will make sure that you receive the benefit of that forgiveness. Then, if you retain that employee for 52 consecutive weeks, you may be eligible for an additional tax credit when you file your annual tax return. If you have any questions about the Act, please do not hesitate to contact your Payroll Manager, your Human Resources Representative, or RMI’s General Counsel.


In This Issue
The Hiring Incentives To Restore Employment Act:
What It Is, How It Affects You, And RMI's Role
Important News From RMI's Payroll Department
Reminder From RMI's
HR Department
New Salt Lake City Ordinance Regarding Discrimination
Annual Open Enrollment For Washington Employees
Safe Driving Tip
Seat Belts
Workplace Safety Tip
Powered Industrial Trucks (Forklifts)
Working Safely with Powered Industrial Trucks – Don’t Drive Unless You’re Certified
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Important News From RMI's Payroll Department

The RMI Summit Web Login will be down for maintenance at noon April 16th until April 19th. If you need to submit payroll hours over the web for a payroll dated 4/20/10, please make sure your hours are submitted before noon on Friday, April 16th. If your RMI Summit Web Login is saved to your “Favorites” as a link, this link will no longer work after Friday, April 16th. On April 19th, you will be able to access the Summit Web Login from RMI’s website at www.rminc.com and re-save the RMI Web Login as a “Favorites” link.

If you have any questions, please contact the RMI Payroll Department at (801) 355-0200 or (888) 764-0200.

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Reminder From RMI's HR Department
New Salt Lake City Ordinance Regarding Discrimination

Last November, the Salt Lake City Council adopted an ordinance that forbids housing and employment discrimination based on a person’s sexual orientation or gender identity. This ordinance took effect April 1, 2010. Employers in Salt Lake City may not discriminate against employees or applicants in the employment process, including decisions regarding hiring, firing, compensation and other benefits offered to employees. There is not, however, a requirement that an employer offer insurance to an employee’s domestic partner. The ordinance creates a complaint and investigation process and requires annual reports by the city’s Human Rights Commission on the effectiveness of the statute.

The ordinance applies only to Salt Lake City and excludes federal and state government agencies and departments operating in Salt Lake City. Also exempt are religious organizations, some small landlords and businesses with fewer than 15 employees. Due to the co-employment relationship, RMI’s PEO clients in Salt Lake City will be subject to the ordinance, regardless of their size.

If you have any questions regarding this new ordinance, please contact your RMI HR Representative.

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Annual Open Enrollment For Washington Employees

Resource Management, Inc. is currently holding it’s annual open enrollment for all employees living in the state of Washington, whose employer participates in one of RMI’s group health or dental plans offered through GroupHealth or Dental Select.

Open enrollment is the time for employees to change their plans, add dependents that are not currently enrolled, or sign up for coverage if they are not currently participating. Open enrollment will begin April 1, 2010 and continue through May 21, 2010. After this date, no changes or new enrollments will be accepted. All changes made during open enrollment will become effective June 1, 2010. Please keep in mind that RMI collects all benefit premiums one month in advance. If you are planning to add additional coverage or will be changing plans that will result in a premium increase, you will want to have your forms submitted to RMI prior to your first May payroll.

RMI is excited to inform you that there will not be any changes to the covered benefits on the medical, dental or vision plans this year. Even more exciting is that all of the premiums will remain the same. We were fortunate to have had a good claims history during this past year that has allowed our insurance carriers to hold our rates through June 2011. This is due, in part, to our employees being conservative in their health care consumption and making an effort to use their benefits wisely.

Even though there are no changes this year, there are still some items that you will need to be aware of, including the Mental Health Parity Act of 2008, which will take effect for your GroupHealth Plan on June 1, 2010. This act prohibits health plans from imposing limits on mental health and substance abuse benefits. Beginning in June, GroupHealth will no longer impose an annual 20-visit limit for outpatient mental health/substance abuse visits and the 12 – day annual limit for inpatient days will be eliminated.

Also, please stay tuned to future RMI newsletters for information regarding the Patient Protection and Affordable Care Act that was signed into law by President Obama on March 22, 2010. There will be many changes that will directly affect your health coverage. Items such as co-payments for preventative care being eliminated, no more pre-existing condition clauses, and the prohibition of lifetime and annual limits on health care are of particular interest to most employees. RMI will continue to keep our clients and their employees informed of changes that will directly affect them or their businesses.

Please watch for your open enrollment postcard to be delivered by mail to your home address in early April. This will provide you with all the details regarding open enrollment. For more information about this year’s Washington open enrollment, please contact RMI’s Benefits Department at (888) 764-0200. All enrollment forms, change forms and plan highlight sheets can be found on our website at www.rminc.com.

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Safe Driving Tip
Seat Belts

Seat belts are not just a good idea; their use should be company policy. Seat belts protect drivers and occupants of the vehicle from injury in a crash, keep drivers behind the wheel where they have a better chance of taking action to avoid crashes and keep vehicle occupants from becoming projectiles that can cause injury. Yet not every company has and enforces a policy on using vehicle restraints while driving company vehicles, driving personal vehicles on company business and traveling on company business. Drivers must accept responsibility for using seat belts when operating motor vehicles and require their passengers to do the same.

The National Highway Traffic Safety Administration (NHTSA) Traffic Safety Facts 2008 Data (DOT HA 811 162) stated the following in regard to seat belt use:

In 2008, 33 percent of passenger car occupants and 36 percent of light-truck occupants involved in fatal crashes were unrestrained. In fatal crashes, 77 percent of passenger vehicle occupants who were totally ejected from vehicles were killed. Seat belts are effective in preventing total ejections: only 1 percent of the occupants reported to have been using restraints were totally ejected, compared with 30 percent of the unrestrained occupants.

Use of seat belts has improved over the past 10 years but is still below what it should be.

RESTRAINT USE RATES FOR PASSENGER VEHICLE OCCUPANTS
IN FATAL CRASHES – 1998 AND 2008
TYPE OF OCCUPANT RESTRAINT USE RATE (PERCENT)
1998 2008
Drivers 59 68
Passenger – Front Seat 57 69
- Rear Seat 47 61
- 5 Years Old and Older 48 61
- 4 Years Old and Younger 73 85
All Passengers 51 63
All Occupants 56 66

Use of seat belts should be an expectation that is defined in your company fleet safety policy and enforced to help reduce the potential for injuries. For additional information for developing your fleet safety program or training, please contact your RMI HR Representative.

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Workplace Safety Tip
Powered Industrial Trucks (Forklifts)
Working Safely with Powered Industrial Trucks – Don’t Drive Unless You’re Certified

Powered industrial trucks (PITs), commonly called forklifts, are used in numerous industries, primarily to move materials. They can be used to move, raise, and lower palletized goods, crates, containers, and personnel workbaskets.

Personnel workbaskets should be used infrequently and for emergency operations where the use of ladders, scaffolding, elevated work platforms, or other conventional means of access is not practical. Elevated work platforms such as scissor lifts made and designed for this purpose should be used.

To reduce the risk of powered industrial truck incidents and accidents resulting from their use requires familiarity with the operational characteristics of these trucks. Employees are required to be properly trained and certified when operating power industrial trucks. Several key elements of the program include worker training, including operator certification and periodic evaluations of operator performance; a safe work environment; safe work practices, traffic and route management; and, of course, a properly functioning powered industrial truck.

Forklift Accent Trends – based on Liberty Mutual study of 143 WC claims with losses over $7,500 and a total cost of $2.2 million.
54% of injuries to power industrial truck operators were the result of unsafe operating procedures and/or inadequate training.
52% of the injuries were related to passerby/helper struck by moving truck, rollover, and falling/shifting loads.
**Do not operate a forklift unless you have been trained and certified.**

Follow the precautions below when working around powered industrial trucks:

Pre-operation:

  • Conduct a prestart visual check with the key off and then perform an operation check with the engine running. Always use appropriate personal protective equipment when charging, adding water, or changing out propane tanks.


  • Report any damage or problems that occur to a forklift during your shift. A vehicle that is in need of repair, is defective, or is in any way unsafe should not be driven. It should be removed from service immediately. Scheduled maintenance is critical to the safe operation of the powered industrial truck.

Traveling and Maneuvering:

  • Plan your route for safety. Always use seat belts if they are available, and other required personal protective equipment (e.g., hard hat, safety shoes, etc.). Do not carry passengers unless a passenger seat is provided by the original equipment manufacturer.


  • Be careful with your footing when mounting and dismounting a forklift. Always set the parking brake, lower the forks, and neutralize the controls when dismounting a forklift. Do not jump from an overturning, sit-down-type forklift – the forklift’s cage is designed to protect the operator.


  • Operate at a speed that will permit the forklift to be brought to a stop in a safe manner under all travel conditions. Look toward the travel path and keep a clear view of it. Slow down and sound the horn at cross aisles and other locations where vision is obstructed.


  • Never assume that pedestrians or bystanders are aware of the presence of heavy equipment and the intended direction of travel. Do not drive up to anyone standing in front of a bench or other fixed object.


  • Never turn with forks elevated. Do not raise or lower the forks while the forklift is moving. Use caution on grades and ramps. Do not engage in stunt driving and horseplay.


  • Never use a forklift to elevate workers who are standing on forks. Secure an approved elevating platform to the lifting carriage or forks of the forklift when elevating personnel. Use a restraint, such as rails, chains, or a body belt with a lanyard or deceleration device, for the worker(s) on the platform.


  • Look for other unique or potentially hazardous conditions that may exist in the workplace.

Load Handling:

  • Center the load so it is safely arranged and stable. Ensure that the load is secure before moving. Do not overload. Know the stated capacity of the forklift and do not exceed it. Check that there is adequate overhead clearance before raising the load. Use extreme caution when tilting the loads. Set heaviest loads on the bottom.


  • Make sure that the brakes of tractor-trailers are set and wheel chocks placed under the rear wheels to prevent movement. Properly secure the dock board or bridge plates before driving over them. Inspect the floor of the trailer prior to entering it.
Before you operate a power industrial truck, get to know the PIT – major parts include:
Mast and Carriage – vertical assembly that does the work of raising, lowering, and tilting the load
Forks (also known as tines or blades) – carry the load
Attachments – include carton clamps, paper roll handlers, barrel clamps, rotators, and personnel platforms
Controls – forward/reverse, lift, pedals, brake
Nameplate – indicates truck specifications: model, weight, capacity, etc.
Overhead Guard – protects operator from falling objects
Tires – common types include pneumatic, solid and polyurethane
Instruments – panel, oil pressure gauge, fuel gauge, hour meter, transmission temperature, etc.
Danger, Warning, and Caution Labels – provide safety information
Other Safety and Warning Devices – seat belts, horns, fire extinguishers, backup alarms, etc.

For more information on this and other workplace safety tips and available training, please contact your RMI HR Representative.

To access the online Workplace Safety Training Log click here.
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Copyright © 2010 Resource Management, Inc. All rights reserved.
Client & Employee Newsletter, Source for Empowerment is published monthly by Resource Management, Inc. Client & Employee Newsletter features issues of importance to our clients and their employees. It is intended to provide general information and should not be construed as legal advice. We welcome your comments, questions, and concerns.
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