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Volume 19 | Issue 1 Source for Employer Empowerment January 2011
In This Issue
Importance Of Job Descriptions
Free Services Provided By RMI
Mid-Term Elections And Health Care Reform
Does Your Company Qualify For A Small Business Tax Credit?
Reminder From RMI's Benefits Department Concerning Your 2010 125(C) Account
Payroll Changes Effective January 1, 2011
Safe Driving Tip
Driving Caution: Over-The-Counter Cold Medicines
Workplace Safety Tip
What is Your Safety Attitude?
Upcoming RMI Holidays
In observance of the President's Day holiday, RMI will be closed on Monday, February 21, 2011.

Importance Of Job Descriptions

All employees like to know what is expected of them and how they will be evaluated throughout the course of their employment. In this sense, job descriptions can become a valuable and necessary tool to aid employers. A carefully thought-out and written job description creates a clear expectation for employees and allows the employee to function within those parameters. Creating a job description often results in a thought process that helps determine how critical the job is, how this particular job relates to others, and identify the characteristics needed by a new employee filling the role.

A job description typically outlines the necessary skills, training and education needed by a potential employee. It should outline duties and responsibilities of the job. Once a job description is prepared, it can serve as a basis for interviewing potential candidates, orienting a new employee, creating employee performance reviews, and finally evaluating employee performance.

Many employers formally document the content of their company's jobs through checklists, standard operating procedures (SOPs), or job descriptions. Many employers choose to use the written job description because they find it provides them the greatest utility of all available methods. Typically, a well-designed job description will contain the following features:

  1. Introduction. List of what the job title is, who the employee reports to, the FLSA status (exempt or non-exempt), and the department and location where the employee will perform the majority of their work.


  2. Summary. Usually one or two sentences that would include a general statement of duties and functions.


  3. Essential Duties and Responsibilities. Usually this section is the lengthiest. It details what the job duties are and should be quite specific. This is also the best place to indicate whether the person will deal with customers, the public or only internal employees. You can also use this section to place priorities on the daily activities.


  4. Supervisory Responsibilities. If applicable, describe the supervisory responsibilities associated with the position.


  5. Qualifications. If the position involves the use of machinery or computers, detail what type of machines or software the employee will use. Also detail any technical or educational requirements that may be critical or desired, and if there are physical demands such as lifting, twisting, or bending. This section could also include sub-categories to detail requirements such as: education, language abilities, math skills, and reasoning capabilities.


  6. Reporting. Provide details on the reporting and organizational structure. This will help the employee better understand how his or her activities fit into the total organization.


  7. Work Environment. Detail what the employee should expect as their normal surroundings. Will the employee be around loud noises or in a cubical setting? By describing the location and surroundings, the employee is aware of the environment and can better plan for the daily job requirements.


  8. Signatures. Provide a simple statement at the conclusion of the document that "this description does not prescribe or restrict the tasks that may be assigned. It does not restrict management's right to assign or reassign duties or responsibilities to this job at any time." Have the employee and manager sign the document indicating that the description has been reviewed and that the employee is aware of the requirements of the job.

Using job descriptions will help an organization better understand the experience and skill base needed to enhance the success of the company. Job descriptions can help in a vast array of employment areas. Some of the most critical areas that job descriptions can be beneficial are:

  1. Hiring. By having a clear description of what the position involves and key attributes necessary to be successful, hiring managers can take qualified applicants and match him or her against set criteria. Not only does this ensure that the best applicant is selected, but also helps avoid discrimination and under-qualified applicants.


  2. Performance Evaluations. Job descriptions provide a clearly defined expectation of the employee's performance. The employee should be regularly evaluated based on the standards found in the job description. By regularly comparing the expectation and the actual performance, the employee is aware of both positive and negative areas of performance.


  3. Termination. If an employee is not performing up to the job expectation or is just not a good fit for the position, there might arise the potential to remove the employee from that position. By regularly discussing the performance evaluation and expectations of the job description, the employee should understand the level of performance required. Job descriptions can be a supplemental discussion when an employee is terminated. The manager could refer back to the requirements and where the employee has fallen short.

All too often, there is a misunderstanding of what a position entails and a well-prepared job description can help both sides share a common understanding.

For help in writing, creating, or evaluating job descriptions, please contact your RMI Human Resources Representative.

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Free Services Provided By RMI

Please remember that RMI has a large number of services included in your service fee! Among these services are:

  • Job Postings/Recruiting: RMI will post vacancies on our website, various job boards, and other job-seeking websites. As applicants apply through RMI, a trained HR staff member will review the resume and attachments and ensure that only qualified applicants are referred to you.


  • Discipline Issues: RMI provides counseling services to supervisors on employee issues, whether simple or difficult. If desired, RMI's HR Representatives will provide this assistance over the phone or in person. RMI can even conduct the meeting with the employee as requested by the supervisor.


  • Training: RMI has recently expanded and updated our training program. Certain trainings can be conducted on-site, by teleconference, or by online videos.

For assistance with any of the above services, please contact your RMI HR Representative.

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Mid-Term Elections And Health Care Reform

Now that the balance of power has shifted in the House of Representatives due to the mid-term elections, there has been much talk about repealing health care reform. While reform is more than likely here to stay, there are many aspects of the bill that Republicans will try to change. As mentioned in previous RMI newsletters, some items that the public likes have already been implemented, such as elimination of pre-existing condition clauses, free preventative care and no eligibility requirements for dependents up to age 26. In 2013 and later, several other changes are set to take effect, including new measures to control Medicare spending and mandating coverage for everyone so that the risk is spread around and more premiums are available to cover costs. These items will help pay for the changes that have already been implemented, however, they are unpopular and are up for debate under this new shift of power. We are now in a position where nobody wants the good things taken away but we are unwilling to do what it takes to pay for these items.

According to a Gallup survey reported on January 7, 2011, 46% of Americans support the proposed repeal of healthcare reform; while 40% of Americans oppose any changes. This poll, among many others, demonstrates the uncertainty and divided opinion in what should be done with the future of healthcare in America.

The current Administration believes that in order to keep medical premiums from significantly rising over the next several years, the idea that everyone must have coverage is critical. In order to reduce costs, all individuals must have health coverage so that the risk can be spread among a larger base. In addition, the Administration argues that in order for insurers to be able to cover pre-existing conditions, as well as provide coverage to both older and unhealthy individuals, they must be able to count on all individuals having coverage to spread the risk around. Currently 26 states are challenging the individual health insurance mandate. The individual mandate will most likely become an issue to be decided by the United State Supreme Court.

There are many large organizations that threatened to drop its health coverage for its employees if they were forced to comply with the first wave of changes under health care reform. McDonald's, Jack In The Box, and many unions were offered a waiver from the healthcare mandates. It is estimated that many more corporations will request and receive waivers. By granting waivers to companies who threaten to drop health coverage all together, you can clearly see that the provision of making everyone participate in order to lower costs may not work.

In his book Getting It Done, Former Senator Tom Daschle stated "It would be all too easy to kill the reform effort not by repealing it, but by starving it." In the October 14, 2010 edition of The Economist it states "the bill will need over $100 billion and approximately 100 new authorizations over the next decade, all of which will require approval from Congress. Besides that, the Republicans could attach provisions to vital bills, such as the budget, that would forbid federal workers (say, at the Internal Revenue Service) from implementing the law." James P. Gelfand, director of health policy at the United States Chamber of Commerce said "I don't think we'll see a repeal of the health care law tomorrow. But, I believe Congress got the message that we need serious change. The question is now, what kinds of changes are realistic?"

So far the ride has been nothing short of interesting. What is to come in the next two years could even be more interesting. Please watch for future updates from RMI regarding health care reform and how your business could be affected. If you have any questions about the reform, please contact RMI's Benefits Department at (888) 764-0200.

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Does Your Company Qualify For A Small Business Tax Credit?

In April, we told you about the small business health care tax credit being offered to businesses that meet certain requirements based on the number of employees and average annual salaries paid (see the following link). In order to qualify for this tax credit, employers must meet these two criteria:

  • An employer can have no more than 25 employees with average annual compensation levels not exceeding $50,000 per employee.
  • Employers must pay at least 50% of the single health premium cost for their employees.

The IRS has finalized guidance on this new tax credit and also released Form 8941, which is used to claim the credit. RMI encourages you to talk with your CPA or accountant to determine if your business qualifies for the credit, as you will need to apply for the credit when filing your 2010 corporate tax return.

Please remind your CPA or accountant that even though you are part of a PEO arrangement, you are still eligible for this credit.

For help with the small business tax credit, please contact RMI's Benefit's Department at (888) 764-0200.

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Reminder From RMI's Benefits Department Concerning Your 2010 125(C) Account

You only have until March 31, 2011 to submit all receipts for the 2010 Flexible Spending Account Plan year. All expenses must have been incurred during 2010. You can obtain a claim form from our website at www.rminc.com (under the Employee Resource Center, then Forms, then 125(C) Flexible Spending Account). Claim forms should be faxed, mailed or e-mailed directly to National Benefit Services (NBS). Their contact information is located at the bottom of the claim form.

As a reminder, employees can now log on to their 125(c) account on National Benefit's website www.nationalbenefitservices.com and submit their 2010 and 2011 claims electronically. Please be sure to have a PDF copy of your IRS–approved receipt that you can attach. There is no need to submit any paper copies to NBS, as everything can be done on-line.

If you need assistance in submitting your 2010 receipts, please contact RMI's Benefits Department at (888) 764-0200.

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Payroll Changes Effective January 1, 2011

IRS Form W-5 (Earned Income Credit)

Beginning on January 1, 2011, Form W-5, Earned Income Credit (EIC) Advance Payment Certificate, will no longer be in use. With this change, your employees will no longer be able to receive an advance payment of their tax credit as they could in previous years. This change, however, does not preclude eligible employees from being able to claim the credit on their 2011 tax return.

If any of your employees expect to be eligible for the EIC credit and will have income tax withheld from wages in 2011, they may elect to reduce their tax withholding rate in order to receive a portion of the credit throughout the year.

The Hiring Incentives to Restore Employment ("HIRE") Act

In 2010, The HIRE Act provided a payroll tax exemption of the 6.2% Social Security tax liability for certain "qualified employees." Beginning on January 1, 2011, employers will no longer be eligible to receive this specific tax incentive but may still be able to take advantage of the HIRE Act Retention Credit.

The HIRE Act Retention Credit is a general business credit aimed to encourage retention of new hires. If you hired an employee in 2010 that qualified under the HIRE Act and kept them on your payroll for 52 consecutive weeks, you may qualify for an additional tax credit of up to $1,000 per "qualified employee."

A retained worker is a "qualified employee" who remains an employee for at least 52 consecutive weeks and whose wages for the last 26 weeks equal at least 80% of the wages for the first 26 weeks. The amount of the credit is the lesser of $1,000 or 6.2% of wages paid by the employer to the retained worker.

To determine if any of your employees are considered a "qualified employee," the employee must meet the following criteria:

  1. Must start work after February 3, 2010 and before January 1, 2011.


  2. Must not have been employed for more than 40 hours during the 60 days before his or her start date.


  3. Must not replace a current employee (unless that employee was separated from employment voluntarily or for cause).


  4. Must not be related to the employer or directly or indirectly own more than 50% of the business.


  5. May be previously laid-off employees.


  6. May be part-time or less than full-time employees.

The HIRE Act Retention Credit is a Section 38(b) business tax credit. The tax credit will be available to most employers on the 2011 income tax return.

Employee Social Security Tax Rate for 2011

Starting January 1, 2011, the employee social security tax rate will be 4.2% instead of 6.2%. The employer social security tax rate will remain at 6.2%. Employees should expect to see a slight increase in their net payroll deposit.

For questions or assistance with the discontinuation of Form W-5, HIRE Act, or the change in the employee social security tax rate, please contact your Payroll Manager at (888) 764-0200.

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Safe Driving Tip
Driving Caution: Over-The-Counter Cold Medicines

As we approach the mid-point of the winter season, it is that time of year when the common cold is a concern for everyone. You know the symptoms: body aches, slight fever, general fatigue, headache, nasal congestion, sore throat and a dry, hacking cough. That's when many of us reach for one of the many products available over the counter to relieve these symptoms.

Everyone knows the dangers of drinking alcohol and driving, but many of us don't realize that driving after taking over-the-counter cold medications can be just as dangerous. Research has shown that some common medications cause drowsiness, blurred vision or dizziness, and can impair a driver's ability as much as alcohol.

If your job requires you to drive, keep in mind the following things when taking over-the-counter cold medications:

  • Read the label and be alert for warnings associated with the medication.


  • Take the medication according to the instructions.


  • Check the expiration date and do not use if it is expired.


  • If the package looks like it has been tampered with, do not use it.


  • Ask your doctor or pharmacist about possible adverse side effects.

Over-the-counter medications can be effective for treating symptoms of the common cold, however, keep in mind that these medicines may pose side effects that could impair your ability to safely operate a motor vehicle. Don't forget: never take any medication prescribed for someone else. It may work for them, but it may be harmful to you. When in doubt, don't drive: it could save your life.

For more information on safe driving, please contact RMI's Human Resources Department.

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Workplace Safety Tip
What is Your Safety Attitude?

Having a safe attitude means approaching a situation properly. Try to stay alert and keep focused on your tasks. Safety-conscious workers make an effort to stay focused on the job and are aware of their surroundings. Do you fit the profile of a safe worker?

Do You:

  • Stay alert to all possible hazards in your work environment?


  • Take advantage of all safety training offered in your workplace?


  • Read the material safety data sheets and labels to educate yourself about the chemicals in your work area?


  • Report all hazards, accidents, close calls and other incidents to your supervisor?


  • Seek first aid for all injuries, no matter how minor?


  • Learn how to operate the emergency equipment in your area?


  • Wear the personal protective equipment required for your job?


  • Dress appropriately for work by avoiding items that can be entangled in moving machinery?


  • Stop to think before you act?

If you don't practice all of these items, it's time for you to improve your safety attitude and safety skills.

Keep Safety in Mind:
Remember to look out for your co-workers, especially the new employees. A good safety attitude means being part of a team.

  • Plan ahead for the job, review procedures, equipment and possible hazards.


  • Focus on the present task, avoid being distracted and watch for potential hazards.


  • Take time to do the job right, even if it means using extra safety equipment or asking help.


  • Do the right thing even when others want you to take shortcuts.


  • Know the risks and hazards of the job and avoid them.

A positive attitude toward safety can pay off in countless ways, maybe even saving your life. For more information or safety training, please contact RMI's Human Resources Department.

To access the online Workplace Safety Training Log click here.
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Copyright © 2011 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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