A health care reform bill, drafted by the Senate Committee on Health, Education, Labor and Pensions (HELP) is being debated by Committee members this week. The Committee bill includes an employer mandate that requires employers that don’t provide health insurance to their employees to pay an annual fee to the government of $750 for each full-time employee and $375 for each part-time employee. But the fee provision does not take into account employees, such as temporary, part-time, and seasonal employees, who work sporadically and whose hours fluctuate. An amendment, supported by the American Staffing Association, would allow staffing firms and other employers of such workers to pro-rate the annual fee based on the actual hours worked by the employees.
Seven Secrets of Good Planning
By Scott Love
I’ll never forget the most miserable hour of my day when I first started in the business. It was ‘plan time.’ This dreaded hour was spent hand-writing names and numbers of those people who I was going to call, and if I didn’t call them, then I’d have to spend an entire hour the next day hand-writing the same numbers and names over and over again. This was before computer databases existed and it was a miserable experience, so I did what any fun-focused recruiter would do: I blew it off. And my production reflected my lack of planning.
But a few years later, when databases became main-stream, I found that I didn’t have to hand-write the names and numbers over and over again. All I had to do was print out the names and numbers of who I was going to call. I didn’t really have much focus of when I was going to call them and I was supposed to develop some sort of a plan, but I figured that I’d just randomly follow the call list and I did what any over-confident technology-savvy recruiter would do with planning: I blew it off. And my production reflected my lack of planning.
Finally, I made a decision to hit the next level in production. I was tired of almost achieving my goals and knew that I had to get just a little bit sharper on my desk. The only way I could get better with my placements was to get better with where I spent my time, which is the whole objective of planning.
Follow these seven secrets of planning and see how much more you can bill in the next 90 days:
1. First, start each day with a specific focus: “What are the two or three things I need to accomplish today to be considered successful?” Write those goals down everyday and think about them throughout the day.
2. Review your activity sheet. Identify those four or five searches that need to be ‘touched’ in the day. Do you have to extend an offer for search assignment A? Do you have to prep and debrief interviews for search assignment B? Do you have to qualify candidates who you recruited yesterday for search assignment C? Do you have to find candidates for search assignment D? Do you have to source names for search assignment E? Review your activity sheet and make notes each day on what action items need to happen to keep the rhythm of the searches moving forward. Ask yourself this question when you look at each search on your desk: “What is the most important thing that needs to happen with this search, right now?”
3. Carve out specific blocks of your time for each of those four or five action items. Thirty minutes of sourcing can give you thirty names if you do it right. (8 – 8:30) Three hours of recruiting can give you coverage of fifteen candidates if you hustle and stay on the phone and keep your initial recruit calls to six minutes or less. (8:30 – 11:30) Two or three hours of prepping, debriefing and qualifying can help you bring your candidates forward in the process and give you more information on those who you wish to present to your clients. (1 – 3) An hour blocked out for your client and candidate who are getting ready to bring closure to your deal is enough to close it, but be flexible on this because this type of call is the most significant of your day and takes priority over all other conversations. (3 – 4). And wrap up those calls at the end of the day that are still important (4 – 4:30) and leave at least thirty minutes to an hour at the end of the day to strategically plan where you are going to spend your time tomorrow ( 4:30 – 5 or 5:30). Each day is different, but this gives you an idea of how you can keep your desk balanced. You can also shake it up by scheduling business development calls with warm prospects and other business-generating activities a few times a week.
4. Respect the phone time of others. Would you interrupt a surgeon in the middle of surgery to talk about your weekend? Why do you do that with your colleagues? Are you working on a search together with another recruiter? Then schedule your ‘connection time’ in advance so both of you know when you’re going to talk about it. Set up specific protocols of when it is acceptable to socialize and when it’s not. This doesn’t institutionalize a cold and formal culture in an organization. In fact, it frees it up to know when it’s time to hustle on the phone and when it’s time to goof off. Goof off time is important, but it’s important that you do it when it doesn’t interfere with the core business of building external relationships.
5. Schedule your own breaks in advance. Schedule your stretch-breaks and lunches in your plan. Reward yourself once you have completed each blocked group of time.
6. Hustle throughout the day, especially after a good call. Did you just close a deal? Then spend the rest of the day involved in business-development activities or marketing a candidate. The biggest mistake that recruiters make after they achieve success is that they limit themselves to that one singular success and take the rest of the day off. Success begets success. Leverage it to your advantage to get you to the next level of success that you deserve.
7. Inspect each other’s plans. We’re recruiters, for crying out loud. We don’t do anything unless we know someone else will be checking up on us, so at your next team meeting, discuss what your plan for the week is and bring a copy of your plan for today. Show your colleagues how you block out your groups of time (you can even just print out a blank page of Microsoft Outlook’s daily calendar and schedule your time on that in pencil) and how you assemble your call lists from the database. Make a commitment to each other that for the next 90 days nobody leaves the office until they have a plan in place for the next day.
To summarize, here are the three components of a solid plan:
1. Specific goals of achievement written out: Two or three things that need to be accomplished.
2. Blocks of time carved out on a daily calendar, and what you are going to accomplish during those times.
3. Printed out call lists from the database for each of those blocks of time.
Bonus tip:
Stay off the internet during your call time. Use it to plan during your plan time. If you must use it, then schedule ten minute internet breaks throughout the day to catch up on phone numbers that you need to find for candidates who have been referred to you. Schedule admin breaks to email candidate resumes to clients or to check your personal email. The tighter your plan is, the more focused you are on your effectiveness of achieving your daily objectives.
Posted in New Jersey Recruiting Tips, Uncategorized Tagged Management, Recruiting, Time, Tips Comments closed
Expiration Date of Form I-9 Extended
Current Form Valid for Use Beyond June 30
U.S. Citizenship and Immigration Services announced that the current version of the Form I-9, which employers must use to verify the identity and employment eligibility of newly hired employees, will continue to be valid for use beyond June 30. Employers should continue to use the form with the notation “(Rev. 02/02/09)” in the bottom corner.
USCIS has requested that the Office of Management and Budget formally approve the continued use of the current version of the form. While USCIS is awaiting formal approval, the current Form I-9 will not expire.
USCIS will update the form when OMB approves the extension. According to USCIS, employers will then be able to use either the Form I-9 with the new revision date or the Form I-9 with the Feb. 2 revision date at the bottom of the form.
For more information, visit uscis.gov.
Is the staffing industry a “bell weather” industry and has the economy reached bottom and on the road to recovery?
Employment in the temporary help industry was virtually unchanged in May, declining only 0.4% on a seasonally adjusted basis from April, according to data released by the U.S. Bureau of Labor Statistics. Staffing industry employment has long been considered a popular indicator of current economic conditions and a precursor of overall employment trends. Recent ASA research confirmed this conventional wisdom:
Key Findings
- Staffing industry employment is a strong coincident economic indicator when the economy is emerging from a recession.
- Staffing industry employment is a leading indicator for non-farm employment—by about three months when the economy is emerging from a recession.
What do you think? Is the staffing industry a “bell weather” industry and has the economy reached bottom and on the road to recovery?
Minimize the Tax Man’s Take:
Strategies for reducing taxes when selling your business
By Joseph Bublé, CPA
While there’s no magic bullet; no unknown loophole to elude the IRS, with some advance planning, small business sellers may be able to lower their tax burden. Reducing taxes on a business sale is a very detailed process. There are hundreds of possibilities for positioning your business for sale and because each company’s circumstances and structure is different, there is no single formula for reducing the tax bill. Rather than providing step by step instructions for reducing your taxes, we’ve compiled a list of basics to discuss with your tax advisor well in advance, and at the time of a sale.
If you are several years from selling your business, consider . . .
The Benefits of Gifting
If you have been thinking about making gifts to family members, there are some planning opportunities that are unique to business owners. By gifting a portion of the company to family members or to trusts, owners can take advantage of the minority interest and “lack-of-marketability discounts” allowed by the IRS. These discounts typically range between 15% and 30%. However, there is proposed legislation that would change these rules, so before you do anything, you need to check the status of these proposals.
Converting to an S Corporation
If your business is currently a “C” corporation, there may be an opportunity to save taxes upon the sale of your business by converting to an “S” corporation. By converting to an S corporation, you will mitigate the corporate-level federal tax on the value of your business between the date of conversion and the sale. Any “built-in-gain” (excess of value over tax basis) that existed on the effective date of the “S” election will continue to be subject to the federal tax for ten years. For this reason, the more time between the conversion and the sale, the better the tax savings.
If you are ready to negotiate a sale, consider. . .
Entity vs. Asset Sale
Consider the consequences of selling your company (entity sale) versus selling your company’s assets (asset sale). Buyers and sellers often have very different interests when negotiating a business sale. For example, in an entity sale, the buyer assumes all of the company’s liabilities (good for the seller); and the gains from the sale are subject to capital gains tax instead of income tax (not so good for the seller).
Allocation of Purchase Price
If you decide to negotiate a sale of assets (as opposed to stock of your company), it is important to focus on the allocation of the purchase price, since there can be different tax consequences to both the seller and buyer. The seller will want as much of the purchase price allocated to intangible assets, such as goodwill, as possible. Goodwill is a capital asset and the gain will be taxed at the 15% long term capital gain tax rate, assuming the entity has been an S Corporation since inception or for more than 10 years. The buyer then can write-off the amount allocated to goodwill over fifteen years.
However, the buyer may want to allocate more of the purchase price to fixed assets, such as machinery and equipment, which they can write off over five to seven years. Allocating some of the purchase price to these assets may be considered income for the seller and be taxed at a 35% rate instead of a capital gain taxed at 15%. While the allocation of the purchase price must be based on fair market value of the assets, there is usually some room for negotiation.
State and Local Tax Considerations
Don’t lose sight of the state and local tax consequences, including sales and transfer taxes. In certain situations, the federal income tax consequences may be the same, whether the transaction is an asset or entity sale but the state and local tax consequences may be the deciding factor as to what structure to use. If your entity has been an S Corporation from its inception, it still may make sense to sell the entity instead of selling the assets, where a state or local income tax would be incurred by the corporation on an asset sale.
The tax laws are so complex, and business situations so diverse, that tax and legal professionals should be consulted before any transaction is entered into.
Joe Buble, CPA is a tax partner in Citrin Cooperman & Company, LLP’s New York office. He can be reached at jbuble@citrincooperman.com.
Supporting the Staffing NJ PAC
The business community, and especially the staffing industry, needs to have a voice in Trenton. The 2009 elections will be upon all of us soon, so now is the time to think about supporting your legislative PAC – Staffing NJ PAC. Not only will there be a gubernatorial election, but all members of the Assembly are up for re-election. In 2007, Staffing NJ PAC supported 10 candidates and all 10 were elected.
New Jersey Staffing Legislation 2009
A number of legislative bills impacting the staffing industry has been introduced in Congress during the last few weeks including:
HR 2564 – the Paid Vacation Act of 2009. This bill would require employers with at least 50 employees to provide a minimum of one week of annual paid vacation.
HR 2399 – the American Health Benefits Act of 2009. This bill would offer health insurance to individuals not qualified under a federal program or an employer’s plan and would impose an excise tax on business to pay for it.
HR 2447 – the Small Business Efficiency Act of 2009. This bill would amend the IRS code to provide that a certified professional employer organization will be treated as the employer of any work site employee performing services for any customer of such organization with respect to remuneration remitted to the work site employee.
HR 2472 – the Social Security Number Fraud & Identity Theft Prevention Act. This bill provides that data collected by the SSA can be shared with the Dept. of Homeland Security, the Labor Dept., and the Attorney General to be used for immigration and enforcement purposes.
Posted in Legislative Comments closed
Signs of Recovery in NJ?
As the recession drags on, people are looking for signs of recovery. Business leaders say one place to watch is staffing companies. Managers at various staffing companies throughout New Jersey say they’ve seen increased interest from local customers while in the down economy.
NJSA business owners and managers are in touch with companies who are starting to look for temporary workers. They say when those companies start to rely on them, it’ll be an early sign of recovery.
Most agencies, staffing agencies, are typically one of the first things to come back. So, we see an increase in our business or rebound of our business, and an increase in the contingent labor, usually six to seven months before everybody starts to put their ads back in the newspaper and starts to aggressively hire outside.
Managers at staffing agencies throughout the NJSA say they’re optimistic for recovery to start at the end of this year or beginning of next year.
Effective Immediately Changes to Cobra Regulations
THE CHANGE IN COBRA REGULATIONS ENACTED BY PRESIDENT OBAMA ON FEB. 17TH, EFFECTS ALL NEW JERSEY COMPANIES DUE TO NJ CONTINUATION IT IS NOT RESTRICTED TO FEDERAL COBRA GUIDELINES OF COMPANIES WITH 20 OR MORE EMPLOYEES
Pls read the following recap from Two River Benefits, any questions you can call 732-517-0220
COBRA & State Continuation Premium Assistance Via
“The American Recovery and Reinvestment Act of 2009″
As part of our Two River Benefits continuing effort to educate the NJSA to changes in HR law, please read the following on this new act which President Obama enacted into law on February 17th, 2009.
Regarding employers that must comply with COBRA, Federal law:
All NJ, employers, including self-insured employers, with 2 or more on payroll (including full time, part time, union and non-union) for 50% of business days in the preceding year must offer COBRA continuation of the group health plan. The employer determines what full time hours are (up to 40 hours for Federal COBRA purposes). Employees working less than full time count as fractions.
Please note the following clarification regarding the American Recovery and Reinvestment Act of 2009:
• The Act provides workers who were involuntarily terminated for other than gross misconduct between September 1, 2008 and through Dec. 31st 2009, and who failed to initially elect COBRA or state continuation coverage because it was unaffordable, an opportunity to enroll on a prospective basis.
• Election is anytime beginning with the enactment on February 17, 2009 and 60 days after notification by the employer/ plan sponsor.
• The time without coverage shall be disregarded in determining a break for the purpose of pre-existing condition limitations.
• If the assistance eligible individual elected COBRA prior to the enactment, the individual is also eligible for the subsidy on a prospective basis.
• The Act provides a 65% subsidy for COBRA and state continuation premiums for up to nine months for workers and their families. The 2% allowable surcharge for administrative expenses is included meaning the subsidy is 65% of 102%.
• The Act requires notices of eligibility for COBRA and continuation coverage that must include the availability of premium reduction. The Departments of Labor and Treasury must furnish sample notices by March 19, 2009 (30 days from enactment) and the employer / plan sponsor must send notices to eligible persons by April 18, 2009 (60 days from enactment).
• The maximum allowable time on continuation is counted from when the person was involuntarily terminated and lost coverage. Example: Employee was terminated 9-15-2008 and the last day of coverage was 9-30-2008. The terminated employee’s 18 months starts from 10-01-2008 regardless of when s/he elects by this Act.
• The subsidy terminates upon becoming eligible for any group health plan or Medicare. Time in a probationary period does not count as being eligible meaning the person remains eligible for the subsidy until they are actually eligible to enroll in the new group health plan.
Individuals who do not notify the employer of eligibility under another group health plan are subject to a penalty of 110% of the premium reduction provided.
• The employer may permit the assistance eligible individual to elect different health coverage offered by the employer than what s/he had prior to the termination event
The individual has 90 days to enroll after first being notified.
The alternative coverage does not permit an election of standalone dental, vision, a health FSA or HRA.
The premium cannot exceed that of the coverage the individual had before the termination/ loss of coverage.
The coverage must be available to all active employees.
• To ensure that this assistance is targeted at workers who are most in need, taxpayer’s with a gross income of between $125,000 and $145,000 are eligible for a subsidy on a proportionate basis. Taxpayers with a gross income of more than $145,000 are not eligible for the subsidy.
• The Internal Revenue Code is amended to provide for a reimbursement to an employer / plan sponsor of the amount not paid by plan beneficiaries by treating such amounts as a credit against payroll taxes.
The employer pays the carrier 65% of the continuation premium along with the 35% from the assistance eligible employee. The employer then deducts the amount outlaid for the premium from the amount paid with the payroll filing. If the payroll tax is less than the amount paid out, the tax liability would be zero and the Department of Treasury would send a refund check.
• The Act directs the Secretary of the Treasury to provide such rules, procedures, regulations, and other guidance as may be necessary and appropriate to prevent fraud and abuse.
Posted in Legislative Comments closed
