Chailland Business Services is happy to have been a sponsor of the French Quarter Festival for the second year in a row.  FrenchQuarterFestLetter

All employers have a legal and ethical obligation to promote a workplace free of threats and violence.   Employer violence prevention measures can include the following:

• Develop a workplace violence policy and prevention program and communicate such to employees. The policy should include reporting and investigation procedures.  Require that any incident of violence, even threats be reported to management.  Investigate all reports of harassment or abusive conduct immediately.

Follow up on harassment issues.  Advise victims of corrective action taken by management and encourage them to report any future problems.

• Provide training in preventive measures to all employees but especially supervisors.

Train supervisors to recognize the warning signs of violence and to defuse potentially violent situations.  Also during training you can foster a climate of mutual trust and respect among you workforce.

• Give your security guard or receptionist a code word to use if a situation arises.
• Be supportive, rather than punishing victims of workplace or domestic violence.
• Get advice from law enforcement, social service agencies or other professionals when necessary.

According to the Bureau of Labor Statistics Census of Fatal Occupational Injuries, workplace violence was responsible for 564 homicides in 2005 in theU.S.The consensus of specialists on this subject is that workplace violence falls into the following categories:

• Violent acts by criminals who do not have a connection to the workplace but enter to commit robbery or another crime.
• Violence that is directed at employees by customers, clients or others to whom the business provides a service.
• Violence against coworkers or managers by a present or former employee.
• Violence committed by someone with a personal relationship with an employee such as an abusive spouse.

Training employees in non-violent response and conflict resolution procedures might keep volatile situations from escalating to physical violence.  All employees need to be aware of the risk of workplace violence and know the procedures for obtaining medical care following a violent incident.  Ensure that there is proper visibility and lighting on the premises.  Security devices such as closed-circuit cameras and alarms can be helpful in reducing the risk for assaults against workers. 

Nothing above supersedes local, state or federal laws. Information is believed to be reliable but Chailland makes no guarantee as to, and assumes no responsibility for the correctness, sufficiency or completeness of the above information and recommendations. Additional safety measures may be required in some circumstances.

 Which records must you retain?  After finishing your year-end payroll processes, it is a great time to start thinking about cleaning up your old files. Which records can you destroy, and Code requires all employers that withhold and pay federal income, social security, and Medicare taxes to maintain certain records for each employee. Failure to meet these requirements can result in sizable penalties and large set-tlement awards if you are unable to provide the required information when requested by IRS or in an employment-related lawsuit.Income, Social Security, and Medicare Taxes,Employers must keep income, social security, and Medicare tax records for at least four years after the due date of the employee’s personal income tax return (gener-ally, April 15) for the year in which the payment was made:n The Employer Identification Number (EIN).n Employee name, address, occupation, and social security number.n The total amount and date of each payment of compen-sation and any amount withheld for taxes or otherwise. This should include reported tips and the fair market value of non-cash payments.n Amount of compensation subject to withholding for fed-eral income, social security, and Medicare taxes, and the corresponding amount withheld for each tax (also the date

withheld if withholding occurred on a different day than payment).n The pay period covered by each payment of compensation.n If applicable, the reason(s) why the total compensation and the taxable amount for each tax rate are different.n The Employee’s Form W-4, Employee’s Withholding Allowance Certificate.n Each employee’s beginning and ending dates of employment.n Any statements provided by the employee reporting tips received.n Information regarding wage continuation payments made to the employee by an employer or third party under an accident or health plan. This should include the begin-ning and ending dates of the period of absence from work and the amount and weekly rate of each payment (includ-ing payments made by third parties). You also need to keep copies of the employee’s Form W-4S, Request for Federal Income Tax Withholding from Sick Pay.n Fringe benefits provided to the employee and any required substantiation.n Employee requests to use the cumulative method of wage withholding.n Adjustments or settlements of taxes.n Copies of returns filed (on paper or electronically), including Forms 941 (with Schedules B, D, and/or R, as applicable), 943, 944, 945, 941-X, W-3, Copy A of Form

W-2, and any Forms W-2 sent to employees but returned as undeliverable. If you can electronically reproduce the undeliverable Forms W-2, you may destroy the originals.n Amounts and dates of tax deposits.Unemployment Tax,Employers subject to the Federal Unemployment Tax Act (FUTA) must also keep the following records for at least four years after the due date of Form 940 or the date the required FUTA tax was paid, whichever is later:n The total amount of employee compensation paid during the calendar year.n The amount of compensation subject to FUTA tax.n State unemployment contributions made, with separate totals for amounts paid by the employer and amounts withheld from employees’ wages. Currently, Alaska, New Jersey, and Pennsylvania require employee contributions. n All information shown on Form 940.n If applicable, the reason why total compensation and the taxable amounts are different.Department of Labor, State Requirements,There are also record retention requirements set by the Department of Labor (DOL), as well as wage-hour and unemployment insurance agencies at the state level. You can read the DOL’s rules by visiting www.dol.gov/dol/topic/wages/wagesrecordkeeping.htm. Links to state agencies can be found by visiting www.americanpayroll.org/

The most common IRS penalty involves a company’s failure to file 941 forms on time. Many of our clients have paid excess too much in penalties UNTIL THEY HIRED CHAILLAND BUSINESS SERVICES. Chailland is a LOCAL licensed Professional Employer Organization that has served the Gulf South from our Metairie office since 1992.

Chailland’s Specialty?

Holding clients’ hands to get their taxes calculated properly and paid on time It is tough enough for clients to run their companies, manage employees, and serve their customers, only to have to keep track of the IRS’ demands.

When you hire Chailland Business Services, rest assured:

• Your 941s will ALWAYS be filed on time.

• Your payroll taxes will be calculated properly and ALWAYS filed on time.

 • If there is ever a problem with the IRS, we are a local company and ready to contact them on your behalf, get answers, and help get the situation resolved.

Chailland Business Services has seventeen years of experience helping LOCAL companies with their IRS and payroll-related needs.

Per OSHA, all 120 voltage or 15 & 20 amp receptacles on construction sites which are not a part of the permanent wiring of the building or structure shall be equipped with Ground-Fault Circuit Interrupters or GFCI for personnel protection.  What is a GFCI?  It is a circuit breaker system that is designed to be faster acting and more sensitive. A GFCI can respond and cut off the electricity in as little as 1/40^th of a second.  It has a sensor that detects changes in current to the tool that is connected to it by comparing the current flow into the tool with the current flow out.  When this amount differs more than five milliamps, then the circuit is opened and the electrical flow is interrupted causing the tool to shut off.

 Any piece of equipment that has a frayed or worn electrical cord has compromised insulation around the cord.  If the tool or appliance should malfunction, or the insulation fails, you risk exposure to the flow of electrical current. If the current is going into your body then it is not flowing back out of the tool.   Should that happen, the GFCI would sense this imbalance immediately and cut off the electricity.

Sometimes a GFCI may trip when there is no serious problem.  This is common when you are using extension cords.  They may be too small for the load or may be in need of repair or replacement.  It can also happen if your tool is not working properly.  Of course sometimes using a portable tool with an extension cord is necessary to get the job done. Having GFCI outlets at home is as important as it is at work. GFCI outlets are inexpensive to purchase and install. They are required for most outdoor receptacles, bathroom receptacle circuits, garage wall outlets, kitchen receptacles and all receptacles in crawlspaces and unfinished basements. 

Next time you use one, you will no doubt appreciate how a GFCI-equipped receptacle can protect you.

Nothing above supersedes local, state or federal laws. Information is believed to be reliable but Chailland makes no guarantee as to, and assumes no responsibility for the correctness, sufficiency or completeness of the above information and recommendations. Additional safety measures may be required in some circumstances.

Do you currently have individual medical insurance? 

Are you thinking of purchasing a policy?

Did you know that you could pay this through payroll deduction and save money in the process?

Here’s how taking advantage of a Chailland Business Services Section 125 Cafeteria Plan can put money back into your employees’ paychecks. In the following example, an employee makes $500 a week in salary. Your portion of medical expenses is $80.77 a week. By using the Section 125 Plan to deduct insurance pre-tax, you get over $76 back in his check per month!

Section 125 Advantage
Without a Section 125 Plan*
 
Weekly Salary                    $500.00
 - Weekly Taxes                  $108.75
Net Pay                               $391.25
 - Medical                             $ 80.77
Take Home Pay                   $310.48
 
With Section 125 Plan*

Weekly Salary                     $500.00
 - Medical                          $80.77
Net Pay                                 $419.23
 - Weekly Taxes             $91.18
Take Home Pay                   $328.05

*For demonstration purposes only. 

There are many more ways we can help you with changes involving payroll and healthcare legislation. Please set up an appointment with one of our representatives to see how we can serve you.

A PEO is a Professional Employer Organization. PEOs provide huge benefits to their clients. Since last year the PEO industry grew over 20%. Here’s why more and more small to medium sized businesses are outsourcing to PEOs:

• Relief from the burden of employment administration. They assume a wide range of administrative functions, such as payroll processing and related tax filings, employee file maintenance, unemployment claims processing, and workers’ compensation claims management. PEOs also handle much of the employer-related paperwork associated with government compliance and benefits administration. Having the PEO responsible for the details of employment administration helps free business owners and other decision makers to focus on managing and growing their organizations.
• A wide range of personnel management solutions through a team of professionals. PEOs offer a diverse set of services that enable organizations to focus on their core business. PEOs deliver solutions to organizations through a staff of experienced human resources professionals. Through their team of skilled professionals, PEOs deliver results relating to human resources management, employee benefits, payroll and workers’ compensation.
• Improved employment practices, compliance and risk management to reduce liabilities. PEOs facilitate the development and documentation of workplace policies and procedures in accordance with all applicable state and federal employment laws. PEOs manage required record-keeping and reporting and help focus an organization on workplace rules and employee conduct. They provide professional assistance in identifying risks to the health and security of employees, examine how to measure, manage and transfer risks, and provide management and guidance for workers’ compensation claims.
• Access to a comprehensive employee benefits package, allowing clients to be competitive in the labor market. Savvy executives realize that their success depends largely on maintaining a superior staff and that attracting and retaining high-quality employees is essential to a successful business strategy. PEOs can create comprehensive benefit programs, from major and supplemental health-care choices to 401(k) programs, which are essential to attracting and retaining employees. PEOs assume the burdens of finding and negotiating the benefit programs. They also handle the details of enrollment and administration. Greater access to a full suite of Fortune-500-style benefit programs allows PEO clients to become competitive in the labor market.
• PEOs can provide assistance to improve productivity and profitability. PEOs allow organizations to focus on their core business by outsourcing the non-revenue, time-consuming employment administration tasks. PEO services bring clarity, communication, and certainty to employees. This improves morale and increases productivity.  PEO professionals handle the questions and issues regarding benefit plans, regulations and employment practices. They are well-versed in the latest trends and offerings. PEOs provide a professional HR staff for managers and owners. With a PEO, executives have access to a team of experienced professionals in human resources, benefits, payroll, regulatory compliance and risk management, who can help the organization follow the law and take care of employees.

Employers should train their employees regarding company safety procedures in case of a fire.  Employers should have a written emergency fire evacuation plan which describes the exit routes to use and procedures to be followed.  Procedures should cover issues such as: which employees will be responsible for calling the Fire Department and when and if employees should try to fight a fire.  If there is an explosion or ignition hazard in the building, then everyone should evacuate and not try to fight the fire. Of course having a written plan will not save lives if it is not shared with all employees.  Also it is the employer’s responsibility to train employees to properly operate the fire fighting equipment that is located in work areas.  Employers should be aware of all major fire hazards throughout their workplace and have proper controls in place including procedures for proper handling and storage of hazardous materials and potential ignition sources as well as the type of fire protection equipment necessary to control these hazards.

Fixed extinguishing systems throughout the workplace are reliable fire fighting tools.  If you have a fire extinguishing system which uses agents such as Halon or carbon dioxide, which are a serious health hazards, then you must post warning signs around the protected area per OSHA.  You must also provide an emergency action plan to evacuate employees from the protected area.  These systems detect fires, sound an alarm and send water to the fire.  Only approved portable fire extinguishers are permitted for use in workplaces.  Check now to see if you have the right kind of portable extinguishers for your premises and make sure they are mounted in brackets in conspicuous locations where everyone can find them.  All extinguishers should be inspected and tagged every year by an outside service company.

What are some other things that employers and employees can do to prevent fires?  Each workplace should have designated smoking areas on the premises and no one should be allowed to smoke outside these areas. Make sure that all smoking materials are disposed of properly.  Flammables should be stored in appropriate containers and far away from heat sources, off site, if possible. Perform any welding or cutting operations as far from the building as possible.  Inspect and repair wiring often and replace faulty wiring as needed.   The employer should have procedures to control accumulations of flammable and combustible waste material.  Heat producing-equipment should be on a regular maintenance schedule.  For more information please consult OSHA.gov and CFR 1910.33-39.   

Nothing above supersedes local, state or federal laws. Information is believed to be reliable but Chailland makes no guarantee as to, and assumes no responsibility for the correctness, sufficiency or completeness of the above information and recommendations. Additional safety

1. Consolidates several small companies’ employment tax filings into one
2. More professional preparation and reporting
3. Accelerated collection of taxes
4. Extends access to medical benefits to more workers
5. Improves the communication of government requirements to small businesses
6. Reduces litigation by resolving many problems before they reach court
7. Allows government agencies to reach businesses through a single-employer entity

The now infamous “Super Committee” failed in their goal of delivering $1.2 trillion in budget reductions over the next ten years. With much of the media fixated on the outcome of this process, the American public has lost focus on the numerous tax benefits that will begin to expire in 2012. Most U.S. households will be impacted by these tax changes in a negative way and ongoing partisan politics are likely to stop further extension of these benefits. With Congress at a deadlock, all remaining Bush-era tax cuts will end in 2013. Popular benefits like marriage penalty relief, child tax credits, the 10% tax bracket and some education credits will be gone. The result will be a much larger tax liability for many taxpayers. The list below highlights tax benefits lost in 2012 and 2013.

Tax Benefits Expiring 12/31/2011:

• State and local sales tax deduction ends
• Alternative minimum tax exemptions is reduced
• School teacher expense deduction expires
• Personal tax credits applied against income tax no longer apply
• Mortgage insurance premium deduction ends
• College tuition and related fees deduction expires
• IRA to charity tax-free transfer is no longer allowed
• 2% Social Security tax reduction ends

Tax Benefits Expiring 12/31/2012:

• Qualified dividends now taxed at regular tax rates
• Capital gain rate of 15% expires
• Marriage penalty equalization ends
• Itemized deduction phase out for higher income Americans comes back
• Removal of personal exemption phase out for higher income Americans
• Child care deduction is reduced to $2,400 from $3,000
• Child tax credit reduced from $1,000 to $500 per child
• 10% tax bracket is eliminated
• Higher income tax rates now apply
• Refundable adoption credit is eliminated
• American Opportunity college education credit ends
• Income tax exclusion for forgiven home foreclosure debt ends
• Student loan interest deduction ends
• Education IRA contribution limit drops from $2,000 to $500

The rollback of tax rates and rules to pre-2001 levels will have a dramatic impact on all taxpayers. Many of these potential changes will effect payroll and benefits for your business. Chailland Business Services keeps up with these changes so you don’t have to. Sign up with Chailland now and you can concentrate on running your business and let us worry about the government changes.