Payroll service is the first thing that companies decide to outsource. If payroll is outsourced then it would cost you less than hiring an additional employee to handle payroll. If the company outsourcers its payroll it can reduce a companies risk of legal errors, thus leading to legal protection for the business. Payroll outsourcing also allows for the latest technology in usage. Outsourcing can help the organization access to the best solutions and latest technology without the need for software upgrades or a direct investment. Outsourcing payroll also saves time and reduces paperwork and the company has to spend only a few hours on payroll each year. Calculating federal, state and local employment taxes can be very tedious, and if it is done incorrectly, the company may have to face penalties and even pay interest. Outsourcing can reduce this risk. Payroll outsourcing can reduce payroll costs, greater payroll support, reduced IT responsibility and assurance that employees will be paid correctly and on-time. To sum up the benefits of outsourcing payroll include it avoids IRS Penalties, reduce costs, alleviate pain, offer direct deposit, time consuming, avoid technology headaches, leverage outside payroll expertise, avoid payroll knowledge walking out of door,

There are two types of payroll options like outsource payroll and in-house payroll.

By outsourcing payroll operations, companies can concentrate more on their core competencies, cut costs, increase employee satisfaction and increase productivity. It makes compliance with tax rules and government regulations easier and more effective. There is no need to keep up to date with complex changing legislation by your payroll staff. Reduce cost as payroll service provider has scale efficiencies. So payroll outsourcing has become a common choice for small and medium sized business.

In recent years, companies have switched from outsourcing to in-house payroll solutions. In-house payroll solutions are good for those companies who have complex accounting requirements. With the latest technology, you can easily keep up-to-date with the latest changes in tax rates and filing requirements. Payroll software provider provides ongoing tax updates throughout the year as long as you pay a small amount of fee to keep renewal of your license.

The total amount paid to employees for a certain period. Some employees may be paid a steady salary while others are paid for hours worked or the number of items produced. Payroll covers all the payments you make to your employees including wages, salaries, overtime, commission, bonus, holiday pay, statutory payments. Payroll covers things like employer’s NICs and the value of perks and benefits too. It is essential that you pay your employees the right amount and on time, and you make correct deductions.

Small business owners have to keep enough cash in a payroll account as it is their highest priorities. Even if the business is not going well or profitable, employees have to be paid for their services in the beginning of every month. That’s why many small companies prefer to keep their payroll obligations as low as possible until they’ve reached a certain level of profitability. Larger companies are assigned trained accountants to handle payroll issues as part of their overall duties.

Administrative Service Organization (ASO) enables our clients to receive all of the benefits of PEO’s with out the co-employment aspect. Running a business requires focus. And, while maintaining your workforce is critical, sometimes the details of human resources administration can be a time-consuming distraction. Optimum Outsourcing offers a complete, flexible and integrated human resources management solution with everything from payroll processing and tax service, employee assistance and training programs and HR administration. We also offer 401K, Flexible Spending Accounts, Employee Rewards, Health Insurance and Workers’ Compensation Insurance programs as well. These services are delivered via a single, integrated platform that eliminates the need to manage multiple vendors. Posted August 26, 2008 by Kevin Gramian at Optimum Outsourcing, LLC.

 Professional Employer Organizations (PEOs) enable clients to cost-effectively outsource the management of human resources, employee benefits, payroll and workers’ compensation while retaining complete direction and control of their staff. This allows PEO clients to focus on their core competencies to maintain and grow their bottom line.

Businesses today need help managing increasingly complex employee related matters such as human resources, benefits, workers’ compensation claims, payroll, payroll tax compliance, and unemployment insurance claims. They contract with a PEO to assume these responsibilities and provide expertise in human resources management. This allows the client to concentrate on the operational and revenue-producing side of their organization.

A PEO provides integrated services to effectively manage critical human resource responsibilities and employer risks for clients. A PEO delivers these services by establishing and maintaining a co-employer relationship with the employees at the client’s worksite and by contractually assuming certain employer rights, responsibilities and risk. Posted August 25, 2008 by Kevin Gramian at Optimum Outsourcing, LLC.

 Do

Do ensure that the interview facility is accessible to people with disabilities.
Do inform the applicant of any special parking available.
Do allow the applicant at least a full day to prepare for your interview.
Do identify the essential functions of the job.
Do make eye contact with the person.
Do talk directly to the person with the disability–not to an interpreter.
Do, after the initial greeting, sit down so that a person who uses a wheelchair can easily make eye contact.
Do ask about the person’s ability to perform the job.

Don’t

Don’t assume the person is able to shake your hand in greeting.
Don’t lean on an applicant’s wheelchair.
Don’t shout or raise your voice to a person who is hearing impaired.
Don’t touch or talk to a seeing-eyed dog.
Don’t ask about a person’s disability history.
Don’t ask about prior workers’ compensation claims.
Don’t ask how the person became disabled.
Don’t ask how a person is going to get to work. Posted on August 22, 2008 by Kevin Gramian at Optimum Outsourcing, LLC.

Unemployment benefits, established in 1935 as part of the Social Security Act, provide a temporary source of income to unemployed individuals. Unemployment benefit is administered by each state and is funded through employer’s taxes. States set the requirements on who is eligible to receive benefit, how long an individual must wait to receive benefits and how much of a benefit is received. They also determine which circumstances disqualify an individual for benefits. When a former employee is disqualified for benefits, the employer is not charged.

 The Fair Labor Standards Act (FLSA) was passed in 1938. The Act establishes standards for minimum wage and overtime pay. For nonagricultural operations, the Act restricts the hours that children under age 16 can work and forbids the employment of children under age 18 in certain jobs deemed too dangerous. For agricultural operations, it prohibits the employment of children under age 16 during school hours and in certain jobs deemed too dangerous. The FLSA affects more than 100 million workers, both full-time and part-time, in the private and public sectors. It applies to enterprises with employees who engage in interstate commerce, produce goods for interstate commerce, or handle, sell, or work on goods or materials that have been moved in or produced for interstate commerce. For most firms, a test of not less than $500,000 in annual dollar volume of business applies (i.e., the Act does not cover enterprises with less than this amount of business).However, the Act does cover the following regardless of their dollar volume of business: hospitals; institutions primarily engaged in the care of the sick, aged, mentally ill, or disabled who reside on the premises; schools for children who are mentally, or physically disabled or gifted; preschools, elementary, and secondary schools and institutions of higher education; and federal, state, and local government agencies. Employees of firms that do not meet the $500,000 annual dollar volume test may be covered in any workweek when they are individually engaged in interstate commerce, the production of goods for interstate commerce, or an activity that is closely related and directly essential to the production of such goods.The Act covers domestic service workers, such as day workers, housekeepers, chauffeurs, cooks, or full-time babysitters, if they receive at least $1,300 (2001) in cash wages from one employer in a calendar year, or if they work a total of more than eight hours a week for one or more employers.An enterprise that was covered by the Act on March 31, 1990, and that ceased to be covered because of the increase in the annual dollar volume test to $500,000, as required under the 1989 amendments to the Act, continues to be subject to the overtime pay, child labor, and recordkeeping requirements of the Act.The Act exempts some employees from its overtime pay and minimum wage provisions, and it also exempts certain employees from the overtime pay provisions alone.

Employer practices vary widely in the leaves of absences plans the employer offers to its employees and such leave practices diverge greatly due to employer size, each employer’s place on the maturity curve, its own internal culture and workforce composition, the competitive pressures from others in the industry in which they operate, and their own past practices and precedents. However, in spite of these dissimilarities, each organization needs to provide leaves of absence for a multitude of reasons. Thus, there is merit in developing a leave of absence mindset to guide the organization in developing a coherent pathway for handling and processing leave transactions which is both effective, efficient and serves the organizations interests. In doing so, the organization is illustrating its strategic thinking and can marry its leave philosophies and plans of action to its business plan. The primary purpose of this toolkit is to provide a brief overview and resources for developing a comprehensive approach to categorizing leaves of absence to assist an organization in developing its own decision trees.Briefly, leaves can be divided into two classes. First are involuntary leaves which occur when an employer is subject to leave requirements due to federal or state law. The second class involve voluntary leaves, governed by organizational policies and which reflect the organization’s philosophies in terms of leave allowances. These class distinctions can become confusing due to the fact that many employers permit various types of leaves to run concurrently, i.e., an individual may be on Family and Medical Leave Act (FMLA) leave, workers’ compensation leave and an approved voluntary leave simultaneously. In classifying leaves, they can further be differentiated into those that are paid, unpaid or a combination of paid, partially paid and unpaid leaves. Pay status is important while on leave since benefits plan continuation (where required or offered) require that additional steps be taken to ensure that employee contributions for such benefits are adequately communicated and administered.

For the purpose of this discussion, following is the list of the potential leaves an employer may encounter:Involuntary leaves:

• Jury duty leave.

• Military leave. • Workers’ compensation/state disability income plans.• State parental school leave.

• FMLA and related state laws.

Voluntary leaves:

• Medical/disability.• Personal time/sabbaticals/educational leave.• Bereavement/funeral leave.

• Vacation/paid time off plans.• Business conditions (layoffs/furloughs/disaster response).

• Short and long term disability leaves.Each employer is free to develop leave policies that are far more expansive than those noted. Also, an employer is not required to provide the voluntary leaves cited above and may not be subject to some of the involuntary leave plans specified if the employer has not crossed the threshold where such leaves are required (i.e., 50 employee for FMLA). With respect to workers compensation and state disability leave requirements, both be will driven by state and case law; thus, we recommend that an employer follow the advice of legal counsel as to whether such a leave is required, the duration of a leave, and whether any benefits continuation or job restoration is required since these will vary on a state by state basis. Posted August 19, 2008 by Kevin Gramian at Optimum Outsourcing, LLC.

PURPOSE
The Immigration Reform and Control Act made all U.S. employers responsible to verify the employment eligibility and identity of all employees hired to work in the United States after November 6, 1986. To implement the law, employers are required to complete Employment Eligibility Verification forms (Form I-9) for all employees, including U.S. citizens.

FOR WHO MUST EMPLOYERS COMPLETE FORM I-9?
Every U.S. employer must have a Form I-9 in its files for each new employee, unless:

• the employee was hired before November 7, 1986, and has been continuously employed by the same employer.
• Form I-9 need not be completed for those individuals:
• providing domestic services in a private household that are sporadic, irregular, or intermittent;
• providing services for the employer as an independent contractor (i.e. carry on independent business, contract to do a piece of work according to their own means and methods and are subject to control only as to results for whom the employer does not set work hours or provide necessary tools to do the job, or whom the employer does not have authority to hire and fire); and
• providing services for the employer, under a contract, subcontract, or exchange entered into after November 6, 1986. (In such cases, the contractor is the employer for I-9 purposes; for example, a temporary employment agency.)

WHAT SHOULD BE DONE WITH FORMS I-9 AFTER THEY ARE COMPLETED?
Unlike tax forms, for example, I-9 forms are not filed with the U.S. government. The requirement is for employers to maintain I-9 records in its own files for 3 years after the date of hire or 1 year after the date the employee’s employment is terminated, whichever is later. This means that Form I-9 need to be retained for all current employees, as well as terminated employees whose records remain within the retention period. Form I-9 records may be stored at the worksite to which they relate or at a company headquarters (or other) location, but the storage choice must make it possible for the documents to be transmitted to the worksite within 3 days of an official request for production of the documents for inspection. Note: U.S. immigration law does not prescribe or proscribe storage of a private employer’s I-9 records in employee personnel files. As a practical matter, however, particularly if a large number of employees are involved, it may be difficult to extract records from individual personnel files in time to meet a 3-day deadline for production of I-9 records for official inspection.

DISCRIMINATION
The law protects certain individuals from unfair immigration-related employment practices of a U.S. employer, including refusal to employ based on a future expiration date of a current employment authorization document. The U.S. government entity charged with oversight of the laws protecting against unfair immigration-related employment practices is the Office of Special Counsel for Immigration Related Unfair Employment Practices, which is part of the Civil Rights Division of the U.S. Department of Justice.

AVAILABILITY OF FORMS I-9 IN FOREIGN LANGUAGES
The Form I-9 and most other USCIS forms are published in English only.

EMPLOYEE’S RESPONSIBILITY REGARDING FORM I-9
A new employee must complete Section 1 of a Form I-9 no later than close of business on his/her first day of work. The employee’s signature holds him/her responsible for the accuracy of the information provided. The employer is responsible for ensuring that the employee completes Section 1 in full. No documentation from the employee is required to substantiate Section 1 information provided by the employee.

EMPLOYER’S RESPONSIBILITY REGARDING FORM I-9
The employer is responsible ensuring completion of the entire form. No later than close of business on the employee’s third day of employment services, the employer must complete section 2 of the Form I-9. The employer must review documentation presented by the employee and record document information of the form. Proper documentation establishes both that the employee is authorized to work in the U.S. and that the employee who presents the employment authorization document is the person to whom it was issued. The employer should supply to the employee the official list of acceptable documents for establishing identity and work eligibility. The employer may accept any List A document, establishing both identity and work eligibility, or combination of a List B document (establishing identity) and List C document (establishing work eligibility), that the employee chooses from the list to present (the documentation presented is not required to substantiate information provided in Section 1). The employer must examine the document(s) and accept them if they reasonably appear to be genuine and to relate to the employee who presents them. Requesting more or different documentation than the minimum necessary to meet this requirement may constitute an unfair immigration-related employment practice. If the documentation presented by an employee does not reasonably appear to be genuine or relate to the employee who presents them, employers must refuse acceptance and ask for other documentation from the list of acceptable documents that meets the requirements. An employer should not continue to employ an employee who cannot present documentation that meets the requirements.

QUESTIONS ABOUT GENUINENESS OF DOCUMENTS
Employers are not required to be document experts. In reviewing the genuineness of the documents presented by employees, employers are held to a reasonableness standard. Since no employer which is not participating in one of the employment verification pilots has access to receive confirmation of information contained in a document presented by an employee to demonstrate employment eligibility, it may happen that an employer will accept a document that is not in fact genuine – or is genuine but does not belong to the person who presented it. Such an employer will not be held responsible if the document reasonably appeared to be genuine or to relate to the person presenting it. An employer who receives a document that appears not to be genuine may request assistance from the nearest Immigration field office or contact the Office of Business Liaison.

DISCOVERING UNAUTHORIZED EMPLOYEES
It occasionally happens that an employer learns that an employee whose documentation appeared to be in order for Form I-9 purposes is not actually authorized to work. In such case, the employer should question the employee and provide another opportunity for review of proper Form I-9 documentation. If the employee is unable under such circumstances to provide satisfactory documentation, employment should be discontinued (alien employees who question the employer’s determination may be referred to an Immigration field office for assistance).

DISCOVERING FALSE DOCUMENTATION
False documentation includes documents that are counterfeit or those that belong to someone other than the employee who presented them. It occasionally happens that an employee who initially presented false documentation to gain employment subsequently obtains proper work authorization and presents documentation of this work authorization. In such a case, U.S. immigration law does not require the employer to terminate the employee’s services. However, an employer’s personnel policies regarding provision of false information to the employer may apply. The employer should correct the relevant information on the Form I-9.

PHOTOCOPIES OF DOCUMENTS
There are two separate and unrelated photocopy issues in the employment eligibility verification process. First is whether an employer may accept photocopies of identity or employment eligibility documents to fulfill I-9 requirements. The answer is that only original documents (not necessarily the first document of its kind ever issued to the employee, but an actual document issued by the issuing authority) are satisfactory, with the single exception of a certified photocopy of a birth certificate. Second is whether the employer may or must attach photocopies of documentation submitted to satisfy Form I-9 requirements to the employee’s Form I-9. The answer is that this is permissible, but not required. Where this practice is undertaken by an employer, it must be consistently applied to every employee, without regard to citizenship or national origin.

“GREEN CARDS”
The terms Resident Alien Card, Permanent Resident Card, Alien Registration Receipt Card, and Form I-551 all refer to documentation issued to an alien who has been granted permanent residence in the U.S.. Once granted, this status is permanent. However, the document that an alien carries as proof of this status may expire. Starting with the “pink” version of the Resident Alien Card (the “white” version does not bear an expiration date), and including the new technology Permanent Resident Cards, these documents are valid for either two years (conditional residents) or ten years (permanent residents). When these cards expire, the alien cardholders must obtain new cards. An expired card cannot be used to satisfy Form I-9 requirements for new employment. Expiration dates do not affect current employment, since employers are neither required nor permitted to re-verify the employment authorization of aliens who have presented one of these cards to satisfy I-9 requirements (this is true for conditional residents as well as permanent residents). Note: Even if unexpired, “green cards” must appear genuine and establish identity of the cardholder.

SOCIAL SECURITY CARD ISSUES
The Social Security Administration (SSA) currently issues SSA numbers and cards to aliens only if they can present documentation of current employment authorization in the U.S. Aliens such as lawful permanent residents, refugees, and asylees are issued unrestricted SSA cards that are undistinguishable from those issued to U.S. citizens.

Note on restricted SSA and other cards:

SSA “Valid only with INS (or DHS) Authorization” card – issued to aliens who present proof of temporary work authorization; these cards do not satisfy the Form I-9 requirements.

SSA “Not Valid for Employment” card – issued to aliens who have a valid non-work reason for needing a social security number (e.g., federal benefits, State public assistance benefits), but are not authorized to work in the U.S.

Internal Revenue Service (IRS) Individual Taxpayer Identification Numbers (ITINs) – issued to aliens dealing with tax issues (e.g., reporting unearned income such as savings account interest, investment income, royalties, scholarships, etc.). An Individual Taxpayer Identification Number card is NOT employment eligibility verification.

Aliens who satisfy I-9 requirements have been known to present a restricted SSA card for payroll administration purposes (consistent with advice from SSA and IRS). In cases like this, the employer needs to encourage the individual to report the change in status to SSA immediately.

RETENTION OF FORMS I-9
All of an employer’s current employees (unless exempt) must have Forms I-9 on file. A retention date can only be determined at the time an employee is terminated. It is determined by calculating and comparing two dates. To calculate date A, the employer should add three years to the hire date. To calculate date B, the employer should add one year to the termination date. Whichever of the two dates is later in time is the date until which that employee’s form I-9 must remain in the employer’s employment eligibility verification files.

OFFICIAL INSPECTION OF I-9 RECORDS
Upon request, all Forms I-9 subject to the retention requirement must be made available in their original form or on microfilm or microfiche to an authorized official of the Bureau of Immigration and Customs Enforcement, Department of Labor, and/or the Justice Department’s Office of Special Counsel for Unfair Immigration-Related Employment Practices. The official will give employers at least 3 days advance notice before the inspection. Original documents (as opposed to photocopies) may be requested.

FORM I-9 REQUIREMENTS OF NEW OWNERS OF EXISTING BUSINESSES
In a case where a new owner of a business is a successor in interest, having acquired an existing business, the new employer may keep the acquired employer’s I-9 records rather than complete new Forms I-9 on employees who were also employees of the acquired employer. However, since the new employer would be responsible for any errors, omissions or deficiencies in the acquired records, it may choose to protect itself by having a new Form I-9 completed for each acquired non-exempt employee and attached to that employee’s original Form I-9.

REMOTE HIRES
It is not unusual for a U.S. employer to hire a new employee who doesn’t physically come to that employer’s offices to complete paperwork. In such cases, employers may designate agents to carry out their I-9 responsibilities. Agents may include notaries public, accountant, attorneys, personnel officers, foremen, etc. An employer should choose an agent cautiously, since it will be held responsible for the actions of that agent. Note: Employers should not carry out I-9 responsibilities by means of documents faxed by a new employee or through identifying numbers appearing on acceptable documents. The employer must review original documents. Likewise, Forms I-9 should not be mailed to a new employee to complete Section 2 himself or herself.

SERVICE PROVIDERS
Some business entities contract with professional employer organizations (PEOs) to handle the personnel and benefits aspects of the business. This may include completion and retention of Forms I-9. Where the business entity and the PEO are “co employers,” one Form I-9 need be completed between the co-employers for each employee who was simultaneously hired by the co-employers. A business entity and PEO will be deemed a “co-employer” if, among other things, an employer/employee relationship is said to exist between the business entity and PEO on the one hand, and the individual on the other, even though the employee is only performing one set of services for both co-employers. Therefore, the authority to hire or terminate employment would have to be in the hands of both the business entity and the PEO. Since both entities are employing the individual, however, both entities remain equally responsible for meeting the Form I-9 requirements and equally liable for any failures to meet those requirements. Accordingly, the employer is fully responsible for errors, omissions, and deficiencies in the PEO’s processing. Posted on August 18, 2008 by Kevin Gramian at Optimum Outsourcing, LLC.