News & Announcements
Winter Solstice
Winter solstice occurs exactly when the axial tilt of a planet's polar hemisphere is farthest away from the star that it orbits. Earth's maximum axial tilt to our star, the Sun, during a solstice is 23° 26'. More evidently from high latitudes, a hemisphere's winter solstice occurs on the shortest day and longest night of the year, when the sun's daily maximum elevation in the sky is the lowest. Since the winter solstice lasts only a moment in time, other terms are often used for the day on which it occurs, such as midwinter, the longest night or the first day of winter.
Serra & DelVecchio Holiday Closings
Everyone at Serra & DelVecchio Insurance Group wants to thank you for your continued trust in us; we are looking forward to some exciting new programs in 2012.
From all of us:
We wish you a very happy, healthy, and safe Holiday Season.
***Our offices will be closed on Friday, December 23rd through Monday, December 26th to allow our employees time to spend with their families.
In Observance of New Year’s Day, we will also be closed on Monday, January 2nd.
Taxing the Holiday Spirit
(From SHRM)
Q: Are there any tax issues we need to be aware of when we give employees a $25 gift certificate or holiday goose?
A: There was a time when employers could give employees cash or a cash equivalent gift such as a gift certificate for amounts less than $25 without any tax concern. These were known as de minimis fringe benefits or gifts.
That is no longer the case. The Internal Revenue Service (IRS) tells employers that all fringe benefits, such as a gift certificate, are considered taxable wages unless specifically excluded by a section of the Internal Revenue Code (IRC).
There are still quite a few perks employers may provide to employees that can be considered de minimis and not taxable to the employee. These include: group meals, tickets to the theater or sporting events, traditional birthday gifts or holiday gifts with a low fair market value (not cash or cash equivalent), flowers, and occasional break treats such as coffee, doughnuts, soft drinks and the like.
For example, the employer is able to give employees a small gift on the employee’s birthday or give the employee a holiday turkey or ham without any taxable issues to the employee. However, if the employer gives the employee a gift certificate to purchase the item, it could create a situation where the employee could receive cash back from the certificate and it would no longer be considered a de minimis gift.
The IRS has created a Taxable Fringe Benefit Guide that addresses these fringe benefits, but also all other taxable fringe benefits employers might provide. The Taxable Fringe Benefit Guide, along with the Employer's Tax Guide to Fringe Benefits, Publication 15-B , are the IRS resources employers should reference when questioning any tax issues on employee fringe benefits.
The IRS 20 Point List for Classifying Employees
It is critical that business owners correctly determine whether the individuals providing services are independent contractors (self-employed) or employees. Generally, employers must withhold income taxes, withhold and pay Social Security and Medicare taxes and pay unemployment tax on wages paid to an employee. Employers do not generally have to withhold or pay any taxes on payments to independent contractors.
Who is an Independent Contractor?
People such as doctors, dentists, veterinarians, lawyers, accountants, contractors, subcontractors, public stenographers, or auctioneers who are in an independent trade, business, or profession in which they offer their services to the general public are generally independent contractors. However, whether these people are independent contractors or employees depends on the facts in each case. The general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done.
Who is an Employee?
Under common-law rules, anyone who performs services for you is your employee if you can control what will be done and how it will be done. This is so even when you give the employee freedom of action. What matters is that you have the right to control the details of how the services are performed.
IRS 20 Point Test for Classifying Employees
The IRS has created a 20 point list for helping to determine whether an individual is an employee or independent contractor. In general, "no" answers to questions 1-16 and "yes" answers to questions 17-20 indicate an independent contractor. Please see The IRS 20 Point List for Classifying Employees
New W-4 for 2012
The IRS has released the Form W-4 for 2012. If you have employees that have gotten married, divorced or had children this year, you’ll want to remind your employees to update their W-4 form so their withholdings are correct.
The IRS regulations require employers to remind their employees to file an amended Form W-4, Employee’s Withholding Allowance Certificate, if their filing status, exemption allowances or exempt status has changed since the last filing of their W-4 form. This notice must be provided to employees by December 1st each year. ***You can do it now, just be sure to collect them back as soon as possible.
Employees claiming “exempt” from withholding in 2011 and who wish to continue their exemption for 2012 must complete a new Form W-4 by February 16, 2012 to maintain their “exempt” status. An exemption is only good for one year. If a new W-4 is not received for employees claiming “exempt”, the employer must begin withholding Federal income tax as if they are single, with zero withholding allowances.
Reasons Employees Need to Change Their Withholdings
During the year, changes in an employee’s marital status, exemptions, adjustments, deductions or credits may occur which will impact what they claim on their tax return. When these changes occur, employees should provide their employers with a new W-4 form so their withholding status and number of allowances can be changed. If the changes reduce the number of allowances an employee is allowed to claim or if their marital status changes from married to single, employees must give their employer a new Form W-4 within 10 days of this change.
Did You Know?
According to the September 2011 Globoforce Workforce Mood Tracker survey, seventy-eight percent (78%) of U.S. workers said being recognized for their good work motivates them in their job. (Source: Globoforce).
Make the Workplace a Drama-Free Zone
Do you have a drama queen (or king) in your office? For these employees, a calm, peaceful workday is simply not very rewarding, so they try to spice things up with dramatic pronouncements, juicy gossip, ominous rumors, personal traumas, or emotional breakdowns.
Why drama queens act that way
Some dramatic employees are simply enthusiastic, sociable people who love telling stories, but true drama queen behavior indicates an immature and somewhat narcissistic personality. Attention is the overriding motivator for drama queens. Despite their outgoing nature, these employees are actually rather insecure and only feel important when they occupy center stage.
Drama queens also seem to thrive on emotional stimulation, regardless of whether the emotions are positive or negative. When the work environment doesn’t provide enough excitement, they usually try to create some, because even a conflict is highly preferable to a dull daily routine.
Challenges for managers
The drama queen’s insatiable desire for excitement and attention can be a drain on both productivity and morale. Frequent hallway conversations and closed-door “therapy sessions” waste a considerable amount of time. Coworkers may feel helpless to escape these gabfests because they fear being impolite. More subdued colleagues, who find drama queens exhausting, often try to avoid working with them altogether.
These difficulties are compounded by the fact that, despite their disruptive behavior, drama queens are not necessarily bad performers. When needy employees drop by to share their latest family crisis or coworker conflict, managers often make another mistake: giving attention to the wrong behaviors. If you listen to lengthy stories, sympathize with trivial difficulties, or get involved with personal crises, you are rewarding the very conduct that you wish to eliminate. Similarly, if you agree to unreasonable requests simply to make the drama queen shut up, you are guaranteeing a repeat performance.
Suggested strategies
Drama queen employees should be viewed as a behavior management project. If they are producing satisfactory results, then the manager needs to focus on defining and reinforcing proper workplace conduct. Here are some suggested action steps for dealing with employees who bring the drama:
Explain that acceptable job performance includes both successful outcomes and appropriate behavior, and then help the employee see the problems created by some of their actions. For example: “I’ve noticed that you spend a lot of time sharing personal stories with your coworkers. Although I want everyone to have friendly relationships, these conversations are taking too much time away from work, so I need for you to limit them to breaks and lunch.”
Have regular meetings to praise improvement and discuss ongoing challenges. These deeply ingrained behaviors will not change overnight, so frequent feedback is needed to help the employee learn what is appropriate and what is not.
Set aside time to discuss work-related subjects. Because these employees are “people people,” interaction with the manager is highly rewarding for them. If the conversation begins drifting into a long personal story, politely turn the topic back to work.
2012 Mileage Rates
IRS Announces 2012 Standard Mileage Rates, Most Rates Are the Same as in July
WASHINGTON — The Internal Revenue Service today issued the 2012 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning on Jan. 1, 2012, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
- 55.5 cents per mile for business miles driven
- 23 cents per mile driven for medical or moving purposes
- 14 cents per mile driven in service of charitable organizations
The rate for business miles driven is unchanged from the mid-year adjustment that became effective on July 1, 2011. The medical and moving rate has been reduced by 0.5 cents per mile.
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs as determined by the same study. Independent contractor Runzheimer International conducted the study.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.
These and other requirements for a taxpayer to use a standard mileage rate to calculate the amount of a deductible business, moving, medical or charitable expense are in Rev. Proc. 2010-51.
Notice 2012-01 contains the standard mileage rates, the amount a taxpayer must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that a taxpayer may use in computing the allowance under a fixed and variable rate plan.
Smoking in the workplace
Sample Policy:
Our corporation is committed to providing a safe and healthy environment for employees and visitors. Therefore, smoking is not permitted in the building and is restricted to the designated smoking area outside the facility.
The designated smoking area is located at southwest corner of the facility.
Smoking is only permitted during the scheduled break times. You are also required to clean-up after yourself and use appropriate trash or smoking receptacles.
Conn-OSHA Meeting
Breakfast Roundtable Discussion Group Meeting
Tuesday, December 20, 2011
The focus subject for the meeting: “A Non-Linear Approach to Root Cause Analysis”
