A company identifies a source where they believe they will find qualified people with relevant experience. That source will put them into contact with applicants that inevitably get scheduled for an interview. Up to this point is where much of the variance exists, but from the interview on is where the process is fairly consistent.

In the interview the hiring manager gauges their interest in a candidate through a series of questions and answers. Some hiring managers actually make offers after a single interview, but most will bring serious candidates back for a second job interview inviting other individuals in the company to join (usually asking the same questions). A decision is made (often a gut decision) and sometimes confirmed by conducting a drug screen, and then the selected candidate is presented with a verbal job offer and sometimes followed up with a written version.

I ask interviewing managers how many questions they typically ask in the interview process and the answer is usually less than 20. So in essence, in less than 20 questions they are deciding who will be the most productive and ideally matched candidate for the position and who will help drive the company forward, while not exposing the company to risk. There is a 25% success rate in following this process. Said another way for every four people hired only one will be considered a “successful” hire.

To achieve a higher rate of success, YourSource benchmarks the needed traits of a successful candidate and uses behavioral assessments, skills tests, and targeted practicum’s to filter the right candidate for the position and for the company. This process nets a 75% success rate. How this impacts the profitability of the company depends on the position and the industry of the company. But one thing is for sure; having the right employees in the right positions has a direct impact on the profitability of any company!

To find out more about this process, contact a YourSource HR consultant.

Here are some Interviewer 101 basics that all interviewers should keep in mind:

• Be prepared – As an interviewer, you need to also do your homework (just as you’d expect the candidate has done about your company, the position, etc.).  Going into an interview unprepared, without having re-read the resume, formulated appropriate and pointed questions is immediately evident to the candidate.
• Be on time – You’re busy and have lots going on, but likely, the candidate has rearranged their day and taken time off work to meet with you.  Respect the candidate’s time and stick to the pre-determined time that was allocated for the interview.  If time’s up but things are going well, ask if they have time to continue the discussion now, or if rescheduling is a better option.
• Be as professional and respectful to the candidate as you’d expect them to be towards you – Don’t check your phone/texts/emails during an interview.  If there is an urgent matter or message you’re anticipating, tell the candidate at the beginning of the interview so they’re aware of the possible interruption.
• Display positive body language and eye contact – It’s apparent through body language and eye contact whether you’re genuinely interested in what the candidate is saying.  Sit up straight, look the candidate in the eye, and be engaged.
• Listen more than talk – Display active listening skills and take note of questions and answers, non-verbal cues/body language, and general observations.

In summary, remember that during the interview process very interaction is important and that the candidate is interviewing YOU and much as you are interviewing THEM.

The bill, Senate Bill 5002, is expected to pass easily through both the Michigan House and Senate sometime in the first quarter of 2012.

The highlights of the bill are as follows:

Direct Care
Currently an employer is allowed to direct the care (i.e. require that the employee be treated by the “company doctor”) for a period of ten days after the date of injury.   Senate Bill 5002 proposes to increase the employer’s direction of care to forty-five days, giving both employers and insurance companies more control of the care of the injured employee.

Payment of Wage Loss Benefits
The new law would terminate wage loss benefits if the employee were to be fired for cause.  Additionally, if the employee’s position is terminated through no fault of their own, for example, due to a lay off, the new law also takes into account the employee’s effort to look for a new job within their restrictions as part of the wage loss calculation.

Coordination of Pension Benefits
When it’s time to settle a workers compensation claim, the current law uses an offset against any income that an employee may be receiving, including pension benefits.   Savvy attorneys might advise their clients to defer their pension benefits until after their workers compensation claim has been settled, so that an offset does not apply.  The new law takes into consideration any pension benefits that the injured employee may be eligible for – whether or not the payments have been deferred.

Partial Wages
Under the current law, if an employer can’t accommodate a light duty position, the employee collects workers compensation time loss based on their total current wage.  The new law can take into account the job market – if the employee can perform a different job that is available in the market that is within their restrictions, then the insurance carrier can take credit for the wages that the worker would have earned at that job, and pays time loss benefits only on the difference, if any.  For example, if the employee earns $20 an hour at a company that can not accommodate their restrictions, but the employee can secure a job for $15 an hour at another company that is within their restrictions, the carrier can base their time loss on $5 per hour not $20 per hour.

Specific Loss
In summary, when a judge determines the compensability of a claim, they now take into consideration the positive effects of joint replacement therapy before coming up with a specific loss figure.  The advancements of modern medicine are thought to be able to reduce the compensability of a claim.

Attorney Fees
The act would reduce the type of Attorney fees that can be charged to the employer or the insurance company.

Senate Bill 5002 can be seen as a positive for both Human Resource professionals as well as business owners in the state of Michigan, as controlling the cost of Workers Compensation claims translates to lower insurance premiums over time.  Talk to your HR Professional or your Workers Compensation Agent to find out more about this exiting new development for Michigan businesses.

The Garnishment Notice states the total judgment against the employee and the expiration date of the garnishment. Each garnishment is approximately 90 days in length or when the balance is paid, whichever is first. The Disclosure Notice received with garnishment instructs the court and plaintiff when the deductions will be taken. It must be completed by the representative (Garnishee) responsible for the garnishment in regards to the payroll. The original disclosure notice is mailed to the court.  Copies are sent to the creditor company (Plaintiff) and the individual being garnished (Defendant). The disclosure notice is an acceptance by the Garnishee that the requirements will be fulfilled as instructed in the notice. The Final Disclosure states the amount sent to the Plaintiff and the balance that is still owed. It is also sent to the court and the plaintiff. It will then be up to the Plaintiff to petition the court for a continuing writ of garnishment.

The amount that can be deducted is based on a formula. Only the first 25% of disposable wages is garnishable. The Formula used to calculate a creditor garnishment is taking the gross wage, subtracting required deductions, such as taxes and, if applicable, a higher priority writ/order. Because some garnishments such as Child Support have a higher priority, it is possible that there is not enough left for the creditor garnishment. If a Tax Levy or a previous garnishment is in effect, this can also leave no amount due for the creditor garnishment in question for the current and following pay periods.

Failure to complete the forms or deduct garnishments from an employee’s pay can result in penalties and interest to the employer.  To avoid these penalties and interest, it is important that all garnishments are forwarded to the Payroll Department as soon as received.

What different types of health plans are available?

•  Health Maintenance Organization (HMO) is an organization that provides managed care for health insurance contracts in the United States.  A HMO only covers care rendered by doctors who have agreed to treat patients in accordance with the HMOs guidelines and restrictions; known as “in-network” providers.  Most HMO members would be required to choose a primary care physician (PCP), which usually includes pediatricians, family doctors, or general practitioners.  Therefore, in order to see a specialist or other doctor, patients would need to get a referral from their PCP, with the exception of a medical emergency.
• Exclusive Provider Organization (EPO) Plan is very similar to an HMO plan in that they both require members to see in-network doctors and choose a PCP.  However, with an EPO, rates are negotiated based on the services provided to the patient, where HMO’s rates are decided on a per-person basis.  Thus, the premiums for EPOs are often cheaper than HMOs.  The main disadvantage in comparison with an HMO is an EPOs network of doctors is often a lot more restricted.
• Preferred Provider Organization (PPO) is a managed care organization composed of physicians, hospitals, and other providers that provide health care services at a reduced fee.  PPO plans offer more flexibility than traditional HMO and EPO plans due to the option for a member to visit both in and out-of-network providers.  However, out-of-network visits are often more expensive then in-network visits, which typically only require a small fee.  PPO plans tend to have slightly higher premiums than HMOs and EPOs, but they have become increasingly more popular due to their flexibility.
• In addition to these plans you can add an HSA, or health savings account. Stay tuned for a unique blog about HSA’s.

How much does health insurance cost?
This can be a very complicated question.  Although the cheapest plan might seem like the best option, it may not provide you with the greatest overall value.  You also need to look at all of the different expenses you may be responsible for, depending on the plan:

• Premium – the amount you pay to an insurance company, or employer, for active coverage.
• Deductible – a set amount you are required to pay at the beginning of the plan year before the insurance company contributes towards the plan.
• Co-Insurance – a percentage amount you must pay for a covered service after the deductible is exceeded, up to the policy’s out-of-pocket maximum.
• Out-of-Pocket Maximum – the maximum amount you would be responsible to pay each year for approved benefits.
• Co-pay – a fixed amount you have to pay for a covered service.  Most plans have a co-payment for each office visit as well as each emergency room visit.
• Prescription Coverage – typically there is a set cost for generic versus brand name prescriptions.  Also, some prescriptions are not covered until after you meet the deductible.

What should I look for in a health insurance policy?
It can be difficult to find coverage that not only meets your medical needs, but also fits your budget. Typically, most health insurance plans that cover more will cost more.  Here are some tips to help you choose the best health insurance plan for you (and your family):

• Do not mistake insurance-like policies for comprehensive health insurance coverage. Examples:  accident-only policies, supplemental policies, discount plans, etc.
• Compare the costs of the plan with the protection and flexibility it offers.
• Check to make sure the plan you choose covers the services and medications you require.
• Make sure the plan’s health care providers include your current providers.
• Estimate costs you may incur for care that is not covered by the plan (services excluded or limited by the policy).

• Accuracy – There is a much lessened chance for making a calculation error in entering your payroll on a website opposed to computing your figures with a manual calculator and paper.  Simply enter each of your employee’s hours, and submit your payroll.
• Reporting – By utilizing online payroll, you’ll be privy to various reports that can be exported and saved into various formats.
• History – With reporting, you can store historical reports.  Historical reports providing employee information can also be recalled.  Now, instead of a box of manual timecards, you can neatly, and more safely, keep all your files electronically stored.
• Speed – Think about how much time you currently spend compiling your payroll each pay period.  Once you have the website setup with your payroll processor, you’ll simply logon each pay period, enter your hours, vacation, bonus and any other special earnings for your employees, and submit.  By upgrading to managing your payroll online, you’ll dramatically reduce the time it takes to submit your payroll.
• Expense – Using these paperless solutions saves delivery costs. Eliminating delivery fees can save a company hundreds of dollars annually.

Any business owner knows that payroll is an extremely vital portion of managing your business.  It’s no secret that you want your payroll to be processed timely and accurately.  By using an online website to submit your time, you will be able to submit your payroll with much greater ease and will be much more accurate doing it.  And faster and accurate payroll processing equals happy employees.

For the purpose of this blog, we will examine two common Federal Employment Laws, The Family and Medical Leave Act of 1993 commonly referred to as FMLA and the Consolidated Omnibus Budget Reconciliation Act, otherwise known as COBRA. These two laws are both associated with benefits to the employee, but often result in obstacles for employers.

A COBRA eligible employer will have twenty (20) or more employees and will subsequently have to offer the option of continued benefits to a terminated employee for up to a period of eighteen to thirty-six (18-36) months; so long as the termination was for reasons other than gross misconduct.  If you are an employer, you might be asking yourself, “How does this help me?” Employers need to be mindful of the “hidden” requirements of COBRA.  Sure, if you have twenty (20) or more employees you are bound by COBRA laws, but you must have twenty (20) or more employees for at least 50% of the typical business days in the previous calendar year.  This means, that if you have nineteen (19) employees and you hire an additional employee, you are not legally bound by COBRA; not until you meet the aforementioned criteria. This caveat is certainly in the employers favor, as it will give the employer the necessary time to best implement the COBRA process if they are to become COBRA compliant in the following calendar year. Do not forget to consider part-time employees when counting your employees. Each part-time employee counts as a fraction of an employee, with the fraction equal to the number of hours that the part-time employee worked divided by the hours an employee must work to be considered full time.

Along the some lines as COBRA, FMLA has an employer “loop hole”. Most Human Resources (HR) practitioners know that FMLA applies to all employers that have fifty (50) or more employees. They may even know that they must have fifty (50) or more employees within a seventy-five (75) mile radius. However, what is often over looked is the fact that to become FMLA compliant a private employer must have fifty (50) or more employees, within a seventy-five (75) mile radius, on each working day during at least twenty (20) calendar weeks in the current or preceding calendar year. In other words, if you have forty-nine (49) employees and you hire that 50th employee, you are not automatically FMLA bound.  Be careful though, you could have laid off a few employees and no longer think you are FMLA bound, but perhaps you had fifty (50) employees for twenty (20) weeks in the current or preceding calendar year.

The point of this blog is to illustrate that it is imperative that employers understand the laws and how they work. Failure to do so could set a precedent that the employer now must adhere to and subject them to unnecessary legal exposure.

The contributions you make to a FSA are deducted from your payroll check before Federal, State, or Social Security Taxes are calculated.  End result?  You save money by decreasing your taxable income and increasing your spendable income.  Planned correctly, you could save hundreds or thousands of dollars a year on budgeted expenses.
Most cafeteria style plans offer two types of Flexible Spending Accounts; a Health Care FSA and a Dependent Care FSA.

A Health Care FSA allows you to set aside pre-tax dollars to cover eligible health care expenses that are not covered by your employer medical, dental and vision plans.  This account helps budget for planned expenses, most commonly deductibles, co-payments, coinsurance and prescriptions.  Other eligible expenses include items such as eyeglasses, contact lenses and orthodontics.  New for 2011, over-the-counter medications/supplies require a written prescription from a doctor to be considered for reimbursement.  The Health Care FSA is currently capped at the employer’s discretion; in 2013 the cap will be limited to $2,500 per year.

A Dependent Care FSA allows you to set aside pre-tax dollars to cover eligible work related dependent care expenses for qualified dependents such as day care, summer day camps, pre-school and after-school programs.  If you are married, expenses must be incurred to allow you and your spouse to work, your spouse to attend school full time or your spouse to actively look for employment.  It can also be used for children of any age who are physically or mentally incapable of self-care, as well as limited adult day care for senior citizen dependents who live with you, such as parents or grandparents.   The Dependent Care FSA is federally capped at $5,000 per year, per household.

It is very important to carefully estimate your qualified out-of-pocket expenses for the upcoming plan year prior to deciding how much to contribute.  The IRS has imposed a “Use it or Lose It” rule.  This means that any funds not used by the end of the plan year are forfeited and cannot be carried over to the following plan year.

For more information and for a list of qualified dependents and eligible expenses, please visit the IRS website at www.irs.gov.

YourSource Management Group can assist employers with the implementation, plan administration and plan compliance requirements imposed by the plan as well as conduct initial and annual enrollments.  Please contact a member of the Benefits Department at 248.292.2200 to find out more about this tax-savings program and other valuable benefits.

In addition to the dramatic increases in state UI taxes, businesses face broad Federal Unemployment Tax Act (FUTA) surtaxes in as many as half the states in 2011. However, Congress is considering an Administration budget proposal that could defer the FUTA surtax and interest assessments for two years, and make other important changes to the UI program.

FUTA “Credit Reduction” Surtax Applies in Many States in 2011
In addition to state UI taxes, employers pay FUTA taxes of .8% on the first $7,000 of wages paid, or $56 per worker annually. However, many state unemployment insurance funds have had to borrow from the federal government during the recent economic downturn. When such loans remain unpaid for over two years, a FUTA surtax is activated, increasing employers’ FUTA tax liability by over 37%, or $21 per worker, for a total of $77 per worker annually.

In 2011, employers in up to 25 states faced FUTA “Credit Reduction” surtaxes to repay outstanding federal loans. Many employers remain unaware of these potential surtaxes, because they will not be finalized until November 2011. Credit Reduction taxes will be due with IRS Form 940 in January 2012, based on wages paid in 2011. This additional FUTA tax escalates annually until loans are repaid; for example, Michigan employers owed $77 per worker in FUTA taxes for 2009, $98 per worker for 2010, and potentially $119 per employee for 2011.

Unemployment Insurance remains the only payroll tax that employers can control by prudent Human Resource management and careful handling of UI claims. Employers’ tax rates rise in direct proportion to unemployment claims of former workers. YourSource can assist employers in managing UI claims and help to keep UI taxes as low as possible in this difficult environment.

The material presented herein includes recent highlights regarding regulatory compliance updates set forth by legislation or by various government agencies. Neither the content nor the manner in which it is presented is done so in a way to reflect the thoughts or opinions of YourSource or its employees. The information is provided as a courtesy to our clients, to assist in understanding the impact of certain regulatory requirements. Such information is by nature subject to revision and may not be the most current information available. Interested readers are encouraged to consult with appropriate legal and/or tax advisors.