Background and Credit Check Reporting
Currently there are five states that have restrictions in place to prevent employers from using an applicant or employee’s credit history in making employment decisions. The reason why most employers use background or credit check reporting prior to or during employment is to ensure the company has financially sound employees representing their interests.
There is no harm in credit reporting however, consider this:
• As an employer, do you have a signed Consumer Credit Authorization to obtain credit history on your current or future employee
• Does your particular state have legislation to control credit history verification?
• When you receive your report will you know how to interpret the information fairly?
Ensuring State Compliance In Other States
When opening a new business location in another state, to ensure State compliance with payroll taxes, make sure you:
• Register with the state of the new business location. Some states, such as Maryland and Pennsylvania, have a combined registration. This allows you to register for both withholding and unemployment at the same time.
• Always try to register electronically – this is much easier and you will get your ID numbers and rates quicker!
• Remember – Withholding Tax is where the employee lives; Unemployment is where the employee reports to work!
IRS Email Issues: Be Aware!
If you receive emails that “appear” to be from the Internal Revenue Service (IRS). The IRS will NEVER send an employer an email. These are “scam” emails. You should never open any attachment from these emails. For more information on these email scams, please visit the IRS website.
Effective July 1st the IRS has increased the standard Mileage Rate to 55.5 cents from 51 cents per mile. This rate will be in effect until December 31, 2011 and was raised due to the increased gasoline costs.
The new rate for computing deductible medical or moving expenses also increased to 23.5 cents from 19 cents for the last six months of this year.
The State of Pennsylvania will be implementing Act 32 in 2011. With the exception of Philadelphia, this Act affects all Pennsylvania Local Withholdings! In preparation for the Act 32 implementation, employers will be required to have each of their employees complete a Certificate of Residency [Form DCED-CLGS-06 (1-11)]. The form can be found here. Please begin the process of asking your employees to turn these forms in so that you have them by the end of the year.
For many businesses, managing unemployment costs can be overwhelming. Many states have increased their base taxable wages, unemployment rates, and are even billing businesses for additional tax assessments to reimburse their loans from the Federal Government.
Deluxe Payroll has partnered with TALX to assist our Clients with the management of the unemployment process from start to finish. For a small per-employee/per-payroll cost, TALX can assist with unemployment claims and even help with rate reductions. Let us know if you want more information!