Payroll News

http://www.coloradoan.com/apps/pbcs.dll/article?AID=/20080908/UPDATES03/80908036

A group of rural business owners is suing the state over its minimum wage law adopted by Colorado voters in 2006. The constitutional amendment, known as Amendment 42, adjusts the minimum wage annually as the cost of living goes up.

In January, the minimum wage jumped to $7.02 for non-tipped workers, $4 for tipped workers, higher than the federal minimum of $6.55 and $2.13 respectively. Colorado’s minimum wage is projected to go up again in January to $7.28 and $4.26.

The actual increase is based on the consumer price index used for Colorado. But the Bureau of Labor Statistics that produces the consumer price index does not have a CPI for Colorado. Instead it uses the index for the Denver/Boulder/Greeley metro statistical area.

As restaurants in particular feel the pinch of rising food, energy and labor costs, the lawsuit filed Aug. 21 in Denver District Court alleges it’s unfair to use Denver/Boulder and Greeley’s CPI to set wages for areas as disparate as Fort Collins, Grand Junction, Salida, La Junta, Gunnison and Pueblo.

Our members are having a difficult time because of a combination of factors, including the economy, minimum wage increases, increases in food and gas, Herman said. It says the amendment unfairly targets restaurants who employ tipped workers. Tips have already gone up, the lawsuit argues, because of higher prices charged by restaurants to compensate for higher food and labor costs.

The vicious circle of inflation will occur each year with higher prices caused by hikes in labor and food costs, which will cause tips to go up, which will force higher prices, and on and on, the lawsuit argues. As a result of Amendment 42, the plaintiffs have been forced to raise prices, decrease staff hours, terminate workers and decrease or eliminate employee benefits, the lawsuit argues.

Filed under: Payroll News, State News - - - Tags: Colorado, Minimum Wage, Tipped employees
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HARRISBURG — It wasn’t an easy decision, but The Saloon, a tavern/eatery in Mt. Lebanon, is going non-smoking.

The change will happen Thursday, when Pennsylvania’s new smoke-free workplace law goes into effect.

“It was a tough choice, but we’re happy we’re going to be non-smoking,” said manager Keith Sheppard. “I’ve gotten a lot of positive responses from our customers to the new policy. Some people have said ‘I’d come there to eat, but there is too much smoke.’ ”

Under the new Clean Indoor Air Act, which was 15 years in the making, restaurants will be required to prohibit smoking. But smaller bars and taverns, where on-premises food sales don’t exceed 20 percent of total revenue, can ask the state Health Department for an exception to the smoking ban.

The new law is intended to protect non-smoking customers and workers in public places, schools and offices, as well as restaurants, recreational facilities, sports arenas, larger bars and taverns, on 75 percent of a casino floor and in at least 75 percent of hotel/motel rooms.

The legislation was signed by Gov. Ed Rendell in June but didn’t take effect for 90 days, to give businesses a chance to adapt to it. The full text of the lengthy legislation is available at www.legis.state.pa.us

“[Thursday] will be a great day for Pennsylvania,” Mr. Greenleaf said. “Second-hand smoke is dangerous. Even a brief exposure can cause health problems and higher costs for health care.”

“A smoke-free environment is the only effective measure to protect the public, including people at work, from exposure to secondhand tobacco smoke,” said Dr. Calvin Johnson, state health secretary.

The state Health Department was given the major responsibility for implementing the smoke-free law.

“It’s a complex law and we encourage people to go to our Web site for information,” said department spokeswoman Holli Senior. It’s www.health.state.pa.us. On the home page, click on CleanIndoorAir , and then on the second screen, click on Guidance (at the top).

For persons without Web access, there is a toll-free number, 1-877-835-9535, which operates around the clock, she said.

Enforcement of the new law will be “complaint-based,” Ms. Senior said, meaning the department will field complaints from citizens rather than sending inspectors around the state. Anyone who thinks a business is illegally continuing to permit smoking can go to the department’s Web site to file a complaint or can call the toll-free number.

Penalties include a $250 fine for the first offense, a $500 fine for a second offense and a $1,000 fine for subsequent offenses.

The law prohibits towns, cities or counties — except for Philadelphia — from passing their own, stricter smoking bans. Philadelphia is a separate case because for the past two years, it’s had its own smoke-free law and Mr. Rendell insisted that Philadelphia’s law not be overridden by the Legislature.

Filed under: Restaurant News, State News - - - Tags: Clean Indoor Air Act, Pennsylvania, smoking
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The IRS is reminding employers that the decision to outsource their payroll is not an easy one.

Many employers outsource some of their payroll and related tax duties to third-party payroll service providers. They can help assure filing deadlines and deposit requirements are met and greatly streamline business operations. Some of the services they provide are:

• Administering payroll and employment taxes on behalf of the employer, where the employer provides the funds initially to the third-party.
• Reporting, collecting and depositing employment taxes with state and federal authorities.

Employers who outsource some or all of their payroll responsibilities should consider the following:

• The employer is ultimately responsible for the deposit and payment of federal tax liabilities.  Even though the third-party is making the deposits, the employer is the responsible party.  If the third-party fails to make the federal tax payments, the IRS may assess penalties and interest on the employer’s account.  The employer is liable for all taxes, penalties and interest due.  The employer may also be held personally liable for certain unpaid federal taxes.
• If there are any issues with an account, the IRS will send correspondence to the employer at the address of record.  The IRS strongly suggests that the employer does not change their address of record to that of the payroll service provider as it may significantly limit the employer’s ability to be informed of tax matters involving their business.
• For the employer’s protection, employers should ask the payroll service provider if they have a fiduciary bond in place.  This could protect the employer in the event of default.
• Employers should ensure that their service providers are using EFTPS (Electronic Federal Tax Payment System) so the employer can confirm payments made on their behalf.  Everyone should use EFTPS and Treasury regulations require electronic payment for payroll taxes over $200,000 in a calendar year.  EFTPS maintains a business’s payment history for 16 months and can be viewed on-line after enrollment.  In addition, EFTPS allows employers to make any additional tax payments that their third-party provider is not making on their behalf such as estimated tax payments.  The IRS recommends employers verify EFTPS payments as part of their bank account reconciliation process

EFTPS is secure, accurate, easy to use and provides an immediate confirmation for each transaction.  The service is offered free of charge from the U.S. Department of Treasury and enables employers to make and verify federal tax payments electronically 24 hours a day, 7 days a week through the Internet, or by phone.  For more information, employers can enroll online at EFTPS.gov, or call EFTPS Customer Service at (800) 555-4477 for an enrollment form.

There have been recent prosecutions of individuals and companies who have, acting under the guise of a service provider, stolen funds intended for payment of employment taxes. For more information, visit the Examples of Employment Tax Investigations FY2008 Web page.

Remember, employers are ultimately responsible for the payment of income tax withheld and both the employer and employee portions of social security and Medicare taxes.

Filed under: PayMaster Software, Payroll News - - - Tags: EFTPS, in house payroll, IRS
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It’s National Payroll Week! That means it’s time to celebrate payroll and you – the extraordinary payroll professionals who ensure America is always paid accurately and on time.

Look for NPW in the national media this week!  The NPW message will appear on national television, in leading publications, on websites, and on National Public Radio.  Watch the new NPW TV commercial (MAC version or PC version) airing during the week on NBC’s “Today Show,” CNN’s “Anderson Cooper 360°,” and MSNBC’s top-rated “Countdown with Keith Olbermann.”  Don’t miss the NPW print ad in major publications like the New York Times Magazine, Kiplingers Personal Finance, U.S. News & World Report, and more!   Also, be sure to catch the NPW radio sponsorship of NPR’s “BBC Newshour,” in morning drive time. Visit the NPW website for a listing of all the 2008 NPW advertising. Finally, watch the CBS Early Show on Wednesday – you may see some of your colleagues and friends.

Voice your opinion on how you’re paid with the “Getting Paid In America” survey.  Just for taking the survey, you’ll instantly be eligible for the grand prize – a free paycheck and trip to Las Vegas.  Anyone 18 or older who works is eligible, so encourage your friends, coworkers, everyone you know to take the survey by going to www.nationalpayrollweek.com. Every response we get will help the payroll industry better respond to workers’ changing needs and concerns.

Spread the word about National Payroll Week with the e-greeting card cialis uk.  The NPW e-card is a perfect way to get everyone who loves payday involved in the NPW celebration.  This year’s e-card lets you place photos of your friends, family, neighbors — anyone who loves getting their paycheck — directly into the card. It’s FREE, fun, and easy. So take a moment and send the e-greeting card to everyone you know. Send the NPW e-greeting card from www.nationalpayrollweek.com.

Educate the teens in your community on September 4, Money Matters National Education Day. On this special day, APA members head into their communities to teach the next generation of workers all about their paychecks!  More than 600 APA members have already volunteered to teach! If you’re interested, you can still volunteer.  Visit the NPW website, www.nationalpayrollweek.com, for more information.  You may even help your chapter’s region by participating.

Get recognition for you and your company!  If your company is celebrating National Payroll Week and honoring your payroll professionals, then it’s an NPW Supporter. Be sure to sign up your company and be recognized along with other well-known NPW Supporter companies, such as Godiva, Sprint, Outback Steakhouse, La Quinta, and more! Visit www.nationalpayrollweek.com for more information.

Have a wonderful National Payroll Week!

Filed under: Payroll News - - - Tags: APA, NPW
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National Payroll Week celebrates the hard work by America’s 156 million wage earners and the payroll professionals who pay them. Together, through the payroll withholding system, they contribute, collect, report and deposit approximately $1.7 trillion, or 64.2%, of the annual revenue of the U.S. Treasury.

This special week celebrates many things important to each of us who work. From the economic, cultural, and social achievements of workers, to the significance of “an honest day’s work for an honest day’s pay,” National Payroll Week is a celebration on many levels.

Filed under: Payroll News - - - Tags: APA, NPW
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Visit Conserve.Restaurant.org — the Web site of the National Restaurant Association’s recently launched environmental initiative — to learn how to implement simple practices that can move your restaurant toward more sustainable operations without affecting your bottom line. The site features resources and tips to help small and large operations and also highlights success stories from restaurateurs who have made changes to improve the sustainability of their establishment.

Filed under: Restaurant News - - - Tags: Green, National Restaurant Association, NRA
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When asked to name the top three margins pressures they will be facing in the last half of 2008, 83 percent of survey respondents named rising commodity prices (corn, beef, chicken, cheese) and energy costs (oil and gas) as the two most influential factors affecting margins. The third greatest concern, with 67 percent in agreement, was an ability to maintain revenue and traffic growth.
Reflecting the impact of rising costs, 45 percent of survey respondents also expect profitability to decrease somewhat over the next 12 months, and 27 percent reported expectations of moderate increases in profitability.
The top strategy cited by chain operators for easing pressure on margins to improve profitability was improving procurement processes and inventory control.
Other key strategies for strengthening the year’s financial outlook include switching to lower-cost food and beverage products (64 percent), increasing menu prices (45 percent), simplifying the menu (18 percent) and revamping labor compensation practices (9 percent).

Filed under: Restaurant News - - - Tags: Energy Costs, Weak Economy
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The Department of Labor (DOL) has recently issued an opinion letter on whether an employer’s break and meal policy was in compliance with the Fair Labor Standards Act (FLSA) [Wage & Hour Opinion Letter FLSA2008-7NA].

The company has written policies regarding break and meal periods which provide:

The company offers employees a 15-minute break during each shift of six or more hours. There are normally no guaranteed break periods when the employee is working overtime. Break periods begin as soon as employees remove themselves from the scheduled daily work routine.

All employees working six or more hours in a shift must receive a 30-minute, uninterrupted, and unpaid meal period. The meal period requirements cannot be waived by the employee nor substituted for any other time.

There may be instances when, because of staffing or workloads, a meal period may not be available to all staff members. Non-exempt employees should notify their manager if they do not take a meal period and note the discussion on their timecard so they will be compensated for their time.

The company  asked the DOL six questions:

Question 1: If an employee fails to take a meal break and does not notify the manager that he did so in direct violation of the policy, is additional straight time compensation due if less than 40 hours were worked (assuming minimum wage still was received)?

Answer: “Work not requested but suffered or permitted is work time.” 29 C.F.R. § 785.11. Thus, the employer must compensate the employee for all hours worked including the time worked during the missed meal period. In a workweek in which no overtime hours have been worked, however, an employee subject to section 6 of the FLSA is considered to be paid in compliance with the FLSA if the employee’s total wages for the workweek divided by the compensable hours worked equal or exceed the applicable minimum wage. Thus, in the situation described above, if the employee receives at least the minimum wage for all the hours worked (including the time worked because of a missed meal period), no additional compensation is due.

Question 2: Is the ‘missed meal’ period considered work time for purposes of determining overtime compensation?

Answer: The time worked because of a missed meal period is hours worked for purposes of determining overtime compensation. (see Wage & Hour Opinion Letter FLSA2007-1NA, 5/14/07).

Question 3: Assume that an employee is regularly scheduled to work 35 hours per week. If he or she begins work early or works after the regular finishing time, is additional straight time compensation due (assuming that, even with these unrecorded extra hours, the worker received the minimum wage for all hours of work and also assume that a published policy prohibits all forms of off-the-clock work)?

Answer: See A1. Also, as indicated in A2 above, if the additional hours worked result in the employee working in excess of 40 hours in a workweek, the regular rate of pay must be paid for all hours worked and the one-half time overtime premium for all hours over 40. The overtime premium “cannot be said to have been paid to an employee unless all the straight time compensation due him for the nonovertime hours under his contract (express or implied) or under any applicable statute has been paid.” 29 C.F.R.§ 778.315.

Question 4: Would the Department of Labor change its response to Question 3 if the employee was advised in writing not to work any unrecorded work hours at any time and was subject to disciplinary action?

Answer: We do not have enough information to determine whether the response to Q3 would change even if the employee was advised in writing not to work unrecorded hours and was subject to disciplinary action. Such determinations are fact-specific and must be made on a case-by-case basis.

Question 5: If an employee receives premium pay that is not otherwise due (e.g., time and one-half for working over eight hours in a day), is that an offset against any straight-time pay or overtime pay that may be due in that workweek?

DOL answer: Under sections 7(e)(5), (6), and (7) of the FLSA, certain premium payments made by employers for work in excess of or outside of specified daily or weekly standard work periods or on certain special days are regarded as overtime premiums. In such situations, the extra compensation provided by the premium rates need not be included in the employee’s regular rate of pay for the purpose of computing overtime compensation. Moreover, under section 7(h) of the FLSA that extra compensation described in sections 7(e)(5), (6), or (7) may be credited toward the overtime compensation payments. See 29 C.F.R. § 778.201.

Question 6: Does the Department of Labor have a guideline for time that is de minimis or subject to rounding off? The employer utilizes electronic time clocks that record ‘punched time’ in one-minute increments.

Answer: As noted in 29 C.F.R. § 785.48(b), for enforcement purposes, the payment of wages based on recording and computing time to the nearest five minutes, or the nearest one tenth or quarter of an hour, will be accepted provided that it is used in such a manner that it will not result, over a period of time, in failure to compensate the employees properly for all the time they have actually worked.

Filed under: Federal News, Payroll News - - - Tags: DOL, FLSA, Meal Break
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A nonpartisan coalition of more than 90 faith, community, labor and business organizations has launched an ambitious “$10 in 2010″ campaign to raise the federal minimum wage within two years.

The Let Justice Roll Living Wage Campaign announced the crusade with support from various denominations, including American Baptist Churches USA, the Episcopal Church, Religious Action Center of Reform Judaism, the Jewish Council for Public Affairs, Muslim American Society Freedom Foundation, Presbyterian Church (USA) and the Christian social justice group Sojourners.

The July 24 minimum wage raise is so little, so late that workers will still make less than they did in 1997, adjusting for the increased cost of living, and way less than in 1968. The new $6.55 minimum wage is lower than the 1997 minimum wage, which is worth $6.88 in 2008 dollars, and way lower than the inflation-adjusted $9.86 minimum wage of 1968. For full-time workers that translates into $20,509 a year at the 1968 rate, compared with just $13,624 at the hourly rate of $6.55.

$10 in 2010 will bring the minimum wage closer to the value it had in 1968, a year when the unemployment rate was a low 3.6 percent. It will bring the minimum wage closer to the “minimum standard of living necessary for health, efficiency and general well-being of workers” promised by the Fair Labor Standards Act establishing the minimum wage 70 years ago.

Filed under: Federal News, Payroll News - - - Tags: FLSA, Minimum Wage
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Eco-Friendly Founding Farmers Restaurant Grows in DC

Complete Article in Wall Street Journal

First LEED Gold-Designed, Green Restaurant to Open in the Nation’s Capital

According to the new 2009 Washington D.C./Baltimore Zagat Restaurants Survey guide, regional residents that dine out are clearly moving in a “greener” direction. Seventy percent of surveyors consider eating locally grown food important, while 62% will “pay more” for sustainably raised food. Ready to answer this growing hunger for more green living, new dining concept Founding Farmers will open in Washington, DC this September as an eco-friendly dining concept, with sustainable agriculture at the heart of the menu and a restaurant designed to meet Leadership in Energy Efficient Design (LEED) certification criteria and Green Restaurant Operational standards.
Developed by VSAG (Vucurevich Simons Advisory Group, www.vsag.com) in conjunction with a collective of more than 40,000 American Family Farmers, Founding Farmers ( www.wearefoundingfarmers.com) will serve fresh Farm-to-Table American-inspired true food and drink during breakfast, lunch, dinner, Sunday brunch and Sunday supper. The 8,500 square foot soaring space will accommodate approximately 250 seats, with a prominent location at 1924 Pennsylvania Ave. NW, in the recently completed IMF (International Monetary Fund) HQ2 building, just blocks from the White House.
“Founding Farmers is an exciting concept that is honestly derived from a great history of American farm culture and what it means to serve ‘true food,'” describes VSAG Principal Dan Simons. “I’m thrilled by the Zagat Survey news on eating green, which only affirms what we have been working on for years. It’s not about being trendy — we’re serving foods that help support the environment — and we are bringing the green movement right to the table.” VSAG will operate and manage the restaurant following the opening, monitoring Green practices at each turn.
Led by Chef Graham Duncan, the menus at Founding Farmers include all homemade traditional American classics inspired by the heartland made with sustainably farmed products and only in-season vegetables and fruits. Not ‘kitschy’ country cooking, the dishes include family farm favorites like fresh-baked biscuits, breads and pastries, omelettes, pancakes, and all the breakfast trimmings, big, hearty rustic farm sandwiches and soups, big, colorful green salads with just-picked vegetables, a variety of pot pies, prime cuts, pot roast, roasted chicken, and rich, delectable pies and desserts from the pastry bar, supplied by the in-house bakery.
On the beverage side, Founding Farmers has an innovative bar program featuring ‘bar-chefing’ of classic cocktails and bar treats, small batch brewery beers and family-distilled Bourbons, and a wine list that includes organic wines harvested through sustainable viticulture, and popular varietals from both domestic and international vineyards.
Founding Farmers is the first restaurant in the District to seek the LEED Gold certification rating as determined by the US Green Building Council (USGBC), and will also operate as a Green Certified Restaurant, with operational standards to reduce waste, recycle more, and practice earth-friendly food service.
As a Green Certified Restaurant, approved by the Green Restaurant Association, Founding Farmers will source locally and regionally whenever possible, and will follow strict guidelines for reducing energy use and waste, with management and staff learning the best earth-friendly practices such as water conservation and recycling. In the dining room, eco-friendly choices menus printed on recycled paper with soy-based inks, and house-filtered water that doesn’t come in throwaway bottles. The restaurant has invested in the state-of-the-art Natura(R) water system to provide guests with fresh-filtered, purified, mineral-filled, chilled sparkling and still water served in glass carafes to greatly reduce fuel costs and polluting emissions without truck deliveries, and to reduce tons of plastic and glass waste.
“At Founding Farmers we are offering fabulous, great tasting products and great service, and are doing all we can to protect the environment. We truly believe that we have created a new model to demonstrate that some profit should not be taken when the environmental impact is too great,” describes General Manager Ralph DeRose.
Washington, DC firm CORE architecture + design combined LEED requirements with innovative design with farm silo-shaped booth seating made of recycled steel, ‘PaperStone’ countertops in the restrooms, a natural color palette of earth tones in fabrics and finishes made with post-consumer content, reclaimed brick pavers and barn woods underfoot and for the long, communal farmhouse tables — all areas that guests will ‘touch.’ Other LEED criteria design elements and energy-efficient moves include the use of day lighting to illuminate the restaurant, increased ventilation, green-sourced power and low-VOC emitting paints.
More information will be made available on the Founding Farmers web site, www.wearefoundingfarmers.com, in the coming weeks.

Filed under: Restaurant News - - - Tags: Green, Marketing your restaurant
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