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Wage Compression kept at bay by “Compression Triangle”

Wage compression occurs when lower-level employees earn an equal or higher wage than that of management-level employees. Although this issue isn’t easy to combat, it’s important for employers to address it as efficiently as possible. The first thing that companies must remember is that there are no secrets among employees, especially when it comes to salary. Despite what’s considered acceptable and professional, employees inevitably discuss what they make and compare each other’s salaries. Sometimes this information comes up in a manner that is relatively innocent, but it still has an impact on what employees expect and in some cases demand. Experts say that wage compression has some easily identifiable traits. Some of these include: It’s usually self-induced in most organizations It often happens when pay ranges fluctuate It occurs when new employees are brought on and are offered a higher salary than current employees It’s likely to have serious ...

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Federal Government creates rules regarding payment for insurers

After nearly a decade of uncertainty regarding the legal implications of tax on payments to an insurance carrier from a retirement plan participant’s holdings, there are some answers for certain types of insurance coverage. Federal Register published the final regulations in May. In their publishing, they confirmed an earlier version that had originally been published in 2007. The transfer of monies revolves around accident, disability income and health insurance. Giving employees the chance to take advantage of insurance payments that are not taxed might be intriguing to some employers. They can receive information regarding the implications of such decisions from benefit advisors. A brief understanding of the new regulations is as follows: Insurance premiums for health and accident plans that are paid from retirement plans to the insurance carrier are classified as taxable distributions. This same information was released in the Internal Revenue Services’ 2007 version of these rules. The ...

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Talent Management impacted by Job Descriptions

At the heart of talent management and Human Resources programs for attracting and keeping talented individuals are job descriptions. Most organizations, however, are finding that job descriptions are the missing link preventing their talent management programs from being successful. Why don’t organizations understand the link between job descriptions and talent management? Experts say there are a host of reasons why organizations are neglecting this missing link. Some of these reasons include: Job descriptions aren’t high enough quality or don’t have the most up-to-date content. Managers and Human Resources professionals don’t want to be tasked with the job of updating volumes of job descriptions. Companies don’t have the most advanced technology to manage all of the necessary job descriptions Job descriptions are not widely viewed as key components to talent management infrastructures. Experts say there should be a new structure to job descriptions emerging to ma ...

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Form I-9 Audits Increasing

As illegal immigration continues to be a hot topic, so too is the evaluation of Employment Eligibility Verification Forms or Form I-9. According to the Immigration Reform and Control Act of 1986 (IRCA), forms must be completed and retained upon hire of all employees. The form is issued from the U.S. citizenship and Immigrations Services (USCIS) and is intended to formally identify each individual hired and also ensure proper authorization to work in the United States. It’s important to note that all employers should be using the most current form, recently revised on May 7, 2013. When completing the forms, there is a strict guideline which must be adhered: Section1- Completed the first day of employment Section 2- Completed no later than day 3 of employment Section 3- Only upon employee authorization expiration Note: employers must be able to provide completed forms within 3 days of an audit request. Guidelines surrounding the retention of the forms are also critical and employers must keep form ...

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Organizations can face hefty fines as a result of ACA

Since the intricacies of the Affordable Care Act became more widely understood by businesses, many feared the compliance issues associated with the legislation. The IRS has recently threatened to impose heftier fines for non-compliant organizations, to the tune of $36,500 per employee. With this in mind, some organizations are no longer as concerned with the $2,000 and $3,000 fines that were previously explained. So many are wondering: who might be subject to these large fines? Organizations that continue to operate “non-integrated” “employer payment plans” are at risk to see these fines. This newer terms include various reimbursement plans such as health reimbursement arrangements (HRAs.) They do not include HRAs for retirees or those with excepted benefits. These plans should have been done away with by January 1 of this year. If they weren’t eliminated, they needed to be changed so that they could integrate with the organization’s group health coverage. Many empl ...

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