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Compensation & Benefits

2012 budget contains FUTA proposals

05/17/2011

States that borrow from the federal government to pay regular unemployment benefits must pay back those loans, including interest. The 2009 American Recovery and Reinvestment Act waived interest payments for two years, but that provision expired at the end of last year, leaving an estimated 30 states to face a financial bind. President Obama’s 2012 budget proposal contains relief for strapped states and employers.

E-pay progress: Make the move to pay cards

05/16/2011
Is your direct deposit campaign a little long in the tooth? Now may be the best time to update your compensation sys­tem by adding pay cards to the mix. But before you call your payroll provider or bank to set up a pay card option, understand that there are legal and practical pitfalls you must avoid.

IRS issues W-2 health benefit reporting guidance

05/16/2011

The health care reform law requires you to report the value of employees’ health benefits on their W-2 forms. The IRS waived mandatory reporting for 2011, pending future guidance. Now the guidance has been released. It requires employers filing 250 or more W-2s to report beginning with 2012 W-2s that are filed in 2013.

Settling employee lawsuit? Withholding taxes usually OK

05/13/2011
Here’s something you may not have considered when agreeing to settle a nuisance case for a few thousand dollars. Most of the time, you will need to withhold federal and other taxes. Be­­cause of a relatively recent change at the IRS, unless payment is for a physical injury, the proceeds are fully taxable.

Court: Compensation based on employees’ market value may correct past pay bias

05/13/2011
Ever since Congress passed the Lilly Ledbetter Fair Pay Act, employers have had to struggle with evaluating their compensation plans to make sure they aren’t perpetuating past pay discrimination. Now a federal judge has suggested that a better approach to fixing the problem may be found in the free market. If employers use the market value of jobs as a major factor in setting compensation, then even those whose pay is lower than it would be without past discrimination will be paid fairly because their increases will be greater.

Your handbook doesn’t decide unemployment comp

05/12/2011
The Minnesota Supreme Court has ruled that employees don’t automatically become eligible for unemployment compensation benefits just because their employer didn’t follow its own progressive disciplinary policy outlined in the employee handbook.

Set salaries with help from most reputable web sites

05/12/2011
As hiring picks up due to the firming economy, organizations want to offer competitive salaries that aren’t inordinately lower or higher than those available from competitors. Here are the most reputable web sites that track pay for hundreds of professions and specialties.

Are you ready for the EEOC’s enforcement crackdown?

05/11/2011
The EEOC received a record 99,922 charges in the 2010 fiscal year—the most the agency has received in its 45-year history. Given this sharp increase in charge activity, now is a good time to review your personnel policies and practices to make sure you’re taking appropriate steps to help prevent potential dis­crimination claims.

MDHS, state retirees settle age bias complaint

05/11/2011
The Minnesota Department of Human Services has agreed to pay more than $467,000 to settle an age discrimination complaint filed by retired staffers.

It’s legit: Use differences in location and responsibilities to justify variable pay scales

05/11/2011

Here’s something to consider when setting pay rates for jobs in different locations and with slightly different responsibilities: Under the Equal Pay Act, employers can set different salaries based on geographically distinct job locations.