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Precision Payroll of America, LLC
630.887.3156
877.941.1040
July 2019
PPA Press
by Precision Payroll of America, LLC


A Big Trend: Legalization of Marijuana

First, it was medical marijuana. And now fully legalized marijuana laws are challenging employer policies and practices, especially in safety-sensitive and compliance-focused industries.

marijuana legalization

In states where recreational marijuana is legal (11 states; see list in article continuation on our website), many employers are learning to treat it like alcohol: while at work you can’t possess or consume it, and you can’t come into work under the influence. But the problem is that while there is a standard for someone being impaired by alcohol, there is no legal standard to measure impairment by marijuana.

An additional issue is that marijuana is still unlawful at the federal level, and many companies have nationwide policies.

According to Precision’s Director of HR Consulting Services, Leslie Day, these are complex new laws and will have complex ramifications—many of which are yet to be fully determined and understood. 

READ MORE >>
 


Indiana Mandates Unemployment 

Indiana WorkforceIndiana Workforce is now mandating the SOC codes (Standard Occupational Classification) for all employees who work in Indiana. The SOC Code system is a federal statistical standard used to classify workers into occupational categories for the purpose of collecting, calculating or disseminating data.  

If this code is not entered on the employee, our electronic submission of the quarterly returns will NOT be accepted and penalties will be assessed. To enter this code into the payroll system, log into iSolved > Employee Management > Employee Maintenance / Jobs / SOC Code Search. You can find the codes by visiting the agency’s website at http://hoosierdata.in.gov/coder/

Employers can use a job title to find the SOC Code at this website. You only need to report the first six digits (XX-XXXX); any additional information after the first six digits is not required.

For more information, contact Donna Seaman, dseaman@precisionpayroll.com, (630) 242-1536.

Alert

You may have received or might receive a package with documents that need your signature. These are Power of Attorney forms. This allows Precision to submit returns and payments for your taxes on your behalf. In addition, should you receive any tax notices, the signed POA form shows you have given Precision permission to speak with the agencies pertaining to your account to resolve any issues. It’s very important that you sign these forms and return them to us as soon as possible.  
 

Does Your Time and Attendance ROI Add Up?

ROIAlthough return on investment (ROI) is frequently quoted and even the deciding factor in some issues, it is poorly understood and often misused. Most ROI calculators ignore the difference between hard and soft dollars, and almost none provide a Net Present Value (NPV) calculation. 

One of the biggest pet peeves of time and attendance ROI is treating soft dollars the same as hard savings. What’s the difference?

Soft Savings
A product, process or operation that results in the company or an employee spending less time is likely soft savings.

Examples:

  • Supervisors spend less time on time cards and can focus on their real jobs.
  • Automatic accruals and improved record-keeping ensure employees receive only the PTO days they have earned.

Hard Savings
A product, process or operation that results in the company spending less money can be categorized as generating hard savings—saving real, hard cash. 

Examples:

  • Better employee scheduling reduces overtime.
  • More consistent enforcement of pay policies results in fewer grievances.

The most frequently quoted statistic in time and attendance ROI calculations is the error rate when manually preparing time cards. The American Payroll Association (APA) and other studies estimate the error rate averages 0.5% to 2.0%. Even a small company can have an annual payroll of $5 million. Reducing the error by 0.5% can save a company $50,000 in hard dollars!


interns

Interns: To Pay or Not To Pay? That is the Question

Hiring an intern is generally a win-win. The student intern has the opportunity to extend their classroom learning into a real business environment, and gains valuable exposure to how a business or organization actually functions. Employers gain assistance with projects and the potential to find new future employees. 

But “for-profit” employers should be aware of issues surrounding paid and unpaid internship positions, and the criteria the government uses to define them. In 2019, the United States Department of Labor has redefined its criteria and replaced its old test with a new seven-factor test which is known as the Primary Beneficiary Test

READ MORE >>
 


 
 

   


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