December, 2009

WELCOME TO A NEW DECADE!

As we draw near to the end of another amazing year, I want to encourage you to remember all of the wonderful experiences you have had this year and remember to give gratitude for everything you already have. The year 2010 is the beginning of a new Decade and will bring many new challenges along with new successes - it's up to you which of those you experience in your business and your life. It is your mindset and outlook that will determine your outcome.

Take some time over the next few days and reflect on all the gifts and miracles that have come your way this year and share your journey with someone in your life. You may never know how much your openness becomes a gift to someone else.

We at MJMS are grateful for your continued confidence in our work. While it was a very challenging year for us, you provided inspiration and motivation for us to improve our services and create new programs and products to assist you. We have a few new surprises to introduce in 2010, so watch our newsletter and website. We thank you for your loyalty and look forward to providing even better services to you in 2010.

We sincerely wish you and yours a most prosperous and successful 2010 and hope that we will continue to work together to be the very best we can be!

Our main article this month covers the brand new extention of tfhe orginal federal COBRA subsidy that was just signed into law on December 19; 2009. Scroll down ... we have all the details for you.

Before we get there, we've got " a couple more" 2010 updates, legal & otherwise, to bring to your attention!

First, we want to make sure you have the new milage rates from the IRS for calculating auto expense deductions when driving for business, charitable, medical or moving purposes.

2010 IRS Optional Standard Mileage Rates Beginning on Jan. 1, 2010, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: 50 cents per mile for business miles driven 16.5 cents per mile driven for medical or moving purposes 14 cents per mile driven in service of charitable organizations The new rates for business, medical and moving purposes are slightly lower than last year's and reflect generally lower transportation costs compared to a year ago. The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile by Runzheimer International. A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for any vehicle used for hire or for more than four vehicles used simultaneously. Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates. Revenure Procedure 2009-54 contains additional details regarding the standard mileage rates. http://www.irs.gov/newsroom/article/0,,id=216048,00.html

Second, we are announcing ....

A New Social Media Site For MJ Management Solutions In keeping up with the experts who suggest stepping into the next decade by using social media to connect folks with your business, we have created a "Fan Page" on Facebook. We have posted some thoughts and ideas related to growing your business and managing your staff and even a short video testimonial. We would love to have you join our Raving Fans and let your colleagues know about us. Here' s the link! Hope to see you there soon.

Now, on to our main article covering the latest updates to COBRA!

Our friends at B.A.S.I.C. Western USA, Inc.( www.basicwesternusa.com) a COBRA Administrator located in Tucson, AZ, sent us this comprehensive explanation of the very recent extension of the Federal COBRA Subsidy program.

If you have 20 employees or more and offer medical insurance programs to your employees, this is important information. If you are self-administering your COBRA, you may want to give some serious thought to outsourcing that task. The timelines and responsibilities for notification are becoming more complex and onerous. Your exposure in this area can be significant. For information on how B.A.S.I.C. Western can support you and take this responsibility off your shoulders, contact 800-473-0455 or 520-327-0455 or basic@basicwesternusa.com

RE: COBRA Subsidy Extension
The Congress passed legislation (H.R. 3326) extending the original federal COBRA subsidy created by the American Recovery and Reinvestment Act of 2009 (ARRA) and President Obama signed into law on Saturday, December 19, 2009.

BASIC COBRA Administration
Please note, more information will follow regarding how BASIC will administer this change. We are holding a webinar on January, 13, 2010 at 1-2 p.m. EST. You can register at http://www.basiconline.com or through this link..

Background
Under the ARRA, the federal government pays sixty-five (65%) percent of COBRA premiums for up to nine (9) months for employees who were involuntarily terminated between September 1, 2008, and December 31, 2009. This subsidy was set to expire at the end of this year and has already started to end for individuals who have been receiving this subsidy since March.

New Extension
Assistance-eligible individuals ("AEIs") involuntarily terminated from employment on or before February 28, 2010, can now receive the subsidy. The subsidy will remain at sixty-five 65% percent of the premium, but the maximum subsidy period will expand from nine (9) months to fifteen (15) months. Only those individuals losing health coverage due to involuntary employment termination will continue to qualify for the COBRA subsidy. The following is a summary of the new law:

New Extended Eligibility Period
AEIs involuntary terminated on or before February 28, 2010 will now be eligible for the subsidy, instead of December 31, 2009. The new law eliminates the requirement that COBRA coverage must commence before COBRA subsidy sunset date (December 31, 2009 before the new law is effective and February 28, 2010, after). Eligibility for the COBRA subsidy will only be conditioned on a qualifying event occurring on or before February 28, 2010, without regard to when the COBRA coverage period begins. This means that AEIs involuntarily terminated on or before December 31, 2009, who become eligible for COBRA coverage after December 31, 2009 will now be COBRA subsidy eligible. This new law reverses earlier guidance (IRS Notice 2009-27, Q/A-10).

Longer Subsidy Period
The maximum COBRA subsidy period has been extended from nine (9) months to fifteen (15) months. Please remember that the new law does not change the maximum COBRA period that an individual is entitled to under COBRA or state continuation.

Notices For Those Who Exhausted Their COBRA Subsidy
Any AEI who exhausted their original nine (9) month COBRA subsidy period before the new law takes effect can receive the COBRA subsidy for another six (6) months if they remain an AEI and their maximum COBRA period has not ended. AEIs who either dropped their COBRA coverage or kept their COBRA coverage but paid the full unsubsidized premiums must be notified that they may pay reduced premiums for retroactive coverage or receive credit for or reimbursement of overpayment. These notices must be provided within sixty (60) days of the AEI dropping or first overpaying for COBRA. Such AEI must pay for coverage no later than sixty (60) days after enactment (December 19, 2009) or February 17, 2010 (or if later, thirty (30) days after the notice was provided).

Other Notice Requirements
Anyone eligible for the COBRA subsidy or terminated from employment (voluntarily or not) on or after October 31, 2009 must be provided with a notice describing the revised program within sixty (60) days of the law's enactment (December 19, 2009) or February 17, 2010 or, if later, the usual deadline for furnishing materials to individuals experiencing a COBRA qualifying event,

Fact Sheet: COBRA Premium Reduction from the Dept of Labor: http://www.dol.gov/ebsa/newsroom/fscobrapremiumreduction.html

Source: Larry Grudzien Attorney at Law, Copyright © 2009 BASIC. All Rights Reserved.

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Hope You are enjoying our holiday gift:
A 10% discount on our contracted services!

Holiday Savings for Your HR Support Needs SAVE 10% Offer Expires: 12/31/2009 *you will receive 10% OFF total MJMS fees after an agreement is signed for MJMS services.

Don't Forget To Access Our WebForms.
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• Manage Your Day-to-Day Non-Profit or Small Business
• Organize All Necessary Human Resource Information
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ABOUT MJMS, INC.

President and Principal Consultant: Margaret Jacoby, SPHR

Margaret Jacoby has more than 25 years of Human Resources and professional management experience in a variety of industries. She has designed human resources infrastructure and implemented systems to ensure compliance with state and federal employment laws. She has directed high quality human resources functions for small and emerging businesses, and served as an external consultant to a wide range of diverse organizations, including non-profits.
 
Her work has included: 

• Conducting H.R. Needs Assessments
• Drafting employee handbooks and policy manuals
• Conducting job analysis and developing position descriptions
• Conducting on-site compliance audits
• Counseling management on progressive discipline
  
• Drafting and review of employee disciplinary actions
• Providing mediation in employee/employee conflict
  
• Training employees/supervisors/managers in the implementation of human resources systems and policies such as Sexual Harassment
• Conducting workshops for business owners on H.R. compliance issues.

 
Ms. Jacoby has earned the nationally-recognized certification of Senior Professional in Human Resources (SPHR) from the HR Certification Institute, Society for Human Resource Management (SHRM).
 
Ms. Jacoby's professional affiliations include:

• Professionals in Human Resources Association (PIHRA)
• Society for Human Resource Management (SHRM)
• National Association of Women Business Owners (NAWBO), Los Angeles and Phoenix
• California Chamber of Commerce


• Arizona Small Business Association (ASBA)
• Long Beach Community Business Network (LBCBN)
• Institute for Management Consultants (IMC)

The information contained in this newsletter is provided as general information and is not a substitute for legal or professional advice. The information is provided by MJ Management Solutions, Inc. and while we endeavor to keep the information up-to-date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the newsletter or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.