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December 5, 2007
A newly updated fact sheet from the U.S. Equal Employment Opportunity Commission gives employers a concise briefing on what they may and may not do when screening potential new hires.
EEOC says U.S. employers increased their use of screening after 9/11, and the current DHS effort to put teeth in "no match" Social Security letters also could increase their use of background checks. Commonly used tests and
procedures to screen applicants for hire and employees for promotion include cognitive tests, personality tests, medical exams, credit checks, and criminal background checks, EEOC says.
These tools "can be a very effective means of determining which applicants or employees are most qualified for a particular job. However, use of these tools can violate the federal anti-discrimination laws if an employer
intentionally uses them to discriminate based on race, color, sex, national origin, religion, disability, or age (40 or older)," says the agency.
"Use of tests and other selection procedures can also violate the federal anti-discrimination laws if they disproportionately exclude people in a particular group by race, sex, or another covered basis, unless the employer can
justify the test or procedure under the law."
Go to the fact sheet, found by
clicking here. It includes employer best practices, a summary of key EEO laws affecting hiring and screening, and recent litigation and case summaries in this important area. EEOC held a public meeting
last May on employment testing, and testimony from the hearing is also available on the EEOC website.
© 2007 Workplace Fairness
Workplace Week is published weekly by Workplace Fairness, a nonprofit organization that helps people understand, protect, and strengthen employee rights.
Employers Required To Notify Employees About EITC
According to AB 650, effective Jan. 1, 2008, California employers who are required to provide unemployment insurance must notify all employees that they may be eligible for the federal
Earned Income Tax Credit (EITC) within one week before or after, or at the same time, the employer provides an annual wage summary including but not limited to a Form W-2 or Form 1099.
Posting this notification on a bulletin board or sending it through office mail is insufficient, but such notification may be used in addition to individual notifications as required under this new law. The notification must be
handed directly to the employee or mailed to the employee's last known address.
Employers may create their own notification form including instructions on how to obtain any notices available from the Internal Revenue Service for this purpose, including but not limited to the IRS Notice 797 and Form W-5, or any
successor notice or form. However, the law provides the following sample language to use:
Based on your annual earnings, you may be eligible to receive the earned-income tax credit from the federal government. The Earned Income Tax Credit is a refundable, federal income tax credit for
low-income working individuals and families.
The Earned Income Tax Credit has no effect on certain welfare benefits. In most cases, Earned Income Tax Credit payments will not be used to determine eligibility for Medicaid, supplemental security income, food stamps, low-income housing
or most temporary assistance for needy families' payments.
Even if you do not owe federal taxes, you must file a tax return to receive the Earned Income Tax Credit. Be sure to fill out the earned income tax credit form in the federal income tax return booklet.
For information regarding your eligibility to receive the earned income tax credit, including information on how to obtain the Internal Revenue Service notice 797 or form W-5, or any other necessary forms and instructions, contact the
Internal Revenue Service by calling (800) 829-3676 or through its Web site at
http://www.irs.gov | |
The law also reminds employers that they must process Form W-5 for advance payments of the EITC upon request of the employee, as required by federal law.
Employers are encouraged to consult with their payroll service, accountant and/or legal counsel regarding compliance with tax laws.
What You Should Do:
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Maintain a copy of the required notification and ensure each employee receives a copy within one week of receiving their W2 or 1099.
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Consult with your accountant, payroll service and/or legal counsel to assure compliance with federal and state tax laws.
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Make sure you have current addresses for all employees, particularly if you mail tax information instead of handing it to employees.
(c) HR California - California Chamber of Commerce
Important Change to California's Pay Statement Requirements
Effective January 1, 2008
California employers should be mindful of an important change that took effect on January 1, 2008, relating to information that can be listed on employee pay statements.
Under California Labor Code section 226, employers must include certain itemized information on each employee's pay statement. (This information must be provided separately for each pay period when the wages are paid by personal
check or cash.)
Under the statute, employers have been required to include the employee's name and social security number on the pay statement. Effective January 1, 2008, however, only the last four digits of the employee's social security
number may appear on the pay statement.Alternatively, employers may list an employee identification number other than a social security number on the pay statement.
The purpose of this change, presumably, is to protect employee's privacy. Employers that fail to comply with section 226's new requirement may be exposed to substantial liability, including damages, statutory and civil penalties as
well as attorneys' fees.
In view of Labor Code section 226's new requirement, employers should ensure that pay statements issued to their employees on or after January 1, 2008, include only the last four digits of an employee's social security number.
Alternatively, such statements should list an employee's identification number other than a social security number. Of course, employers also should ensure that their pay statements contain all other itemized information required by
section 226.
© 2007
Ogletree, Deakins, Nash, Smoak & Stewart, P.C.
NOTE TO ARIZONA EMPLOYERS:
A similar piece of legislation was introduced in the Arizona Legislature in late 2007 - however no action has been taken to date. We will keep you posted.
However, whether this becomes law or not, it is a good idea to protect your employees' privacy and limit access to social security numbers. Arizona leads the nation in instances of identity theft.
According to the Federal Trade Commission, the following are the top 10 states that have the greatest incidence of identity theft related crimes;
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Arizona - 156.9 victims per 100,000.
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Nevada - 130.2 victims per 100,000.
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California - 125.0 victims per 100,000.
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Texas - 125.0 victims per 100,000.
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Colorado - 97.2 victims per 100,000.
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Florida - 95.8 victims per 100,000.
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Washington - 92.4 victims per 100,000.
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New York - 90.3 victims per 100,000.
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Georgia - 87.3 victims per 100,000.
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Illinois - 87.3 victims per 100,000.
Quick Quiz Answers
Response A is Correct: 50.5 cents per mile
Explanation:
The IRS has set the mileage reimbursement rate that employers may pay employees who use their own cars for company business without detailed documentation at 50.5 cents per mile for 2008.
This is a 2-cent increase from the 48.5 cents per mile IRS had set for the reimbursement of employees during 2007.
Employers that use the IRS rate or a lower rate may deduct the reimbursement as a business expense, and the payment need not be included in the employee's income.
If the approved rate (or a lower rate) is used, the IRS considers that requirements to substantiate and adequately account for the expense are satisfied without extensive documentation of actual expenses.
The employer may deduct reimbursements at a higher rate, but only if the reimbursements reflect the actual cost of the travel and only if the employer keeps adequate records to substantiate its outlays. Reimbursements for tolls, parking,
etc., may be deducted in addition to the mileage allowance.
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