HR Service Matters: By: Mike Smith

The employee portal is the doorway to today’s HR services.  Most organizations have at least a first generation employee portal and many others have introduced (or they are well on their way) a second generation portal.  So, how do you show off what you have done to make your employee portal look easy and exciting to use?

That question made me think about the ways that employees and the management team learn about the variety of HR services available at their fingertips.  Let me challenge you to think creatively about how you show off what your team has done.  Making a big impression about ease-of-use and depth of services accessible is important if you want to increase adoption rates.  Also, having an astounding impact can be a big boon to the viral marketing of dazzling new capabilities.

I thought about the legendary product Shootouts that Bill Kutik has made famous at the HR Technology Conference.  There is a lot that HR service teams can learn from these Shootouts.  Reflecting on these demos reminds me that while demo skill is important, other tools can make a big difference in perception.  For example, in translating this perception goal to portals, consider taking the time to build a “movie” that shows off key features.  A simple video can help you drive excitement and hype about portal enhancements.

Looking over the reviews of the fall 2009 HR Technology Shootout reinforces the value of highlighting what you want your audience to see and engage.  Ron Hanscome’s blog (link below) shows some real insight into the power of a good demo.

http://tinyurl.com/ygb3m76

All of this makes you want to have a good repeatable demo that is engaging to watch.  Enhancing your demos might be a great place to start as you ready new HR service features.  And, next year when you attend the HR Technology Conference Shootout, consider viewing the alluring demos as a way to learn new ways to show off your own employee services.

I-9/E-Verify

By: Dave Fowler

ICE, the Immigration and Customs Enforcement division of DHS, has replaced raids with worksite enforcement actions. Instead of barging in on a work location, disrupting operations, validating work authorizations, and arresting illegal workers, ICE is now becoming more methodical by stepping up worksite enforcement audits. These audits are for the most part 'under the radar' as far as illegal workers are concerned. Auditors contact the employer and provide 72 hours notice before coming onsite and inspecting the employers Forms I-9s. Based on the results of the audit, any illegal workers are processed and the employer faces potential fines and other actions. In addition, ICE is likely to return and audit the employer again to make sure any corrective action has been taken.

In addition to the information below, ICE issued additional Notices of Inspection (NOIs) during Q4 2009 to 1,000 employers across the country associated with critical infrastructure or key resources. These NOIs let business owners know that ICE will audit their hiring records to determine compliance with employment eligibility verification laws. Results of these NOIs should be made available on the ICE website sometime in 2010.

The following information is from the ICE website at: http://www.ice.gov/pi/nr/0911/091119washingtondc2.htm

Protecting employment opportunities for the nation's lawful workforce and targeting employers who knowingly employ an illegal workforce are major ICE priorities, for which ICE employs all available civil and administrative tools, including audits. Audits may result in civil penalties and lay the groundwork for criminal prosecution of employers who knowingly violate the law.

In April, DHS issued updated worksite enforcement guidance emphasizing ICE's major enforcement priorities-specifically focusing on dangerous criminal aliens and employers who cultivate illegal workplaces by breaking the country's laws and knowingly hiring illegal workers. In this strategy, ICE identified form I-9 audits as the most important administrative tool in building criminal cases and bringing employers into compliance with the law.

Statistics since implementation of new ICE worksite enforcement strategy on April 30:

• 45 businesses and 47 individuals debarred;
  • 0 businesses and 1 individual were debarred during same period in FY 2008.
• 142 Notices of Intent to Fine (NIF) totaling $15,865,181;
  • ICE issued 32 NIFs totaling $2,355,330 in all of FY 2008.
• 45 Final Orders totaling $798,179;
  • ICE issued eight Final Orders totaling $196,523 during the same period in FY 2008.
• 1,897 cases initiated;
  • ICE initiated 605 cases during the same period in FY 2008.
• 1,069 Form I-9 Inspections;
  • ICE initiated 503 Form I-9 Inspections in all of FY 2008.

In July, ICE issued 654 NOIs to businesses nationwide in the largest operation of its kind before today - part of ICE's effort to audit businesses suspected of using illegal labor.

Statistics resulting from the 654 audits announced in July:

• ICE agents reviewed more than 85,000 Form I-9s and identified more than 14,000 suspect documents - approximately 16 percent of the total number reviewed.
• To date, 61 NIFs have been issued, resulting in $2,310,255 in fines. In addition, 267 cases are currently being considered for Notices of Intent to Fine (NIFs).
• ICE closed 326 cases after businesses were found to be in compliance with employment laws or after businesses were served with a Warning Notice in expectation of future compliance.

For more information, visit http://www.ice.gov/.

This week I saw an interesting article published by Harvard Business Review that considered the emotional drives or needs of employees (link to read the executive summary: http://tinyurl.com/yhlw7om ).  Using surveys from over 300 Fortune 500 companies the researchers were attempting to answer the question—how do you increase employees’ overall motivation?

The synthesis of their research suggested that there are four underlying emotional drives that guide people at work and impact their motivation.  These four drivers also have a distinct organizational influence that can help meet the needs of the driver; Acquire—Reward System, Bond—Culture, Comprehend—Job Design, and Defend—Performance Management.

The "Bond" driver seemed to be the most likely driver where employee services could actually provide a practical and tool to increase organizational Bond through the culture—that feeling of pride in belonging to the organization.  Specific actions where I believe HR services can have a big impact on the culture include:

* Fostering mutual reliance and coworker friendships—Consider what components of social media make sense for your organization and how to connect people through HR service facilities

* Value collaboration and friendship—Show the results of collaboration and how people are working together by giving them the opportunity to share their successes in the marketplace

* Encourage sharing of best practices—Get more visibility on the employee portal for best practices across the organization

The article does point out that the supervisors have just as much importance as the overall organization’s polices and actions.  However, keep in mind that HR services are a powerful tool that can provide a quick way to begin to impact employee motivation.

Mike Smith

I-9/E-Verify

By: Dave Fowler

On November 19, 2009 I attended a DHS symposium in D.C. with about 120 other attendees. The purpose of the symposium was for DHS Secretary Janet Napolitano, along with John Morton, Assistant Secretary of ICE, and Alejandro Mayorkas, Director of USCIS, to announce the new 'I E-Verify' program and to provide updates on immigration-related topics including enforcement efforts and the Form I-9 and E-Verify. Below is the new 'I E-Verify' logo to be used by emloyers to let consumers know that the company uses E-Verify to ensure a legal workforce. DHS considers the 'I E-Verify' program to be good business.

A public service announcement promoting the 'I E-Verify' campaign was also shown.

USCIS provided the following statistics regarding E-Verify and the FAR rule:

• There are currently 170,000 companies enrolled in E-Verify.
• Nearly 2,000 companies per week are enrolling in E-Verify. (Most of this increase is attributed to the FAR rule that requires federal contractors to use E-Verify.)
• To date 9,000 federal contracts have been issued with the FAR E-Verify clause, which represents 1,800 federal contractors.
• E-Verify has processed 8.5 million queries in FY2009.
• 96.9% of E-Verify queries are confirmed as employment authorized.
• 2.8% of E-Verify queries are not confirmed as employment authorized.
• .3% of Tentative Nonconfirmation queries are untimately confirmed as employment authorized.

In 2010, E-Verify will begin verifying companies enrolling in E-Verify and near the end of 2010 E-Verify should be adding passport photographs to the Photo Tool. The Photo Tool will become available to E-Verify service providers (i.e., Designated Agents) by the end of 2009. DAs will have 6 months to implement the Photo Tool.

The USCIS Compliance, Tracking, and Monitoring group, CTMS, will monitor such E-Verify behavior such as:

• The same SSN being submitted multiple times in E-Verify (this may indicate identity fraud/theft)
• No referrals being processed for Tentative Nonconfirmations (this may indicate pre-screening)
• E-Verify queries being initiated more than 3 days after the employment date

USCIS will send letters to employers when such behavior is detected. Through Q4 of FY2009 USCIS has sent 1,000 such letters.

In Spring 2010 USCIS anticipates providing duplicate SSN detection on the E-Verify website.

In Summer 2010 USCIS anticipates rolling out a new user interface for the E-Verify website and will add features such as reverification notices to employers.

There was spirited discussion throughout the afternoon between the presenters and attendees. Some of the other points of interest that came out during the discussions included:

• 16% of E-Verify users did not complete the tutorial (password sharing)
• 16% of E-Verify users pre-screen applicants (illegal activity)
• 20% of employers took adverse action on a Tentative Nonconfirmation (TNC)
• 9% of employers don't give the TNC notice to the employee
• 7% of employers encourage employee not to contest a TNC
• SSA can put an E-Verify case in continuance for up to 120 days (new information)
• ICE has 26 Special Agent offices in the U.S.
• 85 employers are currently in the IMAGE program
• ICE sent 654 Notices of Inspection (NOI) in July 2009
  • 326 employers are in compliance
  • 61 employers received a Notice of intent to Fine (NOF) totalling more than $2 million
  • 200 employer cases are pending
• ICE is sending 1,000 more NOIs on businesses in the following categories (categories are further defined in the Homeland Security Act):
  • Critical infrastructure
  • Key resources
• There are very few cases of ICE penalizing an employer over document fraud
• ICE will re-inspect employers after an audit to confirm behavior correction

The PowerPoints from the symposium will be posted on www.dhs.gov/e-verify.

HAPPY THANKSGIVING!!!

This was sent to our clients this week. We wanted to share it with others who may not have received it.

Situation

The beginning of a calendar year is a popular time for employers to implement a reorganization, merger, acquisition or divestiture. While transactions occurring at the beginning of a year may minimize certain employment issues such as wage base restarts and multiple Forms W-2, it is critical to consider other employment tax impacts and to ensure transactions are properly reported. Listed below are a few of the common employment tax compliance, payroll systems integration, and general issues that a payroll department encounters with most mergers, acquisitions, or reorganizations. Other factors may also need to be addressed depending on specific circumstances.

Solution

Employment Tax Compliance Considerations

• Registration for new state income tax (“SIT”) withholding, local income tax (“LIT”) withholding, and state unemployment tax (“SUI”) accounts
• Required status updates to state workforce agencies related to transfers of employees, unemployment experience and common control provisions
• Account closures for inactive SIT, LIT, and SUI tax accounts

Payroll Systems Integration Considerations

• Potentially new Forms W-4 required from transferring employees (including state and local equivalents) due to change of employers
• Integration of potentially different pay cycles on employment tax liability/deposit dates

Other General Employment Tax Considerations

• Pre-acquisition activity to take advantage of available planning options; to identify potential refunds; to avoid the unintentional assumption of liabilities; and to develop an appropriate transaction integration plan
• Third party payroll provider requirements and constraints (timing, additional forms, powers of attorneys, etc.)
• Review payroll policies and procedures for consistency and consolidation; develop "best practices" (i.e. nonresident withholding, third party sick pay, fringe benefits, etc.)

Additional Employment Tax Considerations When Transaction Occurs Mid-Year

• Impact of transaction type (stock, asset, and/or merger) on reporting Forms W-2, 941, and 940.
• Successor status provisions associated with Social Security, federal unemployment ("FUTA"), and SUI regarding impacts on taxable wage bases
• Required tax account reconciliations to match deposits to liabilities reported on Forms W-2 for certain mid-year transactions at federal, state and local levels

Value

Proper compliance with federal, state and local employment tax laws is critical regardless of the effective date of a transaction. For more information on compliance requirements and planning options, please contact your tax consultant or Pete Krieshok at (314) 214-7325 or pkrieshok@talx.com.

We make this information available to our clients regularly, but thought others may be interested as well.  Benefit amounts for the states in which you do business are important to understand when developing an unemployment cost management plan and can help you focus on where you can get the biggest bang for the buck.

Tammy Mullin

While most would agree that unemployment insurance is necessary to help families truly in need, I think most would also agree that claimants who are not deserving put a drain on an already burdened system.

There is certain documentation essential for proving your case should you find that despite all of your best efforts during the hiring process you are in a situation where you are protesting an unemployment claim.  Regardless of what policies are in place for the company, in most states, it is the responsibility of the employer to prove that the claimant knew of the policy and agreed to the policy.  This can be particularly difficult for employers to prove when policies change over time. 

You want to be sure that you have an employee handbook, that all new employees receive a copy and sign an acknowledgment that they have both received it and agreed to it and require similar acknowledgements of all employees when policies change. 

Don't get caught paying a $4,500 claim on a technicality.

Tammy Mullin

Q:  What happens when state unemployment funds run out of money?  Do the benefits stop being paid?

A:  No.  Federal law provides that a portion of the federal unemployment tax employers pay is contributed to a trust fund called the Federal Unemployment Account (FUA).  When a state fund becomes insolvent, loans are made from FUA to the state fund and benefit payments are continued.  Employers in the affected state are ultimately responsible for paying back the loans with higher state unemployment taxes, higher federal unemployment taxes or both.  In the history of the system, benefits have never stopped being paid when a state trust fund went broke.

Q: Is it possible that the FUA could become insolvent during this recession? 

A: In fact, it already has.  The FUA did become insolvent for the first time in the history of the UI system in July this year.  However, Congress passed legislation that transferred funds from the Treasury to the FUA so that loans could continue to be made.  There was no limitation to the amount that could be requested in loans to FUA.

Q: Aren't these loans going to get pretty expensive in terms of employer taxes?

A: Yes, and more so than you may think.  According to Steve Carter, Sr. Manager, Government Relations, "This situation is going to get pretty severe for employers in the years to come.  While the Obama administration granted the states some relief by making these federal loans interest free through the end of 2010, the money being lent to the FUA does have interest that will have to be paid back in addition to the amount borrowed. In essence, the feds are borrowing interest bearing loans to make interest free loans to the states, that's a little goofy.  To give you some perspective, about 25 states have become insolvent and have borrowed about $20B.  USDOL estimates that 40 states may become insolvent in this recession with borrowing about $90B.  That number may be low.  California recently upped its estimate of needed borrowing from $18B to over $27B...and that number may be low." 

Q: So, if the states are using interest bearing money to borrow on interest free loans, who pays back the interest? 

Any guesses?

We provide free legislative updates to employers so they can be informed about changes impacting the states in which they do business. Click here to sign up. 

Tammy Mullin

During interviews with potential employees, ask probing questions requiring detailed responses, not just “yes” or “no” answers.  It probably goes without saying that the goal is to evaluate whether the applicant is capable of and willing to perform the job requirements.  Utilize what you learn on the job application, resume and through testing to ask very specific questions associated with the job requirements.  Some things to keep in mind are:

·         Before the interview (and really testing) determine what skills and personality traits would be well suited for the position.

·         Review the application and test scores to determine what traits the applicant has that fit with the requirements of the job and what traits do they have that just don’t?  Example; you generally would not want a timid salesperson or a finance person that was not detail oriented.

·         Just because the applicant was working in a similar position before doesn’t mean they were capable of doing the job.  Ask very specific questions like:

o    How did you perform your job?

o    What skills do you have that made you well suited for the work you were performing?

·         Ask “How have you handled _____ in the past?” type questions related to the job requirements and necessary skills to perform the job.

·         You are looking for a skill set and the right person for the job might not always have the most experience.

·         Look for accomplishments that the applicant has had in the past not just activities performed.  Accomplishments should really be about results.  Example; I worked in an outbound call center and my call rate was ___ per hour compared to the company average of ____ and I converted ____ calls to sales.  Then ask a follow up question regarding how they were able to accomplish it.

·         Get a feel for how well the person’s personality fits with the rest of the group.  

This is really just a sample of the types of questions you can ask and evaluations you should be making during the interview process.  Some skills tests will actually give you probing questions that should be asked and an indicator of how the person’s personality will fit in certain types of professions.  To learn more, go to www.panpowered.com, where you can find a multitude of tests to fit your needs.  Remember, extra care on the front end to hire the best match can save on unemployment costs on the back end.  The average claim will cost an employer about $4,500 in benefit charges. 

Tammy Mullin