But what exactly does a managing partner in a law firm do? How do they differ from other partners, and what does it take to reach this role? Let’s break it down.

The Role of a Managing Partner

A managing partner in a law firm holds a top leadership position, overseeing both the firm’s legal practice and its business operations. They are often the highest-ranking individual within the firm, responsible for critical functions such as administration, strategic planning, and overall decision-making.

This role is not exclusive to the legal industry—it is also common in accounting, consulting, and investment firms. However, in a law firm, the managing partner is typically a highly experienced attorney who has demonstrated strong leadership and business acumen. They are either elected by fellow partners or appointed by the board of directors to guide the firm’s direction.

Given their authority, law firm managing partners play a key role in shaping the firm’s culture, defining strategic goals, and making major decisions that influence long-term success. Whether it’s expanding into new practice areas, hiring top legal talent, or implementing firm-wide policies, their leadership can significantly impact the firm’s growth and profitability.

Beyond high-level decision-making, managing partners in law firms are responsible for financial oversight, analyzing profitability, and ensuring efficient use of resources. They work closely with other partners to align the firm’s objectives with client needs and market trends. Whenever new goals are set or major changes are planned, the law firm managing partner is at the center of these discussions, ensuring the firm remains competitive and financially stable.

With so many responsibilities, it’s clear that the managing partner of a law firm is more than just a senior attorney—they are the driving force behind the firm’s long-term success. 

Key Responsibilities

A managing partner in a law firm takes on a leadership role, but their responsibilities go beyond high-level decision-making. They are also responsible for ensuring the firm’s overall success, stability, and growth. Their role requires a combination of strategic planning, operational oversight, and strong people management skills.

Here are some of the core responsibilities of a law firm managing partner:

Strategic Planning

As the firm’s leader, the law firm managing partner plays a crucial role in shaping its future. They collaborate with other partners to develop long-term strategies, set clear objectives, and ensure the firm is positioned for sustainable growth. From expanding practice areas to improving client services, their strategic decisions have a direct impact on the firm’s success.

Operations and Financial Management

A managing partner of a law firm oversees daily operations, ensuring the firm runs efficiently. This includes managing finances, budgeting, financial planning, and optimizing resource allocation. By monitoring the firm’s performance and identifying areas for improvement, they make informed decisions that enhance efficiency and profitability.

Talent and Human Resource Management

People are the backbone of any law firm, and law firm managing partners play a key role in attracting, retaining, and developing legal talent. They oversee recruitment, mentor junior attorneys, and create a positive work environment. They may also be involved in performance management, training, and professional development initiatives to build a strong, motivated team.

Risk and Compliance Management

Managing risk is one of the most complex aspects of running a law firm. A managing partner in a law firm ensures compliance with legal and ethical obligations while developing policies to mitigate potential risks. Whether it’s regulatory compliance, client confidentiality, or operational risks, they implement safeguards to protect the firm’s reputation and longevity.

The Backbone of a Law Firm’s Success

In short, they are responsible for leadership, strategic planning, financial oversight, client relations, risk management, and team development. Their ability to balance these responsibilities determines the firm’s growth, profitability, and long-term success. Without strong leadership at the top, even the most skilled legal teams can struggle to thrive.

What Is the Difference Between a Managing Partner and a CEO?

While both a managing partner in a law firm and a CEO hold top leadership positions, their roles, responsibilities, and authority differ significantly. A law firm managing partner is typically an experienced attorney who leads the firm while still maintaining an equity stake and often practicing law. Conversely, a CEO is usually an external executive brought in to manage business operations without a legal practice background.

Here are the key differences:

1. Ownership and Equity

• A managing partner in a law firm is usually an equity partner, meaning they own a share of the firm and share in its profits.
• A CEO is typically a salaried executive with no ownership stake in the company.

2. Decision-Making Authority

• A law firm managing partner makes strategic decisions in collaboration with other partners, often requiring consensus.
• A CEO has more centralized decision-making power, reporting to a board of directors rather than a group of partners.

3. Business vs. Legal Focus

• A managing partner law firm role combines legal practice with business management. They may still handle select cases while overseeing firm operations.
• A CEO focuses entirely on running the business, managing departments like finance, marketing, and HR but without direct involvement in legal matters.

4. Leadership and Firm Culture

• A law firm managing partner plays a crucial role in shaping the firm’s culture, mentoring attorneys, and maintaining client relationships.
• A CEO is often responsible for driving company-wide initiatives, overseeing large-scale changes, and ensuring business growth.

Which Role Is More Common in Law Firms?

Most law firms operate under a managing partner structure rather than appointing a CEO. Since law firms are traditionally owned by partners, leadership is typically kept within the firm rather than outsourced to a corporate executive. However, some large firms have begun hiring CEOs to focus on business management while allowing partners to concentrate on legal work.

Ultimately, the law firm managing partner vs. CEO distinction comes down to governance and focus—one is a legal and business leader, while the other is a corporate executive driving business success.

How Does Someone Become a Managing Partner in a Law Firm

Becoming a managing partner in a law firm requires years of dedication, leadership, and strategic career moves. It’s not just about being an excellent attorney—it’s about mastering the business side of law, building strong relationships, and proving your ability to lead.

Here are the key steps to reaching the top of a law firm’s hierarchy:

1. Earn a Law Degree

The journey begins with obtaining a Juris Doctor (J.D.) degree from a reputable law school. Depending on your country, there may be additional requirements, such as passing a bar exam or completing clerkships.

2. Gain Experience as an Associate

After law school, working as an associate in a law firm is essential. This phase allows you to develop your legal expertise, gain courtroom experience, and understand the firm’s internal operations.

3. Specialize in a Legal Field

While many lawyers remain generalists, specializing in a niche practice area—such as corporate law, intellectual property, or litigation—can make you more valuable to a firm. Specialization helps build a strong reputation and positions you for leadership opportunities.

4. Develop Leadership and Business Skills

They need more than legal expertise—they must be skilled in leadership, financial management, and business strategy. Taking on mentorship roles, leading legal teams, and handling firm operations can help prepare you for this responsibility.

5. Build Strong Relationships Within the Firm

Advancing is not just about skill; relationships matter. Building rapport with law firm partners, associates, and staff can strengthen your chances of being considered for leadership positions. Support from existing partners is often crucial when vying for the managing partner law firm role.

6. Take on Management Responsibilities

Once you make partner in a law firm, actively participating in the firm’s management can set you apart. Getting involved in financial planning, client acquisition, or internal operations will provide hands-on experience in running a firm.

7. Campaign for Managing Partner

When the opportunity arises, candidates for law firm managing partner must showcase their leadership skills, vision for the firm’s growth, and ability to manage both legal and business aspects. Since it’s often an elected position, gaining the trust and support of other partners is key.

How Much Does a Top Partner at a Law Firm Earn?

There’s a common belief that law firm partners always earn massive salaries, but the reality is more nuanced. While partners in a law firm generally earn more than associates, not all partners bring in millions. Their earnings depend on the firm’s size, structure, and profitability.

Understanding Partner Compensation

Unlike salaried employees, law firm managing partners and equity partners aren’t on a fixed payroll. Instead, they receive a percentage of the firm’s profits, which can fluctuate based on the firm’s success.

Average Salary of Law Firm Partners

• Junior Partners: At large law firms, a junior partner typically earns between $350,000 to $575,000 annually. While this is well above the average salary in most professions, it’s not the multi-million-dollar paycheck many assume.
• Seniors: The top-earning managing partners in a law firm—especially those at elite firms—can see compensation ranging from $3 million to $10 million per year, depending on the firm’s revenue.

Factors That Impact Partner Earnings

Several factors determine a law firm managing partner’s salary, including:

• Firm Size and Reputation: Big Law firms generate massive revenue, allowing top partners to earn significantly more.
• Equity vs. Non-Equity Partnership: Equity partners own a stake in the firm and share in the profits, while non-equity partners receive a set salary.
• Client Base and Billable Hours: Partners with high-profile clients or specialized legal expertise can command higher earnings.
• Geographic Location: Law firm partners in major cities like New York, London, or Los Angeles often earn more due to higher demand and firm profitability.

Final Thoughts

Becoming a managing partner in a law firm is a challenging yet rewarding career path. It requires years of legal expertise, leadership skills, and a deep understanding of business operations. While the financial rewards can be substantial—especially at top firms—success in this role goes beyond just salary. Managing partners shape the firm’s vision, drive growth, and play a crucial role in its long-term success. For those willing to put in the effort, it’s a prestigious position that offers both financial and professional fulfillment.

The post Law Firm Managing Partner: All You Need to Know appeared first on AttendanceBot Blog.

The Importance of Physical Safety in the Workplace

The importance of physical safety in the workplace cannot be overstated. It is a crucial component of organizational success, and employers have a legal and moral obligation to provide a safe and healthy working environment for their employees. Here are some reasons why workplace safety is important:

• Protects employees from harm: Workplace safety measures help protect employees from physical harm, such as injuries and illnesses caused by accidents, exposure to harmful chemicals or substances, and other hazards.
• Improves productivity: When employees feel safe and secure in their workplace, they are more likely to be productive and efficient in their work. A safe workplace can also reduce absenteeism and turnover rates.
• Enhances employee morale: Knowing that their employer is taking measures to ensure their safety and well-being can boost employee morale and job satisfaction.
• Complies with legal requirements: Employers have a legal obligation to provide a safe working environment for their employees. Failure to do so can result in legal consequences, such as fines, penalties, and even lawsuits.

Steps for Ensuring Workplace Safety

To ensure workplace safety, employers must take proactive measures to identify potential hazards and implement appropriate safety measures. Here are some steps that employers can take to ensure workplace safety:

Conduct Regular Safety Audits

Employers should conduct regular safety audits to identify potential hazards and assess the effectiveness of current safety measures. Safety audits can help identify potential safety hazards, such as faulty equipment, inadequate lighting, or blocked emergency exits.

Develop and Implement Safety Policies

Employers should develop and implement safety policies that outline the procedures and protocols for ensuring workplace safety. Safety policies should be clear, concise, and easy to understand, and should cover topics such as emergency procedures, personal protective equipment, and hazard identification and reporting.

Provide Safety Training

Employers should provide safety training to all employees to ensure they are aware of potential hazards and know how to protect themselves. Safety training should cover topics such as fire safety, chemical safety, and emergency response procedures.

Provide Personal Protective Equipment (PPE)

Employers should provide personal protective equipment (PPE) to employees to help protect them from potential hazards. Examples of PPE include gloves, goggles, respirators, and hard hats.

Encourage Employee Participation

Employers should encourage employee participation in workplace safety programs by providing incentives. For instance,  bonuses or recognition, for employees who identify potential hazards or suggest ways to improve workplace safety.

Regularly Review and Update Safety Measures

Employers should regularly review and update their safety measures. They can ensure that the measures remain effective and up-to-date with changing regulations.

Foster a Culture of Safety

Employers should foster a culture of physical safety in the workplace by promoting open communication, encouraging employee involvement in safety programs. Also providing ongoing training and education on workplace safety.

How to Foster a Culture of Safety?

Safety culture refers to the shared values, beliefs, and attitudes that shape an organization’s approach to safety. A strong safety culture is one where everyone in the organization prioritizes safety, from senior management to front-line employees.

A positive safety culture can significantly reduce workplace accidents and injuries, improve employee morale and productivity, and even enhance an organization’s reputation.

What are the Key Characteristics of this Culture?

• Leadership commitment: Safety culture starts at the top, with leadership setting the tone for the organization. Leaders should demonstrate their commitment to safety through their words and actions, such as by providing adequate resources for safety programs and openly discussing safety issues.
• Employee involvement: A strong safety culture involves all employees in safety initiatives. Employees should be encouraged to report safety concerns and hazards, and to actively participate in safety training and awareness programs.
• Communication: Communication is critical to a strong safety culture. Organizations should have clear channels of communication for safety-related information, such as safety bulletins, safety meetings, and safety feedback mechanisms.
• Continuous improvement: A strong safety culture involves continuous improvement. Organizations should regularly evaluate their safety programs, identify areas for improvement, and implement changes as necessary.
• Accountability: A strong safety culture holds everyone accountable for safety. This includes managers, supervisors, and employees. Everyone should be held responsible for complying with safety policies and procedures, reporting safety hazards and incidents, and taking corrective actions when necessary.
• Learning culture: A strong safety culture fosters a learning environment where employees are encouraged to learn from safety incidents and near-misses. Organizations should conduct thorough investigations of incidents and use the findings to improve safety programs.

Building a strong safety culture takes time and effort. It requires a commitment from everyone in the organization to prioritize safety and work together to create a safe working environment. However, the benefits of a strong safety culture are significant, both for the organization and its employees. By prioritizing safety and building a positive safety culture, organizations can create a workplace that is safer, healthier, and more productive for everyone.

What is Emergency Response Planning?

Emergency response planning is a critical aspect of workplace safety. An emergency response plan (ERP) is a documented set of procedures that outlines how to respond to various emergency situations, including natural disasters, fires, chemical spills, medical emergencies, and other crises. The goal of an ERP is to ensure the safety of employees and others in the workplace, as well as to minimize damage to property and the environment.

Here are some key components of an effective emergency response plan:

Risk Assessment

The first step in developing an ERP is to identify potential risks and hazards in the workplace. A risk assessment can help identify potential hazards, such as fires, floods, or chemical spills, and determine the likelihood and potential impact of each hazard. This information can then be used to prioritize emergency response procedures and allocate resources accordingly.

Emergency Response Team

An emergency response team (ERT) is a group of trained employees who are responsible for implementing the ERP during an emergency. The ERT should be comprised of employees from different departments and should include individuals with specialized skills, such as first aid or hazardous materials handling. The ERT should be trained regularly and have access to the necessary resources needed to respond to emergencies.

Emergency Response Procedures

An ERP should include detailed emergency response procedures for different types of emergencies. These procedures should outline what actions to take in the event of an emergency. Including evacuation procedures, emergency shutdown procedures, and procedures for dealing with hazardous materials.

Communication

Effective communication is critical during an emergency. The ERP should include communication procedures for alerting employees, emergency services, and other stakeholders about the emergency and providing updates as the situation evolves. Communication procedures should also include a system for accounting for all employees and visitors on-site during an emergency.

Training and Drills

Regular training and drills are essential for ensuring that employees understand their roles and responsibilities during an emergency. Training should cover the ERP procedures, including evacuation procedures and the use of emergency equipment.

Evaluation and Revision

An ERP should be evaluated and revised regularly to ensure that it remains effective and up-to-date. This evaluation should include a review of any incidents or near-misses, feedback from employees and emergency responders, and updates to regulations and industry standards.

In addition to these components, an effective ERP should also consider the unique characteristics of the workplace. By developing and implementing an effective ERP, employers can ensure physical safety in the workplace.

Conclusion

Workplace safety is a critical component of organizational success. Employers have a legal and moral obligation to provide a safe and healthy working environment for their employees. By taking proactive measures to identify potential hazards and implement appropriate safety measures, employers can protect their employees from harm, improve productivity and morale, and comply with legal requirements. Remember, workplace safety is everyone’s responsibility, and a safe workplace benefits everyone.

The post The Comprehensive Guide to Physical Safety in The Workplace appeared first on AttendanceBot Blog.

In this article, we will explore the best practices for creating and managing 24/7 shift schedules that work for both employees and the business.

Process to Create 24 Hour Schedules

Understanding the Needs of Your Workforce

The first step in creating effective 24/7 shift schedules is to understand the needs and preferences of your workforce. Each employee has unique circumstances, such as family obligations, transportation constraints, and personal preferences, that can affect their availability and willingness to work at certain times. As a manager, it is your responsibility to take these factors into consideration when creating shift schedules.

One way to gather this information is to conduct a survey or hold individual meetings with your employees. Ask them about their preferred shift times, commute times, and any other factors that may impact their availability. This will allow you to create schedules that are more accommodating to your employees’ needs, which can improve their job satisfaction and reduce employee turnover.

Using Scheduling Software

Once you have gathered the necessary information from your employees, it’s time to start creating the schedules. In today’s digital age, there are many software solutions available that can streamline the scheduling process and reduce errors. These solutions can help you create schedules more efficiently, and allow employees to view their schedules online, swap shifts, and receive notifications about any changes.

Some of the features that you may want to look for in scheduling software include:

• Shift templates: This allows you to create recurring shift patterns for specific roles, which can save time and reduce errors.
• Automated scheduling: This feature uses algorithms to generate schedules based on the availability and preferences of your employees, which can further reduce errors and save time.
• Availability tracking: This allows employees to indicate their availability for each shift, which can help you create more accurate schedules.
• Mobile app: A mobile app can allow employees to access their schedules and make changes from their smartphones, which can be especially convenient for employees who work irregular schedules.

By using scheduling software, you can create schedules that are more accurate, efficient, and convenient for your employees.

Accounting for Break Times

When creating 24/7 shift schedules, it’s important to ensure that your employees receive adequate break times throughout their shifts. Depending on the laws and regulations in your area, employees may be entitled to rest periods and meal breaks, which can vary depending on their shift length.

As a manager, it’s your responsibility to ensure that your employees receive these breaks, and that they are scheduled in a way that allows for smooth operations. This may require some creative scheduling, especially if you have a large workforce and limited resources.

One solution is to stagger break times throughout the day, so that only a portion of the workforce is on break at any given time. This can help prevent bottlenecks and ensure that there are enough employees available to keep operations running smoothly.

Maintaining Open Communication

Open communication is crucial when managing shift schedules, especially when it comes to notifying employees of any changes or updates. As a manager, you should encourage your employees to communicate with you about any concerns they may have regarding their schedules.

In addition to regular communication with your employees, you may want to provide clear instructions on how to report absences, request time off, and swap shifts. This can help prevent scheduling conflicts and ensure that you have enough staff available to cover all shifts.

You may also want to consider implementing a system for employees to provide feedback on the schedules. This can help you identify areas for improvement and make adjustments to the schedules as needed.

Monitoring Effectiveness

Once you have created your 24/7 shift schedules and communicated them to your employees, it’s important to monitor their effectiveness over time. This can help you identify any issues or areas for improvement, and make adjustments as needed.

Some of the metrics that you may want to track include:

• Attendance: This can help you identify any patterns of absenteeism or tardiness, which can impact your operations.
• Productivity: Tracking productivity can help you identify any bottlenecks or inefficiencies in your operations.
• Employee satisfaction: Employee satisfaction is an important metric to track, as it can impact turnover rates and overall morale.

By monitoring these metrics, you can identify any issues with the schedules and make adjustments to improve their effectiveness.

Adjusting Schedules as Needed

Even with careful planning and monitoring, there may be times when you need to adjust your 24/7 shift schedules. This can occur due to a variety of reasons, such as employee absences, changes in demand, or unforeseen events.

When making schedule adjustments, it’s important to communicate these changes to your employees as soon as possible. This can help prevent confusion and ensure that all employees are aware of any changes to their schedules.

One way to make schedule adjustments is to offer overtime to employees who are available and willing to work. This can help ensure that you have enough staff available to cover any unexpected shifts or demand increases.

Another option is to allow employees to swap shifts with their colleagues. This can help prevent scheduling conflicts and ensure that all shifts are covered without the need for overtime.

What are 24 Hour Schedule Pattern Examples?

There are several different schedule patterns that businesses can use when implementing 24-hour schedules. Here are a few examples:

2-2-3 Schedule

This schedule pattern is often used in industries that require round-the-clock operations, such as healthcare and manufacturing. The alternating day and night shifts can help employees adjust to working at different times of day and can help ensure that there is always coverage on the job. The three-day weekend can also be beneficial for employee work-life balance and can help reduce fatigue and burnout.

4-on, 4-off Schedule

This schedule pattern is popular in industries that require 24/7 operations, such as emergency services, transportation, and utilities. The long work shifts can be challenging, but the extended time off can provide employees with a chance to rest and recharge. Additionally, the fixed schedule can help employees plan their personal lives around their work schedule.

DuPont Schedule

The DuPont schedule involves alternating between day and night shifts every few days, which can be challenging for some employees. However, the extended days off every two weeks can be a major benefit for employee work-life balance. This schedule can also be beneficial for businesses that require coverage around the clock, but do not need employees to work 12-hour shifts.

Pitman Schedule

The Pitman schedule is often used in industries that require continuous operations, such as call centers and customer service. The three consecutive work days followed by three consecutive days off can provide employees with a predictable routine and can help reduce fatigue and burnout. However, some employees may find it challenging to switch back and forth between work and off days every few days.

Continental Schedule

This schedule pattern involves working three 12-hour shifts in a row, followed by three days off. This schedule is often used in industries such as healthcare and manufacturing, where continuous coverage is needed. The extended days off can be beneficial for employee work-life balance and help reduce the risk of burnout. However, some employees may find it challenging to work such long shifts. Businesses may need to provide additional support, such as breaks and ergonomic workstations, to help employees manage the physical demands of the job.

Conclusion

Creating effective 24/7 shift schedules requires careful planning, communication, and monitoring. By understanding the needs and preferences of your workforce, using scheduling software, accounting for break times, maintaining open communication, monitoring schedule effectiveness, and adjusting schedules as needed, you can create schedules that work for both employees and the business.

Implementing these best practices can help improve productivity, reduce employee turnover, and ensure that your business is able to operate smoothly around the clock. Creating and managing 24/7 shift schedules is challenging but these guidelines can create effective and efficient schedules for your business.

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But enough of these riddles, let’s get to the 10 most powerful time management tools and techniques to get the most out of your day. 

#1 Time Management Tool and Technique: Pomodoro Technique 

This technique involves breaking down your work into intervals of 25 minutes each, separated by short breaks. It helps you to stay focused and avoid burnout while completing tasks efficiently.

The 25-minute timer technique or Pomodoro Technique works best for those who get distracted easily and are not able to achieve their objectives despite giving requisite hours. 

Refer to this article if you’d like to learn more about the Pomodoro Technique.

#2 Time Management Tool and Technique: Eisenhower Matrix 

This tool helps you prioritize tasks based on their urgency and importance, enabling you to manage your time and tackle tasks effectively. 

The Eisenhower Matrix is a simple four-quadrant grid that helps you categorize tasks based on their level of importance and urgency. Here is how it works: 

• Identify your tasks: Make a list of all the tasks you need to complete.
• Divide tasks into quadrants: Draw a square and divide it into four quadrants. Label the quadrants as follows:
  • Quadrant 1 (Important and Urgent): Tasks that are both important and urgent, such as deadlines or emergencies. These tasks should be completed immediately.
  • Quadrant 2 (Important and Not Urgent): Tasks that are important but not urgent, such as planning or personal development. These tasks should be scheduled for later.
  • Quadrant 3 (Not Important and Urgent): Tasks that are urgent but not important, such as interruptions or distractions. These tasks should be delegated to others or minimized as much as possible.
  • Quadrant 4 (Not Important and Not Urgent): Tasks that are neither important nor urgent, such as time-wasting activities. These tasks should be eliminated or minimized as much as possible.
• Prioritize Tasks: Once you have divided your tasks into quadrants, prioritize them based on their level of importance and urgency. Start with Quadrant 1 tasks, then move on to Quadrant 2 tasks. Delegate or minimize Quadrant 3 tasks, and eliminate or minimize Quadrant 4 tasks.
• Schedule Tasks: Once you have prioritized your tasks, schedule them according to their level of importance and urgency. Use a calendar or to-do list to schedule Quadrant 1 and 2 tasks, and delegate or minimize Quadrant 3 tasks.

By using the Eisenhower Matrix, you can prioritize your tasks more effectively and increase your productivity by focusing on the most important and urgent tasks first.

#3 Time Management Tool and Technique: Time Blocking 

Time blocking is a productivity technique that involves scheduling specific blocks of time on your calendar to focus on certain tasks or activities. The idea is to allocate a fixed amount of time for each task, which helps you stay focused and avoid distractions. Here’s how it works:

• Identify your Tasks: Make a list of all the tasks you need to complete.
• Estimate the Time Needed: Estimate the amount of time you need to complete each task. Be realistic, and give yourself enough time to complete the task without rushing.
• Schedule Blocks of Time: Create blocks of time on your calendar for each task. For example, if you need to write a report, schedule a two-hour block of time to work on it. Be sure to schedule breaks in between blocks of time to give your mind and body a rest. You can use apps like Google Calendar to make this step alarm oriented. 
• Stick to your Schedule: Once you have scheduled your tasks, stick to your schedule as much as possible. Avoid distractions and interruptions, and stay focused on the task at hand. If you find that you need more time for a task, adjust your schedule accordingly.
• Evaluate and Adjust: At the end of each day or week, evaluate your progress and adjust your schedule as needed. Identify any tasks that you did not complete, and reschedule them for a later time.

#4 Time Management Tool and Technique: To-Do Lists 

This classic tool is an excellent way to keep track of tasks and ensure that you don’t forget anything. It can also help you prioritize tasks and manage your time more efficiently.

The process of to-do lists is simple and straightforward. Create a list of action items and simply tick them off as you speed through them. The mere act of checking a mark against a checklist can give your brain an endorphin rush to motivate you through power through the to-do list. 

This is a strange one but a classic. 

#5 Time Management Tool and Technique: Kanban Boards  

Kanban boards are visual  task and time management tools that can help you to stay organized, prioritize tasks, and manage your time more effectively. 

How to get started with a Kanban board? 

• Set up your Board: Start by creating a physical or digital board with columns representing the different stages of your workflow. For example, you could have columns for “To Do,” “In Progress,” and “Completed.”
• Add Tasks: Create cards for each task that needs to be completed and add them to the appropriate column. You could also use different colored cards to indicate the priority level of each task.
• Move tasks through the Workflow: As you work on tasks, move them through the different columns on your board. You can see at as single glance the status of tasks. 
• Limit Work in Progress: To avoid getting overwhelmed, limit the number of tasks that you have in progress at any given time. This helps you to stay focused and complete tasks more efficiently.
• Review and Optimize: Regularly review your Kanban board to see which tasks are taking longer than expected and identify areas where you can optimize your workflow. This helps you to continually improve your time management skills and increase your productivity.

Source

Kanban boards can be used in a variety of settings, from personal task management to team project management. 

#6 Time Management Tool and Technique: Mind Mapping 

Mind mapping is a technique for organizing and visualizing ideas, concepts, and information in a way that helps you to make connections and identify patterns. 

• Start with a Central Idea: Begin by writing your main idea or topic in the center of a blank page or digital canvas.
• Branch Out with Related Ideas: From the central idea, branch out with related ideas or subtopics, drawing lines to connect them to the central idea. Short words or phrases should represent ideas. 
• Continue to Branch Out: As you add more ideas, continue to branch out from each subtopic, creating a hierarchy of ideas. Use different colors, images, and symbols to make your mind map more visually appealing and memorable.
• Make Connections: Look for connections between different ideas and concepts, and use lines to connect them. This will help you to see patterns and relationships that might not be immediately apparent.
• Refine your Mind Map: Once you’ve created your mind map, take a step back and review it. Look for areas where you can refine or expand on your ideas, and add new branches or subtopics as needed.
• Use your Mind Map: Once you’ve created your mind map, you can use it as a tool for organizing your thoughts, planning a project, or studying for an exam. It can help you to see the big picture and make connections between different ideas and concepts.

#7 Time Management Tool and Technique: Task Batching

Task batching is the practice of grouping similar tasks together to increase efficiency and productivity. Instead of switching between different types of tasks throughout the day, task batching allows you to focus on one type of task at a time, reducing context switching and increasing your ability to get things done.

• Identify Similar Tasks: Start by identifying the types of tasks that you can group together. For example, you might batch all your email responses, social media updates, or phone calls.
• Create a Schedule: Once you have identified the types of tasks you can batch together, create a schedule that outlines when you will work on each type of task. You can choose to work on one type of task for an entire day or break your day into smaller blocks of time, dedicating each block to a specific task.
• Minimize Distractions: When you are working on a batch of tasks, it’s important to minimize distractions. This might mean turning off your phone, closing your email, or finding a quiet place to work.
• Prioritize Tasks: Within each batch of tasks, prioritize the most important ones. This will help you make progress on the most critical items first and ensure that you are making the most of your time.
• Take Breaks: It’s important to take breaks throughout the day to avoid burnout. Plan to take short breaks between batches of tasks to recharge and refocus.
• Evaluate your Progress: At the end of the day, evaluate your progress and make adjustments as needed. If you find that certain types of tasks are taking longer than expected, you may need to adjust your schedule or find ways to streamline those tasks.

By following these steps, you can improve your productivity and get more done in less time. Remember, task batching is a flexible approach, and you can adjust it to suit your individual needs and preferences.

#8 Time Management Tool and Technique: Focus@Will

Focus@Will is a unique tool that provides specially designed music to help you stay focused and increase your productivity. 

All you need to do is sign up for an account. Take a quiz which will then create a personalized playlist based on your music preferences and other parameters. It even provides different focus modes, such as “Flow,” “Energy,” and “Relax,” depending on the type of task you’re working on. Select the mode that best suits your needs and preferences. 

Once you have your focus mode and task, make a rough estimate of how much time the task will take to set a timer for the same. Once you start the timer, begin working while listening to the music. Focus@Will’s music is designed to help you stay focused and block out distractions, enabling you to work more efficiently.

For data enthusiasts, Focus@Will also offers a progress tracker that shows you how much time you’ve spent working while listening to music. This can help you to see how much progress you’re making and motivate you to keep working. 

#9 Time Management Tools and Techniques: Time Tracking Tools 

Time tracking tools help you to monitor how much time you spend on different tasks and activities, enabling you to identify areas where you can improve your time management skills.

By tracking your time, you can see how much you’ve accomplished in a given period and set goals to improve productivity. By using the data you gather from time tracking, you can identify where you are spending the most time and focus on improving your efficiency in those areas.

With time tracking tools like AttendanceBot you can identify how much time you spend on each task, project and client.

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But what happens in industries with varying and extremely long opening hours? Inadequate rest and irregular schedules can make for an extremely cranky team. There are shift types that can help space out longer shifts with longer breaks to ensure that employees are well-rested for their next stint.

A 2-2-3 work schedule is a type of shift that can help and we’d like to dive into what it is and how it can be implemented.

What is a 2-2-3 Schedule?

The 2-2-3 work schedule is a 28-day rotating shift cycle where employees work 12-hour shifts, where 4 teams:

• Work 2 days
• Rest 2 days
• Work 3 days

Throughout the month, this is repeated weekly, but in a rotation. The first week is as mentioned above, and the next cycle starts with 2 rest days, 2 work days, and 3 rest days. Every fortnight, teams also swap their day shifts for night shifts so the shifts are inherently rotational.

The 2-2-3 schedule ensures that coverage is complete and employees are also getting 50% time during the fortnight to rest completely.

Sounds just a little confusing? Here is a visual that can help.

How Many Hours is a 2-2-3 Schedule?

Each shift in a 2-2-3 schedule is 12 hours long and is generally rotated every 15 days.

Source

Which Companies Use a 2-2-3 Shift Schedule?

A lot of businesses with 24×7 requirements opt for the 2-2-3 shift schedule. With our research, we’ve been able to find the following:

Amazon

According to Amazon Jobs, the organization has a split day and night shift during the week. Amazon splits their shifts into 12-hour shifts spaced into a day shift starting at 0600 hours and ending at 1700 hours and a night shift starting at 1700 hours and ending at 0600.

To make such a schedule operational, they use a modified 2-2-3 work schedule variation.

Google

In the post-pandemic world, businesses are also using modified variations of this shift schedule for hybrid work. For instance, in May 2021 Google CEO Sundar Pichai went into detail about their 3/2 split model. “A workforce where around 60% of Googlers are coming together in the office a few days a week, another 20% are working in new office locations, and 20% are working from home.”

This sort of split provides flexibility for employees while allowing for in-person collaboration in the office. This sort of hybrid work split allows interpersonal interactions that contribute to team building while still allowing flexibility that employees have come to enjoy with remote work.

2-2-3 Schedule Pros and Cons

Breaks are Key

Tork’s 2022 study, reveals that more than 9 in 10 employees say they are more likely to stay at a company where bosses encourage their employees to take a break.

With most 2-2-3 work schedules featuring a 12-hour shift, things can get stressful and lower productivity really fast. Make sure that your shift plans include mandatory breaks along with a scope to take additional breaks when required.

Because not every employee works in the same way. Some may prefer a 5-minute break every 25 minutes, while others may require a longer break after an hour of working. Figure out what mandatory breaks need to be worked into the shift roster for your team, and how floating breaks can be granted.

While on a federal level, there are no laws that dictate whether or not you need to enforce breaks in your workplace, it is clear that they are important for employee wellness. Federal law states that breaks under 20 minutes need to be paid time off the clock.

What are you doing to ensure that breaks are worked into the schedule?

Summary

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While the turnout for election day is in the millions, we still trail behind other developed nations. Comparing the 2020 turnout among voting-age Americans with recent national elections in 49 other countries, the Pew Research Center found the U.S. ranks 31st.

What is Voting Leave?

Voting leave is the leave granted to employees to exercise their voting rights. The time off given to vote usually depends upon the distance of the office from the voting booth.

Do Companies Need to Provide Voting Leave?

Companies are not required to provide voting leave or time off to vote to employees if they can manage to vote before or after work. Usually, the voting booths are open from 7:00 am to 8:00 pm. However, if the employee cannot vote before arriving at work or after completing the work, they can request voting leave from their employees.

Federal Laws on Voting Leave

Lawmakers have tried — and failed — in the past to pass legislation that would make paid time off for voting a federal requirement. However, many states have laws to provide time off for voting, sometimes paid but mostly unpaid.

Therefore, the right to take time off for voting depends on the state to which an employee belongs. In addition, the state laws regarding voting leave apply to federal, state, and local elections.

However, if the employees have taken voting leave or time off but do not exercise their right to vote, the employers can take action for the time they spent away from work. Therefore, it is recommended that employees keep proof of casting their votes. This receipt can be produced if management questions them about whether they have made appropriate use of the voting leave or not.

How can Employees use Voting Leave Benefits?

When election day and working hours coincide, the employees must inform the employers in advance, if they need some time off for voting. According to many states, employees might not get any protection from voting leave laws if they don’t convey their intention to vote to the employer in advance.

Informing the employers in advance gives them the added advantage of assigning their tasks to a colleague. Or else, they can at least make the required arrangements so that the voting leave does not affect the team’s productivity. If there is any upcoming deadline, the employee might be asked to work some extra hours if required.

The employees who live in states that don’t have any voting leave laws should investigate the early voting or absentee law of their particular state or verify the voting leave policy of their company. This will help them find a solution, especially if their employer does not give them time off to vote.

But all state laws concerning voting leave benefits apply only if the employees cannot find any way to vote before or after their working hours.

Source

Voting Rights in US States

Alabama

In Alabama, employees are given an hour to vote if they inform their employees in advance. Unfortunately, the time off for voting is usually unpaid. In addition, the law applies only if the employees’ work hours start two hours after the commencement of the polling booth or at least one hour before the polling booth closes.

Alaska

In Alaska, employees get paid time off for voting, but the hours required aren’t mandated by the law. The employees do not have to provide notice in advance to the employer or show voting proof afterward.

Arizona

Up to three hours of paid time off for voting is granted to the employees working in Arizona. But the employer does need to be informed at least one day before Election Day.

Arkansas

In Arkansas, the employer gets to decide the duration of the time off required to vote but it is unpaid time off.

California

In California, employees get paid time off for voting for up to two hours either before the commencement of working hours or after the working hours. But the employer needs to be informed at least two days before the election date.

Employees are eligible for paid time off for the purpose of voting only if they do not have sufficient time outside of working hours to vote. The intent of the law is to provide an opportunity to vote to workers who would not be able to do so because of their jobs.

The California Elections Code section 14001 requires employers to post a notice to employees advising them of provisions for taking paid leave for the purpose of voting in statewide elections.

Colorado

Colorado also provides up to two hours of paid time off for voting to the employees. The employer need not be informed in advance in Colorado.

Georgia

The employees must provide reasonable notice to get time off for voting. Unpaid time off of up to 2 hours is generally granted.

Illinois

In Illinois, to get paid time off for voting for up to two hours, the employees should inform the employer at least one day before the election day.

Iowa

The employees can get paid voting leave of up to three hours in Iowa but have to give advance notice in writing to the employer.

Kansas

In Kansas, employees are eligible for time off to vote for up to two hours. The voting leave will be unpaid, and the employees don’t have to notify the employer in advance.

Kentucky

To get voting leave in Kentucky, the employees must give advance notice to the employer at least one day before the election date. Voting leave of at least 4 hours is applicable and it will be paid time off.

Maryland

In Maryland, employees are eligible for time off to vote for up to two hours. Advance notice is required, and the time off is unpaid.

Massachusetts

In Massachusetts, employees can take up to two hours off to vote during the initial two hours of polling. The time off isn’t paid and employees don’t have to give advance notice to their employer.

Minnesota

The employees of Minnesota get voting leave for the morning session. They don’t have to inform the employer, and the time off is paid.

Missouri

In Missouri, employees get up to three hours off for voting. The employee must inform the employer one day before the election date. If the employees show the vote receipt, they are paid for the time off by the employer.

Nebraska

In Nebraska, employees are allowed to take time off for up to two hours and are paid for these hours. They can get permission from the employer on election day or before that.

Nevada

In Nevada, employees can take time off for voting only if they cannot vote before or after working hours. They need to take permission from the employer on or before the election day. It is paid time off.

New Mexico

In New Mexico, employees can take paid time off to vote for up to two hours. They do need to give their employers any advance notice.

New York

The employees in New York get paid time off as required, provided that they have notified their employers at least two days before the election date.

An employee with four consecutive hours either between the opening of the polls and the beginning of their working shift or between the end of their working shift and the closing of the polls shall be deemed to have sufficient time outside of their working hours to vote. In this case, they are not eligible for paid time off.

North Dakota

North Dakota employees don’t get paid for the time off for voting, but they can take unpaid time off as required.

Ohio

In Ohio, salaried employees get paid time off for voting as per the requirement. Informing the employer in advance is not mandatory.

Oklahoma

Up to two hours of paid time off for voting is allowed in Oklahoma unless the employee lives too far from the polling booth where this duration may be too short. The employer must be informed at least one day before the election day.

South Dakota

South Dakota allows up to two hours of paid time off for voting. Advance intimation to the employer is not mandatory.

Texas

Employees in Texas can take paid time off to vote to exercise their voting rights. But they must inform the employer at least one day before the election.

Utah

Employees who’ve taken permission at least one day before election day are given two hours of paid vacation leave in Utah.

West Virginia

Up to three hours of paid time off for voting is allowed in West Virginia, and the employees must notify the employer through a written request at least three days before the voting day.

Wisconsin

Up to unpaid three hours of time off for voting is allowed in Wisconsin if the employee takes permission a day before the election day.

Wyoming

Up to one hour of paid time off for voting is allowed in Wyoming, and giving prior intimation to the employer is not mandatory.

FAQs on Voting Leave

What States have No Voting Leave Laws?

No voting leave laws are present in:

• Connecticut
• Delaware
• Florida
• Hawaii
• Indiana
• Maine
• Louisiana
• Michigan
• Idaho
• Mississippi
• Montana
• New Jersey
• North Carolina
• South Carolina
• Oregon
• Pennsylvania
• Rhode Island
• The District of Columbia
• Vermont
• Virginia
• Washington

Can Employees Volunteer on Election Day?

Employers mostly provide only a few hours for voting, which is generally enough. However, employees might want to take a vacation or personal leave to help with election day. They must inform the employer in advance if they intend to do so.

The employees cannot just take sick leave and participate as a volunteer at the polls. Even if the employer provides medical leave and the employees want to use it for volunteering on election day, they must convey it to the employer in advance.

Some states, like California, require employers to publish a notice regarding how the employees can benefit from a voting leave or time off for voting before every election day.

How do Employers Handle Voting Leave for Employees who Live in a Different State from where the Company is Registered?

Generally, employment laws apply in the state where the employee works. But in case the voting time off laws are better in the state that the company is registered in, it is always better to take the more generous policy.

For instance, if a business is registered in California and an employee is working out of Washington it makes sense to grant them California paid voting leave in the absence of any mandates in Washington.

What if a Business Doesn’t Follow State Voting Leave Laws?

In many states, a hefty fine is imposed on companies that do not provide voting leave or time off to vote to their employees. However, some states do not have provisions for any such penalty.

For example, in New York, a company’s corporate charter can be removed if they stop any worker from exercising their voting rights. In states like Missouri, Kansas, and Arizona, a fine of $2,500 is imposed on the supervisors if they don’t allow their workers to vote. A staggering $20,000 fine can be slapped on companies in Arizona if they block someone’s voting rights.

Some companies might use their political connections to steer clear of penalties. However, most companies wouldn’t want to stop their employees from taking time off to vote because it will detrimentally impact their public relations. The negative publicity about a company that denies voting rights to its employees spreads like wildfire.

At the end of the day, voting is a key building block of functional democracy, and limiting voting rights helps no one. Businesses must account for things like wait times at polling booths and actively facilitate voting.

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Your boss looks confused. “Pay equity?” “What’s that?”

You explain that pay equity means making sure that women, people of color, and other groups who have historically been discriminated against get paid the same amount as their white male colleagues.

Pay equity can be a great way to boost engagement, and efficiency, reduce turnover, and of course increase revenue.

Let’s look at pay equity in greater detail below:

What is Pay Equity?

Pay equity is the term used to describe the fair and equal treatment of people in similar jobs, who have similar skills and experience, and are doing work that has the same value. In other words, pay equity is about being paid what a worker deserves rather than what society expects. Pay equity matters because it’s a way to make sure everyone who works hard gets treated fairly.

According to BLS, the ratio of Black web developers is only 4.6%. White, on the other hand, is 85%.

Similarly, the ratio of women that are office and administrative support professionals is 72%, while of those who are chief executives is only 29%.

The Importance of Pay Equity

Pay equity is important because it helps to close the wage gap between men and women and between white people and people of color.

Roughly one-third of full-time employees in the U.S. are paid less than $12 per hour, according to a 2018 study from Georgetown University Center on Education and Workforce (CEW.

 The benefits of pay equity are many.

Closes the Wage Gap

First, it helps to close the gender wage gap. As of 2016, women made 80% of what men made in the United States. This means that women were paid 20% less than men for doing the same job. Similarly, Black women earn 58 cents for every dollar white men earn.

If we could close the gender wage gap and ensure that women are paid as much as men, it would make a huge difference in their lives and give them more opportunities to save money and invest in themselves. It would also help to lift families out of poverty because women typically earn less than men and have lower salaries than their male counterparts. 

Helps People with Low Income

Second, pay equity allows people with lower incomes to make more money. This can help them afford things like childcare or healthcare services that they need but may not be able to afford otherwise. People who are paid less tend to spend more money on things like these because they cannot afford them outright or do not want to spend their savings on them. Paying these workers more will allow them to save money instead of spending it all on these types of expenses.

Helps Retain Employees 

Retaining employees is one of the most important parts of running a business.

After all, if you don’t have the right people on your team, you’re not going to be able to stay competitive in the market. And that means you won’t be able to keep up with demand and make a profit.

When you offer pay equity, you’re helping your employees feel valued and appreciated—which makes them more likely to stick around.

Helps Maintain Compliance

Pay equity helps maintain compliance by reducing the risk of discrimination claims. If employees feel that they are being paid unfairly, they may file a complaint with the Equal Employment Opportunity Commission (EEOC), which could lead to a lawsuit if the EEOC finds that there is sufficient evidence for one.

By ensuring that all employees are paid fairly, you can reduce the likelihood of complaints about pay equity, which will make it easier for you to stay in compliance with labor laws and avoid costly litigation.

Reduces Discrimination

Finally, pay equity will also help reduce discrimination against certain groups within our society by ensuring that everyone receives equal treatment when it comes time for raises or bonuses (which is often based on seniority). 

What is the Difference between Pay Equality and Pay Equity?

Pay equality and pay equity are two different things. They’re both about fair pay, but they have different definitions and goals.

Pay equality means that everyone who does the same work should be paid the same amount. This is a common goal for women because women tend to make less than men for doing the same job.

On the other hand, pay equity is about fairness. It’s about justice. It’s about the right thing to do. Pay equity is about the value of your work and how it contributes to society, which should be reflected in your paycheck.

It’s not just about equal pay for equal work, but rather equal pay for work of equal value to society.

Pay equity means that an employer must pay all employees according to the value of their contributions to the company, regardless of gender or other factors like race or sexual orientation. 

For example, if your company hires a new employee who brings in more revenue than any other employee in your company, you would have to pay that new employee more than anyone else on staff—regardless of whether they’re male or female, black or white, straight or gay.

What are the Laws that Govern Pay Equity?

 In the United States, there are a number of laws that govern pay equity. These laws include the Equal Pay Act, The Americans with Disabilities Act, The Age Discrimination in Employment Act, The 1964 Civil Rights Act, and The Lilly Ledbetter Fair Pay Act of 2007.

The Equal Pay Act of 1963

The Equal Pay Act of 1963 prohibits discrimination on the basis of gender in pay. This was the first federal law that prohibited sex discrimination in wages. It also created a more formal process for addressing complaints about pay inequality.

President John F Kennedy signed the Equal Pay Act into law on June 10, 1963, a week after its passage by Congress.

The Americans with Disabilities Act (ADA)

The Americans with Disabilities Act (ADA) prohibits discrimination against qualified individuals with disabilities in all aspects of employment including compensation practices such as hiring practices and compensation decisions such as promotions and demotions.

The Age Discrimination in Employment Act

 The Age Discrimination in Employment Act (ADEA) is a federal law that prohibits discrimination against employees and job applicants who are 40 years of age or older. It applies to employers with 20 or more employees, and to state and local government employers.

The ADEA was created to promote fairness in the workplace and protect individuals from being unfairly excluded from employment opportunities because of their age. The ADEA also promotes equal employment opportunities for older workers by encouraging the continuation of their careers, thereby advancing the interests of businesses and our economy as a whole.

The 1964 Civil Rights Act

 In 1964, the Civil Rights Act banned discrimination based on race, color, religion, sex, or national origin. The act was passed after a long struggle for equality by African Americans, who had been discriminated against for centuries in America.

The Lilly Ledbetter Fair Pay Act of 2009

The Lilly Ledbetter Fair Pay Act of 2009 act allows individuals who face pay discrimination to seek rectification under federal anti-discrimination laws. The act is named after Lilly Ledbetter, an employee who experienced pay discrimination at Goodyear Tire and Rubber Company for 19 years before she was able to bring her case to court because of limitations in the statute of limitations for filing such claims.

What are Minimum Wage Laws?

Minimum wage laws are laws that set the lowest hourly wage a worker can be paid. 

The Fair Labor Standards Act (FLSA) is a federal law that sets the minimum wage for most employees, but there are some exceptions. The FLSA does not apply to people who work for tips or certain farm workers. In addition, some states have passed their own minimum wage laws that are higher than the federal rate. If you work in one of those states, your employer must follow both state and federal laws.

Minimum wage laws are a vital component of any society that aspires to be fair and just. They protect workers from exploitation, provide a safety net for those who need it most, and help ensure that the middle class does not disappear altogether. In other words: minimum wage laws are important because they protect families and working poor people from being taken advantage of by greedy corporations.

That’s why it’s so important to implement and follow federal minimum wage laws across all states.

Comparable Worth

The Equal Pay Act prevented gender-based wage discrimination. However, it did not address the issue of comparable worth. In other words, if two people do the same job but one is a woman and one is a man, they should be paid equally. Comparable worth became an important topic in the 1980s and 1990s when women earned less than men for doing similar work.

What is a Pay Gap Analysis?

 A pay gap analysis is a tool used by companies to determine whether there is a difference in pay between different demographics of workers. The data collected during a pay gap analysis can help companies understand the role that gender, race, and other factors play in employees’ wages, allowing employers to make informed decisions about how best to address any disparities they find.

The analysis can be conducted at any time and does not require an employer to have a diversity policy in place. However, some companies choose to conduct their analyses as part of their diversity efforts.

Conducting a Pay Equity Audit

Conducting a pay equity audit is a great way to ensure that you’re adhering to the laws in your state, industry, company, and position. While there are many factors that can lead to paying inequity, it’s important to understand the laws surrounding gender-based discrimination in both the public and private sectors before conducting an audit.

The first step of any audit is understanding where you stand in relation to your state’s gender-based wage discrimination laws. Some states have enacted more expansive policies than others with regard to equal pay; if you conduct business in one of these areas, then you’ll need to take that into account when conducting an audit.

Next, comes looking at industry standards pertaining to gender discrimination between genders at various levels within organizations or companies—things like what types of positions get paid more than others based on gender alone? While some roles may require specialized skill sets that come with higher salaries as compensation (think doctors working on a heart transplant team versus nurses working as bedside helpers), this won’t always be true for every position within an organization—and thus cannot serve as justification for paying some employees more than others based solely on their sex or gender identity.

A pay audit is an internal review of your company’s compensation practices. It can be used to determine whether or not your employees are being paid fairly and correctly, as well as to find ways to improve your company’s compensation practices.

There are many reasons why companies should conduct pay audits, including:

• Ensuring that employees are paid in accordance with the law
• To make sure that employees are paid in accordance with the terms of their contracts
• Ensuring that employees are not being discriminated against based on gender, race, or other factors
• To uncover instances of wage theft
• To determine whether or not there are any gaps in pay between different groups of employees (for example, between men and women)

In order to conduct a successful audit, you must first decide what exactly you want to learn from it. Do you want to know if there are any discrepancies in pay between different employee groups? Do you want to see if there are any problems with how people were hired? Do you want to see if there are issues with overtime? Once you have decided what information will be most useful for your business needs, then it is time for the audit itself.

What Types of Discrimination are Prohibited?

Discrimination can be based on race, gender, age, disability, national origin, religion, or sexual orientation. It is not only illegal but also morally wrong.

Discrimination may occur in hiring and promotion decisions; compensation levels; benefits such as health insurance and retirement plans; work schedules; leave policies and other employment practices. Employers are prohibited from discriminating against people because of their age (40 years old), race (black), marital status (divorced), or sex (female).

Employers must provide similar opportunities for advancement to all employees without regard to their race or color as well as any other protected characteristics listed above. They cannot limit equal access to training unless they can show that the limitation was justified by business necessity—for example, it’s required by state law or a collective bargaining agreement—or required by a bona fide occupational qualification defense that applies equally across races and genders.

Do Women Earn Less Than Men?

We know that women earn less than men in nearly all occupations. But just how much more do they get paid?

According to Global Gender Gap Report, “Another generation of women will have to wait for gender parity, according to the World Economic Forum’s Global Gender Gap Report 2021. As the impact of the COVID-19 pandemic continues to be felt, closing the global gender gap has increased by a generation from 99.5 years to 135.6 years.”

To Sum Up Pay Equity 

Pay equity is important. In fact, it is imperative that companies pay their employees fairly and equitably. Paying women less than men for the same work reinforces a system of discrimination and inequality. It perpetuates negative stereotypes about women and their capabilities in the workplace, hurting both individuals and our society at large by denying us access to opportunities we should have as equals.

The gender wage gap affects everyone—not just women. If you believe in fair treatment for all people regardless of race/ethnicity or gender identity/expression then you need to stand up against pay inequity in your workplace as well!

In the end, pay equity is about equal pay for equal work. It’s about creating an environment where everyone has the opportunity to earn the same amount of money for doing the same job. It’s a complicated issue with many different factors at play, but if we want equality in our society then this is something that needs to be addressed sooner rather than later.

The post The Importance of Pay Equity appeared first on AttendanceBot Blog.

What is Copay?

Both the insurer and insured share the expenses of medical treatment when an insurance policy has a copay clause. Further, the clause may include a condition of a fixed amount or fixed percentage. The policyholder must give the fixed amount or percentage, while the insurer pays the remaining amount.

Example of Fixed Amount and Fixed Percentage Copay

In a fixed amount clause, the policyholder pays a fixed amount, say USD 5000, irrespective of the total treatment cost. The insurer will cover the rest of your medical treatment.

In a percentage clause, the policyholder has to pay in percentage of the total treatment cost. Say 15% is the agreed amount, and USD 10,000 is the total treatment expenses. In such an example, the policyholder will have to pay 1,500 USD of the total amount while the insurer will handle the remaining 8,500 USD.

What is a Deductible?

Consider deductible a flat fee levied each year on most eligible medical services or medications. You have to pay the amount upfront, post which your insurance plan will contribute to your medical expenses. Deductibles can be an annual contribution or may vary for each treatment.

Note: If you have a high-deductible health plan, you may be eligible to set aside money in a tax-advantaged Health Savings Account.

Example of a Deductible

If you have a deductibles clause stating an amount of USD 3,000, you will have to pay it upfront. The company will only activate the health insurance policy after you pay USD 3,000 toward deductibles per the clause.

What is Coinsurance?

Coinsurance is the percentage of medical treatment expenses you would incur after you pay the deductibles. It is usually defined as a fixed percentage or amount, called coinsurance after deductible. Coinsurance is identical to the copayment clause under health insurance.

Coinsurance Example

If the coinsurance clause in your insurance policy states a 10% fixed percentage, you’ll bear 10% of the treatment expenses. The insurance company will cover the remaining 90% of the total expenses. However, the company calculates this amount after you pay your deductibles, referred to as coinsurance after deductible.

Note: Always check for the list of the covered services. If some of your expenses are not eligible for cover under the policy, you have to pay the entire bill yourself, otherwise known as 100 coinsurance.

What is an Insurance Premium?

A health insurance premium is the recurring payments you make to manage your health insurance plan. Mostly, you pay a health insurance premium at a monthly or biweekly interval and it may include a high-deductible. As an employee, the healthcare premium would be deducted from your paycheck.

Features of Out-of-the-Pocket Health Insurance Expenses

Are you wondering, “how does health insurance deductible work?” To illustrate how copay and coinsurance works, we have compiled the features for you.

Copay

Here are the features of copay that you need to understand.

• The feature is popular in metropolitan cities where the average cost of treatment and the disposable income of individuals are higher.
• Because the average treatment cost for senior citizens is higher, this clause is more popular in insurance policies.
• The health insurance premium is higher when the fixed copayment component is lower.
• With copayment features, the insurer covers most of the treatment cost. Here, the policyholder only has to bear the fixed amount. If there’s no copayment feature/clause in the insurance policy, the entire treatment expense will be borne by the insurer.

Deductible

Let us now move on to deductibles and understand their features.

• Deductibles help in reducing the number of healthcare premium payments toward health insurance policies.
• However, it might lead to a rise in the total cost incurred by the policyholder toward their treatment.
• It is usually levied on policyholders to guard insurance provider’s against unnecessary claims.

Coinsurance

Let us run through the features of coinsurance for a better picture of health insurance in the United States. 

• Like with deductibles, the coinsurance plan will only come into play when the policyholder pays the deductible amount. It is called coinsurance after deductible.
• It protects policyholders against claims, especially larger ones.
• The coinsurance percentage provided by the insurance company remains fixed.

Source

Deductible vs Copay

Check the different parameters below to gauge the difference between deductible and copay.

Deductible vs Copay: Applicability

Copay: The health insurance policyholders must pay a fixed amount or a fixed percentage of their total medical treatment costs. Besides, the insurance provider/company will cover the rest of the sum. Moreover, the copay clause says that the policyholder and the insurer will share the expenses incurred.

Deductible: It is what policyholders have to pay before their policy starts contributing to their medical expenses. Further, it is usually a fixed amount of money that the clause states. The insurance provider decides on the amount. They also determine whether the clause is applicable on a per-treatment or per-year basis.

Deductible vs Copay: Impact on Premium

Copay: When the copay amount is higher, the policyholder is liable to pay smaller premium amounts.

Deductible: Deductibles usually allow the insurance policyholders to pay smaller premiums.

Deductible vs Copay: Impact of Coinsurance Clauses

Copay: Insurance providers often use Copay and coinsurance clauses interchangeably.

Deductibles: When a coinsurance clause is added, policyholders have to pay the coinsurance after the deductible amount. The payment is on top of deductibles as part of the clause.

Deductible vs Copay: Implementation

Copay: Copay does not apply to all healthcare services. It only applies to specific ones.

Deductibles: It is implemented before the insurance policy starts. Therefore, to avail of the insurance, it is mandatory to pay the deductibles.

What is Coinsurance vs Copay?

We have been through all three cost-sharing terms of health insurance and deductible vs copay. It brings us to the next big question if you wish to know about the terms in depth. What is the difference between copay and coinsurance or coinsurance vs copay?

Applicability

Copay: The health insurance policyholders must pay either the fixed amounts or fixed percentages of their total medical costs. The insurer covers the rest. The copay clause says that the policyholder and the insurer will share the expenses incurred.

Coinsurance: Coinsurance is generally associated with deductibles with a payment structure similar to copayment. It is the percentage of medical treatment expenses you have to contribute after the payment of deductibles. Usually paid in the percentage form, it remains fixed and in line with the coinsurance clause.

Payment Process

Copay: Every time you take any medical service, you’ll have to make your portion of payments based on the copay clause.

Coinsurance: After paying your deductibles, coinsurance comes into the picture. You are liable to pay for this to avail of a medical insurance cover.

Payment Intervals

Copay: You have to make the payment while availing of the medical service/treatment.

Coinsurance: Your insurance provider will bill your due amount from the payment. You have to make the payment directly to your insurer.

Relationship with Deductibles

Copay: Payment of deductible with copay is not mandatory. Further, the copay clause counts toward the deductibles only in some cases and under specific circumstances.

Coinsurance: Concerning the coinsurance clause, the coinsurance after deductible amount is only paid after paying the deductible.

Deductible vs Coinsurance

Let us also see through the difference between deductible and coinsure to see the bigger picture.

Applicability

Coinsurance: It is the percentage of medical treatment expenses you would incur after you pay the deductibles. Further, coinsurance after deductibles is defined as a fixed percentage.

Deductible: It is what policyholders have to pay before their policy starts contributing to their medical expenses. Deductibles are usually a fixed amount of money that the clause states. The insurance provider decides on the amount, and whether the clause is applicable on a per-treatment or per-year basis.

Limitation in Payments

Coinsurance: Each time you claim for insurance, you are liable to pay coinsurance as the policyholder.

Deductible: Once you have paid the mandatory deductible amount for one year, the payment toward that year ends. It is a yearly payment.

Variability in Payment Amounts

Coinsurance: The payment amount toward coinsurance depends on the treatment expense since it is a percentage of the total costs incurred.

Deductible: Deductibles are fixed yearly payments and do not depend on the treatment costs whatsoever.

Various Risk Factors

Coinsurance: Coinsurance is directly proportional to the total treatment cost incurred (a percentage of total expense). Therefore, when the cost of medical treatment is high, the out-of-pocket expenditure will be too.

Deductible: There is no significant risk in the case of deductibles. Deductibles are fixed amounts that are not in sync with the total cost of expenses.

Source

What is Out-of-Pocket Maximum?

Let us now analyze deductible vs out of pocket. The deductible is the maximum amount the policyholder has to pay for their covered medical costs in a particular year. The maximum amount includes all the money spent toward deductibles, coinsurance, and copays.

Once policyholders reach their out-of-pocket maximum in a year, their health plan will cover the remaining medical and prescription costs. However, note that the health insurance premiums don’t count here.

Out of Network vs In-Network Providers

Some health insurance plans have two sets of clauses (deductibles, copays, coinsurance, out-of-pocket maximums), one for each provider. These are in-network and out-of-network.

Usually, in-network providers are cheaper compared to out-of-network providers. It is because the insurance company negotiates and brokers deals with the doctors and hospitals in the network.

The in-network provider can be anywhere and not necessarily near where you live. Ensure you choose to go with in-network providers for availing most of your services. It is beneficial as they are cheaper and also make more fiscal sense.

FAQs

What Does ‘0 Coinsurance’ Mean?

Contrary to 100% coinsurance, ‘0 coinsurance’ means you do not have to pay any part of the health care cost. It indicates that you have no out-of-the­­­-pocket payment obligation. Further, it includes coinsurance after deductible, or the obligation to pay deductible always applies.

What Does 20 Coinsurance Mean?

A 20 coinsurance is all about the math, as it means you are responsible for 20% of your medical bill. It indicates that you shall contribute 20% of the total amount: USD 2000 for USD 10000 worth of treatment received.

What Is An Annual Deductible?

The annual deductible is the mandatory amount you need to pay before your policy starts to contribute. Furthermore, imagine you need to analyze deductible vs premium. Here, a premium is a recurring payment you make to maintain the insurance policy. Contrarily, a deductible is a once-in-a-year payment that you make before your insurance policy starts providing.  

What Is Coinsurance After Deductible?

A coinsurance policy pays after you pay the deductible amount. Generally, deductible works with coinsurance. Hence, it is referred to as coinsurance after deductible.  

Deductible vs Copay: The Final Answer

While knowing the terms is critical, it is also crucial to understand that they are not mandatory in every policy. If you catch sight of policies with copayment, coinsurance, and deductible clauses, you are able to understand how they bring down the premium. This means that you agreed to pay a small recurring amount, only to pay quite a bit out of pocket in the future.

A possible decision would be to choose policies that do not include cost-sharing clauses. While they will spare you the hassle of situations where you don’t have the money for co-pays and need urgent treatment, they can be a quite expensive upfront.

Whatever be the case, it is sensible to set aside time and money for the health insurance needs for you and your family.

The post Deductible vs Copay: Unpacking Health Insurance Costs for Smart Choices appeared first on AttendanceBot Blog.

In this article, we take you through what SDI stands for, how it is taxed, and how individuals can file a claim for SDI online.

What Does SDI Stand For?

State Disability Insurance (SDI) is a state initiative that provides financial benefits to Californians and New Yorkers who have non-work-related short-term disabilities. 

What Is SDI Tax?

An SDI tax is levied to contribute to a State Disability Insurance. It is a payroll tax that a few states have made mandatory. SDI tax proceeds like NY SDI and CA SDI tax fall under a state disability insurance system (SDI disability). It offers financial support to workers who cannot work due to a physiological or psychological impairment unrelated to their job.

California and New York are some of the states with a tax officially called an SDI tax. However, numerous states offer temporary disability insurance (TDI) that operates identically.

Workers’ compensation insurance is a type of insurance that businesses provide. 

Where Is SDI Applicable?

Six jurisdictions maintain state disability insurance (SDI tax) systems:

• California
• Hawaii
• New Jersey
• New York
• Puerto Rico, and
• Rhode Island

Additionally, nine states have or will shortly have paid family and medical leave (PFML) insurance plans in place. These include California, Connecticut, the District of Columbia, Massachusetts, New Jersey, New York, Oregon, Rhode Island, and Washington.

According to the region, the individual can pay full SDI and/or PFML payments through wage withholding. For example, the CA SDI withholding rate is different from the NY SDI withholding rate. Additionally, management and the staff may split the cost of the insurance. These jurisdictions often let companies utilize private insurance/self-insured plans instead of contributing to the SDI tax’s public insurance fund. The State Controller’s Office evaluates and holds back the payments.

Is SDI Taxable?

SDI is the state of California’s disability insurance. It is a compulsory tax. Whenever individuals use SDI benefits to replace UI compensation, the federal government taxes the SDI, but not from California. When filling out your W2, place your CA SDI number in box 14 instead of 19 (if applicable). In this way, it will accumulate as part of the state or local taxable income.

What Is the SDI Tax Rate?

Because temporary disability insurance schemes differ by region, each state has its taxation rate. The following are the tax rates for each state with a short term disability program as of 2021: 

• The SDI tax rate in California is 1.20% of SDI taxable wages per individual annually. The total tax per employee per year is USD 1,229.09.
• The Temporary Disability Insurance levy in Rhode Island is 1.3% of the worker’s income.
• Companies in Hawaii have the option of covering the cost of temporary disability insurance for their employees. They can also withhold up to 0.5% of a staff’s weekly pay, limited to a total of USD 5.60.
• The individual participation rate for temporary disability in NJ SDI is 0.26% of the taxable pay baseline. It is USD 134,900. Employees can contribute up to USD 350.74 each year.
• Businesses in New York have the option of bearing the cost of state disability insurance for all personnel. They can also withhold up to USD 0.60 for the NY SDI from qualified employees’ income per week.

Application Process for a Non-work-related Injury or Illness

Employees can apply for State Disability Insurance payments if they cannot work due to a non-job-related accident or sickness.

• The EDD offers basic guidelines and a video about how to make an SDI disability claim electronically.
• For applying a claim by paper, the individual can collect the form from the SDI Office. The other option is getting it from the employer, the medical consultant’s office. Additionally, one can also purchase a physical form online via EDD’s website and publications. The portal will mail the form to you, and EDD outlines how to ship an SDI claim.

Users can enter their application as early as nine days following the disability. That refers to the time after which they were unable to work. However, they must apply before 49 days of becoming disabled or be denied payments. Further, they must attach a letter detailing why they are submitting late if registering after 49 days.

An employee completes part A of the application, and a general practitioner completes the Part B of the form. A general practitioner is a person who provides medical verification of the impairment. Any claim is unacceptable unless an applicant fills both Parts A and B.

State Disability Insurance and the Benefits of a Paid Family Leave 

Short-term Disability Insurance (DI) and Paid Family Leave (PFL) compensation substitution incentives are available under the State Disability Insurance plan. In particular, they are available to qualifying individuals who are employed or actively looking for employment.

Individuals who cannot work due to a non-job-related sickness or injury, pregnancy, or childbirth may receive State Disability Insurance benefits. Anyone will be eligible for PFL if they are,

• Providing facility and care to a critically sick relative
• Making a connection with a new child 
• Enrolling in a qualified activity if a family member is serving in the military services of another country

Log into the State Disability Insurance Online account to claim the benefits. Read all EDD communications, complete online forms, or update your profile.

Information Required to File a State Disability Insurance Claim Online

To make an SDI claim, individuals must supply the following details.

• A valid federal ID 
• The complete legal name, as it stands in the driver’s license or identification card
• Birthdate as it appears on the CDL or ID
• Identification of Social Security
• Recent employer’s business identity, contact information, and postal address, as seen on the W2 or paystub
• The details of the last day of work for typical or usual responsibilities 
• Alternatively, the day the individual started working for less than the complete or modified duty

Which Individuals Does the SDI Scheme Not Cover?

• Most administrative employees, whether federal, regional, municipal or local 
• Non-industrial Disability Insurance covers some government employees (NDI)
• Several domestic help and staff
• Employees of the Interstate Railroad
• Some members of non-profit organizations’ staff
• Self-employed individuals and small company owners that do not spend on Elective Coverage

Why is the State Disability Insurance Important? 

Employees briefly incapable of working due to a non-job-related condition can receive assistance payments under the state’s disability tax scheme. The State Disability Insurance tax also funds Paid Family Leave (PFL) benefits.

Furthermore, other employees who cannot work are also eligible for the PFL program. Their eligibility includes caring for a critically ill family member or bonding with a new infant.

Soon, State Disability Insurance disability schemes and SDI tax will make their way in many other states.

The post What Is SDI? appeared first on AttendanceBot Blog.

In this article, we’ll take you through the definition of CA SI, who pays for it, the eligibility criteria, and if employers are allowed to opt-out.

What is CA SDI?

CA SDI or the California State Disability Insurance program provides benefits in case of temporary disability to eligible employees. Employees who cannot work due to a short-term illness or injury can take advantage of CA SDI. The California SDI provides wage replacement to the employees who qualify for the Employee Development Department or EDD Disability.

Under this program, the employees may collect weekly pay till they recover from their temporary, non-work-related illness. The compensation is tax-free in the hands of the employees. Employees can avail of these short-term disability benefits for a maximum of one year. The benefits under CA disability tax max out at around 60-70% of the employee’s salary in a quarter.

Who Is Accountable for CA SDI: Employer or Employee?

Employees who have a short-term disability in California can claim CA SDI benefits. Employees pay for California Disability Insurance from their monthly salary each month. Employers can deduct CA SUI SDI tax from their employees during payroll. In online portals, employers deduct employees’ contributions toward short-term disability insurance automatically. 

Employees should enter the details of CA SDI tax when they file their W2 form. Further, they can find details of CA SDI on the W2 form in Box 14. Note that the deduction makes provision for financial assistance under the CA disability tax. After that, it lowers the annual income of the employees and reduces their tax liability.

Employees can get California State Disability forms from the website of the EDD and fill them to avail of the benefit. They are available under the heading EDD disability forms on the website.

What Is the Rate of CA SDI?

The rate of CA SDI is the percentage of tax withheld from the employee’s paycheck to contribute to the CA SDI program. California disability pay cover provides financial aid to the employees who are unable to perform their duties. The reason could be physical or mental illnesses not related to their job.

Historically, the CA SDI rate has ranged from 0.9 to 1%. But the CA SDI rate for 2021 is 1.2%. The taxable wage limit is $128,298 annual pay and the maximum amount that can be withheld for CA SDI is $1,539.58.

What Is the Base Period Determination for CA SDI

It is essential to understand the base period for calculating the SDI benefits. California SDI provides financial assistance for up to one year. The benefits under this scheme equal 55% of the employee’s average gross income in the base period.

For California SDI, the base period is four quarters preceding the current and the previous quarter. The amount of benefit an employee will receive depends on their average pay.

What Are the Eligibility Criteria For CA SDI?

It is paramount to know which employees are eligible for California Disability Insurance. All the employees working in California can avail of this benefit irrespective of their citizenship or immigration status. If an employee cannot work because of a temporary illness, they must receive this compensation. The employees must meet the following eligibility criteria:

• Should be unable to carry out their office duties for a minimum of eight days continuously.
• Must have earned a minimum of $300 as wages in the last 12 months.
• Employers must have made a deduction for CA SDI from their salary in the previous 12 months.
• Must be unable to earn their wages due to their disability and not for any other reason.
• Should be working or seeking work while applying for disability payments in California.
• Must consult a licensed physician or practitioner for the first eight days of the illness or disability. They should be under medical supervision and care.
• Should claim the EDD disability cover within 49 days from the start of the disability. They cannot claim the benefit before nine days of the disability.
• Must ensure that their physician or practitioner has completed a medical certification of disability.

Employees can log in to the EDD disability portal to claim short-term disability insurance. People who are self-employed or are working as independent contractors can take advantage of the California State Disability program. They can make individual contributions to the EDD Disability Insurance Elective Coverage scheme. If an employee is not eligible for the California SDI program, they can opt for the DIEC program. However, they need to pay quarterly premiums for cover under the Paid Family Leave and Disability Insurance programs.

Is CA SDI Taxable?

Employers and employees must know whether CA SDI is taxable or not. No, the government of California has not made California SDI taxable. If an employee leaves their job temporarily due to disability, they are entitled to receive disability benefits. These EDD disability benefits are exempt from taxes in the hands of the employees.

It is significant to note here that disability benefits paid as a substitute for unemployment benefits are taxable. If an employee is unemployed, they receive unemployment benefits. While receiving unemployment benefits, if they fall ill or become disabled, they receive disability benefits. These disability benefits are taxable.

Source

Types of Claims under California SDI

There are several kinds of claims under CA SDI.

Disability Insurance Claim

Employees in California can apply for disability insurance to get short-term monetary assistance. People who cannot work because of a temporary disability or illness unrelated to their job can get wage replacement benefits.

Pregnancy

If an employee cannot do their job because of pregnancy, they can get a pregnancy claim. During pregnancy, the disability period starts four weeks before the delivery and continues to six weeks after delivery. Furthermore, in Cesarean delivery, the period extends to eight weeks after the delivery. Some employees may have a lengthier disability period owing to medical complications.

Paid Family Leave Bonding Claim

Employees can avail of the Paid Family Leave (PFA) Bonding claim to establish a bond with a new child. They might take time off to take care of the newborn or adopted child.

Paid Family Leave Care Claim

Employees can also seek help under the Paid Family Leave Care claim. The claim is advantageous if they have to take care of a family member. To specify, the family member could be the parents, child, spouse, grandparents, grandchild, sibling, or parent-in-law. However, the family member must be seriously ill and require constant care and support.

Paid Family Leave Military Assist Claim

PFL also gives benefits to employees who take temporary leave to be a part of a qualifying event. A qualifying event could be a military event or an urgent need arising from a family member’s deployment call.

Part-time Worker Disability Insurance and PFL

Part-time workers can also apply for Disability Insurance and Paid Family Leave. EDD assesses the eligibility of their claim before they receive the disability benefits.

Reduced Wages Disability Insurance and PFL

If an employee has suffered a wage loss and is working at a lesser pay due to disability, they can apply for these benefits.

State Disability Insurance and Non-Industrial Disability Insurance for State Employees

The Non-Industrial Disability Insurance covers state employees. Here, the employees receive partial wage replacement if they cannot perform their duties due to non-work-related disability, illness, or injury.

Benefits of SDI Online

Employees can submit their Disability Insurance and Paid Family Leave claim forms online too. It is convenient and safe to submit claims online. To do so, employees and employers can log in to the EDD website to submit the forms. Online form submission has the following merits:

Time-saving

The online process of form submission is time-saving. It takes less time to process the claim online.

Confirmation

Once an employee submits the claim, the portal or website confirms it immediately. 

Access to Information 

Employees and employers can access the information by logging into the portal. The portal saves the data. Therefore, employees can access it and check the status of the claim anytime.

Secure

The online process of claim submission is secure and safe. It has the required security safeguards to trace and mitigate fraud.

Employer Responsibilities Regarding Making CA SDI Information Available

Employers must understand and shoulder their responsibilities regarding CA SDI.

In the case of this social security program, employers don’t need to contribute funds towards this insurance. But they need to be meticulous with the contributions of employees toward California SDI. 

Employers need to tell their employees about the employment laws and guidelines, working conditions, and employee benefits. Additionally, an employer should post these posters containing relevant information about EDD disability programs.

Notice Regarding Paid Family Leave/ Disability Insurance/Unemployment Insurance (DE 1857A)

The poster contains crucial information regarding an employee’s right to claim Unemployment Insurance, Disability Insurance, and Paid Family Leave benefits. However, the employer should file Notice DE 1858 for the employees if the Unemployment Insurance does not cover them.

Notice Regarding Provisions of Disability Insurance (DE 2515)

Employers must give this brochure to new hires. The new hires can then go through the brochure and learn their rights. Further, employers should also duly inform their employees who want to take a leave because of temporary disability. 

Notice Regarding Paid Family Leave Benefits (DE 2511)

Employers should give the brochure containing this notice to all the recruits. They should also provide this information to employees who take leave to take care of a newborn baby. Moreover, employees taking time off to take care of a critically ill family member should read this information.

Employer Duties Regarding Disseminating Information About CA SDI

The employers are responsible for disseminating information regarding the provisions of CA SDI to employees. In addition to this, when an employee files a claim for California SDI, an employer must respond accordingly.

Disability Insurance Claim Filed (DE 2503)

The employer receives the form for Disability Insurance Claim after the employee has claimed it. Therefore, employers should complete the form and submit it to the Employment Development Department within two days. You can submit it online and verify the employee’s claim.

Paid Family Leave Claim Filed (DE 2503F)

The employer receives the form once an employee files a Paid Family Leave Claim. After that, they should complete the form and submit the hard copy to the EDD. Finally, they should ensure to submit the form within two working days after verifying the claim information.

Opting Out of CA SDI

Organizations can opt out of California SDI if they want. However, they should have a private plan for providing voluntary disability insurance to their employees. Additionally, the voluntary one must meet the following requirements:

• It should provide and include all the benefits given by CA SDI.
• The voluntary plan must have one extra benefit not included in California SDI. It should be better than the EDD Disability cover.
• The cost of the voluntary plan should not be more than CA SDI.
• The employees of the organization should approve the voluntary plan before employers implement it.

A voluntary plan is beneficial as it allows employers to give better coverage to the employees. Employers can provide more benefits without any additional cost. If the claim rate is low, employers can use the contribution to give extra advantages. Moreover, employers should get the voluntary plan approved by EDD. They need to create a security deposit with the EDD to ensure that it meets all the conditions.

The Bottom Line on California SDI 

CA SDI is advantageous for both employers and employees. Employees benefit because they continue to get monetary assistance during the disability. Simultaneously, employers also benefit as they do not have to pay for the disability benefits. They must only make deductions from the employees’ salaries to provide for disability benefits. 

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In this article, we take you through why do 1099 employees have to fill a W9 and how to fill one.

What is a W9 Form?

Source

A W9 form is one of the many tax forms used by the Internal Revenue Service (IRS). It is issued to confirm a person’s name, living details like their address, and crucially, the Taxpayer Identification Number (TIN). Therefore, the W9 form is also called the “Request for Taxpayer Identification Number and Certification Form.” Usually, employers use the W9 Tax Form to verify the tax details of the employee/contractor/freelancer.

People often confuse the W9. vs. 1099 form. Note that a 1099 form helps to generate the W9 form.

Now that we know what a W9 tax form is, here are all the other necessary details that you need.

When and Who Can Request a W9 Form?

The TIN and certification form requests are critical for hiring new employees or doing business with freelancers and contractors. It is a written request for information for use only to identify the receiver’s TIN. If you are an employer, you may need to file form 1099. In this case, you can request your employees to fill out the W9.

The W9 form’s purpose is to verify your TIN to file form 1099. Further, 1099 is a necessary form that reports your earnings/losses generated by your employer and filed with the IRS. If you are worried you do not know your TIN, it is the same as your Social Security Number. If you’re filling W9 for business, it should be the same as your Employee Identification Number.

The information on who is required to fill out a W9 form is on the IRS website. You will be required to fill out a W9 form to provide TIN to people required to file information returns. These information returns would include reports of

• Income paid to you
• Real estate transactions
• Mortgage interest you paid
• Acquisition or abandonment of secured property
• Cancellation of debt
• Contributions you made to an IRA

Where to Get a W9 Form?

If your employer requests a W9 form, you can download a blank W9 form online directly from the IRS website or using their link. Further, there are many W9 form templates if you want to make your own.

Note. Only employees/contractors/freelancers who are resident citizens of the United States of America are issued W9 forms. The IRS requires other people (like resident aliens) to use form W8 or form 8233 instead.

When can Employers Request W9 forms?

Employers need to request W9 forms if they are legally required to submit Form 1099 with the IRS. Form 1099 is only necessary after reaching a minimum income threshold. In most cases, that minimum threshold is USD 600.

If you’re a TIN holder who earns below USD 599 annually, you must report this income on your own. In this case, you do not qualify as a W9 employee, and your employer need not file the 1099 form.

What Happens After Collecting the Employees’ W9 Form?

Once you’ve collected a W9 form from your employee, it is time to create a 1099 form. A 1099 form contains information about any income the TIN holder might receive from you. However, it does not include the income on a W2 form. It contains the following.

1. income paid as a part of a contract
2. Real estate transactions
3. Dividends paid against investments
4. Cancellation of debt
5. Contributions made by the IRA

Employers must know how to manage their employees and protect their privacy. Ensure that you don’t disclose the details given to you in a W9 form to any third parties. It violates your employee/freelancer/contractor’s right to privacy, protected under the law. Any violations of this rule will lead to severe consequences, including but not limited to civil and criminal prosecution.

W9 vs. W2 Forms

Despite being filed for two different purposes, both employers and employees often confuse the two forms. Both W9 and W2 forms are issued to employees earning more than USD 600 a year. Your employer will send the form to you, the Social Security Administration, and the required federal and state authorities. However, W9 forms merely act as a confirmation of your TIN, name, and address. While the employer sends you the W2 forms, you send W9 forms to your employer.

Similarly, there is also confusion when it comes to W9 vs. W4 forms. Unlike W4 forms, W9 forms do not directly instruct your employer to practice backup withholding.

How to Fill Out a W9 Form 2021

While the W9 form is relatively easy to read and fill, tax forms are extremely daunting and intimidating. Any misinformation that you might provide is equated to perjury and lying under oath. However, don’t let this get to you. It is easy to fill out the W9 online. Follow these steps, and you should be fine. Here are the W9 instructions:

1. State your name exactly as it is on your Tax Return.
2. Enter your business name only if the name is different from your name. Contact your CPA for the exact details.
3. Declare the type of your business entity. The choice is between sole proprietorship, partnership, C corporation, S corporation, trust/estate, LLC, or other. It is easy to figure out which type of entity you are. For most types, you will have already filled out paperwork, establishing the kind of entity. If you haven’t filed such paperwork before, you’re either a sole proprietorship or a partnership. For clarity, if you own your business with a partner, it is a partnership; if not, pick sole proprietorship.
4. Exemptions: Leave this box empty unless you’ve received exemptions from backup withholding or report under the Foreign Account Tax Compliance Act.
5. Fill in your street address, city, state, and ZIP code. If your home address is different from your business address, you should use the one on your tax returns.
6. Record the information of the employer who has requested a W9 form. It is optional but highly recommended.
7. Now for the most crucial step, and often the most confusing one as well. The IRS has labeled this section as Part 1, where you must provide your business with your TIN. Further, 99% of the time, your TIN will be the same as your Social Security Number. However, if you employ other people, you will be assigned an Employer Identification Number. If you are a sole proprietor and have an EIN, the IRS prefers you input your SSN here.

• You may apply for an EIN. If so, write your SSN and “applied for” in the space where they request your TIN. You will be subject to backup withholding until you refurbish the W9 tax form with a TIN.

1. Step 8 is attestation about your truthfulness. Here are the statements that you should certify to be true under the penalty of perjury.

• The TIN is accurate.
• I am not subject to backup withholding. (If you are subject to backup withholding, cross this out. *important*).
• I am a US citizen or other US person.
• The FATCA code that I have entered in this form is accurate.

Once you have completed these steps, ensure to check the form once more for any inaccuracies. Sign the form, and return it to your employer. You can sign this form digitally, using several online software, like DigiSigner. If you’re still confused about W9 forms, many W9 examples show how to fill out a W9 form 2021.

Conclusion

The W9 form is a crucial yet simple step in the process of filing your income tax returns. Filing taxes can be incredibly troublesome. However, we hope this blog clarified how to fill out a w9 form! It is a simple, albeit crucial, form to fill out to ensure tax compliance. Be careful and methodical, and filling out the W9 tax form will be an easy task.

The post What is a W9 Form? Everything You Need to Know appeared first on AttendanceBot Blog.

What is FSA or Flexible Spending Account?

A Flexible Spending Account (FSA) is a type of account that allows employees to save their potential medical expenses. FSA is credited from an employee’s salary. Employers deduct the set amount decided by the employee from the remuneration before crediting their salary in their bank account. A few employers also contribute toward an employee’s FSA, and this amount is tax-free. 

What is the Eligibility for Starting an FSA Plan?

Employers set up a health FSA for employees to avail benefits. Employers can provide an FSA with other employee benefits. Self-employed individuals are ineligible for an FSA. 

FSA Contribution Rules

Employees contribute toward the FSA for their potential medical expenses in a year. An employer has the choice to contribute toward the employee FSA, but it is not compulsory. 

An employee decides the amount they want to contribute toward the FSA at the start of every plan year. The employer deducts the set amount on each payday before crediting remuneration to the employee’s account. The arrangement is also called a salary reduction agreement. An employee doesn’t have to pay any tax on the amount contributed toward the FSA account.

FSA Fund Rules

• The amount contributed toward the FSA can not breach the USD 2750 threshold allowed under the FSA rules. 
• An employee only has one year to use the FSA funds.
• If an employee doesn’t use the FSA fund within a year, the fund balance is transferred back to the employer’s account.
• There is a limit of USD 2750 per person. An employee’s spouse can also contribute up to the FSA fund limit if they are filing tax individually.
• Employers can offer a grace period for the FSA funds. For example, If the FSA plan expires on March 31, 2022, employers can extend it up to two and half months. An employee can use their FSA fund balance by June 15, 2022.
• Employers can allow carrying forward the fund balance by up to USD 550 per year till the next year.

FSA Distribution Rules

• FSA funds can only be used for qualified medical expenses.
• Employees can avail up to the maximum amount set for the health care FSA during any time of the year. For example, If an employee has set a limit of USD 2750 for the year, they can get the entire amount for the medical expense on the second day after the FSA plan starts.
• If an employee leaves the organization in the middle of the year and uses the entire FSA fund for that year, the company has to pay the remaining unpaid amount in FSA.
• The employee must provide a written statement that the amount used for the medical services hasn’t been reimbursed by other health coverage.
• The employee must provide a receipt or transaction details to get reimbursed by the health care FSA.

Changes in FSA Rules 2021

• IRS has released new guidelines that allow employees to change existing grace periods and amounts contributed toward FSA. However, the employer has the right to decide if they want to follow the guidelines in their organization.
• FSA coverage covers menstrual care products and unprescribed over-the-counter drugs, as of 2020.

What are Qualified Medical Expenses? 

Qualified medical expenses under FSA include medical and dental expenses incurred by an individual during the year.

FSA covers qualified medical expenses incurred by the following persons.

• Employee and their spouse 
• All dependents of the FSA holder
• Employee’s children under the age of 27 at the end of the tax year
• Ineligible dependents, including, 
  • An individual who has filed a joint return
  • An individual whose gross income surpasses USD 4300

What are Health Care Flexible Spending Account Eligible Expenses?

• Vision-related expenses, such as spectacles, contact lenses, and prescription sunglasses are permitted.
• Dental expenses, such as dental care visits, braces, and other dental health expenses are acceptable.
• The FSA plan covers menstrual care products and unprescribed over-the-counter drugs, as per the flexible spending account rules 2020.
• Broad categories of products covered under the FSA are as follows. 
  • Baby and child care
  • Ear care
  • Eyecare
  • Foot health 
  • Family planning and tests
  • Medical equipment 
• FSA holders can refer to the IRS Publication 502 to understand medical expenses permitted under the FSA.
• Health insurance premiums, long-care expenses, and expenses covered by other health plans are not covered under FSA.

What is an FSA Card?

An FSA card works like a debit card and allows individuals to spend money under the FSA. An individual can use their FSA card for eligible expenses under the FSA plan. FSA cards can be used at hospitals, pharmacies, and online FSA stores, including Amazon FSA. If the service provider of your qualifying expense doesn’t accept an FSA card, you can withdraw cash to make a payment. However, you need to save the receipt for the FSA provider and IRS audit. If a person uses an FSA card for ineligible expenses, they have to credit their account with the same amount. An individual can view their FSA card balance from an online FSA account. FSA cards may or may not be provided by the employee’s FSA plan.

What is Dependent Care FSA?

American families find it challenging to manage child care when they go to work. They need child care support to help them relieve the concern of looking after their children. Dependent care FSA covers child care expenses for dependent children up to 13 years of age. In addition, dependent care FSA also allows adult care expenses when a dependent adult is incapable of self-care.

What is the Eligibility for the Dependent Care FSA Plan?

Employers set up a dependent care FSA for an employee to avail of the benefits. Employers can provide dependent care FSA with other employee benefits. Self-employed individuals are ineligible for dependent care FSA.

What are the Dependent Care FSA Contribution Rules?

An employee decides the amount they want to contribute toward the dependent care FSA for the yearly child care and adult care expenses. The employer deducts the amount on every payday toward the annual dependent care FSA fund. An employee can deduct the amount contributed toward the dependent care FSA from their gross salary and receive tax benefits.

What are the Rules for the Dependent Care Contribution Toward the Fund?

• The amount contributed toward the FSA can not breach the USD 2500 threshold allowed under the dependent care FSA rules. 
• Employees only have one year to use the FSA funds. The fund balance will be transferred into the employer’s account if not used.
• The limit of USD 2500 applies per person. Employees’ spouses can contribute up to the FSA fund limit.
• Employers can offer a grace period for the FSA funds. For example, if the dependent care FSA plan expires on December 31, 2021, the employer can extend it by up to two and half months, and the employee can use their FSA fund balance by January 15, 2022. 
• Employers can allow the carrying forward of the fund balance of up to USD 550 per year to the succeeding year.

What are the Dependent Care FSA Distribution Rules?

• The dependent care FSA funds can only be used for qualified medical expenses.
• Employees can avail of funds up to the maximum amount they have decided to contribute to the dependent care FSA at any time of the year. For example, If an employee has set a limit of USD 2500 for the year, they can get the entire amount for the care expense from the second day after the FSA plan starts.
• If employees leave the organization in the middle of the year and use the entire dependent care FSA fund agreed upon for that year, the company has to pay the remaining unpaid amount.
• The employee must provide a receipt or transaction details to get a reimbursement amount from dependent care FSAs.

What are the Eligible Dependent Care FSA Expenses?

• Physical care
• An expense for a nanny or babysitter 
• Summer day camps for children 
• Child daycare or adult daycare services
• Before and after school care (tuition excluded)
• Nursery schools

What is a Limited Purpose FSA (LPFSA)?

An individual can not have both HSA and healthcare FSA. An employer provides the option for an employee to apply for a Limited Purpose FSA with the HSA. An employee can use the LPFSA for dental and vision expenses. Employees who have HSA can get medical expenses for vision and dental care through LPFSA.

What is the Eligibility for Starting a Limited Purpose FSA Plan?

Employers set up the LPFSA for employees. If employers fail to provide an LPFSA plan, an individual cannot get the benefit of LPFSA. Self-employed individuals cannot avail of an LPFSA plan.

What are the Rules for Limited Purpose FSA Funds?

• The amount contributed toward the LPFSA cannot breach the USD 2750 threshold allowed under the LPFSA rules. If an employee and their spouse are filing the tax individually, they can contribute USD 2750 each toward the Limited Purpose FSA.
• An employee only has one year to use the LPFSA funds.
• If an employee doesn’t use the FSA fund within a year, the fund balance is transferred into the employer’s account.
• Employers can offer a grace period for the FSA funds. For example, If the dependent care FSA plan expires on December 31, 2021, the employer can extend it by up to two and half months, and the employee can use their FSA fund balance by January 15, 2022. 
• Employers can allow the carrying forward of the fund balance of up to USD 550 per year to the subsequent year.

What are the Limited Purpose FSA Eligible Expenses?

• Limited Purpose FSA eligible expenses include vision expenses for items such as spectacles, prescription sunglasses, and lens cleaner solutions. 
• LPFSA covers dental expenses such as dental cleaning and filling. 
• LPFSA holders can refer to the IRS Publication 502 to understand medical expenses.

Example of LPFSA

Let’s say Alexa has the following eligible expenses.

Alexa can calculate her potential expenses for vision and dental care in the following year. She can put the amount in LPFSA not covered under her current insurance plan and avail of tax benefits.

Conclusion

An employer can create and offer various Flexible Spending Accounts to their employees. The IRS regularly updates the rules to include, remove, or update different rules. The employer needs to change their FSA plans accordingly, to offer an employee new benefits.

The post What is an FSA? appeared first on AttendanceBot Blog.

In this topic, we will cover the meaning behind the term ‘ban the box’ in-depth. You will learn in which states this movement is currently active and everything else you need to know about this campaign. 

What is the ‘Ban the Box’ Law?

According to this law, employers are banned from asking ex-convicts questions related to their criminal history. The idea of this law, sometimes known as Fair Chance Legislation is to give ex-convicts a fair chance to begin with, and a fresh start at work, despite their previous criminal activity. 

This campaign gathered massive support because it’s important since America has a growing number of criminal records out of which mostly are drug crimes. In this case, after serving their sentence they have a hard time finding new jobs and stay unemployed for a very long time, according to its advocates. 

According to NCSL, an estimated 77 million Americans have a criminal record. 

While Hawaii began this campaign, a decade later, Minnesota was the first to follow. Ever since then this movement has gained immense popularity and support with more states in the US now adopting this policy. Currently, this movement is active in 33 states and more than 150 cities. In its support, advocates say ban the box is not only helpful for ex-convicts in finding a job but is also great for the American economy. The reason is that it helps most people get employed.

Although the BTB law was primarily adapted by public sectors, it gained support in the private sectors, too.  The law seeks to protect ex-convicts from being automatically disqualified from the employment process on the basis of previous convictions. 

Ban the Box States

What are the states with ban the box laws? Let’s take a look at some of the major states and their municipalities one by one:

Ban the Box California

In California, employers with at least 5 employees are prohibited from inquiring about the criminal record of an applicant before making a conditional job offer. In Los Angeles, employers that have 10 or more employees have a similar ruling. San Francisco mandates that unless a conditional job offer is made, a criminal inquiry is banned. 

Ban the Box Law Exceptions In California

Ban the box law is not applicable to the following positions in California:

• A position for which it is mandatory by law to check the conviction history background of an individual.
• A position with a criminal justice agency
• A farm labor contractor position
• A position that requires by federal, state, or local law, a criminal background check on an applicant for employment or to restrict their employment on the basis of any criminal history.

Ban the Box Arizona

Arizona mandates all state agencies follow the Second Chance Box Policy. According to this law, no state agency should ask if an applicant has a criminal history. Secondly, a criminal record shall not disqualify an applicant for the interview process.

Ban the Box Hawaii

In Hawaii, all private employers must take the ban the box law into account and are prohibited from asking an applicant about their previous criminal acts until the conditional job offer.

Ban the Box Ohio

According to House Bill 56, also known as ban the box legislation, no public employer has the liberty to ask an applicant about their criminal history. 

Ban the Box Massachusetts

Beginning in 2010, Massachusetts was one of the first states to support the ban the box movement. In Boston, Cambridge, Worcester all private employers and vendors doing business within the city are not allowed to ask an applicant about their criminal record.

Ban the Box Illinois

Illinois governor J.B Pritzker signed a bill called The Employee Background Fairness Act on March 23, 2021. This bill prevents employers from inquiring ex-convicts about their previous felonies. 

Ban the Box New York

New York’s Fair Chance Act that took effect on July 29, 2021, prohibits employers from any discrimination based on an applicant’s criminal record, criminal accusations, or convictions. 

Ban the Box New Jersey

On August 11, 2014, New Jersey governor Chris Christie signed a bill called Opportunity To Act. This law became effective in 2015 and currently prevents employers from enquiring applicants about their criminal history during the initial employment application process. 

Ban the Box Wisconsin

All criminal history questions are banned until a conditional job offer in Wisconsin. This law is for employers who have their business in the city on contracts worth more than $25000. Wisconsin government passed the law in 2015.

Ban the Box Florida

Effective since February 2021, ban the box law in Florida requires the removal of the check box which asks ex-convicts of their previous criminal record. Other cities in Florida with this rule are Tampa, Orlando, Gainesville, Jacksonville, Tallahassee, and Sarasota.

Ban the Box Texas

All employers with 15 or more employees in Texas are prohibited from asking an applicant’s criminal background. The law is meant to give everyone a fair chance until a conditional job offer has been made.

Ban the Box Nevada

Ban the box in Nevada which was made effective in January 2021, prohibits employers from asking applicants about their previous convictions. The exceptions however include peace officers, firefighters, or any position that has access to the National Crime Information Centre.

A ban the box state map is as follows:

Source

Going Beyond BTB: Fair Chance Laws

Fair chance law is often used interchangeably with the BTB law. Although the differences are minor but fair chance laws provide much more benefits to ex-convicts to prevent any kind of discrimination against them. Equal Employment Opportunity Commission gave the following points in 2012 for a fair chance to ex-convicts:

• Any record-related background checks are to be delayed until a conditional job offer is made.
• Company ads that require background checks are to be banned.
• Removal of questions that enquire ex-convicts about their criminal history during job interviews.
• And finally, imposing a restriction on the use of criminal convictions by employers.

What Does Ban the Box Mean For You?

As employers, BTB law can mean many things for you. Organizations that hire people from across the country must comply with many regulations. An HR manager is often stuck in the dilemma of hiring an ex-con to give them a fair chance or to become liable for negligent hiring. Ban the box legislation doesn’t entirely stop an employer from conducting a background check. Instead, it delays it until a job offer is made. Until now, there is no federal ban the box law. Only cities and states pass this law. Sometimes an employer may face restrictions on how they can use the information obtained from the background check. In some states like California, an employer must give an applicant notice.

Is Ban the Box Law Effective?

Some pros of the BTB are:

Higher Employment

Ban the box law has been so effective, the states have now included private organizations on the list too. Ever since the law became effective in the 2000s, the percentage of hiring people with conviction histories, across the country has significantly increased. According to research conducted by Case Western Reserve University, former prisoners have a better chance of getting hired based on their skills, despite being an ex-convict. This is when application forms do not ask them about their criminal history. Up to 4% of ex-cons have been employed in the US.

Higher Retention Rate

Economists say, hiring people with records is smart business. How? Because the retention rate is higher and turnover is reduced. Another benefit of hiring ex-convicts is that they are loyal to an organization, making a better hiring pool for you.

Lower Conviction Rate

A study showed that criminal defendants prosecuted in Honolulu for a felony crime were 57% less likely to have a prior criminal conviction after the implementation of Hawaii’s ban the box law.

Are there any Drawbacks to Ban the Box Law?

As everything that’s effective has a few drawbacks too and so does the BTB law:

Narrow Applicant Pool

When employers don’t have the liberty of asking applicants about their criminal history, they sometimes replace these questions with heightened educational and job experience. This ultimately narrows down the pool of applicants that could’ve been eligible otherwise. 

More Discrimination

Ban the box laws may end up increasing racial discrimination. When employers don’t have the freedom to inquire about an applicant’s criminal records, they prefer hiring more white Americans because they have statistically less conviction rates than African-Americans. According to a study, white Americans are 23% more likely to get a callback as compared to other races.

In another study, it was found that BTB policies decrease the probability of employment by 3.4 percentage points (5.1%) for young, low-skilled black men.

Adverse Action and Ban the Box Law

Adverse action describes the processes which employers must follow when rejecting, terminating, or assigning an individual on the basis of their criminal background check. The FCRA has laid out 3 steps in this matter:

• Employers must send a notice before the adverse action along with a copy of an applicant’s background check history.
• They must allow typically five business days of time for the applicant to respond.
• Then send the final adverse action notice to them as the last step.

Ban the box is concerned with 3 different aspects of adverse action:

• A reasonable time period between the initial and the final adverse action notice.
• An explanation of which aspect of the background check has led to the adverse action from your side.
• Notifying the candidate of their right to meet the HR and their right to provide a report of the inaccuracy of their background check, if any or if they went to rehabilitation after their conviction.

Final Word On Ban the Box Law

The BTB law varies from state to state. Some rules and exceptions that are part of one state law may not be of another. As an employer, it is important for you to have a compliant framework to follow ban the box requirement at all levels. The best practice is to consult with a lawyer who can advise you on your obligations and rights.

The post Ban the Box: All You Need to Know appeared first on AttendanceBot Blog.

Well, there are several types of leaves that help us achieve that. The State of New York has a Paid Family Leave that has several benefits for it people.

In this article, you will explore Paid Family Leave NY and all the necessary details about it.

What Is Paid Family Leave NY?

The Paid Family Leave NY provides employees with benefits that allow them to care for their family and loved ones without losing their job and economic security. The program protects employees’ jobs and ensures that they get the same job or role back upon returning from their leave.

Employers have to continue providing health insurance benefits to employees while they are on PFL. However, employees have to continue to pay their health insurance premium contribution while on PFL.

Who Is Eligible for Paid Family Leave NY?

Mot full-time and part-time employees are eligible for Paid Family Leave NY. Employees who work regularly for 20 hours a week can be eligible if they have worked for their employer for 26 or more weeks consecutively. On the contrary, those employees who work regularly but for less than 20 hours can only qualify after working for 175 days.

Employees become part of the NY Paid Family Leave program by default upon joining an organization. However, they can choose to opt out of the program if they have temporary employment such as a seasonal employment contract, and do not plan to work for the company for long to become eligible.

All employers in New York state have to allow employees to take Paid Family Leave.

What Situations Qualify for Paid Family Leave NY?

Bonding Leave

Bonding leave refers to paternity and maternity leave related to childbirth, adoption, and foster care. An important point to note here is that Paid Family Leave only begins after birth and does not apply to the prenatal period. A parent is eligible to take PFL during the first 12 months of having a child, adopting r fostering a child. The parent must take the leave within the first year of birth or replacement. However, flexibility is offered for adoption and foster care-related matters. For example, parents can take leave if they have to travel to another or country, meet with doctors or attend counseling sessions.

Care For Loved Ones With a Serious Medical Condition

People who come under loved ones include parents, spouse, domestic partner, child, parent-in-law, grandparent, and grandchild.

Exigency Leave

Exigency leave is also known as Active Deployment Leave. This allows employees to take leaves whose parent, child, spouse, or domestic partner is on active duty.

How Does Paid Family Leave NY Work?

• The disability policy will include the Paid Family Leave coverage and is mandatory for New York employers to carry it under the New York Disability Benefits Law (DBL). Employees will fund the premium cost for the coverage through payroll deductions. The State of New York will establish the maximum rate for employees’ contributions.
• An employer cannot force the employee to take all their sick leaves or vacation time (PTO) before utilizing PFL. An employer can mandate an employee to use their sick or vacation leaves for full pay but cannot require them to use the PFL.
• Employees will continue to receive health insurance and job protection benefits while n Paid Family Leave.
• It is mandatory for all private employers to be a part of the program. Public employers, on the contrary, have the choice to opt-in.
• Paid Family Leave NY is funded through employee contributions in the following way:
  • The New York Department of Financial Services (DFS) develops the rate and rate structure. They are announced on September 1 of each year and are effective from January 1 of the upcoming year.
  • Employee’s salary determines the rate.
  • Employers deduct 0.511% of employees’ gross weekly wages.
  • The New York State determines the average weekly wage on March 31 of every year.

What Are the Benefits of Paid Family Leave NY?

• Employees can take the maximum benefit length in the given 52 week period. The p52 period starts on the first day of the employee’s DBL or PFL benefit.
• The New York State Department of Labor publishes the NY State Average Weekly Wage (NYSAWW) manually to determine the maximum benefit payable.

Who Pays for the Benefits?

New York State requires employers to charge employees’ payroll for the cost of the benefits. However, According to RIT, there will be no more deductions from employees’ paychecks in 2021.

Difference Between NY DBL and NY PFL

Covered and Non-Covered Employers Under the Paid Family Leave NY

Covered Employer

• All private sector organizations with at least one employee excluding the owner.

Non-covered Employer

• Public employers,  a political subdivision of the state, a public authority or any
  other governmental agency
• Sole proprietors, Limited Liability Partnerships, Limited Liability Companies and self-employed people with no employee working under them
• Independent contractors

Who Is a Covered Employee for Paid Family Leave NY?

An employee becomes covered when they fulfill the following criteria;

• Physically working in New York State
• Doesn’t fall into the excluded class
• Working for a covered employer or an employer who voluntarily provides Paid Family Leave NY coverage

Who Classifies as a Non-Covered Employee for Paid Family Leave NY?

• An employee working for a non-covered employer
• Employees who are already receiving disability benefits under state disability insurance or workers’ compensation
• An unemployed person who is receiving unemployment benefits
• Employees on administrative leaves
• Minor child of an employer
• Maritime, government, railroad, or farm laborers
• Christian Science readers, ministers, priests, rabbis, members of religious orders, sextons,
• Non-compensated individuals who volunteer to offer their services for non-profits organizations
• People working as professionals or teachers  for a religious, charitable, or educational institution
• Individuals who receive aid from a religious or charitable institution in return for their work
• students in the secondary or elementary school who work part-time during the year or vacation period
• Independent contractors and subcontractors
• spouse of an employer that files a spousal exclusion form

Are You a New York Employee or an Out-of-State Employee?

• If you work from your home in New York then you qualify as a New York employee. This also applies if your employer is located outside of New York state.
• If you work outside of New York, regardless of where your employer is located, you will come under out-os-state employee.
• An employee who has to travel to New York for occasional work or duties will not be known as a New York employee unless the employer is based there.

Final Word

Now that you know about Paid Family Leave NY and its benefits. you can take leave accordingly. As an employer, awareness is equally important as you can administer them properly

The post All You Need to Know About Paid Family Leave NY appeared first on AttendanceBot Blog.

This article will give you a detailed understanding of payment in lieu of notice. You will learn the purpose of PILON along with its difference with garden leave. In addition, you will go through the terms of the notice of employment. Let’s first go through the definition of payment in lieu of notice.

What is Payment in Lieu of Notice?

Let’s begin with the meaning of in lieu. In lieu means ‘instead or in place’. Therefore, payment in lieu of notice means payment instead of notice. 

Sometimes, instead of notice, employers pay employees an amount after dismissing them from their job. This amount is called payment in lieu of notice or PILON. This payment is usually more than their normal pay because they receive it on their termination. Typically, employers are not bound to pay their employees this amount. This only happens under an employment contract. If an employee is dismissed without serving their notice period, they are given a compensation payment known as wages in lieu of notice. 

The purpose of payment in lieu of notice is to dismiss the employee right away before having them serve the notice. This payment is meant to be a reimbursement to the employee for loss of wages. However, if an employee is fired due to misconduct, they are not entitled to payment in lieu of notice. 

In this arrangement, employers have to pay employees their payroll without them serving the notice. Sometimes, even after being terminated and receiving the payment in lieu of notice, the employees can get other benefits. These include health benefits, compensation, or holiday pay for instance.

Purpose of Payment in Lieu of Notice

Some reasons for paying an entitled employee in lieu of notice are:

Stopping Access to Company’s Information

Payment in lieu of notice is given to employees when the organization has to prevent an employee from reaching out to the sensitive information of the company. In this case, they are paid to not work their notice period. 

Effect on Other Employees

Sometimes, if an employer is concerned about the effect an employee may have on the other employees, they are dismissed without having to serve the notice period. 

Employee Contract

If payment in lieu of notice is mentioned on an employee contract, it is mandatory for the employers to pay these wages to their employees. This contract mentions that the employee will not be working their notice period hence the PILON.

Lack of Productivity

If an employer feels that an employee’s disruptive behavior isn’t going to improve, they can terminate them without keeping them for the notice period. In this case, too, payment in lieu of notice is given to the employee. 

Compensation for Benefits

In some cases, the purpose of wages in lieu of notice is to compensate for any loss of benefits that may have accrued during their continued employment. These include things like an accrued vacation, bonuses, or pension.

Covering Damages

One reason to pay the payment in lieu of notice is to simply cover any potential damages for breach of contract when terminating an employee immediately.

Exception:

• In New Jersey, employees who are receiving payment in lieu of notice are not eligible to get unemployment compensation. In case, their wages in lieu of notice are less than a week’s compensation and they can receive unemployment compensation.
• If an employee is involved in misconduct that may include theft, harassment, and bad behavior, they are not entitled to getting payment in lieu of notice. Instead, they are fired immediately.

Payment in Lieu of Notice and Employee Contracts 

Some employment contracts clearly state that employees will receive payment in lieu of notice immediately after being terminated. Such a contract helps employers to prevent the violation of the contract between both parties. You should provide benefits including pension, holiday pay, or health care insurance to your employees if it is mandated in their employment contract. 

Take care of the following things in the contract:

Breach of Contract

Before making the payment in lieu of notice, make sure to check the employment contract carefully. Without the contractual clause, you can breach the contract by preventing the employee from working.

What and When to Pay In Lieu

Apart from mentioning the PILON, the contract should include what to pay your employee in lieu of their notice. It should also include the way you do it and when you do it.

The clause should state that their contract will be terminated even if the payment is made at a later date.

Be Specific About the Payment In Lieu of Notice

The contract should be as specific as possible.  A vague payment in lieu of a notice clause can be costly to the employers.

Communicate the Payment In Lieu of Notice Regardless

Even if you have an employment contract that mandates payment in lieu of notice, you should still communicate this to your employees. A lot of the time employees don’t read their employment contract carefully and they could be in the dark about this clause. 

Not following the terms mentioned in the contract can lead to conflicts with your employees. Any disputes that arise due to issues in payment in lieu of notice are resolved by employment lawyers.

What to Do If There is No PILON Clause in the Contract?

Sometimes you may have an employment contract that doesn’t talk about the payment in lieu of the notice clause. In this case, it is best to terminate the employee without paying them. Otherwise, you will breach the contract. However, if you can talk to your employees into giving them wages in lieu of notice, you can do that even if the PILON clause isn’t in the contract. In some cases, employees may not agree to these conditions. In that case, if you don’t want the employee to work their notice it’s best to seek advice from employment lawyers and then decide.

Payment in Lieu of Notice vs Garden Leave

Payment in lieu of notice and garden leave are two terms that are often used interchangeably. However, both these terms are different in the following ways:

Working the Notice Period

The wages in lieu of notice is given to the employees when they are to be terminated immediately, without serving the notice period. On the other hand, in garden leave even if employees are terminated, they must work through their notice period. However, during the garden leave it isn’t necessary for them to come to work.

Looking for Other Jobs

While being on PILON, employees can look for other jobs after being terminated. However, in the garden leave an employee has to work for their organization and cannot look for a new job while being on their notice period. This is done to stop the employees from working for competitors for a period of time.

Termination Process

The purpose of PILON is to terminate an employee’s employment immediately. Therefore, they don’t have to work their notice. On the other hand in garden leave, after being terminated, employees have to work their notice period before cutting ties with the organization completely.

How to Calculate the Payment in Lieu of Notice?

The amount to be paid to the employee is calculated in accordance with the terms mentioned on the employee contract. In case the payment is not mentioned on the employment contract, then pay the amount that the employee would have received if they worked their notice period. This method can however vary depending on if the employee is a non-exempt or exempt employee. 

Apart from this, they need to be paid for time off accrued and not taken and possibly compensated for lost bonuses. Keeping a track of all this will help you calculate the payment in lieu.

When Should the Payment in Lieu of Notice be Paid to the Employees?

Employers must pay them these wages as soon as they are terminated. If for some reason, the payment in lieu of notice is not mentioned in the employment contract, paying it can likely be a breach of this contract.

Terms of Notice of Employment

When an employee ends a job, they give or are given a certain amount of notice to their employer. This notice consists of details of the payment that an employee gets along with other rights and responsibilities.

The following are some terms of the notice of employment:

For Employees

If an employee has worked for you for over a month, they must give you a notice of a week. If the employment contract mentions a longer notice period, employees should comply with the contract. In the case it is not mentioned, employees should decide their notice period reasonably depending on their work duration or seniority. Failure to give notice will result in a breach of the contract and you can even sue your employee for this violation.

For Employers 

Regardless of the employment contract, you must give your employees a statutory minimum notice period depending on the duration that an employee has worked for you. According to the UK government:

• You must give your employees notice of one week if they’ve worked a minimum of one month up to 2 years. 
• Give notice of one week to your employee for each year if they’ve worked for more than 2 years to up to 12 years.
• In case they have worked for more than 12 years, a notice of 12 weeks is mandatory.

In the US, according to the WARN act, employers with 100 or more employees, must give notice of 60 calendar days in advance to the employees.

Garden Leave

In garden leave, you give your employees a notice to stop them from working for you. In this leave, they have to serve their notice but during this, they can not look for other jobs. During this notice, employees are entitled to other pay, including basic pay and company benefits. If the need arises, employees can be brought back to work from garden leave.

Shorter Notice Period

Employees have the right to agree to a shorter notice period if they wish. In this case, they will only be paid for the agreed period. 

Failure to Give Notice

 If you or your employee fail to give notice, this will be a breach of contract. The contract of employment is breached if:

• The contract mentions the provision of notice in the written form but was given verbally.
• If no notice is given at all or is not detailed enough. 

Work at Will

According to the at-will employment, an employer has the right to terminate an employee for any reason, unless they are firing an employee for an illegal reason. This includes firing them either because of their religion, race, or sexuality. Similarly, an employee has all the right to leave a job whenever they want with no adverse legal consequences. 

Although it isn’t a legal requirement for an employee to give you notice, most employers expect at least two weeks’ notice prior to the termination. This gives them time to look for a new hire in the meanwhile. Having a contract with your employees is important in the terms that it states what will be the aftermath of termination.

The Takeaway on Payment In Lieu of Notice

Payment in lieu of notice is something that needs to be decided carefully. Make sure you study employee rights before and include a PILON clause in the employment contract. 

The post The Comprehensive Guide to the Payment In Lieu of Notice appeared first on AttendanceBot Blog.

The article focuses on MWBE certification, its eligibility criteria, and its benefits. This piece will also introduce you to a few programs that have been developed by some states.

What Is an MWBE Certification?

MWBE stands for Minority/Women-Owned Business Enterprises. Some states might treat it separately as an MBE or WBE. However, in either case, it is a certification issued by states to provide developmental benefits to the businesses owned by women and minorities. Apart from the state-run programs, there are a few that have been developed by the federal government and private organizations.

Being a minority, you have to belong to any of the following groups:

Black

Originating from any of the African racial groups.

Hispanic

Being a descendant of Mexican, Puerto Rican, Dominican, Central or South American or Cuban origin. The origin could be Latin American.

Asian-Pacific

People coming from the Far East, Southeast Asia, or the Pacific Islands.

Asian-Indian Subcontinent

People having their roots in the Indian Subcontinent.

Alaskan Native or Native American 

Persons having their roots with the original people of North America.

Benefits of Getting MWBE Certification

If you are someone who is running a minority/women-owned business, then you may want to consider getting MWBE certified. This is because it comes with some great benefits. Let’s get to know a few of them:

Competitive Advantage

If your company is certified, you may get some competitive advantage. It gives you the opportunity to work with bigger players in the industry. Being certified means having access to developmental assistance, opportunities, and resources.  This will help you secure government contracts that were inaccessible before. So, for instance, if you have a catering business, having the certification will give you the chance of catering a government lunch. Similarly, if you own a soap company, you may become a soap supplier to a state facility.

Online Visibility

Having an MWBE certification increases your business’s online visibility. So, the agency that will certify your business is most likely to publish your company’s name on their website. This increases the chance of prospective customers seeing you online and contacting you. Moreover, it builds a valuable backlink to your business’s website.

Company Expansion

Many states develop grant programs and funding opportunities for minority-owned small businesses. Having an MWBE certification gives you several opportunities to bag some capital for your business’s expansion.

Publicity

In addition to online visibility, an MWBE certification helps to publicize your business. Having a state-level certification gives an opportunity to send a press release to local media channels and publications. Moreover, you can also publicize this on your company’s social media platforms.

Branding

With an MWBE certificate, you have a chance of augmenting your branding efforts. You can add a certification logo on your website, email signature, or business cards.

Supplier Diversity Program

This is the biggest and most important benefit that minority and women-owned businesses enjoy. When large corporations buy goods and services from minority-owned businesses, the chances of growth increase manifolds.

It’s not that only small businesses benefit, giant players also reap the befits of getting supplies from small companies. Let’s have a look at a few of them:

• Big players become agile, flexible, and resilient.
• Highlight their commitment to diversity and inclusion, putting them in a good light in the market.
• Enables them to serve untapped markets.
• Get access to innovative products to buy and sell.

Eligibility Criteria to Obtain MWBE Certificate

Eligibility criteria vary from one state to another. Some of the common criteria are as follows:

• At least 51% of the company’s ownership has to be in the hands of one or more persons belonging to the socially or economically disadvantaged group.
• The owner of the business should be a US citizen.
• The company should be physically located in the US.
• The company should be a for-profit enterprise.
• Women or minority members should be looking after the management and daily operations.

It is advisable that you carefully review the requirements of the program you want to join before submitting your application.

The MWBE Certification Process

To get your business certified, you must go through the following steps:

• Go through the eligibility criteria to see if your business qualifies for an MWBE certification.
• Collect the required documents.
• Complete the online application.
• Pay the application fee online via a credit card.
• Upload all the relevant documents online and submit your application.

Points to Know About the MWBE Application Process

• The application process takes around 90 days.
• Before starting an online application, you have to register on the site of the regional council where you intend to apply.
• The processing of the application starts once the payment has been made.
• The concerned state authorities review the application and documents thoroughly.
• Your business site will be thoroughly scrutinized.
• The Certification Compliance Committee will meet regularly to review your application.
• Once the Certification Compliance Committee approves your application, it goes to the Board for final approval.
• The Regional Affiliate notifies you once your application is approved.
• In case your application is not approved, you may submit a letter of appeal.

Documentation Required

Documentations vary by business type. Below is a list of documents that each business type is required to submit:

Sole Proprietors

• Complete application
• Driver’s license or valid ID
• Proof of US citizenship
• Declaration page signed dated and notarized
• Ethnicity proof of owners
• Current financial statements
• Bank Signature card
• Occupational licenses if applicable
• Resume of owners
• Proof of EIN
• Bonding Capacity proof if applicable
• Notes Payable if applicable

Franchises

• Franchise Agreement

Partnerships

• Partnership agreement
• Proof of capital investment
• Certificate of formation of the partnership
• Articles of Partnership
• Proof of Partnership purchase

Corporations

• Certificate of Corporation
• Proof of capital investment
• Minutes of the recent board meeting
• Current stock ledger
• Articles or Certificates of Amendment

LLCs

• Certificate of organization
• Operating Agreement
• Proof of capital investment
• Minutes of the meeting
• Minutes of the meeting in which members were elected
• Copy of certificates of ownership
• Copy of membership transfer ledger
• Unit purchase proof

Women-owned Business Enterprises

Women-owned business enterprises can be found in three major industries- construction (15%), arts, and entertainment (12%), and other services (12%).

Why Work With MWBEs

A major reason why businesses would want to work with MWBEs is to gain tax savings. On the federal level, companies that work with MWBEs can get tax breaks. This is a reason why some companies procure supplies and use the services of MWBEs.

Another reason could be that companies would want to diversify their supplier and customer network. Some businesses also feel that working with MWBEs reinforces their company’s values and mission.

MWBE New York City

Like other states, New York City has an MWBE program that assists women and minority entrepreneurs in growing their businesses. Getting certified with New York City means that minority/women-owned business enterprises become visible to prospective buyers, agencies, and contractors who want to purchase goods and services from new suppliers.

There are several benefits of getting MWBE certified with New York City. Let’s have a look at some of them:

• Once you get the certification, your company gets registered in the NYC Online Directory of Certified Businesses. It is a public website that promotes small certified businesses. It includes businesses from various industries such as catering, graphic design, IT, engineering, childcare, plumbing, event planning, accounting, and many more.
• If your company has the certification, you can get access to targeted consultation, networking events, and customized courses.

A business seeking MWBE certification in New York must meet the following requirements:

• The business should have the legal authority to conduct business in New York state.
• The company must be in the business for at least one year.
• At least 51% of the business should be controlled by a minority member or woman who is a US citizen or a US permanent resident.
• The business should have one of the following structures:
  • Sole proprietorship
  • Limited liability company (LLC)
  • Limited Partnership (LP)
  • General Partnership
  • Corporation
  • Limited liability partnership (LLP)

You must ensure that your business should be for-profit.

• The company’s headquarters should be located in one of the following counties of New Jersey and New York City or within the five boroughs of New York City.
  • Westchester
  • Suffolk
  • Bergen
  • Hudson
  • Passaic
  • Nassau
  • Putnam
  • Rockland

State MWBE Programs

When exploring MWBE certification, do your research to find out about state-level programs your business might qualify for. You can begin to contact agencies and offices in your state or city that looks after the women and minority programs.

• Visit the Minority Business Development Agency’s website for programs offered by different States.
• You may also reach out to the Small Business Administration to find state-level and federal programs that your company may want to join.
• Another option is to reach out to the Chamber of Commerce in your area and speak to their small business liaison. You might come across some opportunities for your business.

FAQs

What is the validity of the MWBE certification?

The MWBE certificate is valid for three years.

Why is it important to provide supporting documents?

It is important because the state has to ensure that the business’s daily activities are managed by a woman or a member of the minority group.

Do documents remain confidential?

Yes, the department ensures that no financial and personal information of a business is revelated without the owner’s consent.

Does one have to send original documents?

No, only copies of the documents are needed.

Does certification guarantee that a business will get state or other contracts?

No, it doesn’t. A company has to do its own marketing, advertising, and networking in order to attract customers. The certification only facilitates and doesn’t give you anything of itself. In the end, how many contracts and customers you get depends on your own marketing strategy.

What is the purpose of visiting the company site?

The purpose is to ensure that all the information in the application and documents holds true. Department conducts on-site visits to see business facilities and understand their functions.

What happens when the certification expires?

The department sends a recertification notice to every certified business at least 60 days before the certificate expires.

What is the purpose of recertification?

The purpose is to ensure that the state department has the firm’s updated information.

A Path to Success

As an owner of a small business, getting an MWBE certification is a path to success. It is one of the tools to help you compete with other players in the industry and grow your business.

If you haven’t secured a certificate yet, now is the time to do so. It will help you create a strong brand identity.

The post Elevate Your Business with MWBE Certification appeared first on AttendanceBot Blog.

• Individual Taxpayer Identification Number (ITIN)
• Social Security Number (SSN)
• Employer Identification Number (EIN)
• Preparer Tax Identification Number (PTIN)
• Taxpayer Identification Number for Pending US Adoptions (ATIN)

In this article, our focus will be mainly on ITIN, SSN, and EIN. We will take a deeper dive into each one of these for your understanding.

What Is an ITIN Number?

ITIN stands for Individual Taxpayer Identification Number, which is a tax processing number issued by the IRS. It applies to certain non-residents and foreign nationals, their spouses, and dependants who are not eligible to get a Social Security Number. ITIN is a nine-digit number starting with the digit 9 and written as NNN-NN-NNNN.

It is because of the IRS that the federal government is able to collect billions of tax dollars from within the country. The ITIN helps IRS in doing so.

The IRS established ITIN in July 1996 to ensure that foreign nationals and other individuals who don’t have an SSN comply with US tax laws.

How to Apply for an ITIN Number?

It is fairly easy to apply for an ITIN number with the steps below:

• Applicants have to fill out a W-7 form that goes to the IRS.
• Next, applicants have to submit all relevant documents that clearly specify their foreign status and identity.
• Once the W-7 form and all the documents are ready, it is now time to submit them for approval. You can do it in three ways:
  • Mail the form and the documents to the address given on the form
  • Submit the documents physically in one of the walk-in IRS offices
  • Process your application through an IRS authorized Acceptance Agent

For context, Acceptance Agents include entities such as accounting firms, colleges, or financial institutions authorized by the IRS. They ensure that all the documentation and W-7 forms are complete before sending them to the IRS for further processing.

Who Is Eligible for an ITIN Number?

In general, people who do not have lawful status in the country have to obtain an ITIN. But in addition to that, the following regardless of their lawful status may obtain an ITIN as they can not get SSN:

• Foreign entities who conduct business in the US such as corporations, partnerships, estates, and trusts. They come under the category of foreign non-residents because although they operate their business in the US, they don’t live there.
• A foreign national student who eventually becomes a resident based on the number of days present in the US.
• Dependent or a spouse of a foreign national.
• Spouse or a dependent of a US citizen or someone with a lawful permanent residence.

What Does an ITIN Not Permit?

The ITIN number does not take care of the following:

• An ITIN holder cannot use it to seek a legal immigration status in the US or prove their legal presence.
• ITIN neither provides authorization to work nor can it be used to prove work authorization.

Benefits of Obtaining an ITIN

An ITIN fulfills several purposes and provides benefits to the ITIN holder as well. Let’s have a look at a few of them.

• ITIN strengthens the tax system of the country by bringing in more people to pay taxes.
• Holding an ITIN does not qualify one to receive tax and public benefits such as Social Security benefits or the Earned Income Tax Credit. However, once an ITIN holder is able to get an SSN, they become eligible to receive the aforementioned benefits. For that, they have to become a lawful US permanent resident.
• Some ITIN holders can receive Child Tax Credit (CTC). According to the legislation, CTC amounts to $2000 per qualifying child depending on the applicant’s income. The child only qualifies if they have an SSN.
• An individual with an ITIN can open an interest-bearing bank account in the US.
• According to the laws in some states, ITIN holders can get a driver’s license, a state identification card, or a driver’s permit. In this case, not having an SSN does not matter.
• Foreign nationals and resident aliens can use ITIN to file their tax returns in order to provide proof of residency.
• In March 2020, Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed to provide relief to people during the pandemic. ITIN holders with one spouse in the Armed Forces are eligible to receive stimulus payments under the CARES Act. This is a mandatory condition for ITIN holders and they will not receive the payment otherwise.

How Long Does It Take To Get an ITIN Number?

If an applicant has submitted all the relevant documents and W-7 form, then the IRS assigns the ITIN within seven weeks. In case the applicant hasn’t received an ITIN seven weeks after submission, they can check their application’s status at the given numbers.

Do ITIN Numbers Expire?

Yes, they do. In case an applicant wants to renew their existing ITIN number they must fill the W-7 form without filing a tax return. In case an applicant files a tax return with an expired ITIN and forgets to renew, the IRS will delay processing the tax returns. To renew an ITIN, applicants can do it in the same three ways as they did when obtaining an ITIN.

SSN vs ITIN

ITIN and SSN serve the same purpose to some extent. Therefore, it is common to have non-residents get confused and use these terms interchangeably. However, an individual can not have both numbers at the same time. More importantly, the IRS issues these numbers differently and to different individuals.

Therefore, it is important to understand the distinction between the two.

What Is an SSN?

An SSN stands for Social Security Number that is issued to US citizens and authorized non-citizen residents. Authorized residents include students on F1 visas and green cardholders. Both of these categories can legally work in the US.

People refer to an SSN as a personal ID for Americans. It is issued by the Social Security Administration (SSA).

Like the ITIN, it is a nine-digit number with the format XXX-XX-XXXX. The first three letters are called ‘area number’, the next two are called ‘group number’, and the last set is called the ‘serial number’.

All individuals who work and earn wages must have an SSN number must apply for one in case they don’t. All employers must request an employee’s SSN as soon as they are hired. Employers report employees’ wages using the SSN number. Parents should also get an SSN number for the children they claim on an income tax return.

Difference Between SSN And ITIN

The key difference between the two is that while SSN is issued to US citizens and authorized non-citizens, ITIN is issued to people with foreign status or immigrants who are not documented within the system. The latter cannot be given an SSN hence they have to use ITIN for tax purposes.

Another difference is that SSN doesn’t expire. Once issued, it is the receiver’s identity forever. ITIN, on the other hand, expires if not used for five consecutive years. This means, that if an individual does not file taxes for five years in a row, they will have to new their existing ITIN.

An important point to note here is that once a person gets an SSN, their ITIN will automatically become invalid. In that case, the person will now use SSN for all tax purposes.

Importance of SSN

SSN is the most important identification number one can have while living in the US. One should aim to get this number as it offers a variety of benefits that are not possible to claim with an ITIN. Examples include child care credit, Social Security disability income (SSDI), pensions, and other social services. SSN is also used for a wide range of financial and medical services.

With an SSN, it is simple to open a bank account which can also be done online. Moreover, SSN also makes it easy for people to apply for a student loan and file medical forms.

Furthermore, an SSN holder is also eligible to receive retirement benefits. Although it is possible to get a credit card without an SSN, having one makes the process seamless.

What is an EIN?

An EIN is an Employer Identification Number. It is again a nine-digit number but formatted differently than SSN and ITIN. It is written as XX-XXXXXXX. The following entities must have an EIN:

• Employers
• Sole proprietors
• Corporations
• Partnerships
• Non-profit associations
• Trusts
• Estates of decedents
• Government agencies
• Certain individuals, and other business entities

All the businesses and entities that have employees working under them or those that have to file tax returns must have an EIN. An EIN is only issued for tax administration purposes and not for any other activities such as sales, lotteries, or tax lien auctions.

Why Do You Need an EIN?

If you are operating a business, you will require an EIN. These are some of the reasons:

Finance and Banking

As a business owner, you will have the need to open a bank account. In that case, banks and credit unions require businesses to have an EIN. Having an EIN also means that you can easily get financing funds and working capital.

Hiring Employees

Another instance where a business requires an EIN is while hiring employees. This is because employers use EIN to track payroll tax remittances. In case of establishing any form of business other than a sole proprietorship, a business has to obtain an EIN. This holds true even when a business has no employees at all. The IRS will use EIN to track business income taxes.

Keogh Plan

Keogh is a tax-deferred retirement plan for self-employed individuals. If you are self-employed with such a plan, you will require an EIN.

Bankruptcy

Another case where EIN is needed is when a sole proprietor is filing for bankruptcy. Similarly, in a situation where you plan to inherit or purchase an existing business and plan to run it as a sole proprietor, you will have to obtain an EIN.

Steps to Apply for an EIN

People usually apply for an EIN when launching their business but they also do so for tax purposes or when applying for a loan. Follow the steps below to apply for an EIN number.

Check for the Eligibility Criteria

In order to get an EIN, you must ensure if you meet the following requirements:

• Your business should be in the US or US territories
• The applicant must have a valid identification number such as an SSN

Collect All the Necessary Information

For a smooth application process, make sure you have all the information given below:

• Form SS-4
• Names, SSN, and addresses of the responsible party
• Type of business entity that your company falls under
• In case you have a corporation, mention the state where it is incorporated
• Reason for applying for EIN
• The date on which you commenced your business
• Closing month of your business’s fiscal year
• Maximum number and type of employees you will be hiring during the next 12 months
• Description of the industry in which your business operates and your products and services

Apply for an EIN via Email, Fax, or Online

You have the option to choose either of the three methods. If you’re based in the US, applying online is a convenient option for you. However, if you are outside the US and plan on coming to the US for business purposes then you can also apply for an EIN via phone.

If you apply online via the IRS’s online application form, you get your EIN instantly once you submit it. In the case of applying through fax, it takes around four working days. However, if you submit your application via email, it may take up to four weeks.

An important point to remember is that if you choose to get your EIN via fax or email you will have to submit a completed SS-4 form.

The Key Takeaway

As a resident or a newcomer to the US, it is important to have an identification number. The identification number serves many purposes such as filing for tax returns or opening a bank account. It is advisable that you equip yourself with the relevant knowledge to better decide which identification number is most important to get. Hopefully, you are better able to understand the three identification numbers via this article.

The post ITIN, SSN and EIN: Learning the Details and Differences appeared first on AttendanceBot Blog.

Companies can choose to give paid or unpaid time off depending on their values, culture, and legal requirements.  

In this piece, we will discuss all aspects of unpaid time off. You will learn how to create an unpaid time off policy, its benefits and how to manage it successfully. 

Let’s begin with finding out what unpaid time off is. 

What Is Unpaid Time Off?

Unpaid time off is one of the two types of leaves that is not compensated by the employer and is taken for a short period of time. Employees take unpaid time off for several reasons such as:

• A short break from work
• Recover from an illness 
• Tend to the needs of their dependants 
• For voluntary work
• To carry out jury duties 
• To participate in a professional development course or event 
• Attend a funeral 
• Medical appointments 
• When relocating or moving houses 

Some companies have unpaid time off instead of or in addition to paid time off. In the former case, companies are not legally bound to pay for the leave taken. For the latter, an employee can only take unpaid time off when their paid time off balance has been completely exhausted.  

In the United States, paid time off is a benefit linked to tenure while unpaid time off in certain cases needs to be provided due to federal laws. 

Before offering unpaid time off to employees it is important to understand the legal obligations surrounding it. 

Rules for Unpaid Leave

• The FMLA requires employers with a staff of 50 or above to give unpaid time off. 
• The federal law requires employers to give unpaid time off on designated holidays such as Memorial Day or New Year’s. 
• Employees who attend jury duty have to be given unpaid time off. Some states such as Massachusetts, Nebraska, and New York require employers to give a paid time off in this case. 

How to Apply for Unpaid Time Off?

Once you decide to include unpaid time off in your company, you need to define the process that employees must follow. You should develop a policy to help employees on how to apply for time off, how far in advance they should apply, the duration of the leave, and whether two people in the same department can request time off at once. 

Employees should follow the process below:

• Employees’ requests for unpaid time off in a written form within the specified notice period. The request is either made directly to the manager or the supervisor. Employees must follow the procedure defined in the policy to avoid any delays. 
• Once the request is submitted, the supervisor discusses it with the HR or department head. The discussion is based on whether the reason for taking a leave is reasonable enough and its impact on the business. 
• Now, it is up to the manager to approve or deny the request.
• In the case when leave is approved, the employee has to ensure that all the duties will be covered in their absence. 

Unpaid time off leaves is only approved when accrued time has been completely used up. However, exceptions exist in the following cases:

• Disability leave 
• Parental leave 
• Leave under FMLA 
• Paid Family and Medical Leave of absence 
• Leave related to sexual assault or domestic violence 

To avoid confusion, you must include all these aspects in the policy. Let’s move on to discuss what all should be included in an unpaid time off policy. 

How To Apply For Leaves Using AttendanceBot 

It’s a simple process to apply for leaves using AttendanceBot. As an employee, you just have to type ‘Apply’ and the bot will give you certain leave options to choose from such as a vacation or sickness. The bot will also ask you for other details like the date and duration of the leave. Once you are done filling in the details, you just have to confirm it and your manager will get notified instantly. 

As a manager, you will get a notification once an employee applies for leave. Without having to deal with long email threads, you can approve leave in just a click. 

What Does Unpaid Time off Policy Include?

It is important to have an unpaid time off policy that employers and employees can refer to as and when needed. Having a policy in place prevents the business from decreased productivity and saves costs that result from increased absenteeism. It also speeds up the process of handling leave requests. 

The policy should cover the following points:

• If your business offers both paid and unpaid time off, then there has to be a separate policy for each.
• Which employees, full time or part-time or both, can avail the leave
• The number of days for which an employee can be on leave
• A proper procedure that employees must follow when requesting time off
• Specify if there is any cap for unpaid time off
• If employees can take unpaid time off whether or not they have exhausted all their paid time off days
• How employees’ day of absence will be tracked 

Tip: Keep track of your employees’ days of absence, hours worked and schedules using AttendanceBot. It provides a hassle-free way of knowing who all are on leave in one particular and in a given week. 

Unpaid Leave Benefits

Unpaid time off is a tricky policy to navigate. Companies that do not follow a 9 to 5 schedule such as hospitals and restaurants, offer some flexibility to employees. Employees can take up or drop shifts as per the need, securing some time off for themselves. However, in an office setting, employees have to be present on the same work schedule. Thus, employers make it a point to include paid time off in their internal policies. 

But what happens when employees run out of paid time off leaves? Well, in that case, managers have to make some room for unpaid time off. And there is no harm in doing so because it comes with its own set of benefits. Let’s find out more about them. 

• Saves the company’s money that can be allocated to other resources or projects.
• Helps build strong, long-lasting relationships with employees.
• Employees, when allowed flexibility, feel they are taken care of resulting in lower absenteeism and increased retention. 
• Employees return to work with increased morale and a fresh mindset. 

However, there are certain disadvantages to unpaid time off as well such as: 

• Employees may take undue advantage of the policy 
• If the policy is abused, it can reduce productivity and cause financial harm to the business.

So, to prevent unpaid time off abuse, we have come up with a simple solution for you. 

Specify the following points to your employees:

• The reason for taking unpaid leave has to be serious
• It is up to the manager’s discretion to approve the leave or not
• No employee will be favored over another

How to Successfully Manage Unpaid Time off in Your Company?

The four main components of managing unpaid time off are processing leave requests, time off accrual, tacking absence, and detailed analysis. Follow the key rules below for better results:

• Use a simple straightforward calendar to keep track of employee schedules and absences. It is even better to use digital calendars as it allows one to edit as and when required. 
• Try making the process of creating and approving leaves as seamless as possible. Consider using software like AttendanceBot that simplifies the process of creating and approving leaves. It rids you off a long thread of emails and literally takes seconds for a manager to approve requests. Moreover, AttendanceBot keeps a track of employees on leave which comes in handy when you want to schedule shifts. 
• Try to automate the process of approving leave requests. Avoid getting into manual calculations as it consumes time and resources. Use software like AttendanceBot to streamline the process. 
• Finally, you may want to keep track of the number of absences and reasons for the leave. You can analyze all of the above using AttendanceBot. The software extracts detailed information in the form of CSV reports. Isn’t it much simpler than managing things manually? AttendanceBot will save you time that you can use in analyzing and predicting workforce capacity, absenteeism and come up with ways to improve time off management. 

Sign up for a free trial and manage unpaid time off hassle-free. 

What Is a Leave of Absence?

A leave of absence is the permission for employees to take a short break from work. It could either be paid, unpaid, mandatory, or voluntary. 

Unpaid vs Paid Leave of Absence

There are two types of leave of absence: paid and unpaid. When on a paid leave, employees continue to receive their normal pay whereas, on unpaid leave, employees receive no compensation from their employers. 

According to the FMLA, employers have to give some time off to the employees so that they can take care of their personal issues. However, federal law doesn’t mandate them to pay. 

Some employers chose to grant paid time off for a set number of hours while others allow employees to accrue the paid leave based on how many hours and days they work. 

In case of unpaid leave, if the reason for taking a leave comes under FMLA then the employer must guarantee that the employee’s job will be protected. 

When Is a Leave of Absence Legally Protected?

A leave of absence is legally protected in the following instances:

Jury Duty 

The law in the USA mandates time off for jury duties. However, it is up to the employer if they want to pay the employee during this period. In case they do, the employer must specify the duration for which the employee will get the money. 

Military Duty 

According to USERRA, the employer must provide employees with unpaid leave to perform military duties. It also ensures that employees can maintain their health insurance coverage while they are off from work. 

Voting 

Some jurisdictions mandate employers grant time off when employees have to cast a vote. However, whether it will be paid or unpaid depends on federal or state regulations. You will have to do the research for your state. 

How Does a Leave of Absence Work?

When applying for a leave of absence, employees must notify their employer well in advance. So as soon as an employee discovers the need to take unpaid time off, they should inform their employer right away. This is because it will give the manager some time to make arrangements for employees who can cover.  

It is a good idea to approach the manager face to face but communicating in writing is also doable. In either case, employees must provide an explanation about why they need time off and when they plan to return to work. 

As a basic courtesy, employees should inform their co-workers before going on leave if they are picking up their slack. It is even better to inform customers or vendors who they can contact in their absence. 

Examples of Paid Leave of Absence 

Some leaves of absence are mandatory and must be granted and paid by the employers: Examples include;

• Military duty 
• Jury duty 
• Medical 
• ADA leave 

Personal Leave of Absence Policy

An unpaid personal leave of absence policy is granted to full-time and part-time employees for personal reasons. Is it at the discretion of the employer to grant it or not. 

Provisions 

• Unpaid personal leave can only be requested once all other leave balances have been fully used up. 
• The company should keep the employee’s position open for the duration of unpaid leave. If the employee decides to extend the duration more than what was initially decided, they will be entitled to apply for reemployment for the same position. 
• The employee will continue to receive health benefits for a period of unpaid leave. 

What Is the Procedure for Returning From Unpaid Leave of Absence 

• An employee on personal unpaid leave has to notify the employer at least two weeks before returning to work. 
• Once the employee receives this notification, they have to make arrangements for the employee to resume their role, if available. 
• If the previous position is not available, then the employer may consider the employee for other positions but only when and as they are available.
• If no positions come up, the employee will remain on unpaid leave until a new position opens up. However, if no opening shows up within 60 days, the employee will no longer be on unpaid leave. Instead, the status will change to voluntary termination. 

The post All You Need to Know About Unpaid Time Off appeared first on AttendanceBot Blog.

OASDI stands for Old Age, Survivors, and Disability Insurance. The OASDI tax funds the social security program. Employers collect this money through employees’ paychecks which directly go to the federal government. The federal government then uses it to develop and fund social security programs. 

Is OASDI Tax Mandatory?

The federal government mandates OASDI tax for almost everyone who earns an income. Also known as the Social Security tax, OASDI is mandatory for members of Congress, employees, self-employed INDIVIDUALS, and employers unless they are exempt. 

Who Is Exempt From OASDI Tax?

• Members of the executive and judicial branches in the federal government who were employed before 1984 were given the choice of either switching to the social security program or remaining with the old system known as the Civil Service Retirement System. Those who stayed with the latter do not have any legal obligation to pay the OASDI. 
• Others who are exempt from paying OASDI are certain members of religious programs who are against the idea of receiving social security benefits. 
• Non-residents, qualified students who work in the college they attend, and employees who work for foreign governments. 

What Does OASDI Tax Cover?

Old-Age Support

When qualified contributors reach retirement age, they receive social security benefits. This means that they will receive monthly benefits as a replacement for their income in retirement. 

Survivor Benefits 

Survivors are referred to as relatives of the deceased. The survivor benefits depend upon the earnings of the deceased. The more they contributed as OASDI tax, the higher the benefits of the survivors. The relatives of the deceased are going to get a percentage of the deceased’s social security benefit on a monthly basis. 

Disability Benefits 

Qualifying contributors and their family members receive disability benefits under the Social Security Disability Insurance (SSDI). They are eligible to receive it after waiting for five months. 

Benefits will end if the beneficiary becomes better and returns to work. Benefits to the family members of the disabled worker are payable under conditions similar to those of retired workers. 

Death Payment 

A surviving child or spouse may also qualify to receive a lump-sum payment of $225 if specific requirements are met.  Surviving children of deceased workers are eligible for benefits if 

• They are under 18
• Are full-time students at elementary or secondary schools 
• Or go disable before the age of 22

Hospital Insurance 

Although not mentioned in the acronym itself, the OASDI tax also funds the medicare hospital insurance. This helps qualifying members with inpatient hospital and home care. 

Employees and Self-Employed Contribute Differently 

OASDI tax is taken directly from paychecks. Therefore, employers, employees, and self-employed pay vary. There are two ways in which contributions are made to OASDI: FICA or SECA. 

Employee and Employer Contributions

FICA stands for Federal Insurance Contributions Act. Employers pay the same percentage contributions as employees which are 6.2%. Employees pay 6.2% of net earnings. 

Self Employed Contribution 

Rules are slightly different for self-employed individuals. They have to pay through SECA instead of FICA. SECA stands for Self Employment Contributions Act. Self-employed people have to pay for both the employer and themselves so they have to pay a total of 15.3% of their net earnings. 

What Is OASDI on My Paycheck?

The OASDI applies to income or wages up to a certain amount and it keeps changing every year. For instance, in 2020, it was $137,700 and in 2021, it moved up to 142,800. 

Sometimes, employees have to face the problem of overpaying OASDI. For example, if an employee has two different jobs and the earnings from both add up to more than $142,800, then there is a chance that employers might withhold more than required. So what happens in that case?

There’s a space in the income tax return that employees can use to claim the overpaid tax. 

FICA Tax Rate

For 2021, the social security wage base is 142,800. This means that employees have to pay 6.2% of their income up to 142,800. This signifies that earning beyond this mark will not be taxed for social security. 

Although most workers pay FICA tax, it is not applicable to all paychecks. Some of the payments that are exempt from FICA tax include;

• Children under 18 years employed by their parents 
• Students performing a service and employed by a school, college, or a university
• Some church-controlled organization wages 
• A few local and state government salaries 

Employees who are exempt from FICA do not have the obligation to contribute to Social Security or Medicare Tax but they won’t receive the benefits either. 

For Medicare’s Hospital Insurance Program, the tax rate is 1.45% for employees and employers and 2.9% for self-employed individuals.

How to Calculate FICA Tax?

When employees start a new job, they have to fill out a W-4 form. The form requires employees to specify their marital status and number of dependants. These are some of the factors that determine what amount will the employees pay as OASDI. 

If an employee is earning $50,000 then the FICA tax they will be paying will be $3825 which is the result of multiplying 7.65% by $50,000. 

Changes in Social Security Benefits of 2021

Every year the SSA announces changes to the Social Security program. The changes for the year 2021 were announced in October 2020 and have been in effect since Jan 2021. As an employer, you should be aware of these in order to update your Social Security information. 

1.3% Increase in the Monthly Benefits 

As of 2021, almost 70 million Social security recipients received a 1.3% cost of living adjustment to their monthly benefits. This adjustment is based on the consumer price index to keep pace with inflation. 

Increase in Taxable Earnings 

As mentioned earlier in this article, the income cap has increased to $142,800 compared to $137,700 last year. The tax rate remains the same at 6.2% but only the wage base has changed.  

As the taxable income increases, more OASDI will be deducted from the paycheck. 

Rise in Full Retirement Age 

The earliest that an employee can start collecting benefits is age 62. However, if the benefits are collected before reaching the full retirement age, then the payout will reduce permanently. 

According to the current law, the retirement age will increase by two months each year until hitting the 67 age mark. 

If employees delay in collecting their benefits beyond their full retirement age, then they have the right to collect more than full payment. In fact, if employees are put off until the age of 70, they will receive a 32% higher payout than what they would have received at the full retirement age. However, delaying further than age 70 has no incentives. 

Increment in Social Security Disability Benefits 

Social Security disability insurance is an insurance program that provides benefits to people who can no longer work due to a disability. The benefit is in the form of an income replacement. 

In 2020 the disabled people received $1261 which has now gone up to $1277 per month. 

However, a disabled worker with dependents will receive an average of $2224 per month.  

What’s the Future of OASDI?

Some policymakers say that the OASDI tax rate of 6.2% is not sufficient to work in the future. They suggest that the tax rate should increase to 7.55% in order for the Social Security program to remain solvent. If not, then benefits will have to be reduced in order to keep the program running. 

However, the tax rate of 6.2% has been in effect since the 1990s and is most probably going to remain the same in the foreseeable future.

The post Everything That Is Important to Know About OASDI appeared first on AttendanceBot Blog.

Since tax laws and tax filing requirements change every year, HR must cross-check with the IRS website that the W3 form information is being reported correctly to the authorities. Understanding tax forms like the W-3 can save businesses time and reduce stress during tax season. With a sample W-3 form or example W-2 as a guide, filling out essential information—such as Social Security wages and Medicare wages—becomes much simpler.

By the end, you’ll not only feel confident in your tax reporting, but you’ll also discover tips to streamline your process and avoid common pitfalls. Let’s get started on the path to tax filing success! 

What is a W3 Tax Form?

A W3 tax form is a tax declaration form submitted to the SSA, declaring total earnings, social security wages, Medicare wages, and withholdings for all employees from the previous year.

The W3 form is called the ‘transmission of wage and tax statement.’ The W2 form report is used to prepare the W3 form. That is, all employees’ wages are added in the W2 form, preparing the base to assemble relevant data for the IRS W3 form.

What is the Need for a W3 Form in Business?

If the business is solely based in the United States, HR must have all the relevant information about the IRS W3 form. This is because the business owners are required by law to report employee payroll and income data, whether or not they are US citizens. If this sounds confusing, it’s because it is!

Let us explain how things work at your end. When a person contacts your business for employment purposes, HR has no choice but to ask them for their personal information, including their Social Security Number (SSN).

HR must collect the full name, address, and SSN of the employees they are hiring. This information is essential because they have to report the exact wages in the employees’ tax filing form.

If the employees already have one, the HRs must ask about their date of birth (DOB). The DOB matters because most SSNs are valid for 80 years, and before they expire, employees must inform authorities if they plan to continue using them.

Under federal guidelines, HR must verify the employees’ identities before hiring them. Failing to follow through with these procedures could result in legal ramifications to the business, including fines. Always remember that hired or temporary workers are subject to the same rules, that is, completion of a similar verification process.

When Should a W3 Form be Filed?

HR is obliged to file the W3 tax form with all the W2 forms of employees before the end of January, after the tax year. The deadline for W3 submission is January 31st.

We suggest that HR give the W2 forms to the employees a few weeks earlier. This will give them enough time to check their forms and correct any potential errors before submitting them to the SSA.

Source

When an employer perceives a possible delay in submitting the W2 and W3 forms to the SSA, they can request an extension of up to 30 days to file returns using Application 8809. The IRS grants extensions only under reasonable extraordinary circumstances.

Difference Between the IRS W2 and W3 Tax Forms

The W3 and W2 forms are quite similar. 

The marked difference between the IRS W3 and W2 forms is that the latter is for information regarding the salaries and total taxes per employee. On the other hand, W3 forms report employees’ total wages and taxable salaries to the SSA and IRS.

Filling Out the W2 Tax Form

The IRS W3 form contains complete information on the total taxable wages and sums up all the taxes that incur from business in a year. The primary purpose of W3 forms is to summarize all the W2 forms and act as a ‘cover sheet’ for W2 forms.

Filling Out the W3 Tax Form

Before filling the IRS W3 form, an HR professional must collect all the W2 forms first. It is also necessary to report the addition of the tax information given in the W2 form.

Both forms comprise boxes and letters and have similar instructions for completion. You can also find a sample W3 form below for more clarity.

Source

HR will need to carefully look at the boxes from A to H in the W3 form.

• Section A is for assigning a control number
• Section B has two parts: the type of employer and payer
  • The first part of Section B is for the employer, where you have to check the box and identify the kind of payer they are. You can classify the relevant section by recognizing the form name used to file the quarterly tax report of employees.
  • The second part of Section B describes the type of employer they are; so, check the required section according to the business type.
• In Section C, you have to mention the number of W2 Tax forms being submitted.
• Section D asks about the Establishment Number. The box is relevant to companies that have multiple businesses under the same firm. As an HR professional, you have to state the same Establishment Number mentioned in the W2 forms.
• In Section E, fill out the EIN of the respective business.
• Section F needs the the registered name of the company.
• In Section G, enter the valid address of the business.
• Section H is for employers who have used different EINs in the same year. If there is any change in the ownership in the current year, the new and the former owners will have separate EINs.

As an HR professional, you have to enter the full income report from the data given in the W2 forms in Sections 1 to 19.

How to Make Corrections in the IRS W3 Form

If an employer makes mistakes on the W2 forms and realizes this after submitting the W3 form, HR can file the W2c and W3c tax forms with the corrections.

The IRS does not have an official deadline for this type of correction. However, HR should make the corrections as soon as possible after discovering the errors. You are also obliged to give the W2c copy to the affected employees.

How to File the IRS W3 Form

As an HR professional, you can use these three options to file IRS form W3:

• E-filing online
• Mailing the forms
• Hiring an accountant to file 

E-filing Online

The SSA encourages filing all the forms online because e-filing is more accurate, faster, and more secure. If the total number of W2 forms is greater than 250, HR professionals must file them online along with the W3 forms.

HR professionals must use the Business Services Online (BSO) portal to file the forms online. 

As an HR professional, you can use either of these two options to file IRS form W3 under the BSO portal:

• You can build a fill-in form and print the copies to submit

• You can upload the wage files from the businesses tax and payroll software from which the BSO portal will automatically create a similar W3 form online.

The tax payment can be made online using the EFTPS (Electronic Federal Tax Payment System).

The benefits of filing IRS W3 and W2 tax forms online are as follows:

• Electronic tax filing saves HR professionals’ efforts and time and helps ensure correctness and accuracy.
• HRs do not have to calculate and submit an IRS W3 form; the SSA makes a W3 form automatically.
• The due date for submitting an electronic application is at the end of March, which is one month later than submitting these forms by mail.
• HRs can verify employees’ SSN for reporting the wage information at the BSO portal.
• The BSO site offers a tutorial, manuals, a checklist, and other helpful information to file those W2 forms electronically.
• If HR professionals make an error on one or more W2 forms after submission, they can submit W2c forms to correct the mistakes.

Mailing the Forms

While the SSA promotes filing all the forms online, small businesses can also mail the IRS W3 and W2 forms.

As an HR professional, you need to order the paper copies of W3 and W2 forms from the IRS before posting and making a payment. After ordering and filling out the W3 forms, you have to send the document to the address given below:

Social Security Administration

Direct Operations Center

Wilkes-Barre, PA 18769-001

HR professionals can send the W3 forms more rapidly by choosing private carriers. The current address for quick shipment is as follows:

Direct Operations Center

Social Security Administration

ATTN: W2 Process

1150 E. Mountain Drive

Wilkes-Barre, PA 18702-7997

Hiring an Accountant for Filing

You can also hire an auditor to file the IRS W3 form for all the deposits and outstanding payments. The tax professional will handle all the filing and tax depositing requirements.

Is Filing a W3 Mandatory?

Whether you’re new to handling tax forms or just looking for a refresher, familiarizing yourself with what a W-3 looks like can be incredibly helpful. From filling out a W-2 form to clarifying the difference between W-2 and W-3 forms, ensuring accuracy in your wage statement filings is key to maintaining compliance and a smooth HR operation.

In this article, we have covered all the important points for HR in the US to know before filing IRS W3 forms. Here are some quick points to remember:

• The IRS W3 form contains a full report on the wages, and the total salary companies give their employees
• All the HR professionals who file one or more of the W2 tax forms must also file the IRS W3 form
• You can get copies of forms on the IRS portal and can e-file from the BSO portal of the SSA

The post W3 Form: Your Essential Guide to Hassle-Free HR Tax Filings appeared first on AttendanceBot Blog.