In This Issue

IRS Increases Mileage Rates through Dec. 31, 2008

IR-2008-82: The optional standard mileage rates for business, medical and moving expenses have increased by eight cents per mile for the rest of 2008, starting July 1, 2008.

Did You Know? 

DOL's Wage and Hour Division Collects Record Back Wages 

The U.S. Department of Labor's Wage and Hour Division (WHD) recovered more than $220 million in back wages for over 341,000 workers in fiscal year 2007, the highest amount ever.

New I-9 Form 

The USCIS has issued a new Form I-9 for employers to verify employment eligibility. The new form is substantively unchanged from the prior version, but has a new expiration date (6/30/09). Employers must use the new form as of 7/1/08.

COBRA Continuation Health Coverage Info:

FAQs About COBRA Continuation Health Coverage

An Employee's Guide to Health Benefits Under COBRA

COBRA Fact Sheet

Model General Notice: English / En Español 

Model Election Notice: English / En Español 

elaws Health Benefits Advisor

Treasury Department Releases New Guidance on Health Savings Accounts 

The Treasury Department and the Internal Revenue Service have released Notice 2008-59, which provides employers and employees with a new set of formal questions and answers on Health Savings Accounts (HSAs).

Since HSAs were created as part of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, Treasury and the IRS have issued a number of formal guidance items containing questions and answers on HSAs. Notice 2008-59 contains over 40 new frequently asked questions and answers that cover a wide range of topics, including:

• Who is an Eligible Individual
• Issues related to High Deductible Health Plans
• Contributions to HSAs
• Distributions from HSAs
• Establishing an HSA

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4 Ways to Make Your Company More Successful 

Consultants with Booz Allen Hamilton, a leading global consulting firm, surveyed companies that were effective in carrying out their strategies for success. These companies share a number of common traits. Whether your company is large or small, the following are the top common sense ways to make your organization more successful based on the survey:

1. Employees have a good understanding of the decisions and actions for which they are responsible.
2. Vital information about what is taking place in the marketplace is communicated quickly to headquarters.
3. Decisions that are made are usually not second-guessed.
4. Information is routinely shared at the senior level or within individual departments. The information also moves in a fluid way across organizational boundaries.

Hire the Right Staff

Laura Harris, a nationally renowned speaker and author of the new small business owner self-help book, Surrender to Win, (October 2008 release), says, "The answer for small business owners in hard economic times is to hire and retain the right staff." Ms. Harris' hiring tips include the following:

• Get to know your prospective team member rather than hiring on a gut reaction. Part of the interview process should include introducing the potential employee to key staff so you know how the team members will interact. This process can be invaluable.
• Be sure to hire employees with a professional phone voice and appearance. The first impression you have of a perspective employee is the same first impression a client will have of your company.
• Consider hiring an inexperienced person you can train to mesh with your style of leadership. Training someone from scratch means you can potentially mold them to perform the way you prefer.
• Consider hiring successful employees from other industries. Someone who goes above and beyond for their current company will have the potential to work hard and effectively for your company.
• Hire someone with different strengths and weaknesses than your existing team. Adding staff should expand what your business has to offer.

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Midwest Flood Recovery Assistance 

The U.S. Department of Labor is assisting in the recovery efforts in the Midwest communities affected by this season's floods. For general questions and assistance, please contact DOL's National Contact Center at 1-866-4-USA-DOL (1-866-487-2365 ).

Department of Labor support includes the following income and job assistance:

• National Emergency Grants 
• Employment & Benefits
• Cleanup & Recovery
• Other Resource

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State and Federal Minimum Wage Rate Increases Now in Effect 

FLSA amendments last year set the Federal Minimum Wage to increase in three steps: to $5.85 per hour effective July 24, 2007; to $6.55 per hour effective July 24, 2008; and to $7.25 per hour effective July 24, 2009. The minimum wage rates in many states will increase accordingly. For more information, please download our 25-page Minimum Wage Report covering state and federal minimum wage rates (1.4 MB PDF file).

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