Federal Workplace Posters
Department of Labor requires that certain posters or notices be posted in the workplace. Please note that posting requirements vary by statute i.e., not all employers are covered by each of the Department's statutes and may not be required to post a specific notice.
For example, some small businesses may not be covered by the Family and Medical Leave Act and would not be subject to the Act's posting requirements. For information on coverage, please visit the Employment Laws Assistance for Workers and Small Business (elaws) Poster Advisor.
To obtain posters or for more information about poster requirements or other compliance assistance matters, you may contact the U.S. Department of Labor by telephone at 1-888-9-SBREFA, or by email at Contact-OSBP@dol.gov.
To obtain downloadable copies of required federal posters and poster requirement for small businesses and other employers, please click here.
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October Deadline for Small Business Owners
Small business owners thinking about setting up retirement plans for their employees should be aware of an important deadline coming up in October. Business owners who requested an extension to file their 2007 tax return have until Oct. 15 to set up a SEP, or Simplified Employee Plan, and take a deduction for 2007. |
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Does your company reward its employees with gifts for the year-end holidays (such as a holiday turkey or a monetary award), to promote goodwill with the workers? Do you know how those gifts affect employment tax responsibilities?
In general, any amount an employer transfers to employees (directly or indirectly) is taxable for social security, Medicare, income tax withholding, and federal unemployment taxes. Exceptions to this rule include de minimis (i.e., minimal) fringe benefits. A de minimis fringe benefit is any property or service (other than cash or cash-equivalents), the value of which (after taking into account the frequency with which similar fringes are provided), is so small as to make accounting for it unreasonable or administratively impractical.
De Minimis Fringe Benefits
Traditional holiday gifts (such as a turkey) with nominal value are excludable from wages as "de minimis" fringe benefits. As such, no federal employment taxes or wage reporting is due from the employer for this item.
Other de minimis fringe benefits include:
- The occasional typing of personal letters;
- Coffee and soft drinks; and
- Occasional meal money or local transportation fare paid to enable an employee's overtime work.
Further examples and information on de minimis fringes and other fringe benefit wage exclusions (such as transit passes and certain achievement awards for safety / length of service) are provided in Publication 15-B, Employer's Tax Guide to Fringe Benefits.
Cash or Cash-Equivalents Not Excluded
Cash (whether currency, check, direct deposit, etc.) and cash-equivalents (e.g. gift cards) are taxable compensation. The employer, therefore, must report the monetary gifts made as (supplemental) wages, regardless of the amount, and pay the employment taxes owing.
Both the employee and the matching employer shares of Social Security and Medicare taxes are owed by the employer, even if the employer remits the taxes without deducting the employee portion from the award. (Section 7 of Publication 15-A, Employer's Supplemental Tax Guide, provides examples on how to figure the tax liability and the corresponding wage amounts in this situation. Similar computations can apply if an employer remits income tax withholding without deducting it from wages.
See the Tax section in HR & Benefits Essentials for additional information and resources.
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 The ADA Amendments Act of 2008 Was Signed Into Law on September 25, 2008
On Thursday, September 25, 2008, the President signed into law S. 3406, the "ADA Amendments Act of 2008," which clarifies and broadens the definition of disability and expands the population eligible for protections under the Americans with Disabilities Act of 1990.
Background
The Americans with Disabilities Act of 1990 was intended to “provide a clear and comprehensive national mandate for the elimination of discrimination against individuals with disabilities.” Just as other civil rights laws prohibit entities from basing decisions on characteristics like race or sex, Congress wanted the ADA to stop employers from making decisions based on disability. Unfortunately, four U.S. Supreme Court decisions have narrowed the definition of disability so much that people with serious conditions such as epilepsy, muscular dystrophy, cancer, diabetes, and cerebral palsy have been determined to not meet the definition of disability under the ADA. The result: In 2004, plaintiffs lost 97% of ADA employment discrimination claims that went to trial, often due to the interpretation of definition of disability. People who are not hired or are fired because an employer mistakenly believes they cannot perform the job – or because the employer does not want “people like that” in the workplace – have been denied protection from employment discrimination due to these court decisions. This was not the intent of the ADA.
The ADA Amendments Act of 2008 (ADAAA):
- Overturns the erroneous Supreme Court decisions that have eroded the protections for people with disabilities under the ADA, restoring original Congressional intent.
- Rejects strict interpretation of the definition of disability, and makes it absolutely clear that the ADA is intended to provide broad coverage to protect anyone who faces discrimination on the basis of disability.
- Strikes a balance between employer and employee interests.
- Prohibits the consideration of mitigating measures such as medication, prosthetics, and assistive technology, in determining whether an individual has a disability.
- Covers people who experience discrimination based on a perception of impairment regardless of whether the individual experiences disability.
- Provides that reasonable accommodations are only required for individuals who can demonstrate they have an impairment that substantially limits a major life activity, or a record of such impairment. Accommodations need not be provided to an individual who is only “regarded as” having an impairment.
- Is supported by a broad coalition of civil rights groups, disability advocates, and employer trade organizations.
For More Information:
- ADA Information Line: (800-514-0301 voice; 800-514-0383 TTY) for answers to questions and recorded information, or to order publications 24 hours a day.
- The ADA Website (www.ada.gov) provides direct access to ADA publications as well as information about enforcement, mediation, certification programs, proposed changes in regulations, and links to other Federal websites that contain ADA information. It also provides information about tax credits and deductions that businesses can use to help offset the costs of ADA compliance.
- DOJ staff gives presentations, conducts workshops, and staffs exhibits at major conferences around the country. Organizers who wish to request a speaker or ADA exhibit booth for a national or major regional event can contact the Director, ADA Technical Assistance and Mediation Program, U.S. Department of Justice, Civil Rights Division, 950 Pennsylvania Avenue, NW, DRS-NYA, Washington, DC 20530.
- ADA Business Connection
- ADA Guide for Small Businesses
- Reaching Out to Customers with Disabilities - an online ADA course for businesses
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Resources for Small Businesses
New IRS Web Page developed for Small Businesses and the Self-employed Who File Schedule C
IRS.gov features a Web page specifically developed for small businesses and the self-employed who file Schedule C, Profit or Loss from Business.
The Web page is the one of most recent elements in the IRS's year-long outreach strategy announced in IR-2008-63, to help educate new (and experienced) self-employed and small business owners about their federal tax responsibilities.
The Web page is a good starting point for small businesses and self-employed taxpayers who file Schedule C. It contains links to information on the most common issues new business owners will encounter, such as:
- Who is Self-Employed?
- Organizing Your Business
- Operating a Business
- Self-Employed or Employee?
- Employment and Self-Employment Taxes
- Paying Self-Employment and Employment Taxes
- Filing and Paying Your Taxes Electronically
- Considering a Tax Professional
- Disaster Planning
- Avoid Abusive Tax Avoidance Schemes
- Essential Forms and Publications
- IRS Educational Materials and Assistance
Schedule C is filed by sole proprietors (one owner businesses) as an attachment to their Form 1040 individual income tax return. Self-employed individuals with less complex situations-including business expenses of less than $5,000, no net losses and no employees-may be able to file Schedule C-EZ, Net Profit for Business.
About one in seven federal income tax returns includes a Schedule C or Schedule C-EZ. Taxpayers filed over 21 million Schedules Cs for tax year 2006, the latest year for which information is available, reporting overall net profits from sole proprietorships totaling more than $269 billion.
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Treasury & SBA Partner to Help Small Businesses Understand the Value of Health Savings Accounts The Treasury Department and the U.S. Small Business Administration have announced a new website that provides small businesses with information on how Health Savings Accounts (HSAs) can help meet their employees' health care needs. While many Americans have access to health coverage through their employers, many employees work for small companies that are unable to sponsor health insurance plans. Many of these employees can benefit from the affordability and flexibility of HSAs and HSA-eligible health plans.
The new website, www.hsa.gov, presents the advantages of HSAs, provides comparisons to other health coverage options, and has other materials to help employers and individuals determine whether and how to enroll in HSA-eligible coverage and how to save for health care costs through an HSA. |
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