A bill touted as a job-creation bill that would increase the minimum wage and require mandatory paid sick leave, along with other regulations, was introduced in the Senate. The legislation was proposed on March 29, 2012 by Senator Tom Harkin (D-Iowa) who is chairman of the Senate Health, Education, Labor and Pensions Committee.
The wide-ranging bill includes provisions dealing with overtime pay protection, the minimum wage, employment for disabled workers, worker misclassification, paid sick leave, and pension protection. The measure is still awaiting a bill number.
The bill would amend the Fair Labor Standards Act to increase the federal minimum wage to $8.10 an hour in the first year of enactment and to $9.80 in the second year. The wage would be indexed to inflation starting with the third year. The minimum wage rate now is $7.25 an hour and was last increased by Congressional action in 2009.
Restaurant owners should also note that under the bill, the FLSA also would be amended to increase the minimum wage for tipped workers to $3 per hour for the first year of enactment, and an additional 85 cents each year thereafter until the wage equals 70 percent of the federal minimum wage. The current minimum wage for tipped workers is $2.13.
The Advi$or has to admit that it does not quite understand how this kind of legislation, which is going to increase the cost of doing business for many businesses, is going to help create jobs.
Some Tennessee employers have been offered some payroll tax filing relief by the IRS. Specifically, employers in Bradley, Claiborne, DeKalb, Hamilton, Jackson, McMinn, Monroe, Overton and Polk counties which were declared federal disaster areas after severe weather in late February allows the IRS to postpone certain deadlines for taxpayers who reside or have a business in the disaster area. Certain IRS deadlines from February 29, 2012 to May 31, 2012 have been postponed to May 31, 2012. Failure to deposit penalties for employment and excise tax deposits due from February 29 to March 15, 2012 were waived as long as the deposits were made by March 15, 2012. (This includes the April 17 deadline for filing 2011 individual income tax returns, making income tax payments and making 2011 contributions to an individual retirement account (IRA).)
If an affected taxpayer receives a penalty notice from the IRS, the taxpayer should call the telephone number on the notice to have the IRS abate any interest and any late filing or late payment penalties that would otherwise apply. Penalties or interest will be abated only for taxpayers who have an original or extended filing, payment or deposit due date, including an extended filing or payment due date, that falls within the postponement period.
Here’s the latest regarding payroll and payroll taxes in Virginia……
Employees covered by Virginia’s minimum wage law must be paid $7.25 an hour. All employees of employers with at least four workers (including the employer’s spouse, parents or children) are covered except for:
- employees covered by the Fair Labor Standards Act;
- outside salespersons on commission;
- farm laborers or employees;persons whose earning capacity is impaired by physical or mental disability;
- employees working in primarily public-supported charitable institutions;
- cab drivers and operators;
- individuals employed on a piece-rate basis;employees under age 16 or over age 64;
- full-time students under age 18 not employed more than 20 hours a week;
- and students of any age enrolled in a full-time work study program or the equivalent at an educational institution.
Virginia employees are subject to a state income tax. The law requires employers to withhold state income tax from their employees’ wages and remit the amounts withheld to the Department of Taxation. Virginia employers are exempt from withholding requirements for certain nonresident employees who live in the District of Columbia, Kentucky, Maryland, Pennsylvania or West Virginia, and who commute daily to work in Virginia and receive wages for services performed in Virginia for an employer within the geographical limits of Virginia.
State unemployment taxes are less favorable for 2012. Although the Fund Balance Factor remains unchanged at 50%, the Pool Cost Charge has increased from 0.47% to 0.53%. Additionally, the Fund Building Charge of 0.20% remains part of the tax rate calculation thus adding to the cost of the tax over base rates. Tax rates for 2012 range from 0.83% to 6.93%. The Virginia unemployment taxable wage base remains unchanged at $8,000. The new employer unemployment rate is 3.23%
For further assistance with Virginia payroll, contact our offices in Newport News, VA or Johnson City, TN
Time & Pay announces Blood Drive winner—
Time & Pay and the Red Cross are pleased to announce that Bobby Tipton, a local American Red Cross blood donor, recently won a two-night Gatlinburg, TN vacation from Time & Pay. Time & Pay, NE Tennessee’s premier payroll service provider, has teamed up with the Johnson City Blood Donation Center for their 6th annual blood drive. Tipton, a regular blood donor, donated blood during the month long drive. Tipton’s name was randomly drawn to win the vacation, which includes a two-night stay at the Edgewater Hotel in Gatlinburg and two adult tickets to Ripley’s Aquarium.
“We are glad we have the opportunity to help out our community Red Cross by raising awareness for the need of blood donations and what the Red Cross does,” said Stephen Scheu, chief executive officer of Time & Pay. “We truly enjoy providing an incentive to encourage people to donate blood. We look forward to next year’s drive!”
The Johnson City Blood Donation Center is located at 818 Sunset Drive in Johnson City and is open 2-3 days per week. Anyone wishing to give the gift of life may schedule an appointment by calling 1-800-RED-CROSS or 1-800-733-276.
The Red Cross Carolinas Blood Services Region provides lifesaving blood to 103 hospitals and must have 1,600 people give blood and platelets each weekday to meet hospital demand. Accident victims as well as patients with cancer, sickle cell disease, blood disorders and other illnesses receive lifesaving transfusions every day. There is no substitute for blood and volunteer donors are the only source.
The Red Cross of Johnson City notes that blood can be safely donated every 56 days. Platelets can be safely given every two weeks, up to 24 times a year. Most healthy people age 17 and older, 16 with parental consent, who weigh at least 110 pounds, are eligible to donate blood and platelets. Donors who are 18 and younger must also meet specific height and weight requirements.
Steve Scheu presents Booby Tipton with Blood Drive prize!