Filed under: Consulting, Human Resources | Tags: "human resources consulting", Grant, Human Resources, Training, Working a Better Way
2012 Working A Better Way Grant
Do you know of a non-profit agency that would benefit from the development of a strategic vision, enhancement of supervisory leadership skills or having an expert HR Manager on call? Help us help them by encouraging them to apply for the Working a Better Way Grant.
Our goal at Landrum Consulting is to help organizations and employees work a better way. Each year since it’s beginning, Landrum Consulting has provided thousands of dollars in pro-bono work to local non-profit organizations. Our Working a Better Way Grant is a way for us to formalize this community service and extend the opportunity to all community non-profits.
Landrum Consulting Services, a division of Landrum Human Resource Companies, is now accepting applications for the 2nd Annual Working a Better Way Grant. The grant is opened to 501 (c) (3) nonprofit organizations located in Escambia, Santa Rosa, Okaloosa, Walton and Bay counties who have been operational for at least one year as of the application deadline. Interested organizations can view the application guidelines and apply on-line for the Working a Better Way Grant at www.LandrumConsulting.com/grant.
Through the Working A Better Way Grant program, Landrum Consulting will award three grants in the following categories:
Strategic Planning: Many organizations spend time and money on “strategic planning”, only to let the great ideas that were brainstormed lie on a shelf collecting dust because they didn’t know where or how to begin. Landrum will help your organization outline a Strategic Plan to help your organization establish and achieve their desired goals and vision. The difference in Landrum’s method is that we help organizations focus on the most important things, establish measurable outcomes for those goals, and most importantly, establish an accountability system so that the goals will not fall by the wayside and be forgotten.
Leadership Training: Competent leadership is much more than knowing the right things—it is using the right skills, knowledge, insights, perceptions, and sensitivity to help employees deliver services and products according to expectations. This certification series is designed to enhance leadership skills for all levels of experience including those new to the supervisor role, experienced supervisors/managers who have not had formal training in management education, and seasoned managers who want to further develop their leadership skills. The certification program requires participation in (6) core courses:
1. Boot Camp for Supervisors
2. Hiring 101
3. Dealing with Difficult Employees
4. Sexual Harassment
5. Developing and Sustaining a Customer Service Culture
6. Supervisor Safety Skills
Human Resources Support: Landrum On-Call is human resources management consultation and assistance at your fingertips. Landrum will provide Human Resources support by assigning a certified Human Resources Manager to assist your organization with employee relations issues. Landrum provides guidance and support in the following areas:
• Compliance with Pertinent Employment Laws
• Discrimination and Harassment Claim Avoidance
• Employee Disciplinary Actions
• Investigation of Employee Claims and Disputes
• Conflict Resolution
• Employment-Related Policies
• Job Descriptions
An informational session for interested non-profits will be held Friday, October 14, 2011, 3:00pm – 4:o0pm at the Landrum Corporate office, 6723 Plantation Road, Pensacola, FL 32504. This session will explain and review the application, the supporting documentation needed, and services that are provided under the grant. Register for the informational session by calling Melissa Miller at 850-476-5100 or emailing; Grant@LandrumHR.com .
The deadline for receipt of grant applications is November 4, 2011. The Working A Better Way grant recipients will be chosen by Pensacola area Human Resources professionals and announced December 13, 2011.
Working A Better Way Grant Application
Filed under: "Hurricane Season Preparation", Business Continuity Plan, Risk Management | Tags: "hurricane escape route", "hurricane season", Human Resources, safety, storm surge
May 16, 2011
Whatta’ Ya Mean It’s Hurricane Season Again?
By Guy Storey, ARM
How fast a year can pass when we look forward to beach weather, and enjoying the summer season for all the reasons that caused many of us to move to the Gulf Coast! However, June is just around the corner, and that means the beginning of Hurricane Season.
“ You live at the Beach…how fun is that?” How many times have you had that conversation with friends and relatives that you left up north (that’s any place north of I-10)?
New beach chairs? The new cooler with “sand dune” tires? Don’t forget the suntan lotion! All the fun things to plan for the summer season should also focus on preparation for Hurricane Season. The weather gurus are predicting another busy year! What a bummer! Dr. Gray and his team of prognosticators from Colorado State University (that’s right, hurricane “experts” from the Rocky Mountains) are predicting 16 named storms, 5 of which will develop into major hurricanes, and a 72% chance that one will make landfall in the U.S. More importantly, their statistics reflect a 49% chance that a major hit will occur between the Panhandle and the Texas coast.
Now, ask yourself, how accurate were last year’s predictions? Waaaaay off base, but we didn’t care because we missed all of the action, and celebrated when the season ended! But no matter the guesstimates, it’s time to get ready for the next Ivan or Katrina. Getting started early is not a bad thing! With early forecast technology, we have time to make last-minute preparations, but it’s time to put your program into motion now!
Our friends and neighbors in Alabama and other southern states were unfortunately caught unprepared after the largest outbreak of tornadoes on record. For several days almost the entire northern half of Alabama has been without power, and our hearts go out to the families and businesses that were affected by the storms. Although there was no way to prepare for such a sudden and horrific natural disaster, there is something you can do to prepare for a hurricane.
Plan your escape route, and communicate the plan to family and friends. Make certain that important papers and documents are packed and ready to go. Make necessary repairs to home and landscape to prevent missiles from damaging your property…or your neighbor’s property. And don’t forget about your pets! They need refuge too. Is your Homeowners Insurance coverage adequate for “probable maximum loss” (PML in risk management jargon)?
Are your emergency supplies, medications, battery-powered equipment and spare batteries in adequate stock? You don’t need to be reminded every day about the gas prices, but it’s wise to keep the fuel tank at a reasonable level if you should have to evacuate at a moment’s notice. And it may be time to invest in a new generator, and plenty of duck tape and tarps….the best investment that you may never need!
The disastrous season of 2004-2005 is a faint memory to most of us, with little impact in our personal lives. Hopefully those most affected have recovered mentally and physically/fiscally from the devastation. But time heals…or makes us forget how painful it was for many of the residents of the Gulf Coast….from the Panhandle to New Orleans, we all felt that we were the center of Mother Nature’s bulls eye!
Go online to any number of Hurricane Preparation sites, the American Red Cross being one of the most comprehensive, and prepare a plan for you and your family. And consider assistance to any neighbors that may have physical or mental challenges, the elderly or those financially strapped that may need help in a time of crisis. There is no harm in asking those in need before Katrina’s sister is steaming toward our shores…”what can I do to help you prepare?”
Plan and prepare! Time is on your side…maybe.
Read more about Hurricane Preparedness in previous published articles by Guy Storey.
Guy Storey, ARM
Filed under: Consulting | Tags: "human resources consulting", Grant, Working a Better Way
Congratulations to the Winners of Landrum’s 2011 Working A Better Way Grants
Landrum Consulting Services, a division of Landrum Human Resource Companies, announced the winners of the Inaugural 2011 Working a Better Way grants.
The following three grants were awarded:
Horizon’s of Okaloosa County – Strategic Planning. Landrum will help Horizon’s of Okaloosa County outline a Strategic Plan to help them establish and achieve their desired goals and vision. Landrum will help them identify and focus on their goals; establish measurable outcomes for those goals, and establish an accountability system.
Early Learning Coalition of Escambia County – Leadership Training. This Landrum certification series is designed to enhance leadership skills for all levels of experience including those new to the supervisor role, experienced supervisors/managers who have not had formal training in management education, and seasoned managers who want to further develop their leadership skills. The certification program requires participation in (6) core courses: Boot Camp for Supervisors; Hiring 101; Dealing with Difficult Employees; Sexual Harassment; Developing and Sustaining a Customer Service Culture; and Supervisor Safety Skills
Pensacola Museum of Art - Landrum HR On-call. Landrum On-Call is human resources management consultation and assistance at your fingertips. Landrum will provide 40 hours of Human Resources support by assigning a certified Human Resources Manager to assist the Pensacola Museum of Art with employment related issues.
“Our Working a Better Way grant program is a unique way for us to give back to our community”, commented Ted Kirchharr, Vice-President and Chief Operating Officer. “Community Service is one of Landrum’s Foundations and the grant program allows us to reach out to more people and organizations in our community.”
Featured left to right: H. Britt Landrum, Jr., President, Landrum Human Resource Companies, Inc.; Dr. Julia J. McNabb, Executive Director, Horizons of Okaloosa County; Vicki Pugh, Professional Development Coordinator, Early Learning Coalition of Escambia County; Ted A. Kirchharr, Vice-President & Chief Operating Officer, Landrum Consulting; Julie Young, Associate Director of Development, Pensacola Museum of Art
Landrum plans to continue to offer services through the Working a Better Way grants on an annual basis. To read more about Landrum’s grant program visit http://www.landrumconsulting.com/grant/.
Landrum Consulting can create a customized Human Resources program to fit your company’s needs. By providing you with all the benefits of “in-house” expertise, Landrum Consulting will manage your human resources so you can build your company by focusing on managing your business. Landrum Human Resource Companies, Inc. is the parent company of Landrum Consulting, Landrum Professional and Landrum Staffing Services.
Filed under: Consulting, Human Resources, Training | Tags: "human resources consulting", Employee Development, Training
January 4, 2011
Cross Training: A Win–Win–Win Situation
by Melissa K. Miller, PHR
Investing in employee development through cross training is a wise choice. When training budgets are tight, finding creative ways to engage employees in learning opportunities can be challenging. There is a strong business case for cross training employees. Not only does cross training enrich employees, it can also increase organizational capacity. Capacity, that is, to provide essential services to clients in the absence of key personnel.
Done right, managing capacity can be as much about employee development as it is about business continuity. Landrum has developed a comprehensive Capacity Management System (CMS) that meets both objectives (and then some). The CMS provides a uniform format for managers to document all functions within their department and keep adequate numbers of staff members trained to perform each function.
Staff members are engaged in the process from the very beginning. Employees collaborate to compile a comprehensive list of duties for their department. On an individual basis each employee then rates their proficiency at each task. This information is the basis of a conversation between employees and their supervisor. Together a cross training plan is developed that will meet departmental needs and provide growth opportunities for the employee based on their goals. Employees who have mastered certain tasks assume leadership roles in training other employees.
Cross training is a win–win–win situation. Trained employees win because they feel valued, the trainers win because they have had an opportunity to share their expertise, and the organization wins because employee satisfaction has increased and continuity of service has been enhanced.
Melissa K. Miller, PHR
Filed under: Consulting, Human Resources | Tags: "human resources consulting", Human Resources, Working a Better Way
2011 Working A Better Way Grant
Do you know of a non-profit agency that would benefit from the development of a strategic vision, enhancement of supervisory leadership skills or having an expert HR Manager on call? Help us help them by encouraging them to apply for the Working a Better Way Grant.
Our goal at Landrum Consulting is to help organizations and employees work a better way. Each year since it’s beginning, Landrum Consulting has provided thousands of dollars in pro-bono work to local non-profit organizations. Our Working a Better Way Grant is a way for us to formalize this community service and extend the opportunity to all community non-profits.
Landrum Consulting Services, a division of Landrum Human Resource Companies, is now accepting applications for the Inaugural 2011 Working a Better Way Grant. The grant is opened to 501 (c) (3) nonprofit organizations located in Escambia, Santa Rosa, Okaloosa, or Baldwin counties who have been operational for at least one year as of the application deadline. Interested organizations can view the application guidelines and apply on-line for the Working a Better Way Grant at www.LandrumConsulting.com/grant.
Through the Working A Better Way Grant program, Landrum Consulting will award three grants in the following categories:
Strategic Planning: Many organizations spend time and money on “strategic planning”, only to let the great ideas that were brainstormed lie on a shelf collecting dust because they didn’t know where or how to begin. Landrum will help your organization outline a Strategic Plan to help your organization establish and achieve their desired goals and vision. The difference in Landrum’s method is that we help organizations focus on the most important things, establish measurable outcomes for those goals, and most importantly, establish an accountability system so that the goals will not fall by the wayside and be forgotten.
Leadership Training: Competent leadership is much more than knowing the right things—it is using the right skills, knowledge, insights, perceptions, and sensitivity to help employees deliver services and products according to expectations. This certification series is designed to enhance leadership skills for all levels of experience including those new to the supervisor role, experienced supervisors/managers who have not had formal training in management education, and seasoned managers who want to further develop their leadership skills. The certification program requires participation in (6) core courses:
1. Boot Camp for Supervisors
2. Hiring 101
3. Dealing with Difficult Employees
4. Sexual Harassment
5. Developing and Sustaining a Customer Service Culture
6. Supervisor Safety Skills
Human Resources Support: Landrum On-Call is human resources management consultation and assistance at your fingertips. Landrum will provide Human Resources support by assigning a certified Human Resources Manager to assist your organization with employee relations issues. Landrum provides guidance and support in the following areas:
• Compliance with Pertinent Employment Laws
• Discrimination and Harassment Claim Avoidance
• Employee Disciplinary Actions
• Investigation of Employee Claims and Disputes
• Conflict Resolution
• Employment-Related Policies
• Job Descriptions
An informational session for interested non-profits will be held October 15, 2010, 8:30am – 9:30am at the Landrum Corporate office, 6723 Plantation Road, Pensacola, FL 32504. This session will explain and review the application, the supporting documentation needed, and services that are provided under the grant. Please register for the informational session by calling Melissa Miller at 850-266-6144 or emailing; Grant@LandrumHR.com.
The deadline for receipt of grant applications is November 1, 2010. The Working A Better Way grant recipients will be chosen by Pensacola area Human Resources professionals and announced December 14, 2010.
Working A Better Way Grant Application
Filed under: Business Continuity Plan, Consulting, Human Resources, Landrum | Tags: "human resources consulting", Business Continuity, Communication, employees, Human Resources, PEO
Text First. Talk Second.
By Melissa Miller, PHR
NOT good advice for someone driving a vehicle, but great advice for connecting with employees or loved ones in the wake of a disaster. Emergency Communication Plans can include many options for staying in touch with employees (company website, corporate blog, work email, home email, home phone, social media sites, etc.) There is a good chance that following a disaster people will reach for their cell phones first. Cell phone circuits can become overwhelmed by high call volume following a disaster. People who need emergency services may not be able to call out for assistance and emergency personnel may not be able communicate with one another due to cell phone circuit congestion. Texting uses much less bandwith than conventional voice communications making it the preferred option during high usage situations.
For the 2010 National Preparedness Month, Disaster Recovery Institute International (DRI International) is focusing on communicating via text messaging. DRI International encourages families, companies and communities to become accustomed to using texting as a means of emergency communication. It is much more effective during a widespread emergency. DRI International has been teaming up with organizations like the Safe America Foundation during National Preparedness Month to help expand awareness about this issue. Safe America Foundation created the “Text First. Talk Second.” campaign to raise public awareness around the importance of utilizing text messaging for non-emergency communications during a disaster.
Here at Landrum we are modifying our Emergency Communications Plan to include texting as a primary means of communication. Utilizing the information in our current employee calling tree, supervisors are now instructed to enter the cell phone numbers of their direct reports as contacts. Employees are encouraged to enter the cell phone number of their supervisor as well as the Director of Corporate Human Resources into their phone as contacts to facilitate communications. Employees are instructed to text “I’m OK” to their supervisor following a threat or potential disaster. Supervisors will respond to the employees’ texts with pertinent information regarding company operations.
Sending text messages via email is another tool to facilitate emergency communications. Supervisors can create an email distribution list populated with the text addresses of their direct reports. Here are the email addresses to send text messages to the subscribers of some of the most popular cellular phone carriers (include area code with phone number):
AT&T: phonenumber@txt.att.net
Boost: phonenumber@myboostmobile.com
T-Mobile: phonenumber@tmomail.net
Verizon: phonenumber@vtext.com
Usage fees might not be an issue if your company provides cellular service for your employees. Chances are that many of your employees are not on the company plan. Avoid after the fact usage fee issues by talking with employees as you modify your Emergency Communications Plan to include text messaging.
Melissa K. Miller, PHR
As Strategic Management Specialist for Landrum Human Resource Companies, Melissa is responsible for facilitating inter-departmental process improvement, strategic planning and capacity management. Certified as an Associate Business Continuity Professional (ABCP) Melissa leads Landrum’s Business Continuity Team. For the clients of Landrum Consulting Services, she leads Strategic Planning Retreats and Focus Groups. Melissa is certified as a Professional in Human Resources (PHR) by the Human Resources Certification Institute.
Filed under: Business Continuity Plan, Consulting, Human Resources, Landrum, Training | Tags: "human resources consulting", employees, Human Resources, PEO
Where the Rubber Meets the Road
By Melissa Miller
Being prepared to continue operations whenever adversity strikes requires vigilance. Not vigilance to predict disasters, but vigilance over critical functions. Critical functions are those things that absolutely, positively must happen in order to stay in business. Landrum provides a myriad of HR functions for our clients, but issuing timely and accurate paychecks (no matter what) is one of those critical functions where the rubber meets the road.
Identifying and hardening critical functions in order to meet customer expectations and remain compliant with applicable regulations requires continuous business continuity practice. Landrum has developed a comprehensive Capacity Management System (CMS) for this purpose. The CMS provides a uniform format for managers to identify and document all functions within their department. Rating functions according to criticality helps managers keep adequate numbers of staff members trained to perform each function. The CMS makes it easy to see at a glance which staff members are proficient at each task, which would be particularly valuable in the absence of key personnel or management.
Knowing who can perform each critical function will prove to be invaluable when faced with a potential threat. Preparing and talking with staff about how the work will proceed in the event of a business disruption event will put everyone’s mind at ease. After all, everyone likes the security of knowing their company is prepared to stay in business and that they will continue to get paid (no matter what).
Melissa K. Miller, PHR
As Strategic Management Specialist for Landrum Human Resource Companies, Melissa is responsible for facilitating inter-departmental process improvement, strategic planning and capacity management. Certified as an Associate Business Continuity Professional (ABCP) Melissa leads Landrum’s Business Continuity Team. For the clients of Landrum Consulting Services, she leads Strategic Planning Retreats and Focus Groups. Melissa is certified as a Professional in Human Resources (PHR) by the Human Resources Certification Institute.
To learn more about Landrum’s Capacity Management System feel free to contact us by using the short form in the sidebar.
Filed under: Business Continuity Plan, Human Resources, Landrum, Landrum Lagniappe | Tags: Business Continuity, Communication, employees, Human Resources, PEO
Business Continuity is Everybody’s Business
Melissa Miller, PHR
Developing a Business Continuity Plan (BCP) is not a single act. It is an on-going program that grows and changes with your organization and the markets that it serves. It also is not a secret. Systemic communication for input into the plan and for preparing everyone to implement the plan is crucial. Putting the right people on your Business Continuity Team (BCT) is the key to keeping your company prepared.
We broke with traditional Business Continuity wisdom, which recommends that a member from senior management act as liaison to the BCT, when we seated four members of our Senior Leadership Team on our BCT. This allows the BCT to operate most efficiently as many decisions can be made on the spot rather than waiting for an answer from senior management.
To ensure that our company is prepared for various threats the four Senior Leadership Team members seated on the Team work side-by-side with Department Managers and line employees. This multi-level, cross-functional team, which meets once a month, allows fluid and systemic communication about planning needs. Department Managers and line employees provide the “where the rubber meets the road” knowledge about our operations so the plan can be kept current and relevant. The Senior Leaders provide the backing to ensure that our Departments have everything they need to stay ready.
Melissa K. Miller, PHR
As Strategic Management Specialist for Landrum Human Resource Companies, Melissa is responsible for facilitating inter-departmental process improvement, strategic planning and capacity management. Certified as an Associate Business Continuity Professional (ABCP) Melissa leads Landrum’s Business Continuity Team. For the clients of Landrum Consulting Services, she leads Strategic Planning Retreats and Focus Groups. Melissa is certified as a Professional in Human Resources (PHR) by the Human Resources Certification Institute.
Filed under: Consulting, Human Resources, Landrum Lagniappe | Tags: "human resources consulting", Communication, employees, Human Resources, Job Performance
July 19, 2010
Mayberry Monday – “Opie the Birdman”
By Holly McLeod, PHR
One of my all-time favorite episodes of The Andy Griffith Show (TAGS) is “Opie the Birdman.” In this episode, young Opie is playing outside with his new slingshot. Andy, his “Paw” (aka Dad, for those of you who didn’t grow up in the South), had warned him to be careful. Opie was playing in his imaginary world of Good Guy vs. Bad Guy, when he pulled the sling and sent a shot catapulting into a nearby tree. He then stared in horror as a bird fell dead in front of him.
Opie’s first instinct was to run and hide, but it didn’t take Andy long to realize what had happened. In trying to teach Opie a valuable lesson, Andy opened Opie’s bedroom window so that Opie could hear the baby birds chirping for their mother, who would never return. Opie not only learned the lesson Andy was trying to teach, but he took it upon himself to personally care for the baby birds.
He gave them a safe place to live, and much to Aunt Bea’s chagrin fed them “nice, juicy worms” that he dug out of the back yard. Opie took wonderful care of these birds, until one day he noticed they were flapping their wings and trying to get out of the cage. Andy, in his wise and diplomatic way, helped Opie realize it was time to set the birds free.
Opie had nurtured these birds when they were unable to care for themselves. Now that they were older and more mature, Opie had to make the difficult decision to do what every mother bird faces – to push the birds out of the safety and security of what they knew, and to face the new, exciting, and sometimes scary world of the unknown.
The life cycle of an employee is not as clear-cut as it was for Opie’s birds, but employers do get the opportunity to nourish an employee’s growth and maturity. You won’t see an employee literally flapping its wings to get out of the cage; however, if you look closely and pay attention you might just see the signs of someone in need of new challenges and opportunities, or who is becoming discontent in his/her job:
- Decreased productivity
- Decreased enthusiasm
- Uncharacteristic attendance or punctuality issues
- Showing frustration over work
- Uncharacteristic irritability
- Showing decreased enjoyment in work
- Request for additional responsibilities
- Request for transfer to another position (even if it’s a lateral move)
These behaviors are symptoms of discontent, and could be warning signs for more serious issues like burnout or depression. By paying closer attention, you can avoid losing great employees by intervening early and finding ways to keep your employees engaged and passionate about their work.
Consider developing career paths within your organization if you haven’t already done so. Knowing there are future opportunities for growth and development will go a long way in maintaining a content workforce. Look for the flapping birds in your organization, and act quickly to keep them engaged in their work and in your company. Be aware when someone matures to the point of needing new challenges. But also be aware when someone is on the verge of burnout and needing some fast relief!
Opie learned the valuable lesson that you shouldn’t keep something caged that is destined to fly. Like Opie, you may find yourself needing to help your employees out of the cage. That’s what mother birds do for their young, and what good employers do for their employees.
The ending scene of “Opie the Birdman” demonstrates why this is the right thing to do. After Opie released the birds and each of them had flown out of the cage, Opie looked sadly at the cage and told Andy it sure looked empty. “Yes it does,” Andy replied, “but don’t the trees sound nice and full.” Imagine how nice and full your organization will be if everyone is happily flying, doing the work they are destined to do.
I hope you plan to meet me in Mayberry again next Monday. Stay tuned…
Holly McLeod is a Human Resources Manager for Landrum Professional Employer Services and Landrum Consulting. She is a certified professional in human resources (PHR) and has more than 15 years of human resources consulting in the corporate world, healthcare and manufacturing environments
Filed under: Benefits, Consulting, Health Reform, Healthcare Tax, Human Resources, Landrum Lagniappe | Tags: "Business Etiquette", "human resources consulting", Human Resources, Insurance Reform, tax
By Susan Hunsucker, CEBS
For those of you who are gluttons for punishment, here’s more about health care reform. This topic does come with some good news for those employers who qualify for a tax credit. The full 35% tax credit is available to employers with fewer than 10 full time equivalent (FTE) employees averaging annual wages of $30,000. The tax credit is reduced for employers that have fewer than 25 FTEs, averaging $50,000 in annual wages. The information below is a summary. The actual IRS calculations can be much more involved. Click here for the complete IRS News Release.
Here’s how the Small Business Health Care Tax Credit works:
Requirements:
• Have fewer than 25 full-time equivalent (FTE) employees employed during the tax year
• Wages averaging less than $50,000 per employee per year
• Offer a qualifying health plan (generally, health insurance bought from a state-licensed insurance company)
• Employer must pay at least 50% of single coverage for their employees
Step I. Do YOU QUALIFY?
A. Do you offer qualified health insurance?
For any tax year beginning in 2010, 2011, 2012 or 2013, qualified health insurance is insurance coverage within the meaning of Code Sec. 9832(b)(1). Generally, health insurance coverage bought from a state-licensed insurance company.
B. Determine the number of FTEs:
Divide the total number of hours paid to employees during the year (not to exceed 2080 for any one employee) by 2080. Round fractions to the next whole number. Some employees may be excluded from the calculations, such as seasonal workers.*
C. Determine the average annual wages:
Divide the total wages paid to employees during the employer’s tax year by the number of FTEs for the year. Round down to the nearest $1,000. Wages means wages as defined for FICA purposes.*
D. Determine the amount of eligible premium:
Health and Human Services (HHS) has determined the average premium for the small group market in a state and the IRS has published those figures. The amount of an employer’s premium payments for purposes of calculating the credit cannot exceed the published average premium for the state the employer is operating in. For Florida, the amount is $5,161 for employee-only coverage and $12,453 for family coverage. For other states, click here.
Step II. CALCULATING THE AMOUNT OF THE TAX CREDIT
Example: For the 2010 tax year, a qualified employer has 12 FTEs and average annual wages of $30,000. The employer pays $96,000 in health care premiums for those employees (which does not exceed the average premium for the small group market in the employer’s state) and otherwise meets the requirements for the credit.
The credit is calculated as follows:
1) Initial amount of credit determined before any reduction:
35% x $96,000 = $33,600
2) Credit reduction for FTEs in excess of 10; $33,600 x 2/15 = $4,480
3) Credit reduction for average annual wages in excess of $25,000;
$33,600 x $5,000/$25,000 = $6,720
4) Total credit reduction $4,480 + $6,720 = $11,200
5) Total 2010 tax credit: $33,600-$11,200 = $22,400
Step III. CLAIMING THE TAX CREDIT
The credit is claimed on the employer’s annual income tax return. For a tax-exempt employer, the IRS will provide further information on how to claim the credit.
The National Association of Professional Employer Organizations (NAPEO), has been busy in Washington looking out for the interests of small businesses. They were successful in having a provision included in PPACA, which allows a “look through” of the PEO to the client size, when determining eligibility for the tax credit. So if you are a Landrum Professional Employer Services client and would qualify for a tax credit, your relationship with Landrum does not change your eligibility. As a matter of fact, we can provide you with much of the information for your CPA to make the tax credit calculations.
*For more detailed information and examples, visit the IRS website.
Don’t forget to sign up for the free Health Care Insurance Reform Seminar at www.landrumhr.com. The speaker is Diane Boyle, Vice President, Federal Government Relations National Association and Financial Advisors.
Susan Hunsucker, CEBS
A Certified Employee Benefit Specialist from the Wharton School, Susan serves as Director of Employee Benefits and handles benefits administration for thousands of employees throughout the Southeast. Susan has over 20 years experience in all aspects of benefits administration including insurance, retirement plans, COBRA, HIPAA, and ERISA.
