I-9 FILE COMPLIANCE

Announcements have been made from the current administration on enforcing existing and new regulations and higher penalties for non-compliance of these regulations. One of the areas of focus will be on the I-9 compliance.

I-9 forms establish a worker's identity and eligibility to work. I9s should be filed separately from employee personnel files. All employees must fill out and sign the form before beginning work and the employer must retain the documents for a certain amount of time depending on the length of employment. All I-9 forms must be retained either three years after date of hire or one year after termination, whichever is later.

The following steps are a guideline to I-9 filing and retention requirements.

1. Maintain separately from personnel records


2. Develop an administrative section to track record expirations, etc.


3. File active employee I-9s alphabetically


4. Set up a separate section for terminated employees and organize by retention date


5. Shred terminated I9s past retention date

For further information on I-9 instructions, please go to the following link for the USCIS Employers Guide:
http://www.uscis.gov/files/nativedocuments/m-274.pdf.

As the saying goes, "the best defense is a good offense". Following these guidelines and making sure there is an employee with the knowledge and experience to process the I-9s will help in preparation for an inspection.

DO YOU MEET REQUIREMENTS FOR DISABILITY NONDISCRIMINATION LAWS?

The U.S. DOL has released a new online feature to help employers ensure that their employment policies do not discriminate against qualified individuals with disabilities.

The online tool helps employers determine, quickly and easily, which federal disability nondiscrimination laws apply to their business or organization and their responsibilities under those laws.

Users answer a few questions about the nature of their organization such as the size of its staff and whether the business or organization receives federal financial assistance. Based on the responses provided, the advisor generates a customized list of federal disability nondiscrimination laws that are likely to apply, along with easy-to-understand information about employers' responsibilities under each relevant law.

Included with this online tool is a “Guide on Employing People with Disabilities” that outlines resources available to help employers comply with disability nondiscrimination laws.

The link to this tool is :http://www.dol.gov/elaws/odep.htm

IRS RELEASES GUIDANCE ON DEPENDENT COVERAGE

The IRS has issued the first of what will be many guidelines on the new health care reform law. The guidance confirms that an employer-sponsored health plan may provide coverage free from federal income tax to an employee’s children up to age 27.

This exclusion applies regardless of whether the child is married and regardless of whether the child is regarded as a “dependent” under the Internal Revenue Code. However, there are certain exclusions:

• The exclusion is effective for health coverage provided on or after March 30, 2010. Before March 30, coverage for the child will be excludable only if the child qualifies as a tax-code dependent.
• The exclusion ceases to apply in the year in which the child turns 27. This means if a child will turn 27 on Dec. 15, 2011, the exclusion applies to health coverage provided from March 30, 2010, through Dec. 31, 2010.

On Jan. 1, 2011, most calendar-year health plans will need to comply with the new health care reform mandate to extend coverage to adult children up to age 26. Although various questions still need to be answered about the new requirement to cover adult children, the change in tax rules does lead to an early and timely implementation of the tax law.