Important Information from Next Level News

Next Level Strategies has just released their newsletter. There is some great human resources information to help you to plan and budget for the upcoming year. For a copy of the full newsletter or to be added to their mailing list, go to info@nextlevelstrategies.net.

HR Trends

The fourth quarter is the time many small companies begin the budgeting process for the upcoming year. You may be surprised by the latest study from Mercer HR Consulting, 2007/2008 U.S. Compensation Planning Survey. According to the survey, employers plan to award average pay increases of 3.8% in 2007. This is up slightly from 3.7% in 2006. Additionally, more and more companies are tying pay increases to employee’s performance. If you haven’t implemented an employee performance review process, this may be a great time to put one in place for 2008.

FICA Tip Credit

Attention all restaurant owners: the FICA Tip Credit is back!!!
Well...it never actually went away, but in the past it could not reduce the Alternative Minimum Tax, so many restaurant owners saw little or no tax savings from this credit in recent years, and stopped taking the credit altogether…but due to a recent change in the tax law, the FICA Tip Credit can now reduce the Alternative Minimum Tax, beginning in 2007 – so it is time for restaurant owners to start taking the FICA Tip Credit, and start paying less tax, once again!!!

Rich Gunn, CPA
Burr, Pilger, Mayer 415.288.6218

ALERT: New I-9 Form and Requirements - On 11/7/07, Form I-9, the Employment Eligibility Verification Form, was updated. This form requires all employers to verify a new employee's eligibility to work in the U.S. and fill the form out completely within three days of hire. The allowable documents used to verify eligibility have changed so please note the document list on the form. The effective date is 11/7/07 but there is a 30-day grace period so all employees hired on or after 12/7/07 must have their eligibility verified using the new form. You do not have to reverify existing employees. The form can be found at http://www.uscis.gov/files/form/I9. There is a Handbook for Employers, Instructions for Completing the Form I-9 at http://www.uscis.gov/files/nativedocuments/m-274.pdf or you can call us and we'll assist you with simple instructions to a complete I-9 compliance audit.