Idomeneo » Newsletter – February, 2011
Newsletter – February, 2011
In this Issue:
- A Message From The CEO
- Did Your Exempt Employees Just Become Non Exempt?
- iLiability
- Alerts
- Did You Know
- Site To See
- The Reading Corner
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A Message From The CEO
I’ve had a blinking error light on one of my home printers for 3 months. There isn’t a good reason the problem has lasted this long, just the usual litany of excuses. I’m not sure what is wrong, it may be as simple as getting a new ink cartridge, but it may involve reloading the software – and for some reason, everything technology related takes 4 hours. Set up a new PC – 4 hours; laptop not recognizing all the printers on the network – 4 hours; connecting new wireless router – 4 hours; fixing printer error light – 4 hours. Also I have another printer that I can use – so the loss of this one is a minor inconvenience. Of course, it is the one that scans and is color, so when I need a scan or a color document I have to wait until I get to work. As I think of it, that’s the reason I purchased it in the first place.
I spend a good deal of time in my home office, sometimes working, sometimes just watching TV. No matter where I am in that room, I can see that darn blinking light. As a result, it has set up a home in my subconscious. Whenever I sit down to work or think in that room, I have a background task running of “you need to fix that printer”. It’s not a big thing, but it is a thing. A thing, taking up space in my head; a thing with no action plan for resolution; a thing just hanging there…bugging me!
And, when you add that to the countless other things that have taken up residence in my head (need to paint that spot on the baseboard of the living room; need to remember to update that marketing template; have to send an eMail to check on that schedule I was expecting) – you have the definition of mind clutter, the arch enemy of organization.
What’s so important about being organized? When you are organized you can think, you can innovate and you can execute. As your company’s leader, you are responsible for making things happen, getting things done. An idea without execution is an empty dream. One critical mark of a successful leader is the ability to turn an idea into action. Execution is king.
Stray, undone, unplanned items sit in your mind and constantly run as background tasks. And, just like your PC, when there are too many background tasks running, the whole machine is slowed – and may in fact freeze.
We have all seen countless organization systems. Systems based on calendaring every item, systems based on setting life tasks first and then work tasks, systems based on the latest gadget, systems based on touching a piece of paper once, systems based on ignoring eMail and all other info input except for a designated 15 minutes every day (I have a feeling my clients and team would have a big problem with this one). Different systems work for different personalities. You have to find the system that works best for you.
No matter which system you choose – choose one. Yes, you do need one. There are too many reins to keep in hand. You are running a company, and in addition you may be marketing, operations, accounting, sales etc. I haven’t even mentioned the fact that you have to have some sort of life, and living has it’s own set of obligations. Trust me – you have too much to do not to have some sort of organization system.
So, do some research, find (or dust off) one that works for you, and implement, implement, implement. One thing that all organization systems have in common is that they all require maintenance. Just accept the fact that you will have to make time to stay organized.
In this month’s newsletter we give you some tips on reviewing your compensation to ensure you remain compliant; putting focus on your company’s policies regarding the latest technology tools; and the care and feeding of personnel records. Our featured web site will help you organize your finances and easily determine the smartest way to spend your money. And finally, to help you get jump started on choosing an organization system, take a look at this month’s reading selection.
Remember, a little organization goes a long way. And yes, I did fix that printer – it only took 2 hours!
Vicky Brown
CEO
Idomeneo Enterprises, Inc.
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Did Your Exempt Employees Just Become Non Exempt?
As we mentioned in last month’s newsletter, the salary rate you pay an employee will not automatically make them exempt from overtime. But, if you go below the threshold, you can push an otherwise exempt employee into the non exempt category.
For this reason, as well as others, it is important to keep track of the current minimum wage, both at the Federal level and for your specific state.
For example, the current Federal minimum wage is $7.25 per hour; however the California minimum wage is $8.00 ($9.92 for some San Francisco companies). While the overtime exemption is determined by the responsibilities of the position, if a California employer pays less than twice the state minimum wage rate, the employee may be automatically considered non exempt.
Additionally, employers are not permitted to pay less than the minimum wage. It is strongly recommended that you review the minimum wage at both the Federal and state level every six months. Measure the rate against your current compensation levels and make adjustments as needed. Also update your posters to ensure they reflect the current rates.
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iLiability
What could be cooler. Your implementation team goes to the client’s office, whips out their iPads, and proceeds to dazzle them with the cutting edge nature of your company. Or, perhaps it is a bit more mundane and focused on function – the easiest way for everyone to have access to everything, all the time is to be connected via their tablet, or iPad, or iPhone, or ultra sleek laptop.
While the connectivity of the internet has changed the way we live and work, it has also increased the security threats we face. Make no mistake, as with the internet, the advent of tablet devices and smart phones puts your company’s information at greater risk today than ever before.
Many companies are allowing employees to use their own equipment for work (laptops, iPads etc.) with no thought to how to secure information on these devices. And, what happens when you need to retrieve information from those devices for legal or discovery reasons. If the equipment belongs to the employee, things become very complicated. Even in the event you provide company owned devices, the likelihood they will also be used for personal activities is virtually 100%.
It is critical to consider what policies (HR and IT) make the most sense for your company, and put them in place. What kind of security measures will you require the user to engage; what happens when a device is hacked, lost or stolen; what is the protocol for connecting a device to the corporate network; how will the company access/retrieve company information from a device that also contains personal information.
This is just the tip of the iceberg. Technology is a blessing, and a curse when improperly used. Better to establish guidelines now, before the fact. Have a chat with your IT provider, your attorney and your HR professional. You might also check out Apple’s overview of the iPad in business (http://ow.ly/3MVAY)
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Alerts (Update 2/04/11)
One odd regulation that was tacked onto the healthcare reform bill is the new 1099 reporting requirements.
Effective 1/1/12, the new regulations require businesses of all sizes to report payments for services and goods over $600 in a year (basically, everything you buy) on the MISC-1099 form at tax time.
The plain speak version of this is – buy a $700 desk from OfficeMax – you have to file a 1099; buy $200 of office supplies, a $300 printer, and $200 worth of paper from Staples – file a 1099; spend $700 at the printer over the course of the year – file a 1099.
As you can see, this makes for quite a finance and reporting burden. 1099 filings require the FEIN of the company (yes, you will have to ask Best Buy for their Federal ID Number), you have to send a copy of the filing to the company as well as filing with your tax returns (not clear if you would send the Staples filing to the specific store from which you made the purchase, or the corporate office), and the amount spent (you are going to have to track those office supplies much more closely).
Virtually everyone thinks this is a bad idea (with a little help from the hue and cry of business owners the nation over), and Congress is trying to repeal the reg. However, they have tried a few times and so far, they have not been successful. While it is entirely possible this will go away, you must prepare in the event it sticks around.
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Did You Know
Have you ever wondered about the care and feeding of personnel files. What goes in them, what doesn’t, how long must they be kept.
The concept behind the personnel file is for it to be a repository for work performance related information, contact information, compliance documents and attendance information.
The term ‘personnel file’ is really a misnomer. The file is made up of a number of files, maintained separately for various privacy and anti discrimination reasons. Each file should consist of 1) a personnel records file 2) a benefits information file and 3) a time off tracking file. The contents of each is recapped below:
Personnel Records File
- Emergency Contact Information
- New Hire Documents (such as employment application, confidentiality and other agreements, offer letter/employment contract)
- Performance Management Documents (performance reviews etc.)
- Transaction Records (salary increases/decreases, promotion info, status changes etc.)
Benefits Information File
- Insurance Enrollment Materials/Documents/Applications
- All insurance related documents
Time Off Tracking File
- PTO/Vacation/Sick Time Requests and Approvals
- Leave Documents (i.e. FMLA requests)
You will note there are two important categories not mentioned above, the Authorization to Work in the US (I9 Form) and payroll information/records. I9s must never be kept in any of the files that comprise the Personnel File. They are kept in a separate file or book that contains all the I9s for the company.
Payroll information is also kept in a separate file/book that contains the payroll information for the company. While the Personnel Records File contains the transaction history of a given employee via the Transaction Records, payroll journals and other payroll related information is maintained separately.
For reasons of medical privacy, access to the Benefits Information File must be strictly limited to HR or company management personnel. Supervisors and/or other employees should not be given access, and these files should be maintained in a separate, locked drawer or room from the Personnel Records Files and Time Off Tracking Files.
All companies should also implement a records retention program. This ensures timely and appropriate maintenance/destruction of all documents. Discuss the retention requirements for your state with your legal professional.
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Site To See
www.mint.com
This site, from market leader Intuit (owner of Quicken and QuickBooks), provides a free ‘cloud’ application to track all your spending and finances.
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The Reading Corner
Getting Things Done
David Allen
Of all the organization systems I have come across, this one had the most resonance for my way of working. Admittedly, I created a few adaptations to fit my personal style, but the result (when I make the time to maintain the system) is amazing.
Even if you find this particular system isn’t for you, there are insightful tidbits to help you get a handle on your time.
