Here are this week’s links to a few good stories that we found and selected because we feel they might add valuable insights and perspectives for small to medium size businesses.
- In this space in September (The Impact on Businesses if Congress Fails to Extend the Terrorism Risk Insurance Act) we expressed concern that Congress might not act to curb potential increases in Workers’ Compensation Insurance. In 2002, Congress passed a bill to provide government reinsurance in the event of a large scale terrorist attack. Congress extended the bill in 2005 and 2007, but it was scheduled to expire on December 31, 2014. And expire it has. Congress left Washington for the holidays without acting to extend. Many believe that the new Congress will take up the bill early in 2015, but many more believe that an extension (if any) will look far different from the original legislation that was passed in the wake of 9/11. If no action is taken, business owners should expect increases in Workers’ Compensation insurance. In fact, even if action is taken, a government reinsurance commitment may be well less than the original bill, which would also drive up costs for business owners. Stay tuned.
- The Small Business Efficiency Act (SBEA) is now public law. However, implementation of the legislation will require the IRS to have a certification process in place by June 30, 2015, with the rest of the rulemaking in place when the law takes effect on January 1, 2016. 2015 should indeed prove to be an interesting year as the steps are taken to implement this important legislation, which will ultimately be hailed as a true victory for the small business community.
- More often than not, when courts weigh in on the issue of Independent Contractors (ICs), business owners often find themselves with employees that didn’t realize they really had. In Kansas, the state Supreme Court ruled that micromanagement by FedEx of ICs, really meant they were employees. Read Beware! The Little Things Will Make A Big Difference In Court’s Assessment Of Whether Individuals Are Independent Contractors posted by Sara Yager on JDSupra Business Advisor to learn more. The trend is clear. Courts and legislators are becoming less tolerant of employers who they feel are too liberal when using the IC label for workers that are, in reality, their employees.
If you have questions or would like to learn more, please reach out to Genesis HR Solutions at AskUs@genesishrsolutions.com or 800-367-8367.
Genesis HR Solutions is the premier PEO provider for Massachusetts based businesses.
