Boxed in by Box 12 on the W-2

Another update from the Jungle…

unnamedMaryann handles payroll questions for her employer.  She and her coworkers have been scrambling for a couple of years to ensure they comply with the Affordable Care Act (ACA).  Last year was all about finding a software program that would allow the company to track the hours of its temporary employees.

This year, Maryann is looking at box 12 on the W-2. That’s the box where employers need to plug in the cost of the medical plan for the employee.  Filling in this information is mandatory only for employers who filed at least 250 W-2’s in the previous tax year, meaning in 2013.  Maryann’s company filed 170 W-2’s in 2013, so they aren’t required to complete box 12 for the 2014 tax year.

She knows that this January her company will issue 200 W-2’s covering the 2014 tax year.  She thinks that number will rise to 250 during 2015.  Maryann wants to get a head start on figuring out box 12 after some of the past fiascos in trying to comply with the ACA.

What should Maryann consider?

  1. Maryann knows that the “cost” or “value” of health coverage refers to the premium paid for medical coverage in the health plan, known as “major medical”. She needs to verify what other costs, such as FSA contributions and dental and vision premiums, may need to be included.
  2. Maryann can consult her company’s CPA firm for assistance on completing box 12.
  3. Maryann can do some research in the ACA section of the IRS website during her spare time.

Update:  According to the IRS website, no new guidance has been issued in the past year. As a result, reporting the cost of the employee medical plan in Box 12 is required only for employers who filed 250 W-2’s in the previous tax year.  Employers who filed less than 250 W-2’s in the previous tax year may voluntarily report the medical plan cost in Box 12.

If your company is struggling with HR issues, Corporate Compliance Risk Advisor can help you create HR policies that are appropriate for your company’s size and then serve as a resource to your staff as the policies are implemented.

 

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Good cover, lousy book

Another update from the Jungle….
NS12016-2Gene is the managing partner of a professional services firm and he’s extremely proud of the team that works with him.  He insists that they follow a reasonable work schedule leaving time for family.  He rewards every employee with a bonus when the firm hits revenue targets.

The result is high productivity and soaring morale. People want to work at his firm and Gene has the luxury of picking job candidates that best fit his philosophy. It was all smooth sailing until six months ago when he hired Avery.

Avery looked great on paper. His three page resume looked impressive, full of academic achievements, extensive industry experience, and a history of community involvement.  Avery showed up for the interview in an expensive suit, looking thoroughly professional. He was relaxed, articulate, and generated a good vibe when he met the whole team.  He seemed like a great fit for the firm and Gene hired him.

Within a week, Avery was a problem.  He told several senior partners that his old firm had a much better system for tracking client services.  Then he told the secretaries they were being unfairly exploited and should go on strike for higher wages.  After that he asked junior staff members why they worked so hard when there was no obvious path to promotions since all the senior partners were years from retirement.

Gene learned about the underbelly of discontent when a delegation of junior staff members cornered him to complain about Avery.  The youngest secretary said she didn’t appreciate being told that she ought to feel exploited. That was one of the milder comments.

Gene’s always been told not to judge a book by its cover.  But it’s obvious that underneath Avery’s polished façade lies a wealth of baggage picked up from the conditions he experienced with previous employers.

How should Gene handle this situation?

  1. He can fire Avery immediately since the state has “at will” employment. But with Avery’s baggage, a wrongful termination lawsuit seems inevitable.
  2. He could try to counsel Avery on his attitude but worries this will simply delay the inevitable outcome.
  3. He can tell Avery that the firm isn’t the right fit and offer Avery a generous severance package in exchange for leaving immediately.

In the actual situation, the firm chose the third option because the management team decided that a toxic personality was too big a risk to keep on the payroll and the severance package limited any possible wrongful termination claims.  Everyone lived happily ever after (except “Avery” who carried his baggage to the next employer’s office).

If your company is struggling with HR issues, Corporate Compliance Risk Advisor can help you create HR policies that are appropriate for your company’s size and then serve as a resource to your staff as the policies are implemented.

 

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Sharing Sharon

Another update from the Jungle….

Difficult co-workers and employee relations

Do you have employees “holding court”?

Sharon is a middling performer, not great but not so bad that her job’s on the chopping block. She’s willing to work with any team to which she is assigned and she can be depended on to slog through some of the more tedious work.

Unfortunately for her co-workers, Sharon believes in sharing the details of her life. Her co-workers call her “Sharing Sharon”, as well as a few other names not fit for print here. Sharon’s co-workers know all about her marital problems, her son’s attention deficit disorder, and her teenaged daughter’s complicated love life. They also know about her cat’s litterbox problems and suffered for a week while Sharon agonized over her decision to put down her aging, sick dog.

Sharon cares about more than just her family, of course. One week she insists people should do more to save furry baby animals before all non-human species become extinct. Another week she explains that she’s reducing her carbon imprint by avoiding plastic water bottles.

Sharing Sharon’s oversharing is beginning to affect operations. One worker twisted her ankle when several employees imitated the running of the bulls to clear the break room to avoid Sharon. Several co-workers told the HR manager, Pam that they would rather quit the company, losing their 401(k) match than be stuck on another team with Sharon.

Pam has tried several times to give Sharon a hint that her personal life is better shared on Facebook with personal friends than with co-workers.  Sharon just doesn’t get it. The breaking point feared by Pam has now happened. Sharon was busy oversharing in a team meeting and the team leader was finally goaded beyond endurance. He yelled at Sharon to “shut up, already!”

Now Sharon is sitting in Pam’s office, sobbing and begging for Pam’s help.

How should Pam handle this situation?

  1. She can privately thank the team leader with a bottle of Gentleman Jack for saying what all of Sharon’s co-workers wanted to say but were afraid to.
  2. She can sympathize with Sharon’s distress but remind her (again) that personal lives shouldn’t be brought into the workplace.
  3. She can counsel the team leader regarding the company’s anti-bullying policy which prohibits derogatory comments to co-workers, sympathize with his exhausted patience, and encourage him to find less brutal ways to make his point in future.

In the actual situation, the co-workers continued to cringe and hide until their “Sharing Sharon” accepted a job at a competitor.

If your company is struggling with HR issues, Corporate Compliance Risk Advisor can help you create HR policies that are appropriate for your company’s size and then serve as a resource to your staff as the policies are implemented.

 

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Outside Employment

unnamedKelly is glad to be back at work after a couple of weeks of family togetherness at the holidays. A few more days of vacation and she’d be ready to disown her parents and her in-laws, write the kids out of the will and talk to a divorce lawyer about her husband’s fate. It’s good to be back in the office where her job as HR Director suddenly seems simple.

Of course, that happy mood wears off before her first cup of coffee is finished. She’s still sorting through her email in-box when the company president barges into her office. He’s called a meeting to discuss a problem employee.

Kelly refills her coffee mug, sighs, and trudges to the president’s corner office to join the chief information officer and the CFO. The CIO explains that a misdirected phone call to her key lieutenant uncovered proof that Dan is running a side business. Dan is an IT department employee.

The misdirected phone call is from an individual who says he outsourced his company’s IT department to Dan. A quick investigation reveals that Dan has a personal IT business complete with a website advertising the same services he does for his employer. Dan has helpfully listed his company-issued cell phone number as the contact number for his side business.

The company president wants to fire Dan immediately, preferably by firing squad in the parking lot. The CIO and CFO also want to fire Dan but are worried about delicate negotiations on an IT contract. Dan has a small, but critical part to play in those negotiations. If Dan is fired he might take revenge by trying to screw up those negotiations. The management team looks at Kelly for her recommendation.

unnamed-2

What’s best for the team?

What should Kelly recommend to the management team?

  1. She can agree with the company president that Dan should be fired immediately, but without the firing squad since that would create a mess in the parking lot, not to mention violating company employment policies.
  2. She can ask the CIO if there is a replacement for Dan so that he can be placed on administrative leave pending the outcome of the negotiations.
  3. She can suggest that they proceed as usual, keeping the matter confidential until after the IT contract negotiations conclude and then fire Dan.

In the actual situation, the company decided to go with the third option because there was no replacement option. Immediately after the IT contract negotiations ended, the employee was fired with a note that he would never be eligible for rehire.

If your company is struggling with HR issues, Corporate Compliance Risk Advisor can help you create HR policies that are appropriate for your company’s size and then serve as a resource to your staff as the policies are implemented.

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Tis the Season

Another update from the Jungle….

christmasNicole, the HR manager, is making one more effort to boost morale among her fellow employees this year. So far her efforts have had mixed success, to put it mildly. After scantily dressed people at the Halloween party and a near race riot for Veteran’s Day, the Thanksgiving luncheon was a damp squib. But there’s still time to rescue morale with a Christmas party.

Actually, it won’t be a Christmas party because Nicole doesn’t wish to offend the religious sensibilities of any employee. It’s a holiday party. She buys generic party favors to decorate the break room. Then she asks management to pay for the party to show their appreciation for their employees. Management counters with the bill for the Thanksgiving luncheon and says the company president won’t pay another red cent. The president is upset after hearing a rumor that his company is running a prostitution ring based on leaked photos from the Halloween party.

So Nicole decides to have another potluck lunch. She posts a sign-up sheet on the refrigerator in the break room and waits for the inevitable disgruntlement to ooze through her office door. She doesn’t have to wait long.

Ruth darkens her doorway to object to the generic decorations. She insists the holiday is about the christmas1baby Jesus and offers to contribute her personal Nativity scene to make the scene more authentic. The Nativity scene involves burning candles to illuminate the manger. Nicole says no. The candles will likely set off the sprinkler system and besides the workforce includes observers of several faiths.

The day of the holiday party arrives and Nicole inspects the potluck which includes chicken burritos, no-meat chili, pecan pie, and snickerdoodle cookies. Then Nicole notices Steve sidling up to the buffet table with a couple of desserts and hurries over to inspect his contributions. His key lime pie looks delicious but the fumes indicate that it’s half rum. His other contribution is bourbon balls.

What should Nicole do next?

  1. She can confiscate Steve’s desserts and remind him of the company’s no-alcohol policy.
  2. She can pretend not to notice Steve’s contribution and allow the seasonal cheer to go on. After all, it would boost morale until the alcohol wore off.
  3. She can encourage the company president to indulge in dessert and, when he’s feeling mellow, hit him up for pay raises for the workforce.

Nicole’s year of trying to boost morale is winding to a close. Nicole plans to enjoy the remainder of the year in solitude and meditation while preparing for next year.

If your company is struggling with HR issues, Corporate Compliance Risk Advisor can help you create HR policies that are appropriate for your company’s size and then serve as a resource to your staff as the policies are implemented.

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The Back Stabber

Another update from the Jungle….

backstabMarcella was happy to find a friend like Barry when she joined her new employer. He seemed like such a nice guy, interested in mentoring younger co-workers like her. Barry was a big help to her as she navigated the internal politics of her new employer.

Gradually over the months, Marcella talked about her children and she even gave Barry a few details about her messy divorce.   A female co-worker warned Marcella that Barry’s nice guy image was barely skin deep. Marcella dismissed the comments as sour grapes because the co-worker had been bounced from Barry’s team due to poor performance.

Then Marcella disagrees with Barry about how to solve a problem on their team project. Barry first tries to shame Marcella
in front of the other team members by explaining that he has so much more experience than her, his solution is the best. When Marcella refuses to back down, the matter escalates to their boss who agrees with Marcella’s solution to the problem.

A week later, the boss stops by Marcella’s office to ask if everything is okay at home. He assures her backthat she can have time off to go to court to deal with her son’s drug problem. Marcella’s shocked; her son doesn’t have a drug problem. Other co-workers stop by during the next few days to offer support.

Marcella remembers confiding to Barry several months ago that she was worried about some of her son’s friends. During that conversation she also said she was happy that her son’s school invited a community outreach police officer to talk to the students about the consequences of drug use. Marcella thinks that Barry twisted this information because he is mad about losing their disagreement on the team project.

What should Marcella do next?

  1. She can confront Barry to ask if he is the source of the rumor and then emulate Dolly Parton in “9 to 5” (threatening to change him from a rooster to a hen).
  2. She can complain to an HR representative but she has no proof Barry started the rumor and it’s not clear that any employee policy has actually been violated.
  3. She can avoid Barry as much as possible and never confide personal information to him again.

In the actual situation, the backstabbing employee eventually alienated so many employees that he became completely isolated. When the company downsized, he was the only employee not invited to join co-workers as they found new employers.

If your company is struggling with HR issues, Corporate Compliance Risk Advisor can help you create HR policies that are appropriate for your company’s size and then serve as a resource to your staff as the policies are implemented.

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Promoted to Failure

Another update from the Jungle….

actionplanJulia, the HR manager, is watching her company’s diversity and inclusion program go hideously wrong. Julia pushed every level of management all the way to the C-suite, urging them to broaden the pool of employees eligible for promotion to management. What did all her effort get her? Margaret.

Margaret worked in operations for many years and understands the technical side of the job but her interpersonal skills are dismal. She’s whiny and needy and self-absorbed. Some of her shortcomings might have been fixed if the C-suite had accepted Julia’s recommendation to create a management training program.

Instead, Margaret was promoted to manager without training or a mentor to help her. Now she micromanages her subordinates and refuses to delegate any decision-making authority to them. But she’s afraid of being held responsible if something goes wrong so she fails to make any decisions.

When other department managers complain that their work is disrupted, Margaret blames her subordinates of incompetence. Her subordinates show up and don’t do their jobs since they know bossany actions they take are likely to be undermined by Margaret. Most of them are applying for transfers away from her.

The stress on Margaret is so intense that she suffers from migraines and works from home several days a week. When she does come into the office, she is so unpleasant that everyone avoids her.

The steady rumble of discontent is growing so loud that the C-suite is having trouble ignoring it. Julia is desperately searching for a solution to the whole mess but she’s run out of time. In today’s mail she receives an EEOC notice letter that a complaint of racial discrimination has been made against Margaret by Margaret’s secretary.

What should Julia do next?

  1. She can recommend that Margaret be appointed special liaison to the company’s suppliers with an immediate posting to, say, Shanghai or Taipei.
  2. She can investigate the charges and then artfully respond to the EEOC in a way that is slightly more flattering than the actual situation warrants.
  3. She can notify the C-Suite of the EEOC investigation and use this as an opportunity to convince the senior managers to approve a training program for new managers.

In the actual situation, the EEOC concluded there was no racial discrimination because the new manager treated all her subordinates like crap. The employer hailed this decision as a victory. The new manager was eventually reassigned during a departmental reorganization but the employer still doesn’t have a training program for new managers.

If your company is struggling with HR issues, Corporate Compliance Risk Advisor can help you create HR policies that are appropriate for your company’s size and then serve as a resource to your staff as the policies are implemented.

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Happy Thanksgiving!

image053Happy Thanksgiving!

Enjoy your holiday with friends and family.

The Jungle will return next week.

If your company is struggling with HR issues, Corporate Compliance Risk Advisor can help you create HR policies that are appropriate for your company’s size and then serve as a resource to your staff as the policies are implemented.

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What Are We Thankful For?

Another update from the Jungle….
image049Nicole, the HR manager, had a scary Halloween with underclad co-workers and a wild Veteran’s Day that ended with claims of discrimination. She is finding it increasingly difficult to boost morale among her fellow employees. She’s trying to boost morale because her co-workers are disenchanted after years of no pay raises and limited opportunities for promotions.

Her newest morale booster is a Thanksgiving lunch. She even convinces the company’s president to pay for the turkey and dressing. Now all she has to do is convince her co-workers to bring side dishes and prepare to have fun. She tapes a sign-up sheet to the refrigerator in the break room.

Before anyone can sign up, Steve stops by her office to demand beer with lunch. Nicole vetoes alcohol, as usual. She tells Steve that he seems unhappy and asks if he’d be happier working for another type of employer, such as a honkytonk or a house of ill repute in the Nevada desert.image051

Then Monica pops into Nicole’s office to announce that she has just become a vegan because living off animals is disgusting. Monica wants vegan-acceptable food at the Thanksgiving lunch. Nicole replies that Monica can bring a side dish that satisfies her new dietary requirements, as long as it’s not kale or cabbage or a similarly aromatic vegetable.

Next a delegation of employees crowds in to Nicole’s office. The Hispanics are still furious about the Veteran’s Day event when a co-worker suggested building a wall on the southern U.S. border. Now they complain that Thanksgiving completely ignores their cultural heritage. Sam Redhawk complains that Thanksgiving is racist for celebrating the extermination of Native American culture. The gist of the complaints is that they feel unappreciated and marginalized.

What should Nicole do next?

  1. She can tell her co-workers to shut up and be thankful they still have jobs.
  2. She can strive to make Thanksgiving lunch a celebration of multi-cultural America, encouraging everyone to bring a side dish that represents their cultural origins.
  3. She can tell the president there are serious morale issues that can’t be fixed with food and that he should watch “Mutiny on The Bounty” if he wants to preview the end of the story.

If you’re an HR manager, you’ve probably had a year like Nicole’s year. The holiday season isn’t over yet so stay tuned for more adventures with Nicole.

If your company is struggling with HR issues, Corporate Compliance Risk Advisor can help you create HR policies that are appropriate for your company’s size and then serve as a resource to your staff as the policies are implemented.

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Happy Veteran’s Day!

Another update from the Jungle….

veteransNicole, the HR manager, is planning another morale boosting event. Her first effort was the Halloween party a couple weeks ago which ended on a sour note when some of the costumes exceeded her expectations and the president’s tolerance.

Nicole is now working on her Veteran’s Day celebration. Ever the optimist, Nicole decides on a pot luck lunch with a patriotic theme. She announces that during the luncheon, they will honor employees who served in the military.

As usual, the whine of the day comes from Steve who says he’ll boycott the party if there’s no beer. Nicole says no alcohol will be served since everyone has to work after lunch. She’s beginning to wonder if Steve would be happier working for a different sort of employer.

On the morning of the party, Ruth stops by the break room to look at the decorations and fixates on the red paper poppies
that adorn the middle of each table. Ruth says that displaying red poppies encourages the use of
image048illegal drugs because everyone knows that heroin comes from poppies. Nicole retorts that everyone knows red poppies symbolize the military dead in World War I. Shaken but undeterred, Nicole finishes the decorations as people wander in for lunch.

Almost immediately, there’s a problem in the buffet line. The employees split into two (almost equal) camps arguing about the wars in Afghanistan and Iraq and whether the president should send troops to fight in Syria. Then someone says the U.S. needs stronger border controls to keep out illegals and terrorists. This provokes the Hispanic workers who angrily deny being “illegals”; the Muslims who say that they aren’t terrorists; and the Indians with H1B visas who work in the IT department and complain that they haven’t stolen jobs from Americans.

What should Nicole do next?

  1. She can forge ahead with the plan to honor the military veterans, although this now seems risky since half the employees appear to be in an anti-war camp.
  2. She can sneak out of the break room and hide in her office until after lunch.
  3. She can hold an impromptu educational discussion on the company’s anti-discrimination policies and appreciating diversity in the workforce.

Nicole’s first two attempts to boost morale on a limited budget haven’t gone as well as she would have liked but there’s still time before the holiday season ends. Stay tuned for more adventures with Nicole.

If your company is struggling with HR issues, Corporate Compliance Risk Advisor can help you create HR policies that are appropriate for your company’s size and then serve as a resource to your staff as the policies are implemented.

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