UNEMPLOYMENT INCREASE DEMANDS MORE EMPLOYEE SCREENING

Written by Mason Duchatschek


If Chicken Little lived today, no doubt he would be running throughrepparttar streets screaming, “the economy is falling.” The sudden and unexpected rise in unemployment has populated applicant pools with eager, and in many cases, desperate applicants, willing to say and do about anything to get a job. Atrepparttar 106690 very least, applicants needing work may be willing to take jobs they don’t like or aren’t cut out for until they can find something better. Employers who don’t identifyrepparttar 106691 best applicants for available positions,repparttar 106692 first time, will have to payrepparttar 106693 price of doing it over, and over, and over!

That’s bad news to employers lacking effective assessment and selection processes. Employers should utilize as many employment screening options as are legally available. Pre-employment skill, attitude, personality, and drug testing, are necessities as well as reference checks, background checks, trial periods, and interviews.

SIMPLE Retirement Plans

Written by Tony Novak


A relatively new type of retirement plan is now available to businesses with less than 100 employees. The new plan is called “SIMPLE” and it is easy addition torepparttar employee benefits for almost any small business. The Small Business Protection Act of 1996 first made this plan available andrepparttar 106689 name stands for Savings Incentive Match Plan for Employees. It can be designed as either an IRA or a 401(k) plan and is much less expensive for an employer than other types of plans. . Here arerepparttar 106690 key provisions: 1.Employees can contribute any amount up to $6,500 of pay. 2.One-person businesses are eligible. 3.Part-time and hobby businesses are eligible. 4.The money can go into any type of self-directed accounts titled as IRAs or 401(k) accounts for each participant. This includes stocks, mutual funds, banks, annuities, etc. 5.All accounts are 100% vested immediately. This means that all ofrepparttar 106691 money belongs torepparttar 106692 employee;repparttar 106693 employer cannot touch it under any circumstances. 6.Employers may contribute in any ofrepparttar 106694 following three ways: a) Match each employee’s voluntary contribution dollar for dollar up torepparttar 106695 first 3% ofrepparttar 106696 employee’s pay. No employer contribution is required ifrepparttar 106697 employee does not voluntarily contribute. b)Match 1% of pay in 2 out of 5 years after notifying employees (if using an IRA account). c)Contribute 2% of pay for each employee, regardless of whetherrepparttar 106698 employee makes voluntary contributions or not. 7.Normal retirement distributions will be handled in a manner similar to current IRA rules. 8.Premature distributions duringrepparttar 106699 first two years of participation inrepparttar 106700 plan will be taxed at 25% instead ofrepparttar 106701 usual 10% tax penalty. 9.This plan cannot be combined with any other employer sponsored retirement plan. 10.Any form of business entity or non-profit organization may establish a SIMPLE plan, except state and local governments. 11.Plans can be established at any time ofrepparttar 106702 year before October 1. Plans may not be started in October, November or December. 12.Administration requirements are minimal, averaging about one hour per employee.

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