What happens in the car, may not stay in the car.

It is amazing to me when I think about how fast technology moves and improves.  The cell phone in my hand has more computing power than the desktops I used as a programmer in the Air Force.  Back then we didn’t have to worry about the hazards of using a cell phone behind the wheel of a car.

Some companies have automobiles and trucks to get business done.  Heaven forbid if an accident happens in one of these vehicles, the company could be on the hook.  You probably communicate with your staff members who use these vehicles that they shouldn’t use cell phones for calls or texts unless they pull over to a safe place.  You trust they are staying distraction free behind the wheel.  But what if they are in their own vehicle conducting company business?

Sales people and office administrators are just some of the examples of employees who use their personal vehicles for company business.  It can range from dropping off brochures to dropping off the daily mail at the post office.  They probably turn in expense reports to claim the mileage and get reimbursed.  This brings some of the responsibility to the company.  There is much case law where an employee has been in their personal vehicle, on company business, talking on a cell phone to a client…when something terrible happens.  In our litigious society, the legal fight could come to your company’s doorstep.

Review your vehicle policies.  Make sure you have a written policy regarding cell phones, traffic safety and such…while on company business they are representing the company.  Make sure you have provided driver’s license information to your insurance agent and keep those records up to date.  Speak with employees frequently about safety out in cars and make sure they understand you want them to be safe.

Got a Phone Tree?

The recent inclement weather made me reminisce about phone trees.  Let me explain what a phone tree is.  When I was in the military, every organization had an staff roster roughly in the form of the group hierarchy.  The Colonel would call two or three people below him, they would each call two or three folks below them, and and so on until everyone in the organization got the call.

The phone tree could be used to announce that an emergency had occurred and everyone needed to report as soon as possible.   It was also used when weather events could change our work schedule.  We didn’t have cellular phones, text or a lot of email back then.  Now you could set up a automated roster so easily.  Ah, progress.

Even with technology, you need to have a framework of a plan in case of emergency.  Who will make the decision to close your office due to weather?  Will you close your office in the middle of the day and send folks home?  Will you make the decision the night before the hurricane?  Who on staff will and will not get paid if the office is closed?  If there is a fire, where does everyone meet to do a head count?  There are no right or wrong answers.

You should, either by memo or in your employee handbook, let folks know that these things can happen…how they will be contacted or who they should contact? how is pay handled in these situations?  Setting up a framework can help everyone know what to expect, and his or her responsibility.  It can also help be efficient and keep folks safer.

Your employee handbook and you.

As an employer, when was the last time you updated your employee handbook?

If you are an employee, when was the last time you read it?

My suggestion is that you update your handbook at LEAST every two years.   Not only does labor law change, but your business changes, too.  Hours of operation?  Insurance benefits?  Computer usage policies?  Cell phones in the office?  I could go on for quite while.  How long and thorough your policy manual is is completely up to you.  Make sure it is forthright and have a labor law attorney review your final handbook.

I also suggest staff members read their handbook at least every six months.  Hey, we forget things and you may even learn something new.  Also, it is helpful to read your handbook before asking if that particular holiday is paid.  The handbook is a way to make sure you are following the guidelines, and check up that your employer is doing the same.

An employee handbook sets the tone of your staff attitude.  As an employer, it says to your staff that you intend to treat everyone fairly.  As an employee, it gives you a map of how to behave and succeed at your company.

Employee Handbook = Your Friend.  Really.

Yay! It’s W-2 time!

I have had many a visit from staff members during Q1 regarding W-2 forms.  They file their personal income tax return and they don’t like the final number.  Too much due.  Too much paid in.  Status changes.  Multiple jobs.

While I can’t fill out the W-4 form for them, I make sure my folks understand the the number of deductions they claim is INVERSELY proportional to the amount of tax deducted each payroll.  For example, claiming Single-0 will result in MORE tax taken out than if you are claiming Single-2.  The instructions they provide to the company on a W-4 will dictate how their W-2 will look at the end of the year based on the government’s tax tables.

Part-time employees should be especially mindful.  Depending on the gross payroll, there could be little to no tax deducted.  Again, this is based on the tax tables in a Circular E document.  The completed W-4 and the tax tables create an estimate of what the tax liability could be, but doesn’t dictate how you will actually file the return.

At the end of the year, the part-time employee takes this W-2 and couples it with their full time job W-2, or their spouse’s on a joint return.  They could be unpleasantly surprised by the higher income number but without the additional tax paid into the account.  The W-4 form provides a way to force an additional amount out of each check to cover this gap.

Everyone (you and your staff) needs to understand that one company and it’s paycheck doesn’t know your entire financial situation.  My W-4 with ABC Company doesn’t know if I have another job at XYZ Business, a rental property, win the lottery, etc.  If you are having trouble every year, adjusting your W-4 could be a solution to help to alleviate unpleasant surprises.  Talk to your tax professional when completing your personal return this quarter for 2012.

Job applications. Are you asking what you shouldn’t?

When was the last time you looked at one of your blank job applications?  Are you asking for information that could be used for a selection process with discrimination inadvertently attached?

There are some things you CAN’T ask on an application.  You can’t ask for a birthday.  Most folks know this because you can then tell how old an applicant is.  You can’t ask for an applicants marital status either, nor how many children.  Think about every question…can the answer or non-answer of this question be used to build criteria that is not job related?

There are some things you SHOULDN’T ask.  I put a social security number in this category.  Some folks think you can tell a person’s immigration status by the prefix of the number. Not sure on that one.  I was looking for an Administrative Assistant once back in Washington DC and recieved more than 200 applications for just one position.  That’s a LOT of personal information to take on.

Do you really want to have that kind of personal information for which to be responsible?  Do you want to have a formal policy to every job applicant of how you will be using this data, how long you will keep it, and how it will be destroyed?  With the threat of identity theft, this is a very personal identifier that I don’t think you want unless you really need it.

If the position you are offering requires a background check, of course you are going to need a social security number.  Maybe his or her drivers license, too.  I suggest building a separate form.  You probably aren’t going to complete a background check on every candidate…just the perfect one you want on your team.