HRMG Blog – Sage Abra Payroll, HR, & Timekeeping News

Last week, Congress introduced H.R. 2028, named the “New Employee Verification Act” (NEVA).

This act would replace the current E-Verify program with the Electronic Employment Verification System (EEVS). The system would be based on the state ‘new hire’ reporting process used for child support enforcement. The bill would allow employers to confirm eligible employees through the Social Security Administration database and Department of Homeland Security database.

The bill would eliminate the current Form I-9.

In addition, the bill also would create a voluntary biometrics option for the verification process. A standard background check and thumbprint could be obtained to secure an employee’s identity and preven fraudulent activity. To protect employers from liability, the legislation would provide employers a safe harbor.

SHRM worked closely with members of Congress to develop NEVA.

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We have all heard about the Recovery Act that was passed by Congress and signed into law by President Obama, and part of this act represented a Federal Income Tax decrease for most Americans. I wanted to share a true story that occurred yesterday that represents the real effect this is having on people.

As some of you are aware, I’m a business consultant that helps companies build better strategies in their HR and Payroll departments. A lot of times this means discussing big picture ideas with CEO’s and CFO’s, and sometimes it means having a dialogue with an employee in an organization. Such was the case yesterday.

I visited a client of mine yesterday, and the VP of Finance informed me that there was an employee who was upset with her paycheck, and was specifically concerned with the amount of Federal Income Tax being withheld. I was asked to look into the issue to determine the correct course of action. I sat down and reviewed the employee’s paychecks from 2008, first quarter of ‘09, and the most recent check that was given to her. This employee makes about $700 biweekly ($350/week) as a part-time janitor. She has some pre-tax deductions, taking their taxable Federal wage to about $640. I sat down and began doing the tax table math on this person’s check to see if it was indeed out of the ordinary.

What I found, much to the employee’s surprise, was a dramatic change in the person’s net pay (for the better). Applying the federal tables of 2008 to $640 of biweekly wages with a filing status of married, no exemptions represents a $33.23 federal tax withholding. Applying the new Recovery Act tables, the withholding is now $3.42. ‘Surely this is too low!’ the employee claimed, ‘I’m going to owe a lot at tax time next year!’. Not so. Indeed, this person is keeping approximately $30 per pay, or $775 this year. They were extremely happy that I shared this calculation with them.

There is relief happening, and even though it’s not a large, lump sum check (like the one we received last year), it is significant. For someone that takes home approximately $550-600 per pay, an extra $30 goes a long way. This is happening all over the country, as most Americans are experiencing larger net paychecks. Even my net pay was increased by $40 per month. And although that difference isn’t enough to make anyone a millionaire, it’s enough to help pay bills, buy groceries, or even go out to dinner for an evening. With rising costs in almost every good and service around, that money will go a long way.

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Employers Must Now Use New I-9 Form

U.S. Citizenship and Immigration Services (USCIS) issued a reminder that the revised Form I-9, Employment Eligibility Verification (Rev. 02/02/09), went into effect April 3, 2009 for all U.S. employers. The revision date is printed on the lower right-hand corner of the form.

Employers must use the revised Form I-9 (Rev. 02/02/09) for all new hires and to reverify any employee with expiring employment authorization.

The interim final rule, published December17, 2008 in the Federal Register, revised the list of documents acceptable for the Employment Eligibility Verification (Form I-9) process. Employers may no longer use previous versions of the Form I-9.

The revised list specifies that expired documents are no longer acceptable forms of identification or employment authorization. USCIS says that allowing the use of expired documents made it more difficult for employers to verify an employee’s identity and employment authorization and compromised the Form I-9 process.

USCIS also updated the Handbook for Employers – Instructions for Completing Form I-9 to reflect the requirements of the revised Form I-9.
 

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