Has Your Company Prepared for the Upcoming Overtime Wage Changes?

Whether you are in charge of managing a small startup or a larger corporation, salaried workers and businesses will soon be subject to a change in laws of the Fair Labor Standards Act — the first change in 40 years. President Obama directed the Secretary of Labor to update overtime regulations so that workers who are working overtime are fairly compensated. The final rulings will go into effect on December 1, 2016, so your company needs to be prepared for the changes ahead. Here are some things you need to know about the upcoming overtime wage changes:

About the Overtime Wage Changes

The latest overtime updates are designed to extend protection to 4.2 million workers across the United States and the largest populations of these workers reside in California, Texas and Florida. Under these new rules, employees making less than $913 per week are now eligible to be paid overtime, wheras under the previous rules, employees making less than $455/week were eligible.

Employers are left to decide whether they want to increase the employee’s salaries above the new threshold or pay time-and-a-half for overtime work. All workers must not work more than 40 hours per week without adequate compensation and companies do have the option of modifying salaries and paying time-and-a-half for overtime.

Preparing for the Wage Changes

Employers still have a few months to prepare for the overtime wage changes which will effectually increase the number of workers at the company who are eligible for new protections. This means your company may need to review salary tables and job offers, restructure departments to accommodate for a new budget, and consider how they want to compensate workers who do end up working overtime.

One of the first things you can do is to classify all employees by salary and ensure that anybody making over the threshold is exempt from overtime pay if their primary job duties involve executive, administrative or professional duties as outlined in the final regulations from the Department of Labor.

Determining how many current employees at their current salary level would then be eligible for overtime protection will give you an idea of the potential changes in cost. Monitoring these employees’ hours and implementing measures of productivity can help to determine whether an employee’s position should be modified or salaries adjusted. You may realize that some accounting and finance roles will retire overtime — especially during tax season or other busier seasons — so the budgets will need to be adjusted accordingly.

If you need help with evaluating your staffing resources and exploring different types of positions in accounting and financing, get in touch with our award-winning team at Casey Accounting & Finance Resources for assistance. As a top financial recruiting firm in Chicago, we can help you prepare for any internal changes you need to meet the upcoming changes to the overtime threshold.

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Common Mistakes to Avoid when Filling out an I-9 form

It’s more important than ever that you have strong Form I-9 procedures. On average, about half of all I-9 forms have some sort of errors. Most errors are fairly common and easily avoidable, including the most common:

  • Late completion of the I-9 form. Section 1 must be completed on or before the first day of hire. Section 2 must be completed by end of the fourth day of hire.
  • Using an incorrect version of the form. The newest I-9 version is dated 3-8-2013.
  • No signature or incomplete document information, such as missing the date employment began, missing the name and of employer or date of employee’s execution of the form. For electronic versions of this form, Section 1 cannot populate from other areas (like candidate software). The most common error in Section 2 is failure to complete the Document Title Issuing Authority, Document Number and Expiration Date (if applicable).
  • I-9 form not produced in its entirety — both sides of the I-9 must be reproduced.
  • Instruction sheet is missing.
  • Documents are accepted that contain deletions, like an unsigned social security card.
  • White-out is used on the form. White-out is not permitted. If a mistake is made, place a line through the incorrect information, place your initials next to the incorrect information and provide the correct information.

To avoid mistakes — as well as fines during audits — we’ve compiled a list of tips to help you have a strong I-9 procedure in place:

  1. Don’t be afraid to help employees fill out Section 1. You can avoid a lot of errors by questioning employees if you see them filling out something incorrectly in this section.
  2. Purge and destroy I-9s after the proper timeframe: after three years or one year after termination, whichever is longer. By keeping old I-9s, you are opening yourself up to additional liability and possible fines if you are audited.
  3. Be sure to document your hiring procedure as it relates to the use of the I-9 form.
  4. Do not keep I-9 forms in the employee file. This makes it harder to purge forms as they are no longer needed.
  5. Be sure to make copies of supporting documentation.
  6. For remote employee, oftentimes people hire an agent to complete Section 2 of the I-9. The person signing Section 2 must be the person who physically reviewed the supporting documents.
  7. Do NOT ask for immigration status.
  8. You cannot ask for a green card or social security card. Nor should you accept more documentation than is necessary or tell the employee which documents they are to provide.
  9. You must treat each person the same: ask the same questions in the same way to everyone.

Thank you to Tricom (www.tricom.com) for providing this very helpful guide to avoid common mistakes when filling out an I-9 form.  

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4 Tips to Help You Negotiate the Best Salary

You’ve worked hard to secure that job offer and may be eager to sign the agreement and get started. However, it’s important not to miss the important step of negotiating a suitable salary for all the hard work you will be committing to in the upcoming months or years. Your salary requirements may be the deal breaker for many companies and you’ll want to avoid some common mistake when negotiating your wages.

Use the following tips to help you negotiate the best salary.

1. Be prepared.

Almost every employer will ask what your salary expectations are, and this usually happens during the screening process or the very early stages of the interview. Employers want to screen out candidates that they simply know would not be a good fit for their budget. It’s always a good idea to anticipate this question and be prepared to answer with confidence so you don’t end up getting nervous or suggesting something well below what you deserve. Do some research about the company and similar positions in the area so you have some realistic figures to work with.

2. Don’t lie about your salary history.

Many job seekers make the mistake of stating that they are earning more than they really are so they can get a high offer from an employer. However, this can get you in trouble when the employer checks in with your current employer or requests a recent pay stub of earnings. If you are caught lying or you even manage to start the job and then the company discovered you were lying, you may end up losing the new opportunity entirely.

3. Understand that the company will have salary budgets.

Employers are working with budgets and will try and maximize their human resources at the most effective cost. Even if you are applying for an upper management position, the financial or accounting department or a prestigious position with bonuses and other perks, you can expect the company to work within their compensation framework to bring you on board. This is why you do need to do your homework and find out what the salary would be for your position and go from there. Even if you have never earned that much before, be confident when asking for the salary and see how they respond. Working with a recruiter gives you an advantage because the recruiter will be able to negotiate the best salary for you based upon the company’s budget.

4. Always think about other benefits.

If your prospective employer simply won’t budge on their salary offer — or they are offering a lower salary than you anticipated — consider any other benefits that come with the job. Is the office within a short drive of your home so you don’t have a long commute? Do they offer an onsite fitness center or employee lunches? Do you have extra paid-time-off and extended vacation days? Does your employer offer comprehensive health and life insurance benefits? All of these extra benefits can offset some of the difference in salary expectations.

If you need help on your job search, consider working with a top financial staffing firm in Chicago in Casey Accounting & Finance Resources. We can position you in front of jobs with attractive salaries and benefits. Contact us today!

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2016 Mid-Year Salary Survey for Accounting and Finance Available Now!

Casey Accounting & Finance Resources has compiled updated salary data for the fields of accounting and finance. In this job market featuring a shortage of qualified job candidates, this information on salary ranges helps job seekers and clients to find a fair pay range

With compensation trends changing every year, both sides need to be well-informed when negotiating job offers or even pay raises.

Arlington Resources can help human resources professionals who want to learn more about what salary expectations should be. We have compiled our salary survey list with updated facts and figures including job descriptions for more than 100 accounting and finance positions for the Chicago metropolitan area.

Email us today at FinancialSalarySurvey@caseyresources.com and we will be happy to share this with you.  In the “YOUR MESSAGE” section, please enter “2016 Mid-Year Accounting & Finance Salary Survey”.  Enjoy the rest of the summer!

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