Archive for March, 2010

Hard of hearing or hard of listening?

March 25, 2010

 Let thy speech be short, comprehending much in a few words.    Ecclesiasticus

I’m not the only one.

Someone has just spoken to me and one of two things has happened:

1) I ask them to repeat the entire thought.

2) I say “OK” and then have no idea what I just said ok to.

Yikes. It’s called not paying attention. Or it’s called multi-tasking and doing a pitiful job. Or it’s called disrespect.

How much more efficient would I be if I paid attention the first time? How much time would I save and the speaker save if they only have to say it once?

 How can I change?

By turning and facing the person when I’m ready to listen.

By letting the person know that either I’m ready or I’m not ready to listen.

By repeating back to the speaker a summary of what I heard.

We can only improve by giving it another try. Here I go, again…

xxxxx

So I tested the above theory by turning to the person and facing them before they began to speak. It didn’t work…very well. I still ended up asking for their thought to be repeated.

It’s still better to ask for repetition than it is to acknowledge without really hearing (at least for me).

Hard of hearing or hard of listening – I’m probably both.

Bryan Dear

www.payrolldept.biz

Posted in Work Environment | 1 Comment »

How much am I really paying my employee?

March 15, 2010

If a cluttered desk is a sign of a cluttered mind, then what are we to think of an empty desk? Albert Einstein, 1879 – 1955

Let’s say I’m paying an employee $15 an hour. What is their actual cost to the company?

It depends.

The employer pays taxes on top of the employee wages. For example there is Medicare on all wages, Social Security on the first $106,800 (for 2010), the Federal Unemployment rate of .8% on the first $7,000 of the employee wages and the state unemployment rate which is probably capped on the first $10,000 to $25,000 of wages. A rule of thumb we use, without going into detail, is about 12% of their rate of pay. So, if the employee is paid $15 an hour, it costs the employer $16.80 an hour. However, if you have a high unemployment rate (5% or higher or you state unemployment wages are not capped), this will change this equation.

The employer also needs to factor in workers’ compensation insurance which is required in most states. Depending on the industry, this can add anywhere from 2% to 33% on top of the 12% factored in above. An employee in the roofing business may be costing the company 45% more in taxes and workers’ compensation over the rate paid to the employee because of high workers’ compensation insurance.

If there is a match retirement program such as a SIMPLE plan or a 401K plan, the employer match will need to be factored.

Then there are soft costs: Vacation, Sick, Personal and other paid time off. There may be health insurance and other fringe benefits. There is the administration cost just to handle these aspects. If you as the the employer link employee paid hours directly to what you are able to bill, there is the unbillable time in which you are paying the employee, but cannot recapture from your customer.

Truly, employees are an investment for your company. The additional costs are sometimes hidden and can be a surprise. However, I think the additional benefits are sometimes hidden as well.

Know your costs – minimize the surprises.

Sincerely,

Bryan Dear

www.payrolldept.biz

Posted in Payroll - General | 1 Comment »

Why give at the office…

March 1, 2010

 When it comes to life the critical thing is whether you take things for granted or take them with gratitude.   - Gilbert Keith Chesterton, 1874 – 1936

Presumably we all give all the time. You may give time to your children, your friends, your church or to a host of multiple causes. Whatever you choose to give to, give to something that gets you fired up.

This comes from personal experience. Long ago, I thought I should join a well know organization that has a wonderful cause to support – as long as you believe in it. I didn’t really care that much. I was there for the wrong reason – to make contacts and to help in a capacity I thought they might need. But I was so wrong for that position.

Whatever cause I choose to support in a major way now, I have to believe in it and at least be able to get fired up about its purpose. That makes donating my time and my money a lot easier.

I do believe that giving wholeheartedly to a purpose will feed back rewards that were not contemplated with the gift. The more the gift is released without strings, the stronger the give back will be.

Yes, that can be a bit tough. I would like my name in lights (on occasion), I bask in appaluse as being the “generous guy,” but the more I can distance myself from these frivolities, the better I will be served in my life. And the more I can give.

Give – give it your all. Why not? This is your life, your candle to hold and share a light into the darkness and your blessing of who you are. Give at the office, give at home, dare to throw it out there and while you’re not paying attention, I believe your gifts will come soaring back to you.

Bryan Dear

www.payrolldept.biz

Posted in Uncategorized | Leave a Comment »

How many exemptions should I claim on that W4?

March 1, 2010

The way of the world is to make laws, but follow custom. Michel de Montaigne, 1533 – 1592

We hear this question all the time. How many exemptions (or dependents) should I claim?

The W-4 form asks for name, address, social security number, married or single status, and how many exemptions you wish to claim. Most people can get through all but the exemption piece with very little assistance. It’s the number of exemptions that’s the stumper question.

Most people realize that the more exemptions they claim, the higher the paycheck they’ll receive. Of course the counter to that is you’ll receive a lower refund (really not so bad) or you will owe (perhaps really bad) come tax return time. It’s a little bit of a dance choosing the appropriate number of exemptions.The W4 worksheet can be helpful which is the upper part of the W4. A more helpful worksheet is the IRS W4 calculator.

You can use the IRS worksheet calculator by going to this address:

http://www.irs.gov/individuals/article/0,,id=96196,00.html

And then there’s the state. Many states actually have higher taxes at the lower tax brackets. That’s because the federal government doesn’t tax you until you have met a minimum amount. Some states have their own W4 and some states use the federal w4. Regardless, you may always specify that you want more or less exemptions for your state income tax withholding.

Everybody’s income tax return varies and what’s right for your buddy who looks like they make the same as you may not be the case. Use the calculator or at least the worksheet. Review each year after you have filed your tax return. You may want a lower refund so claim more exemptions. Of course you may still be stinging from that unplanned check you had to write to the IRS or your state – claim fewer in that case.

You may also specify that you want additional amounts of tax to be withheld in addition to whatever the tax tables are calculating. Perhaps you are married and you know you need more money or the stimulus bill may have given you back too much money through your paycheck. You may have extra income from investments. Review your paycheck halfway through the year and ask yourself – does my withholding equal about half of what I withheld last year? Am I pretty close to the same income as last year? If either answer is no, make adjustments.

Happy claiming,

Bryan Dear

www.payrolldept.biz

Posted in Payroll - Regulations - OT | Leave a Comment »

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