Why the New Tax Code Could Lead to a Big Boost in the Gig Economy

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Employment expert explains why more workers are freelancing…but is it a good idea?

The amount of people relying on freelance gigs for their sole salary has increased steadily in recent years. By 2021, over 9 million Americans are expected to be part of the country’s ‘gig economy,’ in which workers cut ties with companies and work for themselves. And, President Trump’s new tax reform could hasten and increase this growth, but what impact could that have on workers and company growth?

“There is a provision in Trump’s tax law which will allow sole proprietors (including freelancers like Uber drivers, graphic designers, consultants, etc.) to deduct 20 percent of their revenue from their taxable income,” explains Rob Wilson, employment trends expert and President of Employco USA, an employment-solutions firm based in Chicago, IL.

Wilson explains that this tax provision could add up to thousands of dollars in savings each year. “In addition, this tax provision will be beneficial for bosses who are looking to save on payroll costs. By switching workers from salaried employees to contracted freelancers, they can save big…and workers will have less reason to complain, as they can earn more money under the new provision as well.”

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Employco USA Hires a Human Resources Business Partner

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A human resource and employment solutions firm, Employco USA is pleased to announce the growing expansion of its staff.

Heather KoranEmployco’s newest team member:

Heather Koran, Human Resources Business Partner – in this new position, Heather will provide human resources services to high-value clients. Her areas of focus will include: employee relations, HR compliance, benefits administration, organizational design, training and development.

“I am so excited to be part of a new position for Employco and look forward to providing my expertise and experience around overall HR practices and help to support our clients in those areas.” -Heather Koran

For more on this topic, please contact Rob Wilson at rwilson@thewilsoncompanies.com.

Podcast: Workplace Bullying

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Rob, Scott, and Jason discuss bullying in the workplace; from its negative effect on a target to how you can respond as an employee or manager. They also provide some helpful tips employers can implement to aid in prevention.

This topic was selected from a listener’s suggestion on social media, thank you for the feedback!

Contact us with any questions you may have, we’re here to help: hr@employco.com

Is America Too Fat to Work?

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New Study Says Poor Health is Partially to Blame for America’s Unemployment

HealthEmployment numbers have been very encouraging lately, but a brand-new Gallup survey for the Center for Advancing Opportunity is cause for alarm. The survey found that the people who most need steady jobs (such as those living in impoverished neighborhoods) are actually still greatly behind the rest of the nation when it comes to employment. And, it turns out that poor health could be to blame.

“Low-income areas have an unemployment rate of about 10 percent, compared to our current national rate of unemployment, which is about 4 percent,” says Rob Wilson, President of Employco USA, and employment trends expert. “While we tend to blame factors like lack of job growth in these areas, this new Gallup survey has pinpointed a very surprising culprit: Chronic health issues and overall poor health. This can include things like diabetes, obesity, back problems, and cardiac concerns.”

According to the survey, about 30 percent of job-seekers in these areas say that they can’t find work or maintain employment due to their health issues.

Wilson says that this survey is important because it highlights where our country’s focus needs to be in order to help improve job numbers.

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Employco USA Promotes Three Team Members and Hires a New Employee

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A human resource and employment solutions firm, Employco USA is pleased to announce the promotion of three of its staff members.

Promotions

In January of this year, Employco promoted:

  • Michael E. Dougala to Chief Financial Officer – Mike has been with the company for 17 years, and most recently moved up from the title of Controller.
  • Lauren Baldwin to Payroll Supervisor – Lauren has been with the company for over 11 years, as of last October, and was previously a Payroll Technician.
  • Brittany Wilkey to HR Generalist – Brittany is coming up on her 2nd year with the company, and is moving up from her prior role as an HR Coordinator.

Employco also recently welcomed a new member to the team:

  • Chrissie O’Connell, Payroll Technician – Chrissie will be responsible for processing payroll for Employco client accounts.

“I am truly looking forward to my first day at Employco and starting on this new adventure. I feel very fortunate for the opportunity that Employco is giving me.” – Chrissie O’Connell

For more on this topic, please contact Rob Wilson at rwilson@thewilsoncompanies.com.

30 Days into Trump’s Tax Reform: What’s the Verdict?

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Employment trends expert discusses the stats

Tax ReformIt’s a month since President Trump’s tax reform went into effect. So how have these changes impacted the average American worker?

“One thing for sure is that the market loves it,” says Rob Wilson, President of Employco USA and employment trends expert. “We hit the 26,000 mark for the first-time ever, and it’s also the first time we have ever seen such a fast 1,000 point rise.”

Wilson also points out that companies like Walmart, Disney, Starbucks, Apple and Verizon have already rolled out bonuses, raises and other incentives to their employees. However, some lawmakers don’t see the value of these bonuses, such as House Minority Leader Nancy Pelosi who scoffed at these “crumbs.”

“When you look at someone working at Walmart who is making $10 an hour or $20,000 a year, a $1,000 check is far from peanuts. It’s a 5 to 10 percent bonus,” says Wilson, who also points out that Walmart is increasing their wages from $13.85 to $14.50. “These wages will no doubt be matched by other companies like McDonalds among others as they try to stay desirable in the hiring market.”

The tax law is having other important changes on the economy.

“Apple has more offshore earnings than any other U.S. company, but now, as a direct result of President Trump’s tax reform, they are going to pay repatriation tax payments of approximately $38 billion to bring that money back home. They are also going to spend tens of billions on domestic jobs, manufacturing and data centers in the future,” says Wilson.

Also, starting in 2019, individual people will not be penalized for not having insurance. “The employer mandate for those companies with over 50 full-time employees is still in place, however, this removes the burden from the average American who does not want to be forced into buying costly insurance that they don’t need.”

“The bottom line is the tax plan is working,” says Wilson. “Middle America is directly benefiting from the tax reform, and I expect that unemployment and underemployment numbers will continue to decrease.”

For more on this topic, please contact Rob Wilson at rwilson@thewilsoncompanies.com.

What Employers Need to Know About 2018 Marijuana Laws

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H.R. expert explains what companies need to know about employees’ marijuana use  

Governor Scott just signed a bill making it legal to smoke marijuana recreationally in the state of Vermont. They join 8 states along with the District of Columbia which have adopted laws legalizing marijuana for recreational use. Many other states allow marijuana use in some form such as for medical purposes.

However, this raises a complicated issue for employers who want to regulate marijuana use around the workplace, without infringing on employees’ rights. How should employers proceed in 2018 in regards to the use of marijuana and marijuana intoxication on company grounds?

Rob Wilson, human resources and employment expert and President of Employco USA, says, “The federal government still classifies marijuana as a schedule 1 substance, which is the same class as heroin and ecstasy,” he says. “However, since many states now permit the use of marijuana, either medically or recreationally, this leads to very murky waters for employers, especially as some states prohibit the discrimination of employees with a medical marijuana card, while other states do not.”

So, what should an employer do to navigate this issue?

First, Wilson advises employers to get familiar with their state’s specific legislation. He also says, “If your employees are part of a collective bargaining unit, then it is likely that drug stipulations already exist, including specific limits for drug use. For example, in a recent case, an employee was found to be under the influence while on the job, but he claimed his medical marijuana card gave him permission to use while working. However, a drug test revealed that he was 10 times above his prescribed limit.”

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How to “ICE-Proof” Your Business

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Employment expert explains how businesses can stay on the right side of immigration law

Last week, immigration officials descended on almost 100 7-Eleven stores in 17 states. They carried notices requiring owners of these establishments to produce hiring records for their employees within 3 days.

“These employment audits are part of President Donald Trump’s commitment to changing the face of immigration policy in this country,” says Rob Wilson, employment trends expert and President of Employco USA. “Businesses need to realize that this administration is taking immigration records very seriously, and if they fail to produce the proper paperwork when questioned, they could face fines or even criminal charges.”

Wilson says that states like California, Florida, Illinois, New Jersey, New York and Texas should be on special alert, as it is known that these are the states with the highest number of undocumented workers.

“President Trump is going to start by cracking down in places that are known to have a history of undocumented workers,” says Wilson. “And, he’s going to be tough on employers. Unlike past administrations which focused more on the workers themselves, Thomas Homan, acting director of Immigration and Customs Enforcement, promises a significant increase on work-site raids and he says that they will prosecute those who knowingly hire undocumented workers.”

The employment trends expert says that there are several things companies need to do in order to ensure that their businesses are “ICE-proof”:

  1. The most important step is to ensure that Forms I-9 are properly created when a worker is first hired. Form I-9 is used to verify the identity and ability of people to work in the United States. Staff should receive training to learn how to legally complete the form, inspect the person’s documents (e.g., driver’s license), and answer employee questions.
  2. Employers should also periodically coordinate Form I-9 self-audits to be conducted by a neutral and knowledgeable employee or vendor who is not part of the regular process. These audits will surface deficiencies with the actual Forms I-9 or the process itself.  If problems are discovered, the staff may need additional training.
  3. To complete the preparation, companies should also create inspection and raid day plans. Everyone from the receptionist to the HR personnel to the CEO should be ready for possible scenarios where ICE presents a criminal search warrant, administrative arrest warrant, or inspection notice. In some circumstances, the company can deny ICE immediate access to their private property and Forms I-9.

For more on this topic, please contact Rob Wilson at rwilson@thewilsoncompanies.com.