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Contents
Welcome to the Spring 2008 edition of The Alcott Advisor. Spring represents an awakening -- an uplifting time when everything seems brighter
and more alive. But for many, this Spring brings with it a worsening business climate. The challenge for business owners is to be able to
adjust their strategy to deal with the different pressures they are facing. If they are successful, they will be stronger and, ultimately, better able
to capitalize when the economy once again begins to prosper.
As always, taking proper care of the "people" side of your business yields positive results. Our first article discusses how outsourcing can
help you accomplish this -- even in a tough business climate. Also, I hope the articles in this issue on changes to the FMLA law and the importance of
understanding what constitutes independent contractor status are helpful.
If you have an HR-related question that you would like Alcott to respond to, please call me at 631-420-0100 or send it to me at
ata@alcottgroup.com
and I will route it to the appropriate staff member. Also, if you have any suggestions for future topics or any comments
related to current content, please send them to me as well.
All the best, Al Anastasi
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HR Outsourcing: Helping Businesses Weather
the Economic Downturn
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HR Outsourcing has proven to be an effective management strategy in good times as well as bad. However, in a tough
business climate HR outsourcing really shows its mettle. And, it’s not just about cost savings either. In bad times you
need to have an “all hands on deck” approach to operating your business. Core processes take priority and all available
resources need to be channeled toward achieving your goals. HR outsourcing can free up valuable resources and time,
while also providing peace-of-mind for both the business owner(s) and employees.
Face it, HR tasks are a major distraction in your business. They require time, thought, research, and lots of paperwork.
And, you can’t just push them aside or hand them off to someone else. In most small businesses, the majority of HR tasks
are handled by the owner, someone in senior management and/or by the finance department. Not only aren’t these individuals
trained for the job, but they don’t have the time to devote to staying up to date with all of the changing regulations and HR best
practices. Even an HR director in a firm with say 75 or more employees has too much unproductive work to effectively do their
real job, which is developing and guiding HR strategy, employee development, recruiting and so on. They are mired in the
transactional details of payroll, benefits and compliance.
Click here to read more
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There Are Many Risks to Misclassifying
Employees as Independent Contractors
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Despite the many briefs on what constitutes an independent contractor, many businesses still aren’t getting it right and are incurring great
risk by misclassifying employees. In an effort to correct the growing problem, the IRS actually created a new form in 2007. Form 8919
was to be used by individuals whose employers misclassified them as independent contractors. A complete understanding of what
constitutes independent contractor status is something every business owner should have.
Basically, federal and state authorities use certain tests to determine independent contractor status. They primarily center on the
employer’s right to control the individual in the performance of the job(s) for which he/she is retained. While there are no rules under
the Fair Labor Standards Act (FLSA) to determine independent contractor status, because this law applies only to employees, there
are certain criteria which do factor in making the determination. The federal and New York state departments of labor each utilize
several distinct factors to determine independent contractor status while the IRS has formalized its criteria under its “20 Factor Test.”
Click here to read more
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There Are New Benefits for Working
Military Families
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The Family and Medical Leave Act (FMLA) has been expanded for the first time since it was passed 15 years ago. Under the expanded FMLA,
unpaid leave has been extended for up to six months for the families of wounded military personnel. Additionally, military family members
will be able to take leave for “any qualifying exigency” relating to a family member’s call up to active duty or deployment.
According to Debra Ness, president of the National Partnership for Women & Families, “The measure can make a real difference for
military families that have made great sacrifices and are under enormous stress. It is urgently needed and long overdue.” President Bush
signed the bill into law on January 28, 2008.
Click here to read more
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Alcott’s HR Outsourcing Service Features the Latest Technology
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Like many other business processes, Human Resources (HR) outsourcing is enhanced by the integration of sophisticated technology.
At The Alcott Group, many of its value-added employee services have been improved with the addition of new technologies. Here’s a
round-up on some of these programs:
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Flexible Spending Accounts (FSAs) are now utilizing the latest e-Flex Debit Card to pay for out-of-pocket expenses at the time of service.
Alcott is working with an award-winning third-party provider to load employee elected dollars onto their debit cards to manage expenses
and claims. Alcott’s FSAs, which allow employees to pay for certain medical and dependent care needs using pre-tax dollars, are now even
easier to use. Employees are benefitting from having 24/7 Internet access to their FSA accounts and claim information, as well as their
reimbursement claims processed within 48 hours of receipt. Additionally, by using the e-Flex Debit Card technology, they can present their
debit card at the time of service and, if their provider is a participant in the program, their out-of-pocket expenses will be deducted from their account.
Click here to read more
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Alcott in the News
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- Alcott's Western Division President Michael LaMancuso recently reminisced about his college days at the University of Buffalo in a
Buffalo Business First article titled, "Anticipation high for UB's vision for the future," December 7, 2007.
- Alcott President Louis Basso recently provided his expertise in a Long Island Business News Human Resources Focus
titled, "Employment shortage forces HR pros to pump up recruiting," December 21-27, 2007.
- An article titled, "HR Outsourcing: An Effective Risk Management Tool for Property Managers" co-authored by Alcott President Louis
Basso and Executive Vice President Barry Shorten recently appeared in the New York Real Estate Journal, January 1-7, 2008.
- Alcott Executive Vice President Barry Shorten's article, "HR Outsourcing Yields Gains in Productivity and Employee Morale," appeared
in the January 2008 edition of the Hauppauge Reporter.
- Alcott's Director of Employee Relations and Counsel for Alcott, Dawn Davidson Drantch was a primary media source for the
Long Island Business News' article, "Turning Co-Worker Confrontation Into Collaboration," February 1, 2008.
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Strategy Evaluation:
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