If you put gas in your car lately, you know about skyrocketing gas prices. In the past two weeks, gas prices nationwide rose nearly 20 cents according to the U.S. Energy Information Administration. 

It’s worse in California, where gas prices spiked by more than 45 cents in two weeks, and more than 25 cents in the past week alone. The average price for all grades of gasoline in California has been pushed to $4.338 a gallon (week ending 2/27/12). Prices in California are expected to exceed all-time highs.

As employees face rising gas costs, employers may be hit with questions regarding reimbursement of business mileage expenses. Last summer, the IRS gave a mid-year increase to the mileage reimbursement rate — to 55.5 cents per mile from 51 cents per mile — because of rising gas prices. The IRS has not changed this rate in 2012, and 55.5 cents per mile remains the effective rate.

Under California Labor Code section 2802, employers must fully reimburse employees for all expenses actually and necessarily incurred. Many employers typically choose to use the IRS mileage reimbursement rate, but its use is optional. The Division of Labor Standards Enforcement has opined that the use of the IRS mileage rate will generally satisfy an employer’s obligation to reimburse for business related vehicle expenses, absent evidence to the contrary.

However, if an employee can show that the chosen mileage reimbursement rate, even the IRS rate, does not cover all actual expenses the employee has incurred, the employer must pay the difference. Business vehicle expenses do not include only gasoline, but also wear and tear (depreciation), repairs, oil, insurance and other costs. 

Generally, the IRS rate will cover such expenses. But California employers should make certain those expenses are covered, especially if the employee drives a gas guzzler:

Tags: Federal mileage rate, IRS 2012 mileage rate, IRS mileage, IRS mileage rate 2012, IRS mileage reimbursement rate, Mileage rate 2012 California, Mileage reimbursement, HR Allen Consulting Services, HRCalifornia

So you think you know everything about Independent Contractors and how to define them from an Employee? Do you know that top common misconceptions?  If so, then Kudos to you. So for the other millions that are unaware on how to classify an Independent Contractor and are not aware of the misconceptions, I am here to help.

Tags: misclassifying, misconceptions, common misconceptions, HR Allen Consulting Services, independent contractor, employee

It may not always seem like meetings serve a purpose, but they do. When handled correctly, meetings can clarify objectives, boost morale, save time, and generate plans of action. The problem is, far too many meetings achieve the opposite. They waste time, bore everyone in the room, and suck the life out of the workday.

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Tags: OSHA, Confined Spaces, Hazards, Cal/OSHA

The landscape of employment laws evolves quickly, and entrepreneurs and small business owners are often left scrambling to understand new rules and implement new procedures. To reduce the stress, read these legal updates on seven employment law “hot buttons” that should be on the radar screen of every small business: 

Tags: Immigration, contractor, employment law, entrepreneur, Business, Small business, employment law labor, right-to-work, exempt, arbitration, workplace safety, Employment, social media

IRS Issues Updated W-2 Reporting FAQs and Chart

Tags: health insurance, IRS, Health Cost, Insurance Cost, IRS Reporting

Our podcast explains the difference between an independent contractor and an employee. The courts and government agencies use many factors to determine independent contractor status. Calling someone an "independent contractor" does not make him/her an independent contractor in the legal sense. Mislabeling a worker as an independent contractor creates potential liability for employment taxes and penalties, and liability for failure to fulfill the many legal obligations owed to an employee, such as wage and hour requirements. For your own protection, make sure that a person working as an independent contractor truly meets the difficult tests required by law.

Tags: employee vs independent contractor, misclassifying employees, misclassify employees, independent contractor, employee

I know I’m starting to sound like the boy who cried wolf, but I swear that I’m getting closer to actually hiring someone to help run the business. While hiring someone has always scared me, I’m starting to see that the real pain point is payroll.

Tags: in the trenches, payroll companies, payroll service, payroll companies in California, payroll companies in Arizona, payroll companies in Nevada, Payroll company, outsourcing, Hiring, Payroll Outsourcing, payroll, outsourcing payroll

The Equal Employment Opportunity Commission (EEOC) issued a final rule that extends its existing recordkeeping requirements under Title VII of the Civil Rights Act of 1964 (Title VII) and the Americans with Disabilities Act (ADA) to employers covered by Title II of the Genetic Information Nondiscrimination Act (GINA). The final rule was published on Feb. 3, 2012, and it takes effect on April 3, 2012.

Tags: GINA, Recordkeeping, EEOC

Few business owners or managers will cite payroll management as one of their favorite tasks. But when, from a strictly financial perspective, does it make sense to outsource payroll operations? Here's a quick look at the top reasons that businesses turn to payroll-services providers.

Tags: Payroll Outsourcing, payroll, outsourcing payroll, 10 reasons to outsource payroll