Tax Benefits to Health Professionals and Their Employers

OSHA Proposed Rulemaking to Prevent Injuries from Slips, Trips and Falls

Recent Court Rulings and OSHA Violations

Applying for an EIN Requires Identification of Responsible Party

IRS Announces New Backup Withholding Procedures for SSN Validation

Required Postings for Federal Contractors and Subcontractors

How You Can Pay for Employee Training

Federal Stimulus Program Pays Summer Interns for Napa County Businesses

10% Excise Tax on Tanning Salons

View Newsletter Archives

Tax Benefits to Health Professionals and Their Employers
WASHINGTON — As part of a larger Administration announcement on efforts to strengthen the health care workforce, the Internal Revenue Service announced that under the Affordable Care Act health care professionals who received student loan relief under state programs that reward those who work in underserved communities may qualify for refunds on their 2009 federal income tax returns as well as an annual tax cut going forward.

The Affordable Care Act included a change in the law, effective in 2009, that expands a tax exclusion for amounts received by health professionals under loan repayment and forgiveness programs. Prior to the new law, only amounts received under the National Health Service Corps Loan Repayment Program or certain state loan repayment programs eligible for funding under the Public Health Service Act qualified for a tax exclusion.

The Affordable Care Act expands this tax exclusion to include any state loan repayment or loan forgiveness programs intended to increase the availability of health care services in underserved areas or health professional shortage areas and makes this exclusion retroactive to the 2009 tax year.

Health care professionals participating in these programs who have reported income from repaid or forgiven loan amounts on their 2009 returns, possibly after receiving a Form W-2, Wage and Tax Statement, or Form 1099, may be due refunds. Those who believe they qualify for this relief may want to consult their state loan program offices to determine whether the program is covered by the new law.

Health care professionals who have not yet filed for 2009 need not report eligible loan repayment or forgiveness amounts when they file. Those who have already filed may exclude eligible amounts by filing Form 1040X, Amended U.S. Individual Income Tax Return. To claim this exclusion individuals should write “Excluded student loan amount under 2010 Health Care Act” in the Explanation of Changes box on Form 1040X.

Health care professionals may request an employer or other issuer to provide a Form W-2c, Corrected Wage and Tax Statement, or 1099 and may attach the corrected form to the Form 1040X. However, the Form 1040X may also be filed without attaching a corrected form.

An individual whose employer withheld and paid taxes under the Federal Insurance Contributions Act (FICA) on payments covered under the new exclusion may request that the employer seek a refund of withheld FICA on the employee’s behalf. And because employers also pay a portion of the FICA tax, the employer also may also be entitled to a refund.

To obtain a refund, an employer should file a separate Form 941-X, Adjusted Employer's QUARTERLY Federal Tax Return or Claim for Refund, for each Form 941, Employer’s Quarterly Federal Tax Return, which needs to be corrected. An employer filing a Form 941-X is also required to file a Form W-2c for each employee who benefits from the exclusion.

OSHA Proposed Rulemaking to Prevent Injuries from Slips, Trips and Falls
WASHINGTON — The U.S. Department of Labor's Occupational Safety and Health Administration has announced in a notice of proposed rulemaking published in the Federal Register its plans to require improved worker protection from tripping, slipping and falling hazards on walking and working surfaces. A public hearing on the revised changes will be held after the public comment period for the NPRM.

'This proposal addresses workplace hazards that are a leading cause of work related injuries and deaths,' said Assistant Secretary of Labor for OSHA Dr. David Michaels.

The NPRM describes revisions to the Walking-Working Surfaces and Personal Protective Equipment standards to help prevent an estimated annual 20 workplace fatalities and more than 3,500 injuries serious enough to cause people to miss work. For example, in July 2009, a worker at a chocolate processing plant was killed after falling from an unguarded work platform.

The current walking-working surfaces regulations allow employers to provide outdated and dangerous fall protection equipment such as lanyards and body belts that can result in workers suffering greater injury from falls. Construction and maritime workers already receive safer, more effective fall protection devices such as self-retracting lanyards and ladder safety and rope descent systems, which these proposed revisions would also require for general industry workers.

The current walking-working surfaces standards also do not allow OSHA to fine employers who let workers climb certain ladders without fall protection. Under the revised standards, this restriction would be lifted in virtually all industries, allowing OSHA inspectors to fine employers who jeopardize their workers' safety and lives by climbing these ladders without proper fall protection.

More information is available in the Federal Register notice at http://s.dol.gov/3J. Under the Occupational Safety and Health Act of 1970, employers are responsible for providing safe and healthful workplaces for their employees. OSHA's role is to assure these conditions for America's working men and women by setting and enforcing standards, and providing training, education and assistance. For more information, visit www.osha.gov.

Recent Court Rulings and OSHA Violations
Unpaid Workers Prevail Before California High Court
The California Supreme Court issued its ruling in the long-awaited case of Martinez v. Combs. The case involved seasonal agricultural workers employed by Munoz & Sons. Munoz sold strawberries to co-defendants Apio, Inc. and Combs Distribution. When Munoz had trouble paying his employees, the employees filed suit against Munoz, Apio, and Combs to recover unpaid minimum wages and waiting time penalties, among other relief. Munoz was later granted a discharge in bankruptcy. Martinez v. Combs, 2010 Cal. LEXIS 4660 (Cal. May 20, 2010)

SD Wheat Growers Assoc. Fined More Than $1.6 Million for Violations
The department’s Occupational Safety and Health Administration (OSHA) has fined the South Dakota Wheat Growers Association of Aberdeen, S.D., more than $1.6 million. The fine follows the death of a worker at the company’s McLaughlin, S.D., grain handling operation. OSHA’s investigation found that the worker was killed after being engulfed by grain in one of the facility’s bins. Five additional workers were also at risk when attempting to dig out the victim. “The company’s intentional disregard for its safety and health responsibilities put its workers at risk, and more egregiously, led to an unnecessary loss of life. Worker safety must be a top priority,” said Secretary Solis.

OSHA Issues Citations Following Explosion That Killed Bystander
Following an explosion at NDK Crystals Inc. in Belvedere, Ill., DOL’s Occupational Safety and Health Administration (OSHA) issued $510,000 in fines for alleged egregious, willful and serious violations of federal workplace safety standards. The explosion at the company’s crystal manufacturing building took the life of a truck driver parked at a nearby service station. “The employer knowingly operated high pressure vessels even after being warned of the potential for a catastrophic failure,” said Assistant Secretary of Labor for OSHA Dr. David Michaels. “This simply is unacceptable, and OSHA will use the full extent of the law to ensure the company is held accountable for its actions.”

Applying for an EIN Requires Identification of Responsible Party
The Internal Revenue Service revised Form SS-4, Application for Employer Identification Number, to clearly identify the applicant’s true owner. Effective January 2010, all mail, fax, phone, and electronic EIN applications must disclose the name and taxpayer identification number of the true “responsible party” for the entity requesting an EIN.

For an EIN applicant that is publically traded or is registered with the Securities and Exchange Commission, the “responsible party” is the principal officer, general partner, grantor, owner of a disregarded entity, owner, or trustor, depending on the business entity of the applicant. For all other entities, the “responsible party” is the person who can control, manage, or direct the entity and the disposition of the entity’s funds and assets.

A nominee is an entity with delegated authority to act in name only and can never be the “responsible party” for the Form SS-4 application. The IRS does not accept the use of nominees to obtain EINs. The SS-4 must be signed by an individual with the authority to legally bind the entity; therefore, it cannot be signed by a nominee.

Prior to the SS-4 revision, taxpayers obtained EINs using nominee individuals for the EIN application process. Entities that used nominees on their applications should consider updating the information shown on the original application. Third party designees filing online applications must retain a complete copy of the paper Form SS-4, signed by the responsible party, and a signed authorization statement, for each EIN application filed with the IRS.

Using nominees in the EIN application process prevents the IRS from gathering appropriate information on entity ownership. It may also facilitate tax non-compliance by entities and their owners. Clearly identifying an entity’s true owner makes it difficult for taxpayers to conceal their income and assets. The IRS will pursue penalties, injunctions, or other enforcement action to prevent the misuse of EIN applications.

Download Form SS-4 Instructions

IRS Announces New Backup Withholding Procedures for SSN Validation
The Internal Revenue Service (”IRS”) is announcing a change in procedures for individual payees to follow to obtain validation of social security numbers (“SSNs”) from the Social Security Administration (“SSA”) to prevent or stop backup withholding under section 3406 of the Internal Revenue Code following receipt of a second “B notice” from a payor.

Announcement 2010-41

Required Postings for Federal Contractors and Subcontractors
Federal 'Employee Rights Under the NLRA' Notice Required Effective June 21, 2010 federal contractors and subcontractors must post the “Employee Rights Under the National Labor Relations Act” (formerly BECK) Notice. The new federal labor law notice includes employee’s rights under the NLRA and lists actions considered illegal by employers and unions.

How You Can Pay for Employee Training
Take Advantage of New Money Coming into Your State
The “stimulus dollars” that was in the news in 2009 are actually part of the American Recover and Reinvestment Act of 2009 (ARRA). This bill was signed in February 2009 with the intent to get funding to states by March 2009. Each state received more money than they received in the past (depending on their unemployment rate) to help fund training so Americans can acquire new skills and get back to work. If you are unemployed, contact your local One-Stop Career Center or Workforce Center for more information on how these funds could help pay for your training. Go to this website: www.servicelocator.org/.

California Student Aid Commission
The California Student Aid Commission has created this website just for you, the student. The goal is to provide you with the resources, information and tools you need to assist you with the college financial aid process. This site will also allow you to manage your Cal Grant and/or Chafee account(so) online by letting you view updates, make school changes, make address changes and post leave of absence requests. This link opens in a new window. https://mygrantinfo.csac.ca.gov/logon.asp

Tap into Tuition Reimbursement
If you are ready to secure your future through training, your employer can help. If your company offers tuition reimbursement, you can expand your payroll knowledge, skills, and credentials at no cost to you! APA has partnered with accredited colleges and universities across the country to offer live, instructor-led courses that qualify for most tuition reimbursement programs. Enroll in a course near you and tap into the pool of tuition reimbursement funds available at your company.

Review your options and realize your opportunities
Studies consistently show that education and specialized skills translate into higher salaries, increased job security, and career flexibility. Whether you’re looking to safeguard your career, seeking a promotion, or wanting to break into the payroll field, education from a respected source like APA can open a variety of doors, regardless of the economic climate.
Look into Payroll Scholarships
APA awards education scholarships every year. Click here for more information or visit http://www.americanpayroll.org/members/edgrant

Contact the Financial Aid Office
The financial aid office at the school, university or institution where you are interested in training may have specific programs that meet your needs and can help cover training costs. Napa Valley College Financial Aid Office

Investigate Student Loan Options
Sallie Mae® offers loans for professional development training as well as information on other funding possibilities. Click on these links for more information on: Continuing education loans or visit www.salliemae.com/get_student_loan/ and www.salliemae.com/before_college/.

Education-related Tax Incentives
Look into tax-related incentives like the “Hope Tax Credit” or the “Lifetime Learning Tax Credit” to see if they may benefit you. Click here for more information or visit www.salliemae.com/before_college/students_plan/ways_to_pay/tax/.

Each year, billions of dollars in tax credits, grants and other business incentives are left unclaimed by companies in the United States. Payroll Masters and Zone Scout will help your business take advantage of all the programs available to your company. Zone Scout provides negotiation, compliance management and screening services to help businesses capitalize on the numerous grants and trainig incentive programs available through local, state and federal agencies. www.payrollmasters.com

Corporate Training Budgets at Your Company
Many companies have budgets set aside for corporate training programs that are different from tuition reimbursement funds. Corporate training budgets may be available to cover your training depending on who manages this budget at your company and how much of it is currently being used.

For the Military
For veterans, their spouses, and dependents check into the GI Bill. Click here for more information. Or visit www.gibill.va.gov/. For active duty military, look into DANTES. Click here or visit www.dantes.doded.mil/Dantes_web/DANTESHOME.asp.

Article provided by American Payroll Association and PayTrain College and University.

Federal Stimulus Program Pays Summer Interns for Napa County Businesses
Payroll Masters is excited to be hiring an intern through the summer youth employment CRUISE Program. The CRUISE Program pays all intern's wages with no cost to the employer.

Explorations will be placing 80 youth interns in summer jobs with various employers throughout Napa County. Interns are ages 16-24 years old and will work 20-30 hours a week, starting in late June and ending in early September. All wages are paid by Explorations as part of the Federal Stimulus program.

If you are interested in participating as an employer, please contact Victoria Gonzales, Employment Specialist V.O.I.C.E.S. Napa (707) 251-9432 or victoria.voices@gmail.com.

Please forward this email on to employers in Napa County who would like V.O.I.C.E.S. to pay for a youth to work at your business. Download Flyer

Help V.O.I.C.E.S. continue to employ youth and provide nurturing programs, by giving to VOICES www.givetovoices.com

If your business is not in Napa County and you would like more information about similar programs in your area please visit your local Workforce Investment Board.

Napa County:
Summer CRUISE Program
Victoria Gonzales
(707) 251-9432 or mailto:victoria.voices@gmail.com
V.O.I.C.E.S. Napa has moved to 780 Lincoln Avenue, Napa

10% Excise Tax on Tanning Salons
The Internal Revenue Service issued regulations outlining the administration of a 10-percent excise tax imposed by the Patient Protection and Affordable Care Act on indoor tanning services that goes into effect on July 1.

Indoor tanning service means a service employing any electronic product designed to incorporate one or more ultraviolet lamps and intended for the irradiation of an individual by ultraviolet radiation, with wavelengths in air between 200 and 400 nanometers, to induce skin tanning.

In general, providers of indoor tanning services will collect the tax at the time the purchaser pays for the tanning services. The provider then pays over these amounts to the government, quarterly, along with IRS Form 720, Quarterly Federal Excise Tax Return.

The tax does not apply to phototherapy services performed by a licensed medical professional on his or her premises. The regulations also provide an exception for certain physical fitness facilities that offer tanning as an incidental service to members without a separately identifiable fee.

Required workplace posting: http://www.dir.ca.gov/WP.asp