 |
|
|
 |
06/22/2009
Monday Morning Memo - 06/22/2009
Monday Morning Memo June 22, 2009
|
|
| New UI Rates Effective in July |
 The State of New Jersey mailed its new unemployment tax rates for NJ employers this past week. The expected "20%" increase came in significantly higher, ranging from 17% to as high as 50% based on the employer's reserve ratio. This is going to increase the operating costs of all employers in New Jersey and particularly staffing firms where payroll expenses are such a big segment of their cost structure! Click here for a list of the new rates.
To assist you in meeting this new economic challenge to your operating budget, NJSA has brought together Industry Partners whose mission today is to offer either more value for the money you are spending or more importantly lower cost alternatives. The solution to this new threat can be right here within your NJSA member benefits! Visit www.njsa.com for a listing of NJSA Industry Partners or call 973-283-0072.
This tax increase can be "good news" for staffing sales professionals. Why should firms hire everyone directly on their payroll and have a high probability of being charged unemployment benefits if they don't work out... increasing future payroll tax rates. Instead they could consider a temp-to-hire program with a staffing firm, thus shifting unemployment liability if the new staff doesn't work out.
Thanks to Urbach & Avraham, CPAs and Two River Benefits for the "Heads Up!" | |
|
|
|
Eye On Trenton |
|
 This week, the Assembly Budget and Senate Budget and Appropriations Committees is expected to vote on a last-minute revised FY2010 budget proposal. The legislation would increase the income tax rate from 10.25 to 10.75% and impose a 4% surcharge on corporate tax liability. The tax increases also include an estimated additional $100 per employee to the Unemployment Insurance (UI) Trust Fund.
NJSA Members are urged to contact their legislators expressing your opposition to anti-business tax increases. Go to http://www.njleg.state.nj.us/members/legsearch.asp for a list of state legislators.
|
| New Survey Shows Some Positive Employment Signs |
 According to a Manpower Employment Outlook Survey released last week, 15% of the 28,000 employers interviewed in the U.S. plan to add to their staff during the 3rd Quarter of 2009. 13% of those interviewed plan to reduce their payrolls while 67% expect no change.
The seasonally adjusted Net Employment Outlook for the 3rd Quarter 2009 is -2% - the same as Q2. The following industry sectors anticipate increases in hiring:
- Construction
- Wholesale & Retail Trade
- Non-Durable Goods Manufacturing
- Leisure & Hospitality
|
| 42 Staffing Firms Defrauded |
 Six Colorado Springs men were indicted on charges of mail and wire fraud that included defrauding 42 staffing firms of almost $5.4 million, according to a court filing last week by the U.S. Attorney's Office for the District of Colorado.
The defendants contracted with staffing firms to provide payroll services - a service where staffing firms typically place workers sourced by clients on their payrolls. In this case, the defendants turned in false time cards to the staffing firms and often placed each other as payroll employees to be paid by staffing firms, according to the indictment. Defendants then refused to pay staffing firms for their services citing several excuses such as slow government payment cycles, according to the indictment.
Among the staffing firms listed as victims in the indictment were: include Adecco, Kforce Inc., Manpower Inc., Today's Staffing, Express Personnel Services, Labor Ready, Snelling Personnel Services, Spherion, Kelly Services Inc., and Staffmark. |
| IT Services Reception |
 Prospective members from the IT Services staffing segment are invited to attend an informational reception on July 9 at the Sheraton Edison Hotel from 4:30-6:00pm. This reception is by invitation only. |
| Spotlight on Industry Partner: Access Capital |
Is your staffing business going places? Access Capital will be with you every step of the way to build your business with the money you need to grow. We are seasoned entrepreneurs with a long history of success in staffing and particularly in funding temporary staffing and direct hire firms that go on to achieve great success. At Access Capital we work with many entrepreneurs, just like you, and in addition to giving you unlimited growth capital we also offer the back office support and systems that are an important element in the health of a growing business. Call us and talk to our experts today. Whether you are a start-up or an established operation, we want to hear what you have to say. We'll help you navigate day-to-day challenges with fast funding, easy access to financial services and full support for your business. Contact Vince Grillo at 212-644-9300 x103 or vgrillo@accesscapital.com. |
| NJSA Golf Outing - September 15th |
|
 Don't forget - NJSA Golf Outing is September 15, 2009 at Fox Hollow Golf Club.
|
For additional information about any items in this Monday Morning Memo, or to learn more about membership in the New Jersey Staffing Alliance, please contact us at 973-283-0072 or email patk@njsa.com. Our website is http://www.njsa.com. Thank you. |
|
Our mission is to be the advocate for the success and growth of NJSA members and the New Jersey
staffing industry through leadership in legislation, education, ethics and professional business practices. | |
|
|
|
|
|
New Jersey Staffing Alliance | 170 Kinnelon Road | Suite 33 | Kinnelon | NJ | 07405
|
|
|
|
Back to main memo page |
|
|
|
|
| |
© 2010 New Jersey Staffing Alliance, All Rights Reserved
All trademarks and copyrights remain the property of their respective owners. |
Site created by ASJ Partners |
|
|
|
|
