More than $4.45 million in total refunds were returned to Big Bend residents from January to April this year thanks to the BEST Project's Volunteer Income Tax Assistance (VITA) program.

Through the BEST Project (Believe, Earn, Save, Thrive), United Way of the Big Bend (UWBB) is leading an effort to help lower-to-modest-income residents preserve and increase their financial assets.

The VITA program's IRS-certified, volunteer tax preparers helped residents in Franklin, Gadsden, Leon, Jefferson, Madison, and Wakulla counties with free tax preparation and filing, noted Amanda Clements, UWBB Strategic Initiatives vice-president. VITA volunteers prepared basic, current year tax returns and worked to ensure that eligible families filed for the Earned Income Tax Credit (EITC), which can increase a family's annual income by as much as 15 percent.

More than 3,700 residents took advantage of the service, avoiding predatory income-tax preparers and expensive refund-anticipation loans.

"I used VITA for the first time this year and will definitely use the service again," said Miriam Barfield, student at Florida State University. "The volunteers were all so nice, and it didn't take long for my return to be completed. I don't see why anyone would pay to have their taxes done when we have this great, convenient and free service in our community."

In 2010, 3,761 tax returns were filed through VITA sites resulting in $1.15 million EITC refunds and more than $564,000 in total tax-preparation fee savings.

"There's no question that VITA has impacted the lives of people in our area," Clements said. "Considering that tax returns filed at VITA sites were down about one percent this year nationwide and filings at VITA sites here in the Big Bend were up by six percent, it's clear that this program is making a difference."

VITA has had an estimated $14.6-million economic impact on the Big Bend in the last six years, with $12.7 million in total refunds and $1.9 million in tax-preparation fee savings. Through the work of the VITA volunteers, these dollars stay with the individuals and families who need them most.

"This program [VITA] is important to keeping our resident safe from financial predators," said Johnny Session, a long-time volunteer with the City of Tallahassee and City Hall VITA Site Coordinator. "I'm proud to continue to be involved in a program that is focused on keeping hard-earned dollars in the pockets of hard-working individuals."

The "new" Red Flags Rule -- initially issued in October 2007 -- is scheduled to become effective on June 1, 2010. The Rule applies to "financial institutions" and "creditors" that maintain "covered accounts." Because the definitions of a "creditor" (an entity that regularly extends credit) and "covered account" (a consumer account that permits multiple transactions or a commercial account where there is a "reasonably foreseeable risk" of identity theft) are so broad, a wide range of businesses must comply (e.g., car dealers, healthcare providers, mortgage brokers, utility companies and telecommunication companies).

To comply with the Rule, a written program designed to identify, detect and respond to patterns of identity theft (Red Flags) must be implemented. The specific elements of identification, detection and response to Red Flags that must be addressed by the program are enumerated in the Rule. The program must also:

1. be approved and implemented by the board of directors or senior management;

2. be administered by someone specifically assigned to do so, who will report annually to the board of directors or senior management regarding the program and provide recommendations for any material changes to the program;

3. provide for staff training and oversight of service providers; and be updated periodically to reflect changes in risks of identity theft.

The program may incorporate, as appropriate, any existing policies and procedures that are designed to control the risk of identity theft. The Rule also reminds creditors and financial institutions to be mindful of other potentially applicable obligations, such as filing Suspicious Activity Reports or implementing requirements of the Fair Credit Reporting Act.

Groups representing healthcare providers, attorneys and accountants have argued that they should not be covered by the Rule. On October 20, 2009, the U.S. House of Representatives passed a bill that would exempt healthcare, legal and accounting firms with 20 or fewer employees from compliance. The bill would also require the FTC to issue a regulation that would allow other businesses to apply for an exemption. The Senate is currently reviewing this bill. Additionally, the American Bar Association and the American Institute of Certified Public Accountants have filed lawsuits seeking to prevent the Federal Trade Commission from applying the Rule to their members. The ABA obtained a decision from the trial court holding that the Rule does not apply to attorneys because they do not meet the definition of a creditor. The FTC appealed that decision, and the case is now before the D.C. Circuit. The trial court in the AICPA case issued an order precluding the FTC from enforcing the Rule against AICPA members in public practice until 90 days after the D.C. Circuit rules on the FTCs appeal in the ABA case.

Additional information on the Red Flags Rule can be obtained from http://www.ftc.gov/bcp/edu/pubs/business/idtheft/bus23.pdf. Source: Baker & Hostetler LLP

The IRS has posted on its website the newly-revised payroll tax form that most eligible employers can use to claim the special payroll tax exemption that applies to many new workers hired during 2010.

Designed to encourage employers to hire and retain new workers, the payroll tax exemption and the related new hire retention credit were created by the Hiring Incentives to Restore Employment (HIRE) Act signed by President Obama on March 18.

Employers who hire unemployed workers this year (after Feb. 3, 2010, and before Jan. 1, 2011) may qualify for a 6.2% payroll tax incentive, in effect exempting them from the employers share of Social Security tax on wages paid to these workers after March 18. This reduction will have no effect on the employee's future Social Security benefits. The employee's 6.2% share of Social Security tax and the employer and employee's shares of Medicare tax still apply to all wages.

In addition, for each qualified employee retained for at least a year whose wages did not significantly decrease in the second half of the year, businesses may claim a new hire retention credit of up to $1,000 per worker on their income tax return. Further details on both the tax credit and the payroll tax exemption can be found in a recently expanded list of answers to frequently asked questions (http://www.irs.gov/businesses/small/article/0,,id=220745,00.html) about the new law now posted on IRS.gov.

How to Claim the Payroll Tax Exemption

Form 941 (http://www.irs.gov/pub/irs-pdf/f941.pdf), Employer's QUARTERLY Federal Tax Return, revised for use beginning with the second calendar quarter of 2010, will be filed by most employers claiming the payroll tax exemption for wages paid to qualified employees. The HIRE Act does not allow employers to claim the exemption for wages paid in the first quarter but provides for a credit in the second quarter. The instructions (http://www.irs.gov/pub/irs-pdf/i941.pdf) for the new Form 941 explain how this credit for wages paid from March 19 through March 31 can be claimed on the second quarter return. The form and instructions are now available for download on IRS.gov.

The HIRE Act requires that employers get a signed statement from each eligible new hire, certifying under penalties of perjury, that he or she was not employed for more than 40 hours during the 60 days before beginning employment with that employer. Employers can use new Form W-11 (http://www.irs.gov/pub/irs-pdf/fw11.pdf), Hiring Incentives to Restore Employment (HIRE) Act Employee Affidavit, released last month, to meet this requirement. Though employers need this certification to claim both the payroll tax exemption and the new hire retention credit, they do not file these statements with the IRS. Instead, they must retain them along with other payroll and income tax records.

These two tax benefits are especially helpful to employers who are adding positions to their payrolls. New hires filling existing positions also qualify as long as they are replacing workers who left voluntarily or who were terminated for cause and otherwise are qualified employees. Family members and other relatives do not qualify for either of these tax benefits.

Businesses, agricultural employers, tax-exempt organizations, tribal governments and public colleges and universities all qualify to claim the payroll tax exemption for eligible newly hired employees. Household employers and federal, state and local government employers, other than public colleges and universities, are not eligible.

Legislation has been introduced in the House and Senate that would override the high court's interpretation of the age discrimination law.

Congressional Democrats are taking a whack at overriding another recent decision by the U.S. Supreme Court, looking this time at a 2009 ruling about age discrimination.

The decision in Gross v. FBL Financial Services Inc. changed the standard of proof for workers who sue under the Age Discrimination in Employment Act of 1967. Under the Court's 5-4 opinion, a worker must prove that the employer would not have taken a certain action, such as a demotion, "but for" the worker's age, even if there's evidence that age was a factor in the decision.

Plaintiffs lawyers say the decision has made it more difficult to bring age discrimination claims, and Democrats are taking up their argument, just as they did after the 2007 decision in Ledbetter v. Goodyear Tire & Rubber Co. about gender discrimination.

In a hearing recently, the House Subcommittee on Health, Employment, Labor, and Pensions heard from Jack Gross, the plaintiff in the case that reached the Supreme Court. He was among a group of employees, almost all over 50 years old, who were demoted.

I hate having my name being associated with the pain and injustice now being inflicted on other workers, Gross said.

Legislation has been introduced in the House and Senate that would override the Supreme Court's interpretation of the age discrimination law. Under the legislation, a plaintiff would have to show only that an "impermissible factor," such as age, was a "motivating factor" in the employer's action. The hearing Wednesday is Congress' first on the Court's ruling.

Eric Dreiband, a partner in the Washington office of Jones Day who does corporate defense work, testified that parts of the proposed law are broad and ambiguous. He also questioned whether workers would really see additional awards.

"The bill may enable some lawyers to earn more money, but who does this benefit?" Dreiband asked.

The AARP is supporting the legislation, and Gail Aldrick, vice chair of the group's board, also testified Wednesday. Those registered to lobby on the bill include the National Association of Manufacturers and the U.S. Chamber of Commerce.

Democrats are pushing congressional overrides to several other recent Supreme Court rulings in the areas of medical device lawsuits, securities fraud lawsuits, and vertical price-fixing. Source: The National Law Journal.

Those employers who maintain health care plans for retirees should know that the U. S. Department of Health and Human Services (HHS) now provides significant financial assistance through its Early Retiree Reinsurance Program. HHS, pursuant to authority granted by the recent health care reform law, is administering the $5 billion program offering employers with retiree health plans up to 80% reimbursement of claims by retirees, ages 55 to 64, not yet eligible for Medicare. This temporary program is designed to make it easier for employers to provide health coverage to early retirees.

The reimbursement is available for individual total claims between $15,000 and $90,000 in the plan year. For purposes of meeting the threshold, the limits apply to individual costs as opposed to the aggregate claims of multiple individuals. The retiree health care plan must have in place provisions that save costs or have the potential to save costs for chronic medical problems requiring expensive treatment.

Under HHS rules, only health care expenses incurred after June 1, 2010 are eligible for reimbursement. The categories of reimbursable expenses include medical, hospital, surgical, prescription drugs and mental health. HHS may provide for the reimbursement of other expenses in the future.

For more information regarding the Early Retiree Reinsurance Program, employers are encouraged to visit the HHS website (www.hhs.gov).

This article was prepared for members of Florida Employers Exchange by Richard M. Pierro, Jr., an associate with the labor and employment law firm of Allen, Norton & Blue, P.A. For additional information contact Mr. Pierro at (813) 251-1210 or visit the firms website www.anblaw.com.

Florida's seasonally adjusted unemployment rate for March 2010 is 12.3%. This represents 1,138,000 jobless out of a labor force of 9,269,000. The unemployment rate is up marginally from the February revised rate of 12.2%, and up 2.7% from the March 2009 rate of 9.6%. Marchs unemployment rate is the highest in the recorded series going back to 1970. Florida's unemployment rate remains higher than the national rate, which is 9.7% in March.

Florida's total nonagricultural employment in March 2010 is 7,181,000, representing a loss of 4,000 jobs (-0.1%) over the month and a job loss of 149,600 jobs, or -2.0%, compared to March 2009. Florida's rate of job decline is steeper than the national rate of decline for March which is -1.8% over the year. Florida's annual rate of job loss continues to moderate with the -2.0% in March 2010 compared to last month's revised rate of -2.7%. The steepest rate of decline in Florida was -6.9% in March 2009.

Florida job postings compiled by the Help Wanted OnLine data series from The Conference Board totaled 232,200 ads, up 10.4% from February. This is the largest over-the-month gain since the series began in 2005. Floridas over-the-month increase in job demand in March is the largest of the ten most populous states.

EFFORTS TO CREATE JOBS AND

STIMULATE FLORIDA'S ECONOMY

Reemployment and Eligibility Assessment (REA) Grant Award: On April 15, the U.S. Department of Labor announced that Florida will receive a $7.31 million federal grant award which the Agency for Workforce Innovation applied for to provide enhanced reemployment and eligibility evaluations for those receiving unemployment benefits. Staff in statewide one-stop career centers will conduct in person reviews to determine which services and training are appropriate for each worker. Each worker receives an individual work-search plan using labor market information for a targeted job search. The grant award follows a similar grant Florida received last year for $3 million.

Florida Back to Work: Since funds were made available to Florida on March 17 from the U.S. Department of Health and Human Services, almost 500 employers around the state have signed agreements to hire workers through the Florida Back to Work initiative, which provides reimbursement for up to 95% of an eligible employee's salary. More than 5,500 job openings have been posted and nearly 812 employees are already on the job. The program is expected to provide 10,000 direct jobs and 15,000 indirect jobs over the next six months. For more information on worker eligibility requirements, visit www.floridajobs.org or search job openings on the Employ Florida Marketplace at www.employflorida.com.

Census Hiring Impact: The Census Bureau, as part of the 2010 count of U.S. residents, is hiring thousands of employees between now and September to assist with the count in Florida. Up to 63,700 Floridians will work during the next six months to ensure an accurate count so that Floridians receive their fair share of funding and representation in Washington, D.C., during the next decade. Census job openings, both full and part-time, are posted in the Employ Florida Marketplace at www.employflorida.com.Toll Road Construction: On April 9, Governor Charlie Crist announced the groundbreaking of the I-4/Selmon Expressway Connector in Hillsborough County. The $390 million construction project will create thousands of jobs and improve transportation options in the Tampa Bay area. To learn more visit www.employflorida.comand click on I-4.

Jobs Grants: The U.S. Department of Commerce awarded $9.3 million in grants April 9 to create jobs in Florida. The Economic Development Administration grants are slated for a group of projects expected to create more than 500 jobs and spur millions in private investment throughout the state. Details on the grant awards can be found at www.employflorida.coms/PressReleases/FLcombo040710.

Florida's Nonagricultural Employment by Industry (Seasonally Adjusted)

* The number of jobs in Florida is 7,181,000 in March 2010, down 149,600 compared to a year ago. The industry losing the most jobs is construction (-57,000 jobs, -13.7%).

* Other industries losing jobs over the year include: leisure and hospitality (-28,800 jobs, -3.1%); manufacturing (-26,100 jobs, -7.8%); financial activities (-24,600 jobs, -5.0%); trade, transportation, and utilities (-22,600 jobs, -1.5%); information (-13,300 jobs, -9.1%); professional and business services (-5,800 jobs, -0.6%); other services (-2,900 jobs, -0.9%); and government (-1,400 jobs, -0.1%).

* These industry job losses are partially due to weakness in specialty trade contractors; food services and drinking places; fabricated metal product manufacturing; credit intermediation; merchant wholesalers (durable goods); telecommunications; accounting, tax preparation, and bookkeeping; repair and maintenance; and local government.

* Private education and health services (+33,000 jobs, +3.1%) is the only sector gaining jobs among Floridas major industries. Most of the increase is due to health care and social assistance (+27,300 jobs, +3.0%), primarily in ambulatory health care services. Private education increased by 5,700 jobs (+4.1%) over the year.

Local Area Unemployment Statistics (Not Seasonally Adjusted)

* In March 2010, Liberty County has the state's lowest unemployment rate (7.3%), followed by Monroe County (7.7%), Leon County (8.2%), and Alachua County (8.4%). Many of the counties with the lowest unemployment rates are those with relatively high proportions of government employment.

*Flagler County (16.6%) has the highest unemployment rate in Florida in March 2010, followed by Hernando County (15.1%); Marion County (15.0%); St. Lucie County (14. 6%); and Hendry County (14.1%). The counties with the highest unemployment rates in the state experienced continued weakness in construction, manufacturing, and financial activities. There are 52 Florida counties with double-digit unemployment rates in March, down from 55 the previous month.

Area Nonagricultural Employment (Not Seasonally Adjusted)

* All metro areas in the state except two lose jobs over the year in March 2010. The Pensacola-Ferry Pass-Brent metro area gains 400 jobs (+0.3%) and the Panama City-Lynn Haven-Panama City Beach metro area gains 100 jobs (+0.1%) over the year. Metro areas with the steepest declines include Sebastian-Vero Beach (-5.2%, -2,400 jobs); Naples-Marco Island (-5.1%, -6,000 jobs); Ocala (-4.7%, -4,500 jobs); and Punta Gorda (-4.6%, -1,900 jobs).