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We had the benefit in the last few days to look at the PNC survey. For those of you who have not been following my blog as of late—and for shame on you—the PNC survey was done recently to gauge how small and medium sized business owners were feeling about their economic prospects in the coming six months. One of the main questions they asked these small and medium sized business owners was how they viewed the federal minimum wage. And in states across the mid Atlantic, from Pennsylvania, to Maryland, to New Jersey, and even Washington DC, employers were saying the same thing—that they were not too concerned about the federal minimum wage increase that is looking more and more likely to occur.

But one of the things that the PNC survey didn’t do was look at how employers in particular states in the Northwest felt about the federal minimum wage, nor did it look at how employees will feel about the federal minimum wage increase. One study out of Oregon, however, did just that, and I got my hands on it.

One of the findings of this Oregon study shows that a minimum wage increase, whether it be from the state or from the federal government, can help employees who are just coming off of welfare. For instance, in January 1997, the Oregon minimum wage increased because of a vote in the state from $4.75 per hour to $5.50 per hour. Then again in January 1997, because of the same law, the Oregon minimum wage went up again to $6 per hour. Statistics from minimum wage employees from this time show that workers coming right out of welfare got benefit from these slight but important changes to the minimum wage.

What the study also shows is that these folks coming off of welfare also had greater job opportunities during these Oregon minimum wage increases.

Speaking of costs for employers when it comes to their employees, the city of San Francisco was about to give its employers so more of them. It has a new city ordinance in place, set to start this coming July 1, that would have made it so employers in the city limits that have more than 50 employees would have to offer health care benefits, or else. What’s the or else? Well, they would then have to pay into a fund that would then turn around and provide health care coverage for the uninsured people in the state. So the proposition in San Fran is either you pay for your employees’ health care costs directly, or you pay for them indirectly.

Well, employers, the deadline for this proposal has not been revoked, but it has been pushed back. Instead of having to be in effect by this July, the new law in San Francisco will not go into effect until January 1 of next year. The change, though, will go into effect by that however.

The change and the slight delay was first proposed by the Supervisor of the city, Tom Ammiano, who then got his idea approved by the city’s Board of Supervisors just this past Tuesday. Employers, you can still be providing your employees health care benefits now. You don’t have to wait for that until January of next year. But the plan change proposed by Ammiano gives those employers who do not give their employees health care benefits until Jan. 1 until they have to start paying into that fund for the city’s uninsured workers and citizens.

As far as I know, though, employers who do not have 50 employees will not be affected by the law at all, so for you smaller guys and gals out there, my guess is that you can continue along business as usual. I will of course have to double check that for you.

As you already know if you’re a regular reader of this blog, Elaine Chao, Secretary of the US Department of Labor, recently made the announcement that workers in Northern Alabama will be granted the opportunity to improve their job skills by means of a $5 million federal grant from the WIRED initiative.

You might be wondering what’s happening with that Alabama unemployment grant. Here’s the current status: the state is using the initial $500,000 to develop a detailed plan to address unemployment in Alabama. Once that plan is approved by the US Dept. of Labor, the remaining $4.5 million will be released.  

The Workforce Innovation in Regional Economic Development (WIRED) initiative is designed to update and improve the skills of the local workforce in an effort to lower unemployment rates and boost the regional economy.  The $5 million grant to Northern Alabama is part of an overall grant program of $65 million that targets regions of the United States that have long suffered the effects of a poorly performing regional economy.  These economically struggling regions are identified using data supplied by state governors. 

The WIRED grant to Northern Alabama will be distributed in two phases.  The first phase will fund immediate worker training programs while the second phase of funding, the remaining $4.5 million, will be funded once a plan of implementation for the region has been developed. 

In her speech announcing this $5 million grant to Northern Alabama, Secretary Chao states, “Investing in area workforces through this collaborative approach will boost entire regions’ economic vitality.”  She further states, “This regional economic development strategy transcends political boundaries to better leverage a region’s assets to help workers succeed in the 21st century worldwide economy.” 

The $65 million grant program announced recently by US Department of Labor Secretary Chao is the second round of grants awarded under the WIRED program.  Original grants totaling $195 million were awarded to 13 economically struggling regions throughout the nation.  Improved rates of unemployment and a healthier economic performance in these 13 regions have proven the success of the WIRED job training initiative.  The WIRED program falls under the jurisdiction of the Employment and Training Administration within the US Department of Labor. 

Everyone who collected Alabama unemployment during 2006 should have received a 1099 form by now. In the first month of this year, 1099 statements were sent out to anyone who received Alabama unemployment benefits during 2006. The 1099 is, in a sense, the W-2 of a non-employee. If you are considered an employee of a copy, you are issued a W-2 after the close of each year. Your taxes are withheld from your take-home pay, and that is recorded on your pay-stub and the W-2. The 1099 records income such as unemployment benefits and any deductions that were made. Deductions include child support and any other court ordered payments.

Did you know that your Alabama unemployment benefits need to be reported on your taxes? If you did not elect to have federal or state taxes withheld from your benefit, like most people, you will have to pay taxes on the total amount received. The 1099 reminds individuals of the exact amount paid to them, and taxes withheld if any. If you did collect money for unemployment, you should have this form by now. The Alabama Dept of Labor will help you promptly if you did not receive the 1099 for 2006 or previous years.

Other individuals who may have gotten a 1099 may not have received unemployment benefits. This is not an error. The statement may have come from a company that hired that individual for a temporary, project based, period, and did not consider them a regular employee. Although not all employers provide this form when hiring short-term workers, many do. The form is a specific record of income for independent contractors or freelancers. It is in fact the same form distributed to those who used their unemployment benefits. Typically, taxes are not withheld in such situations and individuals are liable for any taxes due on the income.

Everyone who collected Alabama unemployment during 2006 should have received a 1099 form by now. In the first month of this year, 1099 statements were sent out to anyone who received Alabama unemployment benefits during 2006.  The 1099 is, in a sense, the W-2 of a non-employee. 

 If you are considered an employee of a company, you are issued a W-2 after the close of each year.  Your taxes are withheld from your take-home pay, and that is recorded on your pay-stub and the W-2.  The 1099 records income such as unemployment benefits and any deductions that were made.  Deductions include child support and any other court ordered payments.

Did you know that your Alabama unemployment benefits need to be reported on your taxes?  If you did not elect to have federal or state taxes withheld from your benefit, like most people, you will have to pay taxes on the total amount received.  The 1099 reminds individuals of the exact amount paid to them, and taxes withheld if any.  If you did collect money for unemployment, you should have this form by now.  The Alabama Dept of Labor will help you promptly if you did not receive the 1099 for 2006 or previous years.

Other individuals who may have gotten a 1099 may not have received unemployment benefits.  This is not an error.  The statement may have come from a company that hired that individual for a temporary, project based, period, and did not consider them a regular employee.  Although not all employers provide this form when hiring short-term workers, many do.  The form is a specific record of income for independent contractors or freelancers.  It is in fact the same form distributed to those who used their unemployment benefits.  Typically, taxes are not withheld in such situations and individuals are liable for any taxes due on the income.