Facing the High Cost of Gasoline

Expensive gasoline is generating renewed interest in providing transportation benefits to employees, including qualified transportation expense plans and carpooling arrangements. Such plans allow employees to save 30 to 40 percent on certain transit and parking costs associated with their commute to work by paying for those expenses with pre-tax dollars and the benefit can also be made available to those workers who use carpools.

The IRS has upped the optional standard mileage rates for the final four months of 2005 to 48.5 cents. In an announcement on September 9, the IRS said the rate will increase 8 cents a mile for all business miles driven between September 1 and December 31, up from the 40.5 cent rate in effect for the first eight months of this year.

For businesses located in Southern California, you can log on to www.commutesmart.info and click on Employer Services for information about setting up rideshare programs. For statewide information on ridesharing programs, call Caltrans at (800)-COMMUTE (800-266-6883).

Gas saving tips from AAA
Whether or not your company has such a plan in place, your business and your employees can economize with the following tips from the Automobile Club of Southern California. Since the auto club is a member of Employers Group, we asked them for these gas economizing tips.

Transportation to and from work
This is one of the most obvious places to save money and fuel. Consider these options:

• When possible, combine errands with your daily commute.
• If your work hours are flexible, try leaving earlier in the morning or returning home later in the evening to reduce fuel burned in bumper-to-bumper traffic.
• Consider telecommuting. Working from home one day a week can significantly reduce your fuel consumption over the course of a year.
• Participate in a car or van pool. Starting a carpool can be as easy as talking to neighbors who travel to the same destination or posting a notice on a company or school bulletin board.
• When available, public transit is usually the least expensive and most fuel-efficient way to commute. It may take a little longer to get where you're going, but you'll save money and help the environment.
• For those who live close to work, try bicycling or walking. You'll save fuel, and your body will thank you for the exercise.

Gas economy when not at work

• Consolidate trips and errands to cut down on driving time and miles traveled.
• Find one location where you can take care of banking, grocery shopping and other chores. "Comparison shop" by phone, online or through newspaper ads.
• Slow down. The faster a vehicle travels, the more fuel it burns.
• Avoid quick starts and sudden stops. This wastes fuel, is harder on vehicle components and increases the odds of a traffic crash.
• Lighten the load. Don't haul extra weight in the passenger compartment, trunk or cargo area of your vehicle. A heavier vehicle uses more gasoline.
• Keep your eyes open for low fuel prices, but don't waste gas driving to a distant filling station to save a few cents.
• Keep tires inflated, moving components properly lubricated and ignition and emission systems operating properly will help ensure maximum fuel efficiency and extend the life of your vehicle.

Think it through
Your driving style can have a significant impact on the amount of fuel you use. Remember the following:

• Know the correct starting procedure for your car. Don't race a cold engine to warm it up or allow it to idle for an extended time. Avoid rapid acceleration until the engine temperature is in the normal range. The engine will warm up faster under a light load, and emissions equipment will begin to function sooner.
• Maintain steady speeds for the best fuel economy. A car uses extra fuel when it accelerates.
• Minimize the need to brake by anticipating traffic conditions. Be alert for slowdowns and red lights ahead of you, and decelerate by coasting whenever possible.
• Travel at moderate speeds on the open road. Higher speeds require more fuel to overcome air resistance. Remember, however, speeds slower than the flow of traffic can create a traffic hazard.
• Use the air conditioner conservatively. Most air conditioners have an "economy" or "recirculation" setting that reduces the amount of hot outside air that must be chilled. Both settings can reduce the air-conditioning load - and save gas.

Vehicle ownership
Fuel is part of the total cost of vehicle ownership, so fuel conservation should be an important factor when choosing a new car. Consider whether the car, truck or sport utility vehicle under consideration is bigger and heavier than necessary. Compare the Environmental Protection Agency fuel economy ratings on the vehicles you're considering. Other options to consider include:

• Four-wheel-drive vehicles generally use more gasoline than other vehicles, especially if the four-wheel-drive system is engaged during routine driving.
• Vehicles with automatic transmissions may use more gasoline than those equipped with manual transmissions.
• Smaller engines usually equate to better gas mileage.
• Vehicle engines that require premium fuel, as stated in the owner's manual, will cost more to operate in the long run.
• Some trucks, vans and SUVs come in several sizes and configurations. Models with a shorter bed, abbreviated cargo area or smaller cab are lighter and generally consume less fuel.
• Light exterior and interior colors and tinted windows can reduce heat buildup, which saves on air conditioning.
• Cruise control may be a fuel-saving option if you drive a lot on open roads. Maintaining a steady speed conserves fuel.

Fuel efficiency
Routine oil changes will keep your vehicle operating at its best, gas-saving capacity. Check your owner's manual for routine maintenance instructions, and keep the following points in mind:
:
• Spark plugs must be in good condition. Some will last for 100,000 miles, but many need to be replaced more often.
• Check the air and fuel filters at least twice a year. Dirty filters increase fuel consumption and can cause poor performance.
• Inflate tires according to manufacturer recommendations. Under-inflated tires are a safety hazard and can cut fuel economy by as much as 2 percent per pound of pressure below the recommended level.
• Have your vehicle serviced immediately if the emissions malfunction indicator light - MIL - or “check engine” light comes on.
• Have your vehicle serviced regularly by a certified technician, who can also inspect important vehicle components that can affect fuel consumption.

At the pump
If your vehicle's engine does not need premium fuel, using anything other than regular is simply a waste of money. Other tips include:

• Don't top off your gas tank. In warm weather, fuel expansion can cause overflow.
• If you must replace a gas cap, make sure it is the right one for your car. A poorly fitting cap can cause engine problems, increase emissions and reduce fuel economy.
• Keep track of gas mileage. If you notice a decrease in fuel economy, your vehicle may not be operating at peak performance.
• Look into gas rebate programs such as the AAA Visa(r) card, which provides a rebate every time you fill up.

What Salary Increases Can You Expect Next Year?

2006 SURVEY FEATURES INCLUDE

DATA ANALYZED BY

Data is also examined by hourly/production, office/clerical, exempt, and executives.

Order & Save Today!
• Book: $67.50 Save 10%– (Originally $75 for members)
*Please note offer expires September 30, 2005.

If you have any comments or questions, please feel free to call Research Services @ (213) 765-3925
or email surveys@employersgroup.com.

Looking for a new HRMS/Payroll system for 2006? Now is the time!

Save 25% off your employee set-up fees

Finally, you can have access to the leading HRMS/Payroll system of UltiPro, developed by Ultimate Software* in a web-based, hosted and full-service outsourced environment.

UltiPro gives you the tools to manage every aspect of the employee’s life cycle with strong HR functionality tightly integrated with the industry’s leading payroll engine, a web-portal for company-related activities and information, employee and manager self-service and rich reporting capabilities.

All of this empowers your staff to access and manage information quickly and perform routine business activities more efficiently, streamlining HR and payroll processing and significantly reducing administrative and operational costs.

The UltiPro System Functionality includes:

Workforce Portal – allows you to communicate directly with your employees, distributing company newsletters, benefits provider links, positing routine forms and documents

Employee Self-Service – employees have immediate, 24/7 access to view their paycheck, benefits, frequently used forms, PTO balances and automated vacation requests, reducing administrative workload on HR/payroll staff

Manager Self-Service – authorized managers have access to critical employee information including salary, key dates, emergency contacts, so they can better manage their employees

Employee Administration – allows authorized users to process work events with no paperwork and no waiting. Managers can now hire, rehire, terminate employees, update salaries, analyze compensation, conduct salary and performance reviews, review and approve PTO requests

Standard Reporting – authorized managers and staff can access and run their own reports, reducing dependency on HR/payroll staff

System Administration – provides tools for the non-tech user to set up role-based security, built-in workflow, flexible business rules, company communications and page links on the portal.

Human Resources – easy tracking of all HR-related information, including employment history, performance, job and salary information, compliance data for COBRA, HIPPA, OSHA, FLMA and EEO.

Benefits Administration and Online Enrollment – allows set–up and administration of your unique benefit offerings to employees and allows them to enroll online. No duplicate entries!

Payroll Processing – No matter how simple or complicated your payroll is, Ulti-Pro can handle your calculations, including average pay rates for overtime, shift premiums and garnishments

Tax Compliance – Full tax filing service relieves you of the compliance issues

For more information on the Ultimate Software UltiPro software available through Employers Group, call Joyce Weldon at 213-765-3999 or e-mail jweldon@employersgroup.com

* Both Forrester Research and Gartner, leading technology analysts, have rated UltiPro as a “Leader” when compared with other HRMS/Payroll software providers.

Compliance Posters for Home Offices

To combat the unprecedented gas prices, not to mention to put a down payment on your sanity, you’ve decided to telecommute. Or, you’re setting up a home office for someone else in your company.

You’ve probably made great efforts to outfit the home office. You’ve set up a phone/fax system with access to the company line, updated the computer with more memory and a high speed internet connection to provide access to the company network. You’ve got the color printer with the scanner copier feature so your document handling and reproduction will be just like at the office. Reams of paper and boxes of ink cartridges are fully stocked, along with an extensive selection of pens, pencils, erasers, markers, multi-colored highlighters, staples, staplers, scissors, and paper clips.

Your home office is complete… or is it?
What about that one compliance item found in every break room in California. In other words, the employment posters!

Surprised? Most employers don’t know that even in a home office California law requires employment postings. In fact the, rule states that if your home is your primary work location you are required to have all the posters appropriate for your industry that you would normally have in a traditional office.

Employers Group is here to help.
With almost 40 posters to choose from, we can fill all your poster needs and as a member you’ll receive a valuable discount on all products purchased through our store. To order posters, stickers, emergency response kits or a host of others products to ensure your compliance, please call our Member Service Center at (800) 748-8484 and select option #3. Or, to shop online visit the EG Store at http://www.employersgroup.com/products/index.shtml

Consulting FAQs – California Wage & Hour Law

Q: What do you owe a non-exempt employee who is sent home early?

A: Sending employees home early may be a more common event during an energy shortage. California's Wage Orders (Section 5) require that employers pay a minimum amount, called reporting time pay, when employees are sent home early. The minimum pay for a day that that may be owed to a nonexempt employee is one-half of the hours the employee was scheduled to work but not more than four hours nor less than two hours at the employee's regular rate.

You do not owe reporting time under the following conditions: 1) The employee is exempt. 2) The employee chooses to go home. 3) There is a failure of the sewer system or of public utilities to supply electricity, water or gas, although reporting time pay does not apply if the power is turned off in accordance to an agreement with an energy company. 4) The employer is unable to commence or continue because of threats to employees or property or because of the recommendation of civil authorities. 5) It is an act of God or other cause outside of the employer’s control, for example, an earthquake or forest fire. 6) The employee reports to work unfit. 7) The employee reports late and is discharged or sent home early as a disciplinary action.

Q: What happens if you send an employee home and ask him/her to report later in the same day?

A: When a non-exempt employee is called back to work a second time during the day, the employer owes a minimum of two hours pay at the regular rate. An example of this is an employee who comes back a second time in the day to attend a one-hour training session. The employee receives one hour of pay for attending the training session, which is considered working, and an additional hour of call back pay.

Low earners may also be eligible for up to one hour’s pay at minimum wage ($6.75), which is called a split shift differential. Workers making minimum wage receive an extra hour's pay at minimum wage as the split shift differential. For workers making more than minimum wage, the difference between their rate and minimum wage is credited to the obligation to pay the split shift differential.

For example, a worker who makes $ 9.00 per hour is making $2.25 an hour more than minimum wage. If this person works 2 hours when called back a second time the credit is 2 time $2.25 or $4.50 and the employee is entitled to $2.25 ($6.75 - $4.50 = $2.25) as a split shift differential. If this employee works 3 hours when called back a second time the credit is 3 times $2.25 or $6.75 ($6.75 - $6.75 = 0) so no split shift differential needs to be paid.

It is possible to pay reporting time pay, call-back pay and split shift differential in the same day. They are each treated separately.

Also, it is important to know that reporting time pay, call back pay and split shift differential are not considered time worked and are not included in overtime calculations.