By Jane Paddison

The Small Business Jobs Act of 2010 was signed into law by President Obama on September 27, 2010 (“Jobs Act”).   The Act contains a number of provisions for small business owners, and is intended to stimulate the economy.  Most provisions will not be long-lived, however, so now is the time to act in order to recognize the intended tax-savings. Click here for a brief summary of some of the more important provisions, and those with the broadest application.

The following contains a brief summary of some of the more important provisions, and those with the broadest application.

• The expensing deduction for business assets has increased to $500,000 for 2010 and 2011.  This deduction allows a dollar-for-dollar decrease in taxable income for assets purchased for business use.  It is a deduction that is available immediately in the year of purchase.  Certain phase-outs do apply for the deduction once your purchase amount reaches $2,000,000.
• Certain costs associated with real property interests qualify for the first time for the expensing deduction in 2010 and 2011.  Qualifying real property interests include leasehold improvements, qualified restaurant property and retail improvement property.
• Fifty-percent bonus depreciation and exemption from the Alternative Minimum Tax adjustment are extended through 2010 for “qualified property” (including most machinery, equipment or other tangible personal property).
• The deduction for start-up expenses for a trade or business is increased to $10,000 from $5,000.  The deduction is also subject to phase-out for expenses exceeding $60,000.  Available for expenses incurred after December 31, 2009 and before January 1, 2011.  Expenses exceeding the $10,000 amount continue to be deductible ratably over 180 months beginning with the month in which the business is commenced.
• For calculation of self-employment tax, a deduction is now available for the cost of health insurance for an individual, spouse, dependents, and children who have not attained the age of 27.
• The cost of a cell phone may now be deducted or depreciated like other business property costs for tax years ending after December 31, 2009.  Cell phones have been removed from the category of “listed property.”
• Individuals or businesses who make payments of $600 or more to a service provider (such as a plumber, painter, or accountant) related to rental income will be required as of January 1, 2011 to issue the provider of service and file with the IRS a Form 1099-MISC reporting the payment.

A friend of OccMed Colorado, Jane Paddison is a tax attorney practicing in Boulder.  If you have any questions or would like more information, please contact her at janepaddison@paddisonlaw.com or 303.938.4096.  You can also reach her at: Jane Caddell Paddison, P.C., 1215 Mapleton Avenue, Boulder, CO 80306.

According to a recent article in Industry Week, “In May, OSHA announced that the rule would require employers to create a plan for identifying and correcting hazards, and then implement the plan. Workers would have a role in the development and implementation of such plans.”  The story quotes Assistant Secretary of Labor David Michaels as saying the agency is “asking employers to ‘find and fix’ the hazards in their workplaces.”  To read the article, click here.

Occupational Health & Safety magazine reports that at the National Safety Council’s 2010 Congress and Expo in San Diego this month, Michaels said one of OSHA’s goals is for employers to establish a “culture of workplace safety” through the new program.  He said that requiring an injury and illness prevention plan would level the playing field for employers and would help improve productivity.  To read the article in OH&S, click here.

Businesses would be wise to plan ahead so they hit the ground running as soon as OSHA publishes the new rule.

The American Subcontractors Association (ASA) is a nonprofit, membership, trade association representing union and non-union construction subcontractors. ASA’s Colorado chapter (ASAC) has more than 150 member companies.

According to Debra Miller, ASAC’s executive director since 1998, “Among our long list of benefits, we offer members business education. That doesn’t mean we teach them to be good at their craft – they already know how to do that. Instead, we provide them with the knowledge they need to be better at business.”

In addition to business education and commercial contract review sessions, a primary function of the organization is to market its members to the construction industry.  It’s also a resource for job seekers and employers, “building green,” legislative updates, and safety training.  An online member directory, available to the public, is organized by a variety of categories.

For more information about ASAC, please visit them online at asacolorado.net or call 303-759-8286.

Employers Learn Knowledge is Power

OccMed Colorado recently piloted a seminar for a few of its clients on the subject of Identifying, Articulating and Reacting Properly to Drug Induced Behavior.  Mark Ashby, a Thornton police officer who specializes in drug and DUI training for law enforcement, keynoted the session.

He started by presenting a few facts…

• Impaired workers cause preventable injuries, damage equipment and hurt productivity.
• Illicit drug users account for 16.4% of the full-time employed population.
• Drug users are likely to miss close to three working days a month due to illness or injury.
• Employees who suffer from drug impairment are at a greater risk of harming themselves and others.

… and a few alarming statistics:

• 500 million workdays are lost each year due to alcoholism.
• Impaired employees are likely to miss 8-40 days per year.
• Impaired employees cost U.S. businesses nearly $100 billion each year in decreased productivity, absences, workers’ comp claims and accidents.

“Impaired employees cost you money,” Ashby said. “They place you at risk for production loss, increased workers’ comp claims and diminished morale. You need to learn how to identify impairment before it costs you and your business.”

His presentation went on to provide attendees with an overview of drug and substance abuse trends in the metro area.  These include illegal drugs, such as heroin and cocaine, as well as those that are not against the law such as inhalants, energy drinks and K2 “incense,” which is a hallucinogen.  Ashby also laid out the outward signs of drug abuse.

According to Monika Valentine, executive director of OccMed Colorado, it is her hope that the seminar’s next installment will also include a discussion of assessment procedures and a review of the ways to properly confront an impaired employee.

“We want to help employers do their jobs better and lower their workers’ comp costs,” she said. “We hope programs like this add value to our role as their occupational healthcare provider.”

Are you interested in attending a future seminar on Identifying, Articulating and Reacting Properly to Drug Induced Behavior?  If so, please let Monika know at mvalentine@occmedcolorado.com or 303-341-1799.

During the last legislative session, some statutory changes were made to workers’ compensation.

Revised Medical Treatment Guidelines
The Division adopted revised Medical Treatment Guidelines on Shoulder and Thoracic Outlet Syndrome.

Prosthetic Devices
Senate Bill 08-241 requires coverage (under WC) for the replacement of prosthetic devises where the device was originally provided due to a work-related injury.

Apportionment
Senate Bill 08-241 changed the statute relating to the apportionment of impairment and disability (C.R.S. 8-42-104).  The new statute applies to injuries that occurred on or after July 1, 2008.  The Division has recently added a section to Workers’ Comp Rule 12 to reflect this new statutory language.

For more information, visit the Division of Workers’ Compensation Website.

Tri County Health Dept
www.tchd.org/flu.htm

Colorado Dept of Public Health & Environment
www.cdphe.state.co.us/epr/h1n1.html

Centers for Disease Control
www.cdc.gov/h1n1flu/

The interim final rule, published Dec.17, 2008 in the Federal Register, revised the list of documents acceptable for the Employment Eligibility Verification (Form I-9) process. Employers may no longer use previous versions of the Form I-9.

The revised list improves the security and effectiveness of the Form I-9 process. The list specifies that expired documents are no longer acceptable forms of identification or employment authorization. Allowing for expired documents makes it more difficult for employers to verify an employee’s identity and employment authorization and compromises the Form I-9 process.

USCIS also updated the Handbook for Employers – Instructions for Completing Form I-9 to reflect the requirements of the revised Form I-9.

Employers who do not have computer access can order Forms I-9 by calling our toll-free forms line at 1-800-870-3676.

USCIS forms and information on immigration laws, regulations, and procedures can also be requested by calling the National Customer Service Center toll-free at 1-800-375-5283.

Click here to download the forms in English or Spanish.

(Source: www.uscis.gov)

“When you’re part of your own system, by nature I think you’d offer a higher-quality product,” Zuehlsdorff said. “You’re the one who is on the line.”

What can you do to ensure a fair and equitable process for determining if the injury was work related? Understanding the process for such determinations helps you to be prepared to take appropriate action when the need arises.