A Message from Margaret and Wallace Brumley

We would like to take this opportunity to inform our valued clients that our company is financially very sound. As you may know, our ESAC accreditation places Brumley PEO in very exclusive company - only 5 PEOs in Texas and 28 in the country are ESAC accredited.

The ESAC accreditation affords several important protections for our clients. First, clients of an accredited PEO are covered by a performance bond for up to 11 million dollars. A client company can draw on the bond to cover a default by the PEO in the payment of payroll, taxes, insurance premiums, and/or retirement funds. Second, accredited PEOs must annually submit to ESAC, AUDITED financial statements, as well as interim quarterly financial statements.

As part of its financial statements, an ESAC-accredited PEO must submit the computation of its Current Ratio (measures whether a company has enough resources to pay its debts over the next 12 month period) and its Quick Ratio (measures the ability of a company to immediately pay or retire its current liabilities) in order to ensure the PEO is maintaining adequate reserves for its operations and near-term liabilities. Each quarter Brumley PEO has demonstrated its financial liquidity and cash reserves, which we are proud to say are on deposit in local Texas banks - all FDIC insured - and NOT ON THE FEDERAL BAIL OUT LIST!

For more information on the stringent financial requirements and ethical standards an ESAC accredited PEO must maintain on an ongoing basis, please click here.

Having been successful in the insurance industry (Wallace 30 years), the title insurance industry (Margaret 25 years) and the PEO industry (20 years), we have been asked what are we going to do as an encore? Our response is Brumley PEO is our encore! To us, the continued success of our company is everything and we remain confident that our company as well as our relationship with our client companies and shared employees will endure well beyond these trying times.

    E-Verify May Soon Be Mandatory for All Employers
    By: Norman L. Paul, Jr., General Counsel

In an article recently printed in the San Antonio Express News it was reported that during his Senate confirmation hearing, John Morton, President Obama’s nominee to head the Immigration and Customs Enforcement agency (ICE), testified that the agency intends to target employers more than employees in order to pursue those employers who hire unauthorized workers. He further testified that it is the Administration’s intention to eventually require mandatory use of E-Verify "to enable employers to check the immigration status of new hires."

According to the Express News article, Mr. Morton testified: "We cannot make sustained reductions in illegal immigration without deterring employment of unauthorized labor." "We need to place renewed focus on employers to ensure that they are playing by the rules." Mr. Morton further testified that ICE intended to "vigorously pursue" civil fines against employer violators. To view the complete article, please click here.

As we have reported in several recent Alerts and Updates, Brumley PEO is able to check the immigration status of all of your newly hired employees through E-Verify. The program is free and it takes minutes to perform the check.

It is estimated there are 10 - 12 million illegal immigrants in the United States. If E-Verify is used to screen all existing employees (now it is for new hires only), this could lead to labor shortages in the construction, farming, restaurant, and other labor intensive job markets. Brumley PEO therefore recommends client companies be in the forefront of this issue by making sure every employee hired from this point forward is in fact authorized to work.

If you are interested in the E-Verify program through Brumley PEO or for more information about the program requirements, please click here.

2009 Open Enrollment Notice
By Becky Newton, Director of Benefits

Open enrollment will begin on October 1, 2009 for the Brumley PEO Humana health insurance policy and our ancillary coverages, MetLife dental and life insurance and Safeguard vision insurance. The Flexible Spending Account open enrollment will begin January 1, 2010.

Humana health insurance rates should be received in July. Because the remaining ancillary products have a two year rate guarantee, there will be no increase in premiums for the ancillary benefits - making re-enrollment seamless for those already participating.

With your assistance, we intend to start open enrollment meetings in August. An employee’s election can be entered into our payroll system in September, with the proper premiums being remitted at the start of the October 1, 2009 Plan year. This eliminates the need for retroactive payroll adjustments.

If you are not offering benefits, keep in mind Brumley PEO ancillary coverages have no employer contribution requirements and no employee participation minimums. This is a great way to increase employee retention and "give back" to your employees.

As always, if you participate in any of the Brumley PEO plans, the Brumley PEO Benefits Department handles (at no extra cost to you) all aspects of policy administration including new hire books/meetings, enrollments, changes, terminations, payroll deductions, remittance of collected premiums to the carrier(s) and, if applicable, COBRA and State Continuation offerings.

Throughout the next several months, you will receive additional information about the 2009 - 2010 Plan year. In the interim, if have any questions regarding the Brumley PEO sponsored plans, please contact our Benefits Manager, Michael Anderson (830 980-1231).

     CHILD LABOR LAWS
     By Pam Williams, Director of Payroll

As another school year comes to an end, you may want to hire summer help. Before you do so, please familiarize yourself with the Federal and Texas Child Labor Laws.

Only in extremely limited circumstances may a child under the age of 14 be employed. As for children between the age of 14 or 15, they may not work more than eight hours on a non-school day or 40 hours during a non-school week. Between June 1 and Labor Day a child may only work between the hours of 7a.m. and 9 p.m. This age group may be employed in retail and food service establishments performing office and clerical work, cashiering, cleanup work, kitchen work, etc. They may also work in a gasoline service establishment but their duties are limited to courtesy service, car cleaning, etc.

A child 16 or 17 years of age does not have any restrictions on the number of hours or times of day they may work. However, they may not work in any "Hazardous Occupation Order". This includes operating or assisting to operate any power-driven hoisting apparatus such as cranes, derricks, hoists and high-lift trucks, metal forming, punching and shearing machines, any woodworking machines, and any circular saws, band saws and guillotine shears. This age group cannot work in the manufacturing of brick, tile and kindred products and they cannot work in any roofing operations.

No child under the age of 17 may drive on public roadways as part of their employment. A 17 year old may drive as part of their employment but only during daylight hours. However, they must have a valid license for the type of driving involved, completed a state approved driver education course, no moving violations, and not drive a vehicle over 6,000 lbs. gross vehicle weight.

Keep Eye Protection Effective
By Mike McGee, Director of Risk Management

Many employees use eye protection to protect their eyes when performing tasks that pose a risk of eye injury, but safety glasses, goggles and face shields lose their effectiveness if not properly maintained. When they are dirty, scratched or fogged, protective eyewear may actually cause injuries by impairing the wearer’s vision.

You can prevent eye injuries by making sure your employees not only use protective eyewear when it is called for, but also eyewear that is well maintained. These easy tips will help you do just that:

• Inspect eyewear before each use for scratches, cracks or other wear.
• Clean the lenses with a mild detergent and water with a non-abrasive cloth or paper towel.
• Store the eye protection when not in use to protect it from the elements; an empty coffee can works great for this purpose.
• Disinfect the eyewear if it becomes splashed or otherwise contaminated with a chemical or hazardous substance.
• Replace eyewear that has outlived its useful life with a new pair; new safety glasses or goggles are inexpensive, eye injuries are costly.
  

     Are Your Federal Income Tax Withholdings Correct?
     By Lisa Bolling, Senior Accountant

The 2008 tax season is over!  Did you receive a large refund? Did you have to make an additional tax payment? If either occurred, you should now take the time to review your 2009 federal tax withholdings. One way to do so is by using the IRS Withholding Calculator, which can be found by clicking the following link: http://www.irs.gov/individuals/article/0,,id=96196,00.html

This useful tool estimates your 2009 income tax liability as well as your annualized income tax withholding. The calculator then offers you suggestions as to your optimal withholding amount. All you need to use the calculator is your last paycheck stub.