IRS Pension Plan Changes for 2012

On Oct 20, 2011 IRS announced pension plan changes for 2012. The changes are due to increase in cost of living index. Following are the changes:

• Employees that participate in 401(K), 403(b), and most of the 457 plans, as well as Thrift Savings Plan can now contribute $17,000 an increase from $16,500 for 2011.

• However, this change does not affect the catch up contribution for those who are 50 and over. That contribution still remains at $5000.

• The tax payers that are making contribution to a traditional IRA the deduction is phased out for singles and head of household who are covered by a workplace retirement plan and have AGI between $58K and $68K, this is up from $56K and $66 for 2011.For married couple filing joint the phase out range is $92K to $112K, up from $90K to $110K

• However people that are making the contribution to Roth IRA the new phase out range is from $110K to $125 (Filing single), up from $107K to $122K. Taxpayers that are married filing joint the contribution is $173K to $183, up from $169K to $179.

• The retirement savings contribution credit for low income to moderate income workers has increased from $56,500 in 2011 to $57,500 in 2012. For head of household the contribution is now $43,125, up from $42,375. If you are a married person filing individually the new contribution is $28,750, up from $28, 250.

For detailed information please visit: http://www.irs.gov/newsroom/article/0,,id=248482,00.html

Creating a welcoming environment

In today’s competitive environment, it is vital for companies to retain and recruit the best talent available in the market. As a company and as a manager, it is important for you to ensure that you create an inclusive environment for your recruit(s). Employees know on their first day if the work place is a good fit for them or not. So, a good HR will ensure that their company creates a warm and welcoming environment for their recruits. Here are few things that you can put in place for your managers to create a welcoming environment:

1. As a manager be the first one to receive and welcome the new employee.
2. Create an excitement within your team about the new employee.
3. Personally introduce new recruit to the staff.
4. Show him/her the facility around to get familiar with the place.
5. Thank them for being part of the team and show them how excited you are to have them on board.
6. Take them out to lunch on their first day and talk about what their expectations are from you as a manager and the job (it is important that you do not interrupt while they are talking). Then talk about your expectations from them. This helps you create a contract and have understanding of each others expectations.
7. Have them fill out “My Favorite List” where you can ask them about their hobbies, interests, their favorite food, dessert, and candy. Use this in the future to reward them on a job well done by giving them a gift card to their favorite restaurant and etc.
8. Have a work buddy system to help them get familiar with work style. This is an important step, so be very careful in who you pick. This person should be knowledgeable in his/her field and be a great mentor.
9. Do a weekly one on one to ensure their progress and discuss any concern in the beginning.
10. Have a 90 day review with your new employee to check on their progress and get the feedback on their job. This will also be a good time to address any performance issue(s).

HR and IT- The perfect marriage

Do you recall the days when someone walked into your office and asked for an update on a candidate? You would start digging into your files and glance through your post-it notes, hoping to find it soon to save yourself from embarrassment of the clutter. It was hard to organize the data as most of it would either end up on post-it notes, sticking on your computer screen or in a pile of paperwork sitting in your office. It was very difficult and time consuming to convert this “stray data” into usable information but with the introduction of IT in HR, the role and process of HR has taken a new face.  

Technology has added value to HR in several ways:

1. Gave structure and meaning to “stray data.”
2. Easy access to HR information from anywhere, anytime.
3. Automation of transactional work.
4. Technology help increase the efficiency of traditional functions of HR, such as hiring and recruitment.
5. E-training is becoming a norm as it is cost efficient for the employers and provides time flexibility to the employees.