Quick Hits - July 8, 2020 - American Society of Employers - ASE Staff

Quick Hits - July 8, 2020

Quick HitsPayroll bill will make things easier for remote workforce:  The Senate has introduced the Remote and Mobile Worker Relief Act of 2020. The act would limit the authority of states or other taxing jurisdictions to tax wages and other remuneration from employment in other states or taxing jurisdictions. A similar bill was introduced in the U.S. House in 2020.  The act states that no part of wages and remuneration earned by an employee working in more than one taxing jurisdiction will be subject to income tax in any taxing jurisdiction other than the taxing jurisdiction: of the employee’s residence; and where the employee is present and performing employment duties for over 30 days during the calendar year when the wage or remuneration is earned.  For calendar year 2020, employees working in a different taxing jurisdiction than their residence because of the COVID-19 public health emergency will need to perform duties for over 90 days to be subject to a taxing jurisdiction.  An out-of-state business with employees working remotely in a jurisdiction during the covered period will not be subject to any registration, taxation, or other related requirements for businesses operating in the jurisdiction. The employee working in the jurisdiction will not create any nexus or establish any minimum contacts or level of presence.  Source: CCH 6/30/20

Hiring is expected to increase in July:  Since April, Recruiter.com has been tracking recruiter sentiment and hiring activity through the Recruiter Index®, an ongoing survey of recruiters and hiring professionals on the front lines of the job market today.  While May’s poll showed significant improvements in recruiter confidence and job market activity over April’s, June’s results are strikingly positive. For the first time since the survey began, the majority of recruiters — 51.4% — believe their job requirement loads will increase in the next 30 days. In May, 42.8% of respondents said COVID-19 had a “great effect” on their recruiting efforts. This time around, that number fell precipitously to 16.3%. The average recruiter is working on 20 open roles, compared to 12 in April and 15 in May. In May, 23.8% of recruiters said they felt the job market was improving. Today, that number has jumped to 35%. The auto industry is becoming more positive: 41% said that demand will increase while 34% states that demand will remain the same.  Source: Recruiter.com 6/30/20

Small business survey shows great optimism:  New research released by SHRM (Society for Human Resource Management) shows small businesses expect a significantly faster recovery than those forecasted by economists. The survey also highlights innovations in business operations, changes in policies, key challenges, and plans for when and how to reopen during the COVID-19 pandemic. The new survey of U.S. small business owners found:  Of those allowed to reopen in some capacity by their state, city, or county, 81% have already begun or are in the process of reopening their business.  Small businesses expect a significantly faster recovery than the broader economy, as 52% expecting to recover to pre-COVID profitability in six months or less; 43% say they have started rethinking the way they do business, with 32% reporting a new way to deliver an existing product or service; and 43% plan to accommodate employees with children by allowing flexible hours/compressed work weeks.  82% will either probably or definitely adopt broader or more flexible work from home policies.   Source: SHRM

New veteran apprenticeship program:  A new Apprenticeship Pilot launched by the U.S. Department of Labor’s Veterans’ Employment and Training Service will connect transitioning service members and their spouses with apprenticeship opportunities before separating from service. New Apprenticeship Placement Counselors are working with transitioning service members and their spouses interested in exploring apprenticeships as a post-separation career pathway. The counselors are available virtually as well as at eight U.S. military locations including: Marine Corps Air Station Miramar, California, Naval Base San Diego, California, Travis Air Force Base, California, Fort Bragg, North Carolina, Marine Corps Air Station Cherry Point, North Carolina, Nellis Air Force Base, Nevada, Fort Bliss, Texas, and Naval Station Norfolk, Virginia.  Any transitioning service member or spouse interested in connecting with an Apprenticeship Placement Counselor should contact [email protected]. Employers interested in tapping into a potential pipeline of apprentices, or for general pilot inquiries, can email [email protected].  To learn more about apprenticeship, visit  www.Apprenticeship.gov.

OFCCP issues new FAQs that benefit contractors:  Pursuant to discussion with the National Industry Liaison Group (NILG), the Office of Federal Contract Compliance Programs (OFCCP) updated three of its Frequently Asked Questions (FAQs) under the topic of “Scheduling Letter and Itemized Listing.” Revised to reflect the National Industry Liaison Group’s (NILG) requests, the answers now reflect: A 30-day extension for itemized listing materials (See Extensions Q1), the limit of six months for monitoring period data (See Partial Data Q4), a return to prior language allowing contractors which receive an audit scheduling letter within 30 days of the annual date of the contractor’s AAP(s), and the option to submit the updated AAP(s) for a desk audit (See Partial Data Q3).  NILG Board Chair Paul McGovern and Board Members Valerie Vickers and Cherise Robinson championed these changes.

We’re not that bright – please gouge us: Drug pricing should be fair and transparent.  The EpiPen went from $103.50 in 2009 to more than $608.61 in 2016.  Mylan, the drug maker, faced much controversy with the 500% increase in pricing. The cost of the life-saving drug inside each EpiPen injector is worth a couple of dollars. But it appears that the design is what added to the price tag.  Similar to the marketing of cereal.  The box costs more than the cereal stored in it. Then there was Martin Shkreli.  His company acquired the rights to Daraprim which was selling at $13.50 a dose.  After he bought the drug, he raised the price to $750 a pill.  Now there is Gilead.  It developed the drug remdesivir to treat Covid-19.  The company set a price for governments of developed countries at $390 per vial which equates to $2,340 per patient as the vast majority of patients are expected to receive a 5-day treatment course using 6 vials of remdesivir.  In the United States, the same government price of $390 per vial will apply. However, given the complexity of the U.S. system with the discounts expected by government healthcare programs, the price for private insurance companies will be $520 per vial in the country.  And if that isn’t bad enough, take the testing for COVID-19.  The price differential varies greatly.  If a person gets a test at a government subsidized center, the testing is free.  However, it was reported in Texas that an emergency room charged one person who paid cash $199 and a person who had private insurance $6,408.  And you wonder why healthcare costs don’t go down.  Source:  Wall Street Journal 6/28/20, NY Times 6/29/20, Forbes 3/9/18, CBS 1/27/17

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