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March Hot Topics:
  1. 2014: The Year of the Candidate
    By Alden Reynoso, VP Recruiting and Client Services, Human Resources Professional Group
  2. Setting up a Payroll System: A 10 Step Guide for Small Businesses
    By Fred Patterson, lll, District Sales Manager, AmCheck
  3. BREW-INSURE.com...Launched Just In Time
    By Eric Sheetz, Commercial Insurance Broker


2014: The Year of the Candidate
By Alden Reynoso, VP Recruiting and Client Services, Human Resources Professional Group



Recruiting is (finally) making a comeback! The general consensus among Recruiting leaders is there will be a significant uptick in hiring across industries starting in the second quarter of 2014 and especially fierce competition once again in the tech sectors. A flexible, efficient, candidate-focused recruiting approach, skilled offer negotiations, and the ability for hiring managers to make a quick hiring decision are all important. Below are some additional points to consider as we continue to move through this year. Recruiting moves at the speed of life, so read up and plan ahead!
  • Employer Branding and Candidate Experience continue to grow in importance - This is a trend that has been building momentum for the past couple of years and it is not going to slow down. The internet and social media have completely changed the way job hunting happens. That is not really news, but the trend to watch is the growing number and popularity of open comment sites like Employer-Information, EmployerScorecard, UniversumGlobal, Glassdoor and LinkedIn. Employees are demonstrating themselves to be very willing to post comments about what it was like to interview, be hired and/or work for their current and past employers. An employer’s best move here is to pay attention to candidate and employee experience. Consider this: the rapid growth of the use of the internet in recruiting over the past 10-15 years resulted in an explosion of tools and resources to make it easier for recruiters to “process” candidates in greater numbers and at a faster rate. Generally, I am a huge fan of the Applicant Tracking System (ATS) since they can help Recruiters work much more efficiently, but if your ATS is difficult for candidates to navigate, they won’t bother. Furthermore, if you are targeting the “passive” job seeker, they will be dissatisfied with simply being directed to the ATS and will be looking for real interactions with a real human being. Companies who hope to recruit those passive top performers via LinkedIn or other networking sites need to be prepared to have a person designated to provide individual responses. This brings us to another change in recruiting approach:

  • The continued slow (too slow!) death of the resume - One of the biggest challenges recruiters face when tasked with finding “passive” job seekers is that those candidates are not engaging in “active job seeker” activities....like keeping resumes current. When the organization requires a fully up-to-date resume in order to consider the candidate for employment, it can take days or weeks to get that resume in front of the hiring manager. This process can be particularly frustrating for both Recruiter and Candidate if the hiring manager then rejects the candidate based only on a review of that resume. A growing number of companies are accepting a LinkedIn profile or a summary paragraph from the recruiter highlighting expertise as an entry into the hiring process. Under this model, the sole purpose of a profile or resume is to give the recruiter enough information to determine if the candidate should be contacted to discuss the opportunity and the candidate’s expertise in more detail. Hiring managers will get the real information about the candidate’s skills, knowledge and abilities through other stages of the selection process.
  • Quality of Hire is now a Key Metric and is Shaping Recruiting Techniques. Specifically, re-recruiting former employees (“boomerang hires”) and employee referral programs are holding prominent positions in recruiting practices. This is because Quality of Hire studies have shown that carefully designed and well-managed employer referral programs yield high-performing employees with high retention rates. Similarly, studies show that boomerang hires of the strongest-performing employees are one of the highest rated sources in terms of Quality of Hire.
  • Failing to Plan will be Planning to Fail: As recruiting becomes hot again, companies who continue to rely on a reactive recruiting approach where recruiting only happens when there are actual vacancies will be setting themselves up for more difficult recruiting. A strong recruiting program will be forward-looking and require developing a candidate pipeline against future needs. This involves, among other activities, identifying potential future employees and establishing contact with them before the actual vacancies exist.

  • Recruiting Recruiters will become more difficult - Skilled Corporate Recruiters are required to walk the fine line between the development of a strong flow of engaged candidates while navigating the morass of legal restrictions surrounding candidate selection and hiring. This takes creativity as well as strong research, communication, and project management skills. Not to mention a certain level of persuasiveness and salesmanship. As recruiting once again becomes active, the Corporate Recruiters who possess all these qualities will be increasingly in demand. Be prepared to devote time to finding the professional who will pick up on the nuances of your organization and your industry. It is your bottom line they are helping to build!

Recruiting stopped being an administrative exercise years ago. To stay competitive, the role of your recruiter must be about developing a rapport and relationship with the candidates. The unifying theme to everything discussed in the trends above is that they put the Person back into recruiting. Never lose sight that Recruiting is all about people and personal interactions.


For more information or questions, contact Alden Reynoso, VP Recruitment and Client Services, Human Resources Professional Group. Alden may be reached at areynoso@hrpg.com, or (760) 730-9531.


Setting up a Payroll System: A 10 Step Guide for Small Businesses
By Fred Patterson of AmCheck Payroll Services


Whether you have one employee or 500, setting up a payroll system not only streamlines your ability to stay on top of your legal and regulatory responsibilities as an employer, it can also save you time and help protect you from incurring costly IRS penalties (according to Inc.com, the IRS typically penalizes one out of every three business owners for payroll errors).

Here are 10 steps to help you set up a payroll system for your small business.
1. Obtain an Employer Identification Number (EIN)
Before hiring employees, you need to get an employment identification number (EIN) from the IRS. The EIN is often referred to as an Employer Tax ID or as Form SS-4. The EIN is necessary for reporting taxes and other documents to the IRS. In addition, the EIN is necessary when reporting information about your employees to state agencies. You can apply for an EIN online or contact the IRS directly.

2. Check Whether You Need State/Local IDs
Some states/local governments require businesses to obtain ID numbers in order to process taxes. Check whether this applies in your state with this State Tax Guide. California employers need to register with the EDD to obtain their CA EDD Account Number and you can apply for a CA EDD Number Online.

3. Independent Contractor or Employee; Know the Difference
Be clear on the distinction between an independent contractor and an employee. In legal terms, the line between the two is not always clear and it affects how you withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment taxes. Business.gov offers guidance on the distinction in this Guide to Hiring Independent Contractors.

4. Take Care of Employee Paperwork
New employees must fill out Federal Income Tax Withholding Form W-4 . Your employee must complete the form and return it to you so that you can withhold the correct federal income tax from their pay (the IRS provides guidance on how to do this as well as how to report withholdings and taxes at the end of the year in this Employment Tax Guide).

5. Decide on a Pay Period
You may already have a manual process for this, but setting up a pay-period (whether monthly or bi-monthly) is sometimes determined by state law with most favoring bi-monthly payments. The IRS also requires that you withhold income tax for that time period even if your employee does not work the full period.

6. Carefully Document Your Employee Compensation Terms
As you set-up payroll, you’ll also want to consider how you handle paid time off (not a legal requirement, but offered by most businesses), how you track employee hours, if and how you pay overtime, and other business variables. For more on Fair Labor Law, and how it impacts overtime pay, etc., refer to the federal guide to wage and hour laws. Keep in mind, CA is very employee-friendly and litigious...take your time to research and explore compliance support avenues such as payroll companies and attorneys.
Don't forget that other employee compensation and business deductibles such as health plan premiums and retirement contributions will also need to be deducted from employee pay checks and paid to the appropriate organizations.

7. Choosing a Payroll System
Payroll administration requires an acute attention to detail and accuracy, so it's worth doing some research to understand your options. Start by asking fellow business owners which method they use and if they have any tips for setting up and administering payroll.
Look for things like online payroll applications with scalable offerings. Think about the level of expertise you have and how much you may come to rely on the service deliverables in conjunction with technology. Many providers offer dedicated resources, and others deliver their services through call-center solutions...Do Your Research!!!

8. Running Payroll

Once you have all your forms and information collated you can start running payroll. Depending on which payroll system you choose you'll either enter it yourself or give the information to your accountant.

9. Get Record Keeping Savvy

Federal and some state laws require that employers keep certain records for specified periods of time. For example, W-4 forms (on which employees indicate their tax withholding status) must be kept on file for all active employees and for four years after an employee is terminated. You also need to keep W-2s, copies of filed tax forms and dates, and amounts of all tax deposits. To learn more about setting up records for withholding taxes (refer to Step 3). For record keeping tips read, I Keep Good Records - But How Long Should I Keep Them For?

10. Report Payroll Taxes
There are several payroll tax reports that you are required to submit to the appropriate authorities on either a quarterly or annual basis.
Generally, each quarter, employers who pay wages subject to income tax withholding, social security, and Medicare taxes must file IRS Form 941, Employer's Quarterly Tax Return . Small businesses with an annual income tax liability of $1,000 or less may file IRS Form 944 , Employer's Annual Federal Tax Return, instead of Form 941.

You must also file IRS Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return, if you paid wages of $1,500 or more in any calendar quarter or you had one or more employees work for you in any 20 or more different weeks of the year.

If you are in any way confused about your obligations, take a look at the IRS's Employer's Tax Guide, which provides some very clear guidance on all federal tax filing requirements.

Visit your State Tax Agency for specific tax filing requirements for employers.


For more information or questions regarding your payroll processes, please contact Fred Patterson III, District Sales Manager for AmCheck, a payroll solutions firm with offices throughout the United States. Fred may be reached at fred.patterson@amcheck.com or (619) 595-7900.



BREW-INSURE.com... Launched Just In Time
By Eric Sheetz, Commercial Insurance Broker


There’s no better place to be doing business than in the heart of “America’s Finest City,” San Diego! With some of the greatest breweries in the country located here in San Diego County, we’re lucky to have launched BREW-INSURE.com right in the center of it all. Being heavily involved in the craft brewing industry since 1999, we’ve seen GREAT BEER, and rapid growth of our industry, come out of San Diego County.

The needs of a brewery are similar to any manufacturer. However, there are key items to consider when insuring a new or existing brewery.

Liability Insurance: Pays on behalf of an insured for loss arising out of negligence imposed by law or assumed by contract. This includes defense costs and defends you against allegations, even if completely false.

Liability insurance is usually required by your landlord once a lease agreement has been signed. We will help you decide what types of liability insurance you should have in order for you to conduct your microbrewery, pub and/or tavern business.

Various items to consider:

Liquor Legal - If you serve alcohol or beer to consumers (in your tasting room or pub) you need this coverage.

A & B Coverage - "Assault & Battery" coverage protects you should you be named in an action from a customer who believes they have been threatened or attacked while on your premises (the threat/attack can come from employees or another customer).

Cyber Liability - If you operate a website or process credit cards for purchases, you should consider this coverage. Almost everything is done electronically these days. Cyber Liability addresses the first and third party risks associated with e-business, the internet, networks and informational assets.

Property Insurance - Covers everything that you use in your day-to-day business activities to produce, serve or run your brewery, pub or tavern. Your "Business Personal Property" includes all of your contents: Inventory and work in process, Brew Kettles, Mash Tons, Bright Tanks, Fermenters, Kitchen Equipment, Office furniture and fixtures, etc. Property also includes any Tenant Improvements & Betterments you've made, such as walls you've built, cold storage rooms, etc.

Equipment Breakdown - This can include loss of refrigeration, power surges, mechanical breakdown, etc. You can't produce income if your equipment goes south, power goes out or you lose your water supply. If your equipment fails or is damaged, the equipment breakdown coverage will pay to repair or replace the equipment, INCLUDING business income (lost income + continuing expenses) during repairs.

Other items to consider:
- Transit/Cargo (Covers goods en route to customers)
- Spoilage & Contamination
- Product Recall

BREW-INSURE.com launched in September of 2013 and has seen success ever since! After years of insuring a few top breweries, we decided to put 100% of our efforts to creating “Specialized Insurance Coverage for Microbreweries, Pubs & Taverns.” We pride ourselves in creating lasting relationships with a number of San Diego’s finest breweries and, above all, making sure they have adequate coverage in the event of a loss.

We do more than just sell you insurance. We are independent insurance brokers who retain great working relationships with the leading insurers in the industry...companies with products specifically designed for craft breweries. We also assist our clients with safety programs, claims management, risk analysis, maintaining OSHA requirements and implementing strategic insurance coverage. Ensuring a low loss ratio, thereby driving down the cost to insure, is crucial for your business as you grow.

BREW-INSURE.com
will review the insurance aspects of contracts you are considering, and work with legal professionals experienced in your industry. In addition to our legal resources, we work with experts in the areas of Safety and Loss Control, Employee Benefits, Human Resources, Payroll Services, and many other aspects of your business as well.

Check us out online at www.BREW-INSURE.com or Facebook.com/BREWINSURE

Also see the following article: http://www.utsandiego.com/news/2014/feb/04/local-beer-boom-no-bubble/

For more information or questions about choosing a broker or your business insurance, please contact Eric Sheetz, Property and Casualty Insurance Broker. You may contact him at ESheetz@ehrenfeldinsurance.com or (760) 809-8510.

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