Federal Contractor Vaccination Mandate
Does this impact you and your business?
Federal Contractors Must Show Proof of Covid-19 Vaccination by December 8th
On September 24th, The Safer Federal Workforce Task force issued written Guidance to implement (Deadline December 8th) the Executive Order signed by President Biden on September 9th, which also included a deadline for vaccinations of Federal Employees
The guidance requires Federal Contractors nationwide, to verify that their employees have been fully vaccinated against Covid-19. Attestations will no longer be acceptable, and the option to undergo regular testing has also been removed.
Highlights:
- Deadline is December 8, 2021 for Federal Contractors to provide proof of vaccinations (Fully Vaccinated) against Covid-19.
- The Guidance defines “Fully Vaccinated” for Covid-19 as, 2 weeks after receiving the second dose in a 2-dose series, or 2 weeks after receiving a single dose vaccine.
- This applies to employees of the Federal Contractor, and their subcontractors at any tier, subject to the covered Federal contract.
- Legal accommodations still apply for limited circumstances
- Federal Contractors must designate to coordinate the implementation of, and compliance with, the mandate.
- Applies to Contractor or subcontractor workplace locations where employees of the covered Federal contract work.
- Vaccination mandate also applies to employees of the contractor or subcontractor at the location who are not themselves working on or in connection with the covered contract.
COVID 19 Update - Delta Variant
As each new CDC alert continues to show the Delta variant is driving the latest surge in COVID 19 cases and hospitalizations, guidelines and recommendations for businesses and individuals remain in place with some updates. Many states and municipalities are again either implementing, or considering to implement, mask mandates once again, with some mandates applying specifically to types of businesses or gatherings. As indicated above, there are significant differences from place to place, so it’s very important to keep up to date on all that applies to you, your business, your employees, and even your vendors.
Below are some suggestions as we’ve compiled from various sources, including the CDC, SHRM and others.
Keep informed
As indicated above, there are significant differences from place to place, so it’s very important to keep up to date on all that applies to you, your business, your employees, and even your vendors. The CDC’s website (www.cdc.gov) contains guidelines specific to the audience, such as individuals, businesses, business type etc.
Communicate
Share information with your staff, including guidelines, updates to mandates/requirements, and exposures should a staff member or person visiting your facility test positive.
Vaccinations
Many businesses are either encouraging or requiring vaccinations of their staff and tracking of vaccinations is highly recommended. A written policy should be put into place before doing so. SHRM has created templates for both Voluntary and Mandatory Vaccination policies. Please contact Prosperity if you would like to receive a copy.
Workplace Precautions
Every business can take some precautionary measures, and measures available or otherwise realistic will vary by workplace.
- Improve ventilation and filtration.
- Sanitize high touch items and highly active rooms.
- Make masks available for employees and others who may enter your workplace
- Keep hand sanitizers easily accessible to all
- Be vigilant to keep yourself, your staff and those who you interact with COVID free.
The above is only a summary utilizing guidelines published by a variety of credible sources, including SHRM, CDC and other resources. We recommend employers to review applicable federal, state, and local laws and/or consult with legal counsel before implementing any mandated policies outside of the mandates issued by governing authority. The information provided by Prosperity is for general purposes only and is not intended to be legal, accounting or tax advice. Moreover, the information may not be the most current information on the referenced subject matter(s). Prosperity recommends you seek additional guidance from your CPA, Attorney or other professional regarding your specific situation.
Contractors, Planning Goes Beyond The Job Site
What a PEO Can Do For You
Excerpt from Journal of Accountancy,
Bruce Katz, CPA
More than ever before, CPAs are advising their bottom-line-conscious employers to use outsourcing to cut costs and improve efficiency. Once confined to production-related areas, outsourcing has grown to encompass a broad range of business operations. Human resources and payroll are two areas companies traditionally kept within their control, but over time businesses have gradually begun to outsource payroll functions to service bureaus and turn over more employee-related responsibilities to professional employer organizations (PEOs). CPAs and other financial executives whose employers do not already use PEOs should understand how they work—and how to select the right one—so they can decide whether the PEO route is a good solution for their companies.
PEOs specialize in human resources (HR) management. They offer businesses a wide variety of services—including payroll management, employee benefit design and administration, tax filing and administration and compliance with state and federal workplace legislation. PEOs also take responsibility for developing and administering lawful employment policies and procedures; employee recruitment and disciplinary actions; recordkeeping; and unemployment, disability and workers’ compensation claims and administration.
According to the SBA, PEOs control a 2% market share of the payrolls of small to medium-size companies (those with fewer than 100 employees). Many different types of companies use PEOs, since the benefits of doing so cut across industry lines. With the number of employees working for PEOs projected to grow at 30% per year, more and more CPAs may find themselves recommending that their companies consider using PEOs as their HR departments.
The PEO Industry
There are more than 1,000 professional employer organizations nationwide, with 2 million to 3 million employees. Their collective payrolls are estimated at $18 billion.
Source: National Association of Professional Employer Organizations, Alexandria, Virginia.
Minimum Wage Increase Schedule - Employee/Staffing Shortages
Minimum Wage in Florida
During conversations with 3 business owners this past week, one common point or expectation made by some their applicants was the misunderstanding the minimum wage has already increased to $15, which was still less than they were receiving with the increased unemployment benefits. Also mentioned was the misconception that all wages have increase proportionately for non-minimum wage positions, so the 2 points lead at least one business owners to double check whether or not he was the one that actually misunderstood.
Below is the schedule for minimum wage bumps in Florida. (sourced from hr.fsu.edu)
Effective Date Florida Minimum Wage Tipped Employees
Current (effective 1-1-2021) $ 8.65 per hour $ 5.63/hr plus tips
September 30, 2021 $10.00 $ 6.98
September 30, 2022 $11.00 $ 7.98
September 30, 2023 $12.00 $ 8.98
September 30, 2024 $13.00 $ 9.98
September 30, 2025 $14.00 $10.98
September 30, 2026 $15.00 $11.98
Beginning on September 30, 2027, and thereafter, the minimum wage rate will be adjusted annually by the Florida Department of Economic Opportunity based on changes to the CPI (Consumer Price Index)
Employee Shortage/ Hiring Difficulty
The staffing issue, or the lack thereof, has negatively affected all types of businesses in their efforts to return to a sense of normalcy coming out of the pandemic. Many industries, especially small businesses, are still struggling to become fully staffed once again, with construction, trades, hospitality, and restaurants seeming to feel the effects most.
Many Florida business owners expected a rush in applicants after the Federally funded extended unemployment ceased in late June, but applicant volumes are unfortunately falling well short of expectations. Unemployment numbers are still high, despite a record number of job openings across the nation. Fear of catching COVID, cost and availability of daycare, and expanded unemployment benefits are all factors that have contributed to the slow pace of return to work.
As with nearly everything supply and demand based, employees are currently able to be more selective where they work. Big Business has the immediate upper hand on Small Business, simply because they have deeper pockets to throw more money than small business is able to. This doesn’t have to be anything other than a temporary advantage or disadvantage depending on your seat. Small business may also counter with increased wage, if justified, but for the long term, finding out what is most important to their current prospective employees. Wages seem to be top on the list, with Benefits following closely behind. Culture, Advancement Opportunities, Specialized Training or Apprenticeships), Schedule Flexibility, on-site Day Care, Transportation, and Work Environment, have all been mentioned as important factors. We welcome your feedback and suggestions on ways we can help you and your business.
The information provided by Prosperity is for general purposes only and is not intended to be legal, accounting or tax advice. Moreover, the information may not be the most current information on the referenced subject matter(s). Prosperity recommends you seek additional guidance from your CPA, Attorney or other professional regarding your specific situation.