RU Y2K OK ?
The "Year 2000" Problem was discussed in a previous issue of Very Timely and Pertinent. We are delving into it again because we believe the potential problems warrant the attention.
Many computer programs were written with a two digit field for the year (1985 would appear as 85) to conserve space in the program. This feature will function fine until 1999 ends and 2000 becomes 1900 to the computer.
There have been several steps recommended with respect to your home or business computers to eliminate Y2K from reeking havoc on you.
One suggestion is to back up everything on your system and then change the system date and time to 11:59pm December 31, 1999. The internal clock will then change to the year 2000 and you can test all of your applications to determine the extent of the problem, if any. You can then restore your data and continue to finish this millennium.
A second, and more thorough, approach is to list every application resident on your computer and write to the software provider of each and every one of them. You should request written confirmation from the provider that your version of their software is Y2K OK.
You may also consider corresponding with your customers, suppliers and vendors to request assurance that they have resolved potential Y2K problems that could impact your business's ability to receive payments on receivables or goods and services after 1999.
The old adage "an ounce of prevention is worth a pound of cure" is certainly applicable to making your business Y2K OK!
Company Sponsored Sporting Activities
Many companies feel it builds goodwill and team strength to sponsor sporting activities for their employees, including golf & tennis tournaments or softball, bowling, or similar team activities.
In a recent workers compensation case in California, an employer was found obligated to provide workers compensation benefits to an employee who was injured while participating on the company's sports team. In this particular case, the employee indicated he felt that participating on the team was not voluntary but required by the employer.
We suggest you consult your work comp carrier.
CHANGES, JANUARY 1, 1999
As with every new year the Federal and California payroll tax rates and limits are subject to change.
The changes are effective for all pay checks DATED January 1, 1999 or after (regardless of when the work was performed.)
The IRS and EDD have issued the 1999 withholding tables for Federal and California income taxes. These tables reflect the changes due to cost of living adjustments.
The Social Security wage limit increases to $72,600 (a 6.14% hike); Medicare continues with no cutoff wage.
Social Security recipients under age 65 will be able to earn $9,600 in 1999 without losing some Social Security benefits. The earnings limit for those recipients between 65 and 69 increases to $15,500. There is no limit for those recipients over 70.
The EDD is mailing the 1999 employer's state unemployment rate (which varies from employer to employer) this month.
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