Tax cuts forJobseekers and avoid the Flu at Work

The Staffing View

On business, the workplace and employee relations

October, 2009

Tax Deductions for Job Seekers

An effective job search takes more than sending emails and resumes from your home computer You might pay counseling fees, gas mileage or travel expenses Uncle Sam is willing to help you a bit by allowing you to deduct some of those expenses from your income taxes That might be little consolation in a year when you are out of work and your income is down considerably But every bit helps

While the deadline for filing income tax forms is months away, it’s always a good idea to keep records of your deductible expenses during the year For job hunters, whether you are seeking temporary or permanent employment, the government’s rule of thumb is that the expenses be associated with your search within the same profession So if you’re a financial analyst and you land a job with a new company as a financial analyst, your costs may be deductible But if that company hires you for a sales position, that’s different That’s not very helpful for people laid off from shrinking sectors such as autos who are trying to make a career switch But for others who are trying to find work in the fields they’ve always practiced, relief is available

Keep this in mind as well, while a cell phone, computer, and Internet access are all useful and perhaps necessary in some cases to find a job today, the Internal Revenue Service doesn’t agree They’re considered personal expenses

Here are five guidelines the IRS provides when trying to determine if you can deduct a cost related to your job search

• If you’re looking for a job in your current occupation, you can deduct employment and outplacement agency fees that you’ve paid If your employer reimburses you in a later year for those fees, you’re required to include the reimbursement in your gross income up to the amount of your tax benefit in the earlier year


• Do you have a polished resume and related materials for employers? You can deduct the amount you spend making copies and mailing packages to prospective employers as long as you are looking for a new job in your present occupation


• If you travel to look for a new job in your present occupation, you may be able to deduct travel expenses to and from the area But don’t try to combine it with a vacation You can only deduct your expenses if the trip is primarily to look for a new job The amount of time you actually spend seeking employment while in the new area, compared with any personal activity, is what determines whether or not you can deduct the expenses for the trip One common deductible expense: meals You can deduct up to 50 percent of that cost


• You cannot deduct job search expenses if there was a “substantial break” between the end of your last job and the time you begin looking for a new one In the past, the IRS has considered about a year between jobs to be a “substantial break” However, considering the severity of the recession and the fact that many people have been unemployed well beyond a year, this is a deduction where there may be more flexibility Check with your tax preparer


• You cannot deduct job search expenses if you are looking for a job for the first time Sorry recent high school and college grads You may be unemployed coming out of school, but you weren’t working in an occupation previously You were a student  

Knowing When and How

To Ask Your Employer for a Raise

The past year or so hasn’t been the best time to ask for a salary increase If anything, many permanent and temporary employees were happy to simply hang on to their jobs But not every industry was hammered during the recession and many employees continued to shine for their employers So, with the recession at a bottom and expectations of a recovery down the road, is this the right time to ask for a raise? That’s a question you should put to yourself first If your answer is yes, be prepared to argue your case more thoroughly than in the past, even if you aren’t asking for a Well Street-sized bonus

Perhaps you have a performance review coming up Maybe your company is working on a calendar-year budget? Or maybe your firm has seen its business rebound nicely Whatever the opportunity, keep some of these tips in mind before you have a sit-down with the boss

Status Report! You can’t argue your own case without understanding your company’s situation as best you can If you work for a public company, there are documents available that disclose revenues and earnings If not, how has your firm weathered the recession? Did business drop off sharply? What steps were taken? Have there been any new business announcements to suggest business has bounced back?

What’s your standing? Employee-benefits-tracking firms such as Hewitt Associates and Watson Wyatt Worldwide say that companies that have the money to offer raises will do so to their top performers That’s because they want to keep those employees Are you one of them? If so, then it is likely your firm wants you around to help move the company when an economic expansion begins

State you case If you’ve made a strong contribution to help the company reach its goals, particularly during what is being called the Great Recession, by some, then it’s not unreasonable for you to ask for a raise Cite examples of your importance to the firm

Put it down on paper Asking for a raise means making a presentation Organize your argument on paper Have an introductory paragraph that states what you seek and why you seek it Then put three to five bullet points that highlight what you’ve done and your value to the company When you give it to your boss, it will provide something for both of you to refer to while in discussion and something for him or her to review when your meeting has concluded

Handling “No” If your company is holding fast to a no raise policy or if good reasons are given to explain a denial to your request, take the long view You’ve reminded your employer of your value to the company You’ve indicated to them that you believe you’re entitled to more money, causing them to consider that possibility You’ve heard what the company’s reasons are for not offering a raise at this time, giving you objections that can be overcome for the next meeting Handling “no” in a positive way will help you get to “yes” the next time you try

Employers Who Invest in Wellness

Benefit During Tough Economic Times

When the going gets tough, employees at healthy workplaces don’t go anywhere

Employers who continue to invest in the well-being of their permanent and temporary employees particularly when business is slumping enjoy smaller turnover of staff and fewer stress-related issues, according to a report by the American Psychological Association (APA)

The APA recently presented its annual Healthy Workplace Award to five companies for their efforts to promote employee health while enhancing the organization’s performance Psychologically healthy workplace practices fall into five categories: employee involvement, health and safety, employee growth and development, work-life balance, and employee recognition The APA found that the “well-being” programs of the companies that received awards, produced results that outperformed the national averages in several HR-related categories

For example, the five companies reported an average turnover rate of just 11 percent in 2008, well below the national average of 39 percent as estimated by the federal Bureau of Labor Statistics Only 25 percent of employees reported experiencing chronic work stress compared to 39 percent nationally; 85 percent of employees said they were satisfied with their jobs, compared to only 61 percent nationally; 87 percent of employees said they would recommend their organizations to others as a good place to work, compared to 44 percent nationally; and only 5 percent said they intend to seek employment elsewhere within the next year, compared to 32 percent nationally

Among the companies that were honored were:

Teledyne Brown Engineering in Huntsville Alabama, whose wellness program led to a 34 percent reduction in absenteeism Additionally, employees who participated in the program used a third fewer sick days than those who did not

WorldatWork, a nonprofit in Scotsdale, Arizona, whose flexible work environment helped employees decrease body mass, cholesterol, blood pressure and glucose

W R Systems Ltd, a technology and engineering firm in Fairfax, Va, whose psychologically healthy workplace programs contributed to a low accident and injury rate and strong employee retention

Fight the Flu!

According to the Center for Disease Control, on average each year in the United States more than 200,000 people are hospitalized and 36,000 people die from seasonal flu complications Population centers, such as the workplace, are common venues for the flu to spread But follow the CDC’s prevention steps and you’ll have a better chance of staying healthy

• Getting a yearly seasonal flu vaccine is the most important step in protecting against seasonal influenza, according to the CDC There are many different flu viruses, but the seasonal flu vaccine protects against the three seasonal viruses that research suggests will be most common


• The seasonal vaccine will not protect you against the 2009 H1N1flu But the CDC says an H1N1 vaccine will be available in the coming weeks Look for updates at http://wwwcdcgov/h1n1flu/vaccination/public/vaccination_qa_pubhtm


• Cover your nose and mouth with a tissue when you cough or sneeze and throw the tissue away when finished


• Avoid touching your eyes, mouth and nose That’s one way that germs can spread


• Wash your hands frequently with soap and water An alcohol-based sanitizer should be used if soap and water are unavailable


• If you experience flu-like symptoms, the CDC recommends that you stay home for at least 24 hours after your fever is gone, except for necessities such as medical care


• Follow public health advice on school closures and avoiding crowds to avoid spreading the flu


• Take antiviral drugs if recommended by your doctor These include prescription medicines that fight to prevent flu viruses from reproducing in your body Flu-like symptoms include fever, cough, sore throat, runny or stuffy nose, body aches, headache, chills and fatigue