IRS Clarifies COBRA Subsidy Rules
The Internal Revenue Service published a notice on March 31, 2009, that addressed issues arising from the new Consolidated Omnibus Budget Reconciliation Act (COBRA) subsidy rules. These rules were introduced by the American Recovery and Reinvestment Act of 2009 (ARRA). The ARRA provides that individuals who have the right to continue group health coverage because of involuntary termination that occurred between Sept. 1, 2008 and Dec. 31, 2009 may qualify for up to nine months of assistance in paying for that coverage. For more information on how the subsidy rules can affect your business, click here. For dealing with COBRA compliance, contact your local Express office.
Society of Human Resource Management – April 2, 2009
Employers May See Tax Breaks on Wellness Programs
The Healthy Workforce Act that was recently reintroduced to House and Senate lawmakers will provide a tax credit to employers who offer comprehensive wellness programs. This legislation would amend U.S. tax laws and allow a tax credit for employers who provide wellness initiatives, health risk assessments, and workplace programs on nutrition, stress management, or smoking cessation. Tax credits would also be available to companies that encourage employees to live healthier lifestyles.
Employee Benefit News – April 7, 2009
Consumer Confidence Increased
The consumer confidence index increased slightly to 26.0 in March, up from 25.3 in February, according to the Conference Board. The monthly consumer survey, based on 5,000 U.S. households, is a measure of consumers’ assessments of the nation’s economy. In addition to the increase in the consumer confidence index, the expectations index, which measures consumers’ outlook on future economic conditions, increased to 28.9 in March, up from 27.3 in February.
The Conference Board – Mar. 31, 2009
U.S. Factory Orders Increase
Factory orders rose by 1.8% in February, the first increase in seven months, according to a report released by the Commerce Department. The increase followed a 3.5% drop in January. Experts attribute the February increase to a rebound in demand for construction machinery, computers, and air conditioning equipment. Durable goods orders, which make up over half of total factory demand, rose by 3.5%, up from a 7.8% decrease in January. And, orders for nondurable goods were up by 0.3%.
Bloomberg.com – April 2, 2009
Consumer Borrowing Rose in January
After three months of decline, consumer borrowing in the U.S. increased at an annual rate of $1.76 billion in January, according to the Federal Reserve. Economists had expected borrowing to fall by $5 billion. Consumer spending accounts for nearly 70% of the U.S. economic activity. The report showed the increase came from the use of credit cards, which rose 1.2% in January after a 9.5% decline in December.
The Associated Press – March 6, 2009
Pending Home Sales Rise
According to the National Association of Realtors (NAR), the index for pending sales of existing homes increased to 82.1 in February, up from 80.4 in January. Experts expect home sales to gain momentum in the second half of 2009 due to housing stimulus incentives for first-time home buyers. This index measures current activity against sales activity in 2001, the year the index started. A reading of 100 demonstrates equal levels with that year. The Midwest saw the largest gains in pending home sales, which increased by 14.5%, while the Northeast saw a recorded growth of 10.6%.
CNNMoney.com – April 1, 2009
Consumer Spending Rises for Second Month
Consumer spending increased in February by 0.2%, following a 1% increase in January, according to the Commerce Department. The back-to-back increase followed six months of declines in spending. Consumer spending accounts for nearly 70% of economic activity in the United States.
MSNBC.com – Mar. 27, 2009
March 2009
The unemployment rate increased to 8.5% in March, up from 8.16% in February. Overall, employment has dropped by 5.1 million jobs since the recession began in December 2007, with nearly two-thirds of job losses occurring in the last five months. Job loss occurred across most sectors of the U.S. economy in March. Click here for the most recent employment report from the Bureau of Labor Statistics.
Major Industry Employment:
• Construction: - 126,000
• Manufacturing: - 161,000
• Retail Trade: - 48,000
• Professional & Business Services: - 133,000
• Educational & Health Services: + 8,000
• Leisure & Hospitality: - 40,000
• Government: - 5,000
Employment Trends is a publication of Express Services, Inc., Oklahoma City, Oklahoma. © 2009.