Labor Market Sees Record Reservation Wage Levels
The latest New York Federal Reserve employment survey indicates that the average minimum acceptable salary offer for job-switching has reached a record high of $78,645 in the second quarter of 2023. This marks an 8% increase from the previous year and the highest level since the data series began in 2014. The rising reservation wage highlights the role of wages in inflation, even as price pressures on goods have eased from their peak in mid-2022. This wage trend aligns with a 6% annual increase in overall wages, and a 7% rise for job switchers, as tracked by the Atlanta Fed. Employers have responded by increasing average full-time offers to $69,475, a 14% surge in the past year, while the expected annual salary has risen to $67,416. Despite a gap between desired and offered wages, worker satisfaction and upward mobility have risen. Additionally, the survey reveals mixed patterns in the labor market, with declining job seekers and job openings, as well as reduced likelihoods of job switching and new job offers.
Source: CNBC
IRS Warns Against Scammers Exploiting Employee Retention Credit
Aggressive marketers and scammers are exploiting the Employee Retention Credit (ERC), with commercials and emails promising pandemic-related tax credit payouts to employers. However, businesses are cautioned against falling for such schemes that offer unrealistic tax-saving promises. These fraudulent efforts typically involve third-party advisers promoting inaccurate eligibility and computation details for the ERC. The IRS is intensifying enforcement against these claims, reminding potential claimants that they are accountable for the accuracy of their tax return information. The ERC is a refundable tax credit for businesses that continued paying employees during the pandemic or experienced revenue declines. Despite these fraudulent campaigns, the IRS emphasizes the importance of accurate tax reporting and suggests careful consideration when selecting tax professionals for assistance with ERC claims or amendments.
Source: Taxpayer Advocate Service
ADP Enhances HR Tech Landscape with Sora Acquisition for Small Businesses
ADP’s recent acquisition of Honu HR, operating as Sora, introduces significant advancements to the HR tech landscape, particularly for smaller businesses grappling with intricate business application integrations. Sora’s core function revolves around unifying various business applications, creating a streamlined experience for stakeholders, including employees, HR professionals, and business owners. This consolidation translates to increased productivity and operational efficiency for small businesses. The acquisition enables HR teams to autonomously design and refine workflows, automating essential processes like communication and data collection. By merging Sora’s user-friendly platform with ADP’s robust HCM solutions, ADP aims to simplify complex HR processes via automation, assisting businesses of all sizes and fostering growth opportunities. As small businesses face the challenges of the future, tools that facilitate integration, automation, and insight-driven decision-making will play a pivotal role. With this acquisition, ADP is strategically positioned to fulfill this demand, offering small business owners improved HR processes and valuable time to concentrate on fostering growth opportunities.
Source: Small Business Trends
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