July 2010- Oregon
Taking License | by Kraig Bohot
Fee decreases proposed in late 2009 to ease the financial strain on graduates of Oregon cosmetology colleges are still being proposed, but not until June 2011.
Why? Because the Oregon Health Licensing Agency (OHLA) and Board of Cosmetology are implementing proposed fee changes in two phases: the initial phase goes into effect this October and the second that will reduce fees for initial applications, examinations and original practitioner certifications in June 2011.
Why wait until 2011? Because the Board of Cosmetology’s budget is facing a negative ending balance caused by inflationary factors and personal services increases. Holding off on decreases for cosmetology college graduates will help to bring the board’s budget back into balance.
Another reason for the current budget imbalance was the switch from one-year to two-year facility and independent contractor business licenses in October 2008, causing a less steady revenue stream for agency and board operations.
As a result, OHLA and the board are proposing to increase facility license fees from $100 for two years to $110 annually and independent contractor registration fees from $75 for two years to $100 annually.
OHLA and the board are also proposing to decrease the late license renewal fee from $50 per year for two years to $30 per year.
Business license fees have not increased for more than 10 years, which is one of the major reasons for the proposed increase in addition to an effort to stabilize the amount of revenue collected each month for agency and board operations.
The second phase is planned to occur in June 2011 and would decrease:
The proposed decreases above will lower a student’s total cost for initial certification in three fields of practice from $395 to $275.
For more information on proposed fee changes, please visit http://egov.oregon.gov/ OHLA/COS/COSlaws_rules.shtml.
From receiving tax credits for hiring unemployed workers or covering part of employee health insurance premiums to a free service to verify if your employees are legally authorized to work in the US, OHLA is partnering with the federal government to publicize these new resources.
U.S. law requires companies to employ only individuals who may legally work in the United States – either U.S. citizens, or foreign citizens who have the necessary authorization.
This diverse workforce contributes greatly to the vibrancy and strength of our economy, but that same strength also attracts unauthorized employment.
E-Verify is an Internet-based system that allows businesses to determine the eligibility of their employees to work in the United States. E-Verify is fast, free and easy to use – and it’s the best way employers can ensure a legal workforce.
Visit U.S. Citizenship and Immigration Services Web site at http://www.uscis.gov/portal/site/uscis and click on “E-Verify” for more information and to use the free service.
Earlier this year, the Internal Revenue Service mailed postcards to more than four million small businesses and tax-exempt organizations to make them aware of the benefits of the recently-enacted small business health care tax credit.
Included in the Patient Protection and Affordable Care Act approved by Congress and signed into law by President Obama, the credit is one of the first health care reform provisions to go into effect. The credit, which takes effect this year, is designed to encourage small businesses to offer health insurance coverage for the first time or maintain coverage they already have.
Eligibility Rules
• Providing health care coverage. A qualifying employer must cover at least 50 percent of the cost of health care coverage for some of its workers based on the single rate.
• Firm size. A qualifying employer must have less than the equivalent of 25 full-time workers (for example, an employer with fewer than 50 half-time workers may be eligible).
• Average annual wage. A qualifying employer must pay average annual wages below $50,000.
• Both taxable (for profit) and tax-exempt firms qualify.
Amount of Credit
• Maximum Amount. The credit is worth up to 35 percent of premium costs in 2010. On Jan. 1, 2014, this rate increases to 50 percent (35 percent for tax-exempt employers).
• Phase-out. The credit phases out gradually for firms with average wages between $25,000 and $50,000 and for firms with the equivalent of between 10 and 25 full-time workers.
For more information, visit www.irs.gov and click on Affordable Care Act Tax Provisions.
Two new tax benefits are now available to employers hiring workers who were previously unemployed or only working part time. These provisions are part of the Hiring Incentives to Restore Employment (HIRE) Act.
Employers who hire unemployed workers this year (after Feb. 3, 2010 and before Jan. 1, 2011) may qualify for a 6.2-percent payroll tax incentive, in effect exempting them from their share of Social Security taxes on wages paid to these workers after March 18, 2010. This reduced tax withholding will have no effect on the employee’s future Social Security benefits, and employers would still need to withhold the employee’s 6.2-percent share of Social Security taxes, as well as income taxes. The employer and employee’s shares of Medicare taxes would also still apply to these wages.
In addition, for each worker retained for at least a year, businesses may claim an additional general business tax credit, up to $1,000 per worker, when they file their 2011 income tax returns.
“These tax breaks offer a much-needed boost to employers willing to expand their payrolls, and businesses and nonprofits should keep these benefits in mind as they plan for the year ahead,” said IRS Commissioner Doug Shulman.
The two tax benefits are especially helpful to employers who are adding positions to their payrolls. New hires filling existing positions also qualify but only if the workers they are replacing left voluntarily or for cause. Family members and other relatives do not qualify.
For more information, visit http://www.irs.gov and click on New Incentives for Hiring.
The Internal Revenue Service has issued regulations outlining the administration of a 10-percent excise tax on indoor tanning services that goes into effect on July 1.
Taxable indoor tanning service means a service employing any electronic product designed to incorporate one or more ultraviolet lamps intended for the irradiation of an individual by ultraviolet radiation, with wavelengths in air between 200 and 400 nanometers, to induce skin tanning. Airbrush tanning services are not included in the tanning tax.
In general, providers of indoor tanning services will collect the tax at the time the purchaser pays for the tanning services. The provider then pays over these amounts to the government, quarterly, along with IRS Form 720, Quarterly Federal Excise Tax Return.
The tax does not apply to phototherapy services performed by a licensed medical professional on his or her premises. The regulations also provide an exception for certain physical fitness facilities that offer tanning as an incidental service to members without a separately identifiable fee.
For more information, visit www.irs.gov and click on New Tax on Tanning Services.
How many practitioners and facilities are active in Oregon? (Numbers in parentheses +/- change from previous month.) According to Oregon Health Licensing Agency (OHLA) records as of June 28, 2010:
Practitioners..... 31,016 (+3)
Facilities..... 4,758 (+32)
Independent contractors..... 8,000 (+159)
Certificate of ID..... 385 (+23)
Barbering..... 5,024 (-11)
Esthetics..... 13,317 (+12)
Hair Design..... 21,286 (+15)
Nail Technology..... 14,076 (-32)
Looking for past Board News? Visit the archives page.
Oregon Health Licensing Agency
700 Summer Street NE, Suite 320 • Salem, OR 97301-1287
Licensing Office (503) 378-8667 • Enforcement Unit (503) 378-4294
www.oregon.gov/OHLA
OHLA Agency Staff:
Randy Everitt, Director
Carlos Rebelez, "Interim" Regulatory Operations Manager
Board of Cosmetology:
Debora Masten, Salem - Chair
Sharon Wiser, Lake Oswego - Vice Chair
Michael D. Snook, Salem
Linda Bergmann, Florence
Patricia A. Hall, Pendleton
Herb Hirst, North Plains
Shelly Couch, Gladstone
