Office lottery pools can be great fun … as long as rules are followed

As big-game lotteries more frequently have hundreds of millions of dollars in the weekly pot, office lottery pools are becoming commonplace. They can be great fun as employees build camaraderie and add excitement to the work day. Chipping in a few dollars buys a short-term fantasy of winning big with your coworkers. But there are pitfalls to consider before the pool is established and considering what would happen if the pool wins.

Employees should check with Human Resources or Executive staff member to be sure they are agreeable to the use of company email and company time for a pool. Also, if the pool organizers need advice with such an agreement, they may wish to consult with an attorney.

If there’s not too much disruption to the workday, most employers agree that this is a good way to build team spirit and stir up excitement.

When organizing the pool, consider that not everyone will want to play, for a variety of reasons. Their religion may frown upon gambling, they may already be in a pool among family or friends, they may not have the financial freedom to participate, or they may just want to buy their own tickets individually. Be sensitive to these reasons.

When forming a lottery pool, have a trusted, designated person lead the pool. That person, or persons, will be responsible for collecting pool funds and tracking contributions as they come in. There should be rules set for how the money is collected and how tickets will be bought and any winnings distributed. A simple agreement can cover how this would be handled and there are free templates available online. Once an agreement has been written, that can be used as a master template for all pools going forward.

Here are some additional tips for starting the pool and in creating the agreement:

  1. Designate the leader for the pool. That person will oversee collecting the money from individuals and tracking contributions as they come in. If you’re the leader, have an open spreadsheet on your desktop or smart phone to document who contributed. You want to assure participants that their money and any tickets purchased will be kept in a safe place.
  2. As the leader, establish the rules for the game. Write these rules into a written agreement for players to sign as they contribute the funds. The agreement should include:
    1. When the tickets will be bought and for which game and drawing date.
    2. If there are small winnings, how will the winnings be distributed? Will they roll over to the next drawing if there is no big winner, or will the smaller winnings be divided up and distributed. There needs to be 100 percent agreement on this.
    3. If a large jackpot is won, how will the money be taken? Will it be taken in a lump sum or taken in annuities over a defined number of years according to the game rules? Will it be collected by each individual in the game or would there be a trust established? The leader, or any other person in the pool should never agree to taking the winning wholly by themselves, then distributing the money. There are tax implications that can be avoided.
    4. How would media coverage work in the case of a large win? Would you be interviewed as a team or take the winnings individually and try to avoid any media coverage?
    5. To ease an employer’s fears, would employees agree to stay in their positions until sufficient notice can be given and other remaining staff members be trained to take over the winners’ responsibilities?
    6. The agreement should state how the if the numbers will be “easy picks” or some/all selected by the leader and/or participants.
  3. If the leader is buying individual tickets for themselves, they should disclose it. They should be sure to copy the tickets purchased for the pool and distribute copies to each participant before the drawing.

In the amazing event that the office lottery pool hits it big, you’ll want it to be a positive event since everyone’s lives will most likely change, hopefully for the better. It would be unfortunate if the winnings were hung up in court for years because simple rules were not followed. The odds are certainly against this happening, but the fun is real and can be enjoyed by many.

FrankLewandowski_6684

Frank Lewandowski, Benefits Program Manager

What to expect from your BCN Services Accounting Department

One of the most important aspects of running a business is making sure that your taxes are filed correctly and that they are paid on time. BCN’s dedicated accounting team works hard to ensure that you no longer need to worry about this aspect and can focus on other areas of your business.

Below is a list of the tax-related matters that BCN will handle on your behalf, whether you are a PEO or HRO client:

  • IRS Form 941 employer quarterly tax filings and semi-weekly deposits.
  • Federal Unemployment administration, including annual Form940 annual unemployment tax filing and quarterly deposits.
  • Forms W-2 and W-3 preparation and distribution.
  • Withholding tax filings and deposits. We handle state, city, county and school district withholding tax filings and payments.
  • State(s) Unemployment Insurance SUI quarterly tax filings and payments.
  • State(s) Unemployment Insurance account, rate update verifications and rate negotiations as needed. We are also available to assist with any client-level unemployment registrations you may need.
  • Any employment-related IRS compliance/correspondence.

If you have any questions regarding how the BCN accounting team can help alleviate the stress of employment taxes, or have other questions about these topics, please give us a call at 1-800-891-9911.

AmyMiller_0995_4x4

Amy Miller, Staff Accountant

Michigan Repeals Prevailing Wage Act

On June 6, 2018, the Michigan Legislature repealed the state’s Prevailing Wage Act through the Michigan Repeal Prevailing Wages and Fringe Benefits on State Projects Initiative (the “Initiative”). Michigan’s Prevailing Wage Act required project owners to pay workers union-scale wages and benefits for state-funded construction projects. The repeal took effect on June 6, but it does not affect preexisting contracts.

The Initiative was a result of resident petitions (the petition received over 300,000 signatures), and rather than place the Initiative on the November ballot, the Legislature repealed the Act. While Governor Snyder publicly opposed repealing prevailing wages, the repeal became law without his signature or his ability to veto it.

Supporters of the Initiative claim that paying prevailing wages for state projects overcharges taxpayers and limits the number of projects that can be funded or supported. Supporters argue that the Initiative will promote the free market and fair competition. Opponents of the Initiative argue that prevailing wages provide constructions workers with fair and standardized wages and benefits so that workers can comfortably provide for their families and that taking away prevailing wages will drive qualified workers away from the state. Opponents also argue that the repeal will ultimately lead to lower quality work because unions will no longer be able to fund adequate training and apprenticeships.

The Prevailing Wage Act repeal did not affect the federal Davis-Bacon Act, which requires payment of prevailing wages on federally funded projects. It also does not affect municipal and township laws that might require payment of prevailing wages. Many projects receive both state and federal funding, and such projects (such as highway construction) will likely still require payment of prevailing wages.

Michigan is now one of 23 states without prevailing wage laws. Michigan is part of a trend of states repealing prevailing wage laws with six states repealing such laws since 2015.

This client alert is published by Dickinson Wright PLLC to inform our clients and friends of important developments in the field of labor and employment law. The content is informational only and does not constitute legal or professional advice. We encourage you to consult a Dickinson Wright attorney if you have specific questions or concerns relating to any of the topics covered in here.

 

Dickinson Wright Logo

Copyright @ 2018 Christina K. McDonald, Dickinson Wright PLLC. (https://www.dickinson-wright.com/news-alerts/michigan-repeals-prevailing-wage-act). Republished with permission.