Biggest gains in US employment - November 2011

Unemployment in the US  dropped sharply to 8.6 percent in November, its lowest level in two-and-a-half years, from nine percent the month before, official figures show.

The Department of Labor said the US economy added 120,000 new jobs in November. The number of jobs created in September and October was revised up by 72,000.

The private sector added 140,000 jobs during the month, while government employment continued to fall.
The retail sector saw the biggest gains, with 50,000 jobs added, while the leisure and hospitality, business services and healthcare sectors also saw strong gains.


At ExportAction we interpret these statistics as being good news for our clients selling into the growth sectors.

UPS rate increase

Effective January 2, 2012, UPS rates will increase as follows:

• UPS Ground services will increase a net 4.9% through a combination of a 5.9% increase in rates and a 1 percentage point reduction in the UPS Ground fuel surcharge.
• UPS Air and International services will increase a net 4.9% through a combination of a 6.9% increase in rates and a 2 percentage point reduction in the UPS Air and International services fuel surcharge. Rates for UPS Next Day Air^® remain up to 4% lower than our largest U.S. private competitor for similar services.
• UPS Next Day Air^® Freight and UPS 2nd Day Air^®Freight rates for shipments within and between the U.S., Canada and Puerto Rico will increase 5.9%. UPS 3 Day Freight^® rates will remain unchanged.

To review these new rates, as well as changes to accessorial rates and customs brokerage fees, visit ups.com/rates. 

Power of Attorney - new Act

Florida adopted a new Power of Attorney Act that took effect on October 1, 2011. Here are some points about the new Act that you should know:

General Nature of Powers of Attorney

• A power of attorney is a written instrument that grants authority to an “agent” to act in the place of the “principal.” A power of attorney may be “durable” (i.e., it is not terminated by the principal’s subsequent incapacity) if it contains language indicating that to be the principal’s intent. Absent such language, a power of attorney is non-durable, and it is terminated by the principal’s subsequent incapacity.

Scope of the Act

• The Act applies to both durable and non-durable powers of attorney created by individuals (with certain exceptions such as proxies and governmental powers of attorney).

• Powers of attorney executed before October 1, 2011 are not rendered invalid by the Act, but their meaning and effect is governed by the Act.

Authority that may not be given to an agent
• Certain types of authority may not be delegated to an agent under a power of attorney. 

Employee or independent contractor?

Whether a worker is performing services as an employee or an independent contractor generally is dependent on whether the service recipient has the right to control and direct the services provided by the worker.

Misclassifying a worker as an independent contractor instead of an employee can result in severe consequences for the employer, including a failure to pay required payroll taxes on compensation paid to the worker. Trying to fix a misclassification on a prospective

basis has, in the past, often presented the issue of whether to also address
this retroactively and/or a heightened exposure to the IRS seeking a retroactive reclassification and the associated liability for taxes, interest and penalties. As a result, employers have tended to just stay the course and live with the misclassification risk.

The IRS recently launched a new voluntary correction program, known as the Voluntary Classification Settlement Program (VCSP) that allows employers to voluntarily reclassify workers from independent contractors to employees at a greatly reduced retroactive payroll tax cost.