A Tougher Than Expected Job Market

You may not realize it, but the tax law allows people who have lost their job or who are threatened with a job loss, to deduct costs of looking for a new job even if their job search is unsuccessful. Deductions are even available if you are working and looking for a better job. To be eligible to take deductions, the position you are seeking must be in your current line of work. Expenses that are deductible include the cost of advertisements, career counseling, resume typing and printing, telephone calls, local transportation, travel, lodging and meals in some cases, and other expenses related to the job search. The deduction for job-hunting expenses is a miscellaneous itemized deduction, and is only available to the extent that the itemized deductions exceed 2% of your adjusted gross income. Job hunting deductions are not permitted for taxpayers who are seeking their first job or trying to land a first job in a new career. People frequently incur outlays in connection with a job search but fail to take deductions because the search was unsuccessful.

On the other side of the equation (that be the employer), we've found flexibility has certainly found its way into the workplace of our clients and many of the businesses Abo and Company comes in contact with. While our offices are some 2 hours from Manhattan, we even noticed the 9/11 terrorist strike induced more workers to try to telecommute. Some employers also favored the idea and still do. However, before agreeing to a telecommuting arrangement, we think employers need to make sure it will not entail any extra liability for them, and that the workers actions and performance are carefully controlled. While a call to us, your attorney and perhaps insurance professional may be a good idea, we've recommended some of the following ideas:

• The employer visit the off-site location to determine its suitability.
• The employer prescribe work hours and the work week.
• Specific telephone contact procedures be established.
• Expense reimbursement (telephone calls, supplies, etc.) arrangements are worked out in detail.
• Termination arrangements, including return of company equipment and data are specified.
• Special insurance requirements be reviewed and established.
• Telecommuters be made aware of their responsibility for any tax consequences stemming from the arrangements.
• Employees are made aware of confidentiality of file content and data, and that procedures are established for protecting the information.

One of the greatest sources of failure of telecommuting arrangements is haste in their establishment, and resultant failure to establish precise detailed directives for carrying out the operation.