Every Small Business Needs to Know About These Potential Regulatory Changes

Our Payroll Affiliate released its list of the top 12 potential regulatory changes that small businesses need to know about in 2012.

• Health Coverage W2 – The IRS further delayed a requirement for smaller employers to report the cost of employer-sponsored health coverage on employee Forms W-2, indefinitely postponing it until further guidance is issued. However, employers that file 250 or more Forms W-2 in 2011 must include this cost on the W-2 starting in tax year 2012. The healthcare amounts reported on the W-2 will be strictly informational and not taxable to the employee.

• Healthcare Reform – The Supreme Court is expected to rule in 2012 on the constitutionality of the individual mandate provision in the Affordable Care Act.

• 401(k) – In 2012, 401(k) service providers will have to make additional fee disclosures to plan sponsors and plan sponsors will have to make additional fee disclosures to participants. Contribution limits will increase in 2012. Regulations will be enacted in 2012 or are under consideration to broaden the definition of a plan fiduciary, make investment advice more accessible to plan participants, and restrict the number of loans an employee can take from their 401(k).

• Job Creation – Congress passed legislation in 2011 to provide a tax credit for hiring veterans. The temporary reduction of employee payroll taxes was due to expire on December 31, 2011, but Congress extended the provision for two more months. A new recapture provision applies to employees who earn more than $18,350 during the two-month period. The tax cut could extend through 2012, pending further negotiations. Congress is considering additional measures, such as earmarking funding for infrastructure projects and passing measures to help small businesses access capital.

• Worker Classification – IRS is allowing eligible employers to reclassify workers as employees in exchange for partial tax relief from past federal employment taxes. In late 2011, the Dept. of Labor agreed to work with the IRS and several states to coordinate enforcement. Legislation in several states to increase fines for worker misclassification may affect employers in 2012.

• Deficit Reduction – Proposed legislation focuses on reducing the deficit through spending reductions and tax increases. Many of the ideas involve reforming personal and business tax and closing of tax loopholes.

• Immigration – The federal government is conducting rigorous worksite enforcement and paperwork inspections of companies of all sizes to crack down on the employment of illegal immigrants. In 2012, state laws will require more private sector employers to use the federal E-verify system for employee verification. Also possible in 2012 are Congressional immigration reform proposals that may include additional federal employment verification obligations.

• Employment Law – Many states restrict employers from using an employee’s credit information in employment-related decisions or are considering these resrictions. The Dept. of Labor and many states have enacted or are considering regulations to provide greater transparency of pay checks. These regulations focus on how workers’ pay is calculated, especially as it relates to minimum wage and overtime requirements.

• Security and Privacy – Cybercrime and corporate bank account takeovers against small businesses are becoming more widespread. Employers should take security precautions, such as using stand-alone computers for online banking; not clicking on attachments or hyperlinks from unknown sources; and working with their bank to implement fraud detection tools on their accounts. Many states have enacted onerous privacy and security breach regulations.

• Dodd-Frank – The sweeping Dodd-Frank financial law is focused primarily on Wall Street reforms and consumer protection. However small businesses may face limited access to credit and higher costs of credit or other financial services because of the increased burden it places on some industries.

• Unemployment Insurance – Virtually all businesses will face higher unemployment insurance taxes if Congress reinstates the federal unemployment surtax. In many states, employers will see higher taxes because of the repayment of outstanding federal loans that were taken to continue paying benefits and replenish depleted state unemployment trust funds. Many states are cosidering additional employer reporting requirements to combat unemployment insurance fraud.

• Taxes – 2012 will bring a number of important tax changes including a higher Social Security wage base and changes to assistance benefit limits. The accelerated depreciation benefits, which were in place in 2011, may expire or be scaled back in 2012. All employers will need to keep an eye on what are likely to be additional tax changes as the year progresses.

Contact us with your questions or concerns and we can assit you and get the answers you need.

800-334-7875 or email; info@amsinsure.com

Employees Don’t Understand Their Benefits

HR decision makers say that only about 60% of their employees understand their benefits, according to a study. Surprisingly, 36% of large employers and 66% of midsized employers have no budget set aside for employee benefit communications. About half of HR decision-makers say their budget for benefit communications has remained the same in the past year and only a minority expect it to increase in one or two years.

Fifty-one percent of large employers and 72% of midsized companies don’t provide decision support tools to help employees understand their benefits, even though a majority of HR decision makers say that these tools are important. Decision support tools are typically software applications, available through a company website, that allow employees to compare healthcare plans.

The following are the most commonly used decision support tools: a flexible spending account calculator, a plan-comparison chart, a medical-cost calculator, and wellness-incentive modeling. One out of five large companies that do not provide decision support tools plan to do so in the next couple of years. Only 13% of midsized companies that do not provide decision support tools plan to do so in the next year or two. Sixty percent of HR decision makers say that mobile access to benefit information is important, yet only 46% of large companies and 39% of midsized companies provide it.

The following are the mobile application features that HR decision-makers are most interested in: healthcare provider information, benefit alerts, and single sign-on.

Eighty-six percent of large companies and 71% of midsized companies offer employee benefit information online. Eighty-six percent of large and midsized employers with a web-based portal think it is important for employees to have 24/7 access to benefit information, yet only 72% of large employers and 66% of midsized employers provide it.

HR decision-makers say that allowing employees to modify their own data allows them to maintain more accurate information, field fewer calls from employees, and lower their administrative burden. For more information, visit www.ADP.com.

2012 Minimum Wage Rates Guide

. It is vital for managers to stay in compliance with state and federal minimum wage laws. If the state minimum wage rate is different than the federal minimum wage rate, then the employer should apply the higher rate to its employees.

The 2012 Minimum Wage Guide helps you:
• Get an overview of the federal and state minimum wage rates,
• Determine which rates to provide employees in a particular state,
• Confirm whether current minimum wage law posters are in place, and
• Provides a historical perspective of minimum wage rates in past recent years.

Our HR Support has access to the 2012 Minimum Wage Rates Guide, visit the HR Support Center, see if this is something for you and then ask us how you get it.

info@amsinsure.com

Accident Coverage: Helping Insureds

Many people think they’re most likely to get injured in a car accident or on the job. But home-related injuries cause nearly 20,000 deaths and 21 million medical visits each year. Unintentional home injuries cost Americans at least $222 billion per year in medical expenses, with an additional $165 billion in medical costs from injuries that possibly occurred in the home. Are you financially prepared for the toll an accidental injury can take? Read on for details.

Existing labor laws updated for 2012

All employers should begin the new year by considering the changes that have been made, as usual, to California employment laws.

Although none of the new laws that come into effect this year represents a sea change in the world of labor, and many involve obscure issues that will likely not effect the average employer, there are a number of important revisions to existing laws that need to be considered.

Perhaps the biggest change is AB 469, which requires employers, as of today, to provide new hires with written notice of their pay rate, the amount of any allowances (such as meals or lodging), the designated payday, the employer’s name and any fictitious business names, the physical address and telephone number of the employer's main office, information regarding the employer's workers' compensation insurance carrier and any other information the California labor commissioner might determine is necessary.

Fortunately, the law only applies to non-exempt employees and the labor commissioner will prepare a template for employers to follow in making this disclosure.

However, the law allows employees to now collect attorneys’ fees to enforce a judgment for unpaid wages, increases the statute of limitations for the Department of Labor Standards Enforcement to collect unpaid wages from one to three years and makes it a misdemeanor if an employer willfully fails to pay wages within 90 days after a final judgment for wages is issued.

In addition, SB 299 requires employers with five or more employees to maintain and pay for health care coverage under a group health plan for females employees who take pregnancy disability leave. On a related subject, AB 592 revises language within the California Family Rights Act and the Pregnancy Disability Leave law that makes it unlawful to interfere with the exercise of those rights.

Another issue that has endlessly vexed employers, and more than a few lawyers, is whether a worker should be treated as an employee or an “independent contractor.”

The general rule tends to fall within the realm of “you know it when you see it” as California law looks at a series of somewhat subjective factors to determine how a worker should be classified.

The single most important factor is whether the employer has the right to control “the manner and means of accomplishing the result desired.” In other words, does the employer ultimately “call the shots” or is it left to the discretion of the person doing the work.

Secondary factors include whether the person is treated the same or nearly the same as the regular employees of the company (do they receive, for example, the same pay or benefits) and do both the employer and employee believe they have created an employer-employee relationship.

The question of whether to treat a worker as an independent contractor has always been fraught with risk for employers. There are serious tax implications involved, and in California there are potentially expensive wage and hour violations if a person is paid as an independent contractor when they should have been treated as an employee.

New SB 459 adds to the seriousness of the issue by imposing significant penalties on employers who “willfully misclassify” employees as independent contractors. Penalties of $5,000 to $25,000 per violation are now possible under this new statute.

The key issue in the statute is, of course, what does “willfully misclassify” mean? The statute defines the term as “avoiding employee status for an individual by voluntarily and knowingly misclassifying that individual as an independent contractor.”

This doesn’t tell us much other than the courts will apparently look not only at whether a potential employee has been misclassified but also at the employer’s intent in arriving at a classification. Thus, as with all of these new laws, the possibility of getting into serious trouble always exists and employers must tread as carefully as possible.

We offer an HR Portal which can help you stay up with changes, provide all your HR needs and its a free value added service for our clients.

Special Announcement 2012 Key Employment Law Alerts

Your business must satisfy many workplace obligations especially when it comes to Federal and State law regulations and requirements. It is anticipated that 2012 will continue the increasing trend of new laws that can impact your business.

Today, we offer you a friendly reminder about a great resource - your HR Support Center - designed to help you stay on top of the latest employment law updates. For the most current information regarding the state(s) where you do business, visit your HR Support Center, check out the “Laws” section, and click on the Alerts area. Make sure to visit often as the HR Pros regularly post new alerts.

An additional option to help you get timely employment law updates is to sign up for eAlerts! Within the HR Support Center, simply visit the “My Account” section in order to update your eAlert preferences. Once this is complete, look forward to important announcements emailed directly to your inbox.

If you have any questions, please let us know.

Thank you. info@amsinsure.com

How to Boost Employee Engagement in a Slow Economy

With companies running lean and mean, none can afford even one disengaged employee, say researchers
You’ve thrown an employee appreciation party. The job satisfaction numbers on the annual survey look decent. Is it time to check “improve employee engagement” off your list?

Not so fast! According to experts, job satisfaction isn’t the most important goal. An “attitude of commitment” to the mission is the key, particularly during tough times, says Kevin Groves, associate professor of organization theory and management at Pepperdine University. Companies should make things like action-learning projects (a group of people from different divisions are invited to work together and tackle a challenge) and job cross-training a part of the daily culture. “Whatever you can do to build networks and allow people to see beyond their silo to how their roles really matter to the company is valuable,” he says.

Marcie Pitt-Catsouphes, Ph.D., director of the Sloan Center on Aging & Work at Boston College and author of Engaging the 21st Century Multigenerational Workforce, agrees.[1] “With companies running lean and mean these days, they can’t afford to have even one employee show up who is not engaged. It can have a major impact on the business,” she says.

Workers who are emotionally engaged in a company’s mission are more likely to tackle tough problems and look for creative ways to expand the business. They contribute more to the bottom line, too: Significantly increasing engagement levels among employees can up their discretionary effort by more than 50 percent, according to research done by the Corporate Leadership Council.[2] In a Gallup study of nearly 8,000 business units across 21 industries, companies whose engagement scores rose into the top 25 percent achieved 7 percent higher productivity.[3]

But the benefits of engagement extend deeper. High engagement allows a company to weather difficult times without excess turnover. “We’ve found [higher engagement] adds to people’s resilience in getting through high-pressure times,” says Pitt-Catsouphes. In addition, engaged employees are healthier, and, over the long haul, less costly workers. “It’s the difference between people who cross the threshold totally wiped out at the end of the day and those who feel invigorated by what they do. Those are the people who are more willing and able to go the extra mile,” she says.

Here are some strategies experts recommend for boosting engagement:

Tailor engagement programs for different audiences. People want to be heard, but what they are asking for varies, Pitt-Catsouphes says. Gen Xers particularly value training and development through stretch assignments, while workplace flexibility makes women and Gen Y workers tick.

Abolish blanket reward systems. Nothing can drain engagement faster than a committed employee who receives the same acknowledgment for meeting a goal as the team’s weak link, says Groves.

Minimize “status” hierarchy. Southwest Airlines, software developer SAS and others foster engaging corporate cultures by having everyone eat in the same cafeteria, follow a similar dress code and park in the same lot. “Symbolic differences can carry a lot of weight. Feeling like ‘I can only communicate with people at my own level’ stymies communication and undermines the feeling that everyone’s commitment matters,” Groves says.

Invest in Wellness. Healthier people are more engaged, according to Pitt-Catsouphes’ findings. While it’s hard to untangle the cause from the effect (does engagement protect against stress, or is it easier to be engaged if you’re feeling well?), the finding underscores the notion that funding for a company gym or nurse hotline is money well spent.




--------------------------------------------------------------------------------

[1] http://www.metlife.com/assets/cao/mmi/publications/studies/mmi-engaging-21st-century-workforce-study.pdf

[2] Driving Performance Through Retention and Employee Engagement, http://www.usc.edu/programs/cwfl/pdf/Employee%20engagement.pdf

[3] http://www.gallup.com/poll/150383/Majority-American-Workers-Not-Engaged-Jobs.aspx



This article was featured in the December 2011 issue of Working Mother Research Institute’s email newsletter, Working Mother Research Institute Essentials. To read additional stories from that issue, see the related content section above. To subscribe to Working Mother Research Institute Essentials, register on the newsletter page of this website.

Flue Season and time for a shot, its simple and easy.

We are in the FLU SEASON and shots are available at most HMO Medical Groups, and at Walgreens as wellas other retailers. If you have a PPO check to see for coverage's and or use one of the low cost retailers. If you have Kaiser Health Plans you can click on the link below for there locations.


KAISER FLU SHOT LOCATIONS

What is a Tax Deferred Annuity?

A “tax-deferred” annuity is an annuity in which taxation of interest or other growth is deferred until it is actually paid. The contract owner contributes funds to the annuity in a lump sum or through annual payments to the annuity. The money is then allowed to grow for a period of time on a tax-deferred basis. At a future date the money is “annuitized”, and accumulated funds are paid out, generally through periodic payments made over either a specified period of time, or the life of an individual or the joint lives of a couple.

Annuities are used for many purposes in addition to providing lifetime income. They may be used to accumulate funds for some future event, e.g. education, a court settlement, or a lottery.

What are the tax advantages of an annuity calculator?


What is the future value of an annuity calculator?

Eight Tips for Talking to Your Kids About Their Weight

Submitted by Timothy Boyer on 2011-12-01


Child Health and Safety Weight Loss Program News Analysis Talking to our children about drugs and sex (but never rock and roll because our tastes are just too out of the times with the current generation’s tastes) has added a new dimension lately—talking to your kids about their weight. Dr. David Katz, an expert on weight management, nutrition and disease warns us that today’s younger generation will not live as long or as healthfully as their parents. He believes that one of the ways to counter this trend is for parents to start talking to their children about weight management and healthy lifestyle choices.

Weight loss and children

The following are eight tips for talking to your kids about their weight printed in its entirety courtesy of Dr. Katz and MindStream Academy - a full-service boarding school for teens and tweens who want to get healthy, fit, lose weight, take control of their lives, build self-esteem, and pursue a personal passion.

1. Put the focus squarely on health and off weight. Whether by default or by design, each family has a health and wellness “culture.” This includes the types of food that are kept in the house, how heavily physical activity is emphasized, what sleep patterns are encouraged, how much health information is available, and more. As a parent, you should emphasize each aspect of this health culture, not just your child’s weight. Remember, healthy weight follows good lifestyle behaviors, but good lifestyle behaviors typically don’t follow weight-loss diets.

2. Recognize that you spend too much time focusing on weight. Most people don’t realize how much they use weight as a yardstick to measure their overall quality of life as well as their worth. For example, how many times have you asked about a piece of clothing, “Does this make me look fat?”—with the understanding that if the answer is “yes,” you’ve somehow failed? That’s why, when broaching the subject of weight with your child (and in your own life), it’s important to stop talking about weight—and even, to some extent, appearance—and emphasize other characteristics. For example, talk about how an unhealthy lifestyle influences your child’s self-esteem and thus demeanor, as well as how he expresses himself and the impression he makes on other people.

3. Ask your child what would help. Yes, you’re the authority figure in this relationship, but it can be a mistake to assume that you know the best way to help your child become healthier. One of the problems with giving support from a position of experience is that you tend to think that your child’s situation is the same as yours, and therefore, the things that worked for you will work for her. That’s not necessarily the case. Instead, it’s always a great idea to ask what your child thinks the best course of action would be. This, Dr. Katz says, is a main talking point when working with the families of MindStream students.

4. Focus on change, even if you run into resistance. The purpose of any discussion about losing weight and living a healthier lifestyle is to bring about change. In other words, talking to your teen about his weight angst for an hour might have some value because it allows him to vent, but try not to leave the discussion there. Try to take one step forward, too, even if your child is resistant to change.

According to Dr. Katz, an effective way to overcome resistance (or even cut the conversation short if things are getting heated) is to get a commitment to make just one change in the next week. That might be anything from drinking fewer sodas and more water to walking three days a week. Dr. Katz adds that focusing on one simple change a week seems manageable (as opposed to dropping 30 pounds, which is overwhelming), and is a very constructive way to move the conversation forward without getting too bogged down.

5. Observe how your child (and the whole family) uses food. Your discussion will be better received and more effective if you are well informed, so before instigating “the talk,” observe how your child uses food. For example, if you see that she eats in order to manage her emotions, you’ve gained an important piece of information about a very damaging habit. The truth is, we aren’t always the best observers of ourselves. So if you can determine whether or not your child is using food as a drug to avoid discomfort or as a stress manager, you’re one step closer to attacking the root of the problem. You can explain to your child that this underlying eating “trigger,” not food itself, is what she’ll need to focus on managing.

6. Don’t be judgmental. One thing is for sure: Nobody is perfect. And another thing is also for sure: If you attack someone, he’ll stop listening to you. Taking those two truths into account, Dr. Katz insists that you should avoid blaming your child at all costs. The fact is, we live in a fat culture, and the majority of Americans are overweight—so in many ways, your child’s struggle isn’t his fault. However, it is his and your responsibility to do something about it. The focus should always be on how you can help your child move forward from here, expressed as lovingly as possible.

7. Walk the walk. In the end, your example is the best way to change your child’s health behaviors. Dr. Katz points out that teens in particular are sensitive to hypocrisy. So if you aren’t ready to make any and all of the changes that you’re asking of your child, don’t instigate the weight discussion in the first place. If you can’t walk the walk, then your actions will simply be encouraging your children to continue with deadly habits that will have a major negative impact on their lives.

Controversial Children's Book Uses Four-letter Word: DIET

8. And if you really can’t get through… Sometimes, despite their best efforts, parents just can’t get a positive response from their children. If this happens in your family, Dr. Katz is adamant that someone needs to have the weight discussion with your child. Getting professional help is always a good idea, but there may be siblings, other relatives, friends, or even teachers who might get a more receptive response. And if all else fails? Well, Dr. Katz insists, all else can’t be allowed to fail. Your child’s life is too important.

Reference: MindStream Academy

Traveling for Health: The Potential for Medical Tourism

Reportlinker.com is offering a new market research report that looks at the factors driving the growth of the medical tourism industry and identifies the countries that stand to gain the most. It includes a Medical tourism index, which identifies the 20 countries seem to be set to take the lead in the medical tourism industry. For more information, visit www.reportlinker.com.

Business Owners Don’t Agree With Mandates

Eighty-eight percent of business owners don’t think that it’s right for the Federal Government to force a state resident to buy health insurance, according to The Small Business Authority. In addition, only 9% believe they will have to purchase health insurance from the government while 53% believe the cost of healthcare is going to increase in the next two years. Barry Sloane, Chairman, president and CEO of The Small Business Authority said, “There is wide spread theory that the PPACA will clearly reduce choice for private carriers and allow remaining carriers to continue to raise premiums subject to government regulation.” For more information, visit www.hesba.com.

Retail Medical Clinics See Growing Popularity

The use of medical clinics in pharmacies and other retail settings increased 10-fold from 2007 to 2009, according to a RAND study. The study was published in the American Journal of Managed Care. The RAND team used data from a commercially insured population of 13.3 million. The strongest predictor of retail clinic use is proximity. Also, females are more likely to visit clinics. Retail clinic patients tend to be 18 to 44. (Those over 65 were excluded from the study.) Also, those from zip codes with median incomes of more than $59,000 are more likely to use retail clinics while those with a chronic health complaint are less likely to use them.

Care initiated at retail clinics is 30% to 40% less expensive than similar care in physician offices and 80% less expensive than similar care in an emergency room. J. Scott Ashwood, the study’s lead author said that the increase in the uses of retail clinics could lower healthcare costs if patients use the clinics as a substitution for other sources of care, but not if patents are visiting retail clinics when they would have otherwise stayed home. For more information, visit http://www.rand.org/newsletters.html

Blue Shield To Provide Rebates

Credits ranging from 18% to 54% of one month’s premium will appear on December bills as Blue Shield of California fulfills its pledge to limit its net income to 2% of revenue. Blue Shield is giving back the amount collected above 2% to customers and the community. Starting this week, letters will be mailed to subscribers and group customers who are eligible to get a credit. Their December bill will reflect the credit based on their dues/premiums from August 2011. The company will give premium credits back to individual and fully insured group customers based on a percentage of one month’s dues/premium from August 2011:

■Individual and family plan customers will get a credit of 54% of one month’s dues/premium.
Fully insured groups will get a credit of 54% of one month’s dues/premium.
■Groups with shared risk agreements will get a credit of 18% of one month’s dues/premium.
■Customers with fully insured continuous coverage from August 1 through at least December 1, 2011 will get a credit in the bill for their December 2011 dues/premiums (other than government programs whose contracts do not permit such credits) .

The average individual customer will be credited approximately $135 and an average family of four will be credited approximately $420. The range is roughly $40 to $270 for individuals and $220 to $700 for a family of four.

For all fully insured mid/large group customers (51 employees and above), the average credit to the group will be $195 to $230 per member. Employers who pay part of the premium must decide whether and how to apportion it. For small groups (two to 50 employees), the averages are $220 for one employee and approximately $605 for a family of four.

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The Three Biggest Long-Term Care Insurance Myths (and why you shouldn’t believe them)

According to the Centers for Medicare and Medicaid, about half of nursing home residents pay for their care out of pocket. A recent survey found a private nursing home room cost a median of $77,745 per year in 2011, up from $60,225 in 2005. Can you afford this? Read on for details.

Small Business can learn from the Big Business; whats important to an employee

The Googleplex, Google’s corporate headquarters in Mountain View California, is legendary for its perks. Employees have access to unlimited free meals, haircuts, dry cleaning, massages, and even onsite medical care.

Yet earlier this year, when Google interviewed its employees about what they valued most at work, none of these extravagant benefits made the top of the list. Neither did salary.

Instead, employees cited access to “even-keeled bosses who made time for one-on-one meetings, who helped people puzzle through problems by asking questions, not dictating answers, and who took an interest in employees’ lives and careers.”

Employee Satisfaction Drives Voluntary Benefits

Seventy-five percent of employers say that their top reason for offering voluntary benefits is to expand the benefit options for employees, according to a study by Prudential. Voluntary benefits are optional programs that are 100% paid for by employees. Eighty-five percent of employers offer one or more voluntary benefits including life insurance (63%), disability insurance (56%), and dental insurance (52%), critical illness insurance (35%), and long-term care insurance (33%).

Fifty-one percent of workers cited convenience as the driving factor in purchasing voluntary benefits at the workplace. Fifty-two percent feel that voluntary benefits increase the value of their company’s offerings. Employers judge the success of voluntary benefits by employee satisfaction (47%) and the participation rate (34%). For more information, visit www.prudential.com/benefitsmatter to learn more.

US Treasury Report - Health Care Tax Credits for Clients Go Unclaimed

The Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act were signed into law in March 2010. Among the credits contained in this legislation was the Small Business Health Care Tax Credit. The credit was designed to encourage small employers to offer health care insurance. It is available only to small employers who pay at least one-half the cost of health insurance coverage for their employees.


The Congressional Budget Office estimated the credit would cost $37 billion over 10 years and that taxpayers would claim up to $2 billion of Credit for Tax Year 2010. However, in a recent report by the US Treaury Inspector General, as of mid-May 2011, just more than 228,000 taxpayers had claimed the credit for a total amount of more than $278 million. An audit to determine whether the IRS adequately implemented and processed the credit found that while their efforts were mostly successful, some improvements are needed since the number of claims for health care tax credits has been much lower than anticipated.

“The Small Business Health Care Tax Credit is an important credit for both small business employers and their employees,” said TIGTA Inspector General J. Russell George in a statement. The IRS sent postcards to businesses that might potentially qualify for the credit to make sure they were aware of it, the IRS did not have ready access to data that would allow it to determine which of these businesses actually offered health insurance to their employees or otherwise qualified for the credit. He believes the report’s recommendations, once adopted, should improve the IRS’s ability to verify claims for this credit.”

Are you the owner of a small firm who is providing health insurance for your employees and paying at least 50% of the premium? Then you may qualify for the “Small Business Health Care Tax Credit”. We suggest you contact your accounting firm to make sure you are receiving the proper credit.

Effective 2010

Small business tax credit: Businesses with fewer than 25 employees and average wages of less than $50,000 could qualify for a tax credit of up to 35 percent of the cost of employees’ premiums

Contact us to learn more about the great small business benefit.

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800-334-7875

Recruiting: Staying One Step Ahead of the Competition

Whether you run a small, family-owned business or a large corporation, attracting and retaining key employees is challenging. In today's economy, businesses often must compete for skilled and talented employees in the same way they compete for a customer's business. So, how can your business set itself apart and attract talented individuals?

Core Benefits
In addition to a competitive salary, most potential employees have a certain level of expectation concerning benefits. When evaluating prospective employers, they may first look at what core benefits are being offered by each. The following benefits may be among their primary considerations:

Qualified Retirement Plan. With the shift away from defined benefit plans toward defined contribution plans, personal retirement savings are more important than ever, and the 401(k) plan has become a sought-after vehicle for retirement savings. Today, prospective employees often expect, at a minimum, that a plan will be available to them. Plans such as the 401(k) can also be enhanced with employer-matching contributions.
Health Insurance. With escalating health care costs, health insurance is one of the most important employee benefits. Although group health insurance is a fairly common benefit, the details and costs associated with each plan vary, and prospective employees will seek the plan that meets their needs most affordably.

Vacation and Personal Time. As employees seek better work-life balance, the amount of vacation and personal time offered by an employer is often an important consideration. In fact, many individuals value the amount of vacation and personal time available to them, even if they fail to use it all on an annual basis.

Flexibility. Changes in employee demographics have resulted in the need for greater flexibility, and technological advances continue to change the way employees work. Therefore, it is important for businesses to recognize these trends and modify policies for flexible work schedules, as appropriate.

Work Environment. The atmosphere of a place of employment can also be a key factor in employee satisfaction. Prospective employees may consider stress levels, interdepartmental communications, and the appropriation of duties.

Selective Benefits
In some cases, Internal Revenue Service (IRS) anti-discrimination rules limit the benefits received by highly compensated employees. For executive-level employees, there are additional benefits that can be offered. The availability of these selective benefits can distinguish one employer from another.

Executive Bonus Plan. An employer may offer a key employee a compensation bonus to be used by the employee to pay the premium on a life insurance policy. If the employee owns the policy, the bonus amount can be a deductible business expense for the employer. The employee must claim the annual bonus on their tax return as ordinary income. Any death benefit paid to the employee's estate or beneficiary is generally income-tax free.

Disability Insurance. For highly compensated employees, a group disability plan may provide only a limited amount of coverage should they sustain an illness or injury that prevents them from working. To supplement this coverage, an employer may offer additional, individual disability insurance.

Voluntary Benefit Plan. Through a voluntary benefit plan, an employer can offer a menu of benefit options (e.g., dental insurance, disability insurance, etc.) in addition to existing core benefits. Employees choose the benefits that meet their respective needs and pay for them through payroll deductions, as defined by the specific plan. Because voluntary benefit plans are offered in a group setting, costs are generally more affordable than if an employee were to purchase similar benefits individually.

Today's business owners are realizing that a competitive salary is no longer the only factor sought by highly skilled employees. Just as you shop for key employees, they shop for the employer that offers the best combination of salary and benefits for their specific needs. Therefore, employers should consider creating a benefits package that keeps them one step ahead of the competition.

Borrowing Responsibly and Managing Debt

All business owners prefer to operate in the black. But, taking on debt is sometimes necessary as a company expands or when business slows due to economic volatility. Managing your debt carefully can minimize the cost of carrying debt and make it easier to move back into the black when the market improves.

Before taking out a new loan, make a list of your company's assets that can serve as collateral, including real estate, buildings, and equipment. Then calculate how much financing your business needs, outlining precisely how you plan to spend the money. At the same time, review your current operations, looking for ways to cut unnecessary costs or increase revenues. You may, for example, be able to renegotiate payment plans with suppliers to allow more time to pay off the amounts owed. Similarly, if your company is planning to purchase equipment, consider whether leasing can reduce the amount you need to borrow. Review your invoicing procedures, ensuring that your system for collecting payments is effective.

After you have explored all options for increasing revenue and reducing expenditures, revise your business plan to reflect your current needs. Potential lenders often want to see evidence that your company is run efficiently and that market conditions justify additional outlays. Even if business is down due to the economy, you may, for example, be able to demonstrate that your company is out-performing competitors and is in a position to rebound quickly.

If you wish to borrow money, start by approaching your current bank. While an extension of a line of credit may be sufficient to meet the short-term need for additional cash flow, consider options for locking in a manageable interest rate for any long-term debt. If the amount of money your bank is prepared to lend your company is insufficient, investigate the alternatives. Because lending practices vary, consider applying for loans from a variety of banks, including large institutions, smaller community banks, and credit unions.

For smaller loans, consider approaching a nonprofit lender that provides micro-loans through a program of the Small Business Administration (SBA). These lenders typically extend lines of credit of up to $35,000 and may require applicants to provide evidence that they have been denied a bank loan. Online peer-to-peer lending may also provide a smaller loan. Individuals or businesses wishing to borrow funds on a peer-to-peer website post a listing
for a loan, including information about the amount needed and the rate they believe they can afford. Potential lenders then bid to fund the loan, offering varying amounts and rates.
If you are unable to obtain financing through these channels, investigate other SBA loan programs. Distributed through commercial lenders, loans can be guaranteed by the SBA with favorable terms to qualified borrowers. The 7(a) program makes loans up to $2 million for a variety of purposes, including larger capital purchases or short-term working capital needs. While the loan itself is made by the bank, the SBA limits the interest rates and fees the lender can charge. The SBA's 504 loan program provides growing businesses with long-term, fixed-rate loans of up to $2 million for the purchase of major fixed assets, such as land and buildings. However, the SBA may require personal guarantees from borrowers owning 20% or more of the business.

With the economy in flux, your company may be in a very different position than the last time you sought financing. If an analysis of your current situation reveals a high debt-to-equity ratio, taking out additional loans or credit could expose you to too much risk. To avoid becoming too leveraged, consider looking for new investors. Depending on your needs, your capital requirements may be met through small investments from friends, relatives, business associates, angel investors, or employees. These deals should always be governed by a legal contract defining the terms of the arrangement, including the return on investment for stakeholders and the extent to which investors will be involved in running the business.

Many businesses require financing for short- and long-term needs. Borrowing responsibly and managing debt effectively can help your company minimize the cost of debt, as it is needed.

How Do Your Life Benefits Measure Up?

In December 2010, the U.S. Bureau of Labor Statistics released “Program Perspectives,” a report on life and disability insurance benefits. Using information gathered in the National Compensation Survey, the report provides an overview of what employers offer in terms of life and disability benefits and participation rates. In this article, we’ll focus on what the report says about life insurance benefits today in the U.S. Read on for details.

Cutting Group Health Costs

HR Tip

It is an employer's responsibility to track employees' hours and pay accordingly. Employees can be required to turn in timesheets, and pay cannot be withheld as penalty for not turning in timesheets.

AMS offers a value added HR program for clients.

2012 Medicare Premiums, Deductibles and Coinsurance

A new Capital Checkup that discusses 2012 Medicare premiums, deductibles and coinsurance is available on the Sibson website.

As noted in the Capital Checkup, the standard monthly Part B premium and deductible will both decrease by just over 13 percent. This is a dramatic change from between 2010 and 2011 when they both increased by slightly more than 4 percent and is an even more striking change from between 2009 and 2010 when the increase was 14 percent. However, the 2012 premium will represent an increase for about three-quarters of Medicare beneficiaries who paid the same $96.40 premium in 2011 that they paid in 2010 because of a "hold-harmless provision" in the law. Increases in 2012 Social Security benefits are expected to cover the additional cost for most. The Part A numbers will increase by just over 2 percent.

The Capital Checkup also notes the higher Part B premiums and income-related monthly adjustment for enrollees in Part D prescription drug plans for 2012 that apply for high-income Medicare-eligible individuals.

Benefits and the Coming Employee Retention Crisis

As the Great Recession has worn on, more and more American companies have been forced to downsize their workforces and replace human capital with technology. The result has been a rapid increase in productivity and record corporate profits.

Unfortunately, those pay-offs have come at a price. Many of the remaining employees are being asked to do more for the same compensation. Although unhappy about this arrangement, after seeing their coworkers laid off, these employees accept the unspoken truth: "Be happy that you still have a job at all." As glad as most are to still be working, their level of satisfaction and their loyalty to the firm have eroded. With fears about job security, and few prospects for changing jobs in today's economic climate, these employees "soldier on," biding their time.

For many companies, this may lead to a rude awakening when the economy eventually revives. The 9th Annual MetLife's ! Study of Employee Benefits Trends offers a warning and clear message to employers: "Reprioritize employee loyalty and satisfaction, or economic recovery may arrive with unanticipated setbacks for retention and productivity."

In other words, happy employees now may mean less turnover later.
The MetLife study revealed a startling statistic: "One in three employees hopes to be working elsewhere in the next 12 months." This is a high level of dissatisfaction and implicit disloyalty. But the study also revealed a disconnect. Employers perceive employees to be more loyal than they are. For this reason, most employers are largely oblivious to the looming retention challenge, and uncommitted to addressing it.

Here are the key numbers from the MetLife study:

• Just 44 percent of small business employees felt loyal to their company in 2010.
• By comparison, 62 percent of the same category of employees felt l! oyal in 2008.
• Meanwhile, 54 percent of employers beli eve their employees feel a strong sense of loyalty to their firm.
• Only 22 percent of employers listed retaining employees as their number one concern, with 33 percent saying...
For more in-depth analysis of what this means to you, click here.

Employers Should Start Preparing to Report Cost of Employer-Sponsored Group Health Coverage

"To comply with this new requirement, employers should start gearing up to make sure systems are in place to track employee coverage and coordinate with their finance, payroll and human resources staff and vendors to ensure accurate reporting." (Snell & Wilmer

401(k) Participants Are Ready to Plan

Despite deep economic concerns, retirement plan participants are renewing their focus on retirement savings. Over the past year 41% of participants increased their 401(k) contribution rate (up from 31%); 40% reallocated their portfolios (up from 33%) and 38% reallocated future contributions (up from 29%). In the coming year, participants expect to contribute more to their 401(k) plans. Also, a slightly higher percentage expect to contribute the tax-deferred maximum (11%, up from 8% in 2010).

A resounding 85% of participants are confident in their 401(k) asset allocation; 83% are confident in their investment selection; and 77% are confident in their contribution amount. Thirty-six percent said that a major savings objective is to save for healthcare expenses in retirement, up from 24% in 2010. For more information, visit www.mercer.com.

Gallup-Healthways study shows excessive weight leads to missed work - Articles - Employee Benefit News

WASHINGTON | Mon Oct 17, 2011 11:05am EDT (Reuters) - Full-time U.S. workers who have chronic health troubles or are overweight cost more than $153 billion in lost productivity each year from absenteeism, according to a Gallup-Healthways study released on Monday.



Gallup-Healthways study shows excessive weight leads to missed work - Articles - Employee Benefit News

National Dental Health Month October 2011

October is National Dental Health Month!

Time to get your Dental Health Checkup

Exam
Exrays
Ceaning

ALl plans include these feaures and you can have dental health insurance for very affordable rates.

Get Help in understanding your Medicare Options

Find Benefits Programs...
Get all the benefits you deserve. Find and enroll in federal, state, local and private programs that help pay for prescription drugs, utility bills, meals, health care and other needs.

Get Started
Apply for Medicare Rx Extra Help...
If you are one of millions of people with Medicare who have limited income and resources, apply now for Extra Help through Medicare’s Prescription Drug Coverage. At the same time, you can also start an application for the Medicare Savings Programs and find out if you qualify for other valuable benefits programs.

Get Started
Need Help Paying for Food?
The Supplemental Nutrition Assistance Program (SNAP) (the new name for the federal Food Stamp Program) helps low-income individuals and families buy the food they need for good health. Visit the SNAP Application Forms Service to find your local program, get an application to apply, and search for stores to use the card (includes every state, District of Columbia, U.S. Virgin Islands, Puerto Rico and Guam).

Get Started
Get Eldercare Assistance
Caring for aging parents, elders, and loved ones is challenging. Caring.com provides the expert advice, practical information, easy-to-use tools, and person-to-person support you need to make the journey easier.

Your free and easy 8-week workforce health program

One extra pound a holiday season: That's what most people gain every year. It may not seem like much, but it adds up. And people who are already overweight tend to gain even more.* Over time, this extra weight can reduce your employees' effectiveness and even lead to major medical risks.

With our free eight-week program, you can cook up some healthy camaraderie from Halloween through New Year's Day. It's an easy way to get your business on the path to workforce health. And it can lead to big changes:

•Higher employee spirit and morale
•Less stress and more productivity
•Lower overall health care costs for you and your employees
Tools to hold off the holiday pounds
In the toolkit, you'll find everything you need to carry out a simple and successful campaign.

•Maintain Don't Gain checklist—a planning tool for you and your wellness team, the checklist includes a calendar and an explanation of the promotional and campaign materials
•Campaign emails (eight in total)—the center of your campaign, each prewritten email shares a challenge, tip, and resource to help your employees stay healthy and maintain their weight
•Promotional materials—get your employees excited about your program with emails and materials you can post around the office
•Employee pledge sheet—allows employees to publicize that they're participating in your program
•Employee tracking tool—gives each employee a place to record their personal progress every week

Download the toolkit (zip file)

How to make smart decisions during health care open enrollment

Sep 13, 2011 08:55 AM EDT

HSAs often accompany high-deductible plans. With HSAs, consumers pay lower premiums in exchange for higher deductibles. (©Hemera/Thinkstock)

Busting the top 9 myths of credit card usageHow to create a budget on a fluctuating incomeHow to make smart decisions during health care open enrollmentWhat the Fair Debt Collection Practices Act means to youWhat to know about retirement planning nowTeach your kids about spending, saving and debtWhen going back to school, hit the books, not the plasticHow to find quality financial adviceHow to save money on bank fees
By Andrew Housser

As autumn approaches, many U.S. workers will be receiving information about open enrollment periods for health care. During these periods, employees can choose to join or change health insurance plans. Whether this applies to you or not, autumn is a good time to evaluate your health insurance coverage and make sure you have the coverage you need. Here are some suggestions for how to make decisions about medical insurance.
1) Know your coverage option.

Learn about different types of health insurance plans to find out what kind of coverage is best for you and your family. Ask your employer's human resources office for information, and search online. The basic types of health insurance plans are:

1.HMO -- Health maintenance organizations, or HMOs, usually charge lower monthly premiums in exchange for having fewer covered doctors and services you can choose among. If you choose this option, check to see if your doctor is available in the network. These plans also cover preventive care such as annual check-ups. If you go outside the network, though, you won't be covered.


2.PPO -- Preferred provider networks, or PPOs, also use a network approach to limit costs. These plans do allow out-of-network care, but it is covered at a lower rate. Premiums are slightly higher than with an HMO. Preventive care might or might not be covered.


3.FFS -- Fee-for-service (FFS) coverage refers to "old-fashioned" health insurance where the doctor bills for individual services and the health insurance pays for services it has specified, at a pre-determined rate. You might have to pay out of pocket and be reimbursed. Some services will be covered and others will not, depending on the contract.

2) Join forces with employer plans.About 44 percent of U.S. workers are covered by employer-sponsored health plans. Another 25 percent receive government-funded coverage (whether from Medicare, military benefits or another source). These plans are often more affordable and might have more extensive benefits than individual insurance. But for some people, individual insurance is the only option -- or is more cost-effective. Review all your options to find the best one.

3) Evaluate an HSA.Health savings accounts (HSAs) often accompany high-deductible plans. With HSAs, consumers pay lower premiums in exchange for higher deductibles. The consumers then save pre-tax dollars in a dedicated HSA. They can cover the cost of deductibles or pay other medical bills from these HSA accounts, tax-free. HSA funds that are not used in one calendar year roll over to the next. Do be aware that today, however, only certain plans qualify for an HSA. Even if the plan has a high deductible, it might not be designated "high-deductible" for HSA purposes. Usually, premiums are lower for non-HSA plans. Compare the tax savings you would receive with an HSA and expected medical costs to the premium savings for a non-HSA plan before making a choice.

4) Compare apples to apples.Understand what your costs could be with each option. A pricier HMO plan that combines low co-payments, covered treatment for a child -- from wellness to winter colds -- and covered prescriptions might pay off in the end. A high-deductible plan's lower premiums look good, but does your cash flow allow enough flexibility to pay a $500 deductible for a procedure if one is needed during the year. Estimate your anticipated costs over a full year with each health insurance option. Don't forget to include premiums, office visit co-payments, prescriptions, alternative care such as massage and chiropractic, and other care such as mental health care that one plan might cover while another does not.

5) Don't forget Medicare.Medicare open enrollment takes place at the end of each year. During open enrollment, Medicare beneficiaries can choose among different health plan options and coverages. As with any health plan, open enrollment is a good time to check up on the coverage you have selected.

6) Use up FSA balances.A health flexible spending arrangement (FSA) is a tax-benefited account that allows employees to be reimbursed for medical expenses. Employees choose an amount to contribute to their FSA account each pay period. The FSA deductions can be taken pre-tax, with no income tax paid on the amount. Employees then submit proof of medical expenses to be reimbursed by the employer or FSA account administrator. If you have an FSA, plan ahead to use up the entire amount you have deducted from your pay during the FSA plan year. If you do not use it, you lose it -- unlike an HSA, these funds do not roll over from year to year. Open enrollment is a good time to check your FSA balance.

7) Negotiate medical costs.If you have medical costs that insurance does not cover, you may be able to negotiate them. Contact the doctor or hospital's billing office and ask what options they provide. For example, some providers will offer a discount for cash payment or will set up a monthly payment plan.

8) Get a second opinion.Of course, a second opinion can help make sure you receive the right care. But it can also help with your medical expenses. Especially for major procedures, check with several providers to be sure you are paying appropriate costs.

Keeping a close eye on your health care costs can help you breathe easier. It can also help you avoid going into medical debt, one of the most common causes of debt problems. Best of all, you can make sure you are able to receive the health care you need -- without breaking the budget

Learn More about health insurance for business

Everything small business owners need to know about offering health insurance. An unbiased resource on cost estimates, tax savings, coverage options, legal rights, and more.


So you’re thinking about buying health coverage for your business, but you’re not sure if it’s the right decision. Here you can find clear, independent information on whether group coverage is a realistic option.

If you’ve decided that insurance is right for you, we help you get the job done here. Step-by-step you’ll get organized, find plans that are best for you, read tips on working with a broker, negotiating the deal, and implementing the plan.

Select a topic for answers to specific questions and useful links to other resources.
Benefits, Providers, and Costs

Benefits of Providing Coverage
Cost-Sharing
Choice of Providers
More…


Purchasing Coverage

Plan Value: Balancing Benefits and Costs
Budgeting and Cash Flow
Brokers
More…



Coverage Types

Preferred Provider Organizations (PPOs)
Health Maintenance Organizations (HMOs)
Health Savings Accounts (HSAs)
More…


Laws and Rights

Rights and Rules for Small Employers
Tax Implications
Guaranteed Issue and Renewal
More…



Eligibility and Enrollment

Coverage Rules vs. Options
Eligible Employees and Dependents
Enrollment Options and Procedures
More…


Other Resources

Tax and Business Resources
Insurer Rating Companies
Health Savings Accounts
More…


Looking to learn more:

More Young People have health care today!

The Department of Health and Human Services announced Sept. 20 that roughly a million more young people between the ages of 19 and 25 have health insurance coverage in the first quarter of 2011 than did in the first quarter of 2010. The National Center for Health Statistics also said the percentage of young people covered has gone up from 66.1 percent to 69.6 percent.

The increase, according to the Department of Health and Human Services, is due to the Affordable Care Act (ACA), implemented in September 2010, that allows children to remain on their parents' health insurance policies until age 26. The act is a provision under President Barack Obama’s health care overhaul, commonly called Obamacare, that was approved last year.

HHS Deputy Assistant Secretary for Health Policy Richard Kronick said because of recent survey results and the sheer number of young people now covered, he feels it’s the ACA that is causing the upswing.

"We feel quite confident in attributing virtually all of this change to provisions in the ACA," he said. “Starting in the fourth quarter of 2010 and continuing in the first quarter 2011, there was a sharp increase in coverage ... At same time coverage was stable or declining slightly for older Americans, ages 26-64. Given that timing ... It's very hard to imagine what else this could be other than the ACA."

What this means is that young adults who were previously dropped from their parents’ insurance in their early 20s – or who were heading toward being dropped because of their age – will now be able to remain covered until their 26th birthday.

Elizabeth Wilson is an aspiring opera singer living in Indiana who was affected by the law and was interviewed by Business Week. When she turned 23, she was dropped from her parents’ health insurance, even though she was in the middle of a health care crisis. At the time she was dropped, she was in the hospital with an inflamed pancreas.

"It means I don't have to spend every penny I make to get health care," said Wilson, who isnow 24. "I can use some of it to further my studies -- or buy food."

The new health care mandates have been nothing if not controversial. Many GOP lawmakers are attempting to repeal the approval of what they call Obamacare, though some of them say they would include the mandate to cover young adults up to age 26 in any replacement legislation that is drafted.

One of the companies that conducted the surveys about the increase in young adults being covered, Gallup, said the age group had been one of the largest groups of uninsured Americans.

"While we did not see a drop-off in any other age group, we did see a drop in this age group," said Frank Newport, Gallup's polling director.

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Californians Are Unprepared for LTC Challenges

Californians are better informed about long-term care issues than at any other time in the last 17 years. However, but fewer than ever are taking steps to prepare for the need for long-term care, according to a poll commissioned by the Dept. of Healthcare Services’ (DHCS) California Partnership for Long-Term Care.

While Californians are three-times more knowledgeable about LTC costs than at any time since polling began, less than 10% of California seniors have long-term care insurance policies. The following chart lists reasons people give for not purchasing LTC in 1994

companies 2011 1994
59% 60% Policies cost too much

55% 66% Haven’t thought about it

32% 29% Family assets and income will cover long-term care

29% 44% Insurance companies cannot be trusted

28% 26% I will probably never need it

25% 24% Family will take care of me if I need it

21% 27% Too confusing and complicated

19% 28% Existing policies don’t meet my needs

6% 22% Government will take care of me
This question was only asked in 2011 and 2005)

For more information

Employee incentives drive lower-cost health care

USA Today - Julie Appleby - By Joe Raedle, So this year, she rolled out a plan that sets limits on how much the company will pay toward a range of tests and procedures, ... Safeway employees in the San Francisco Bay Area, for example, face higher payments if they choose centers that cost more than $1500 for a routine colonoscopy. And in January, the giant California Public Employees' Retirement System (Calpers) said it ...READ MORE:

Key Person Disability Income coverage

Key Person Disablity- This can infuse a sum of cash into a business to deal with a loss of a pertinent member of the staff.
If a business has one, two or more important employees - why not cover them in case they become disabled and leave the office scrambling to cover their loss. This product can pay the business each month - or it can pay one lump sum.

Why Employees may not care? HR Solutions

Pay only goes so far. Higher salaries are like the bigger house syndrome: Move into a bigger house and initially it feels roomier, but after awhile larger becomes the new normal.

Employees don’t automatically perform at higher levels if wages are higher because commitment, dedication, and motivation are not based on pay. No matter how high the salary, if you treat employees poorly they won’t care — about their jobs or your business.

Here are eight reasons employees don’t care:

1.No freedom. Best practices are definitely important, but not every task deserves a best practice or micro-managed approach. Autonomy breeds engagement and satisfaction. Autonomy also breeds innovation. Even manufacturing and heavily process-oriented positions have room for different approaches or paths. Decide which process battles are worth fighting; otherwise, let employees have some amount of freedom to work they way they work best.

2.No targets. Goals are fun. (I’ve never met anyone who wasn’t at least a little bit competitive.) Targets create a sense of purpose and add meaning to even the most repetitive tasks. Without a goal to shoot for, work is just work.

3.No sense of mission. We all like to feel a part of something bigger. Striving to be worthy of words like “best” or “largest” or “fastest” or “highest quality” provides a sense of purpose. Let employees know what you want the business to achieve; how can they care about your dreams if they don’t know your dreams?

4.No clear expectations. While every job should include decision-making latitude, every job also has basic expectations regarding the way certain situations should be handled. Criticize an employee for providing a refund today even though last week refunds were standard procedure and you’ve lost the employee. (How can I do a good job when I don’t know what doing a good job means?) When standards change, always communicate those changes first — then stick with them. And when you don’t, explain why this particular situation is different.

5.No input. Everyone wants to be smart. How do I show I’m smart? By offering suggestions and ideas. (Otherwise no matter how hard I work I just feel like a robot.) Deny me the opportunity to make suggestions, or shoot my suggestions down without consideration, and I’m just a robot — and robots don’t care. Make it easy for employees to present ideas and when an idea doesn’t have merit take the time to explain why. You can’t implement every idea, but you can make employees feel good every time they make a suggestion.

6.No connection. The company provides the paycheck, but employees work for people. A kind word, a short discussion about family, a brief check-in to see if they need anything… person-to-person moments are much more important than meetings or formal evaluations. Employees want to be seen as people, not numbers. Numbers don’t care. People care — especially when you care about them first.

7.No consistency. Most employees can deal with a boss who is demanding and quick to criticize… as long as she treats every employee the same way. (Think of it as the Vince Lombardi effect.) While it’s okay — in fact necessary — to treat employees differently, all employees must be treated fairly. Similar achievements should result in similar praise and rewards. Similar offenses should result in similar disciplinary actions. The key to maintaining consistency is to communicate; the more employees understand why a decision was made, the less likely they are to assume favoritism or unfair treatment.

8.No future. Every job should have the potential to lead to something better, either within or outside the company. I worked my way through college at a manufacturing plant. I had no future with the company because everyone understood I would only stay until I graduated. One day my boss said, “Hey, let me show you how we set up the job scheduling board.” I looked at him oddly; why show me instead of someone else? In response he said, “Some day, somewhere, you’ll be in charge of production. Might as well start learning now.” Take the time to develop employees for jobs they hope to fill — even if those positions are outside your company. They will care about your business because they know you care about them.

Wellness Awards Shrink Healthcare Costs

How can employers encourage workers to stop smoking, watch what they eat, consume less alcohol, and take their medicine? One of the most promising ways is to offer incentives under a corporate sponsored wellness program, according to a study from the Incentive Research Foundation (IRF). The study demonstrates that corporate wellness programs have saved more than $3 for each $1 invested. Wellness programs that don’t offer rewards get fewer than one in five employees to participate while those that do offer rewards get four in five employees to participate.

Rodger Stotz, IRF Chief Research Officer said, “The potential savings through preventative healthcare measures that include workplace wellness programs could be as high as $1.9 trillion per year. And this doesn’t even consider productivity gains or worker quality of life improvements.” To view the paper, select the Research tab at www.

The easy way to get a disability policy

Principal Financial Disability Income- they have a Simplified Plan that is so easy - Up to a benefit of $3,000 a month
All riders available; No blood, urine or exams; No income verification for incomes under $150,000 AND - once the interview is completed - 48 Hour Turnaround!!!! The no hassle disability plan>>>

Remember that loss of income from a disability is 2 X's grater than an auto accident and 3 X's grater than loss from fire.

Motivating Employees to Choose Voluntary Benefits

Employers can increase participation in voluntary benefits by providing live assistance to explain benefit options and delivering a clear message on disability risks, according to a survey by Sun Life Financial. The majority of respondents said they spent no time reviewing their benefit options. The only exception was medical insurance, for which at least a quarter of respondents reviewed their benefits options for thirty minutes or more. Benefit participation rises when employees get live assistance to learn about benefits options, and online or print assistance to enroll.

Employees incorrectly believed that they had the same chance of needing life insurance as needing short-term disability and long-term disability insurance. Yet statistically, men are twice as likely to suffer a disability as to die during their working years, while women are three times as likely.

Employees misunderstand how different types of benefits provide different levels of financial protection, ranking dental coverage as protective as both short-term disability and long-term disability. However, a household’s financial loss from disability, or worse, from the death of a breadwinner, generally far exceeds the costs of a dental procedure.

Michael E. Shunney of Sun Life’s Employee Benefits Group advised plan administrators put all verbal and written benefits communications into plain language and use the right communications at different stages in the enrollment process; offer live assistance to help people learn about benefits, but provide the independence of online or print forms to let them enroll. Shunney added, “Finally, devise powerful ways that resonate with employees about a sobering theme — that over the course of a working life, we all stand a far greater chance of becoming disabled than of dying.” For the full report, go to

GAO Report Highlights Vital Role of Annuities

ANNUITIES

A report by the U.S. Government Accountability Office (GAO) provides a strong endorsement of annuities. For its report, GAO interviewed experts about recommended financial strategies for retirees. The financial experts typically recommend that retirees draw down their savings and convert a portion to an income annuity to cover necessary expenses or choose the annuity provided by an employer-sponsored defined benefit pension instead of a lump sum withdrawal. Experts also recommend delaying Social Security benefits until reaching at least full retirement age and, in some cases, continuing to work and save, if possible.

GAO profiled two with about $350,000 to $375,000 in net wealth. The experts recommended that these households purchase annuities with a portion of savings, drawdown of savings at an annual rate, such as 4% of the initial balance, use of lifetime income from the defined benefit plan, if applicable, and delay of Social Security.

They noted that strategies depend on individual circumstances including anticipated expenses, income level, health, and each household’s tolerance for risks, such as investment and longevity risk.

The GAO found that most retirees rely primarily on Social Security and pass up opportunities for additional lifetime retirement income. By taking Social Security benefits when they turn 62, many retirees born in 1943 pass up increases of at least 33% in their monthly inflation-adjusted Social Security benefit levels available at full retirement age of 66. Most retirees who left jobs with a defined benefit pension received or deferred lifetime benefits, but only 6% of those with a defined contribution plan chose or purchased an annuity at retirement. Those in the middle-income group who had savings typically drew down those savings gradually. Nonetheless, 9% of those 65 or older in 2009 had incomes below the poverty level (excluding any non-cash assistance). That compares to a poverty rate of 14.3% for people of all ages.

To help people make these often difficult choices, policy options include encouraging the availability of annuities in defined contribution plans and promoting financial literacy. Certain proposed policies seek to increase access to annuities in defined contribution plans, which may be able to provide them at lower cost for some people. However, some pension plan sponsors are reluctant to offer annuities for fear that their choice of annuity provider could make them vulnerable to litigation.

In addition to the current emphasis on saving for retirement, other proposed options aim to give consumers a better understanding of the risks and the choices that are available for managing income throughout retirement. Proposed options include providing additional federal publications and interactive tools, having sponsors issue notices to plan participants on the financial risks and choices they face during retirement, and providing estimates on lifetime annuity income on participants’ benefit statements.

What are the tax advantages of an annuity calculator?
What is the future value of an annuity calculator?

Healthcare Consumer Confidence Improves

Americans’ confidence in their ability to access and pay for healthcare improved for the second straight month in June, according to survey by Thomson Reuters. The Thomson Reuters Consumer Healthcare Sentiment Index rose from 98 to 99 and is up four points since hitting a low of 95 in April. In June, prospective consumer sentiment jumped to 100, which is three points higher than in May. Consumers predicted that they would be better able to pay for healthcare services and insurance and less likely to cancel or delay services.

The index also tracks whether they postponed, delayed, or cancelled healthcare services and whether they had difficulty paying for medical care or health insurance over the past three months. In June, retrospective consumer sentiment was unchanged from the previous month, remaining at 98. A full report on the June results is available here:
http://healthcare.thomsonreuters.com/Indexes/assets/CHSI_Findings_June_11.pdf

Want Performance? Pay for It - Talent Management magazine The Business of Talent Management

Establishing a pay-for-performance strategy can be tough, and many talent managers don’t bother. With the right vehicles in place, it can be done, and it works.

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Life Insurance After 50

If your term life policy is ending but your needs continue, consider the cash-value alternative.

By Kimberly Lankford, Contributing Editor
From Kiplinger's Personal Finance magazine, June 2011

For anyone weary of writing checks to pay for life insurance, retirement used to spell relief. With the mortgage paid, the kids on their own, and Medicare and Social Security on the way, common sense suggested you could safely let your insurance expire. But now many fifty- and sixtysomethings don't have the flexibility to shorten the life of their life insurance. Life expectancies are longer, and the expenses that the death benefits were earmarked to take care of are hanging around longer, too. You may be retired, but you haven't retired your mortgage. Without a pension, your spouse may need an extra financial safety net after you die. And what if your children aren't self-sufficient? Read more:

Factors That Will Affect Healthcare Costs in 2012

U.S. employers can expect to see healthcare costs rise by 8.5% in 2012, compared to an increase of 8% in 2011, according to a study published by PwC’s Health Research Institute. However, mitigating changes in health benefit plan designs, including increased cost-sharing with employees, could keep employers’ costs increases to an average of 7% next year. Meanwhile, American workers are beginning to show signs of post-recession stress and the effects of delayed care is taking a toll on their health.

The slow economic recovery, unemployment, and reduction in disposable income have caused Americans to seek fewer healthcare services, which led to lower-than-expected growth in employers’ medical cost trends in 2010 and 2011. Based on interviews with health plans, PwC had projected a 9% increase in employer medical costs. However, low utilization led to adjusted estimates in the medical cost trend to 7.5% for 2010 and 8% for 2011 before benefit plan changes. The end of subsidized COBRA coverage in 2010 is offsetting otherwise rebounding utilization growth rates so far in 2011, but employers and health plans expect pent-up demand to put upward pressure on medical costs in 2012.

To help employers design their health benefit, PwC’s Health Research Institute provides annual estimates of how private medical costs will grow over the next year and what the leading drivers of the trend are expected to be.

In this year’s report, PwC identifies three factors that are likely to inflate the medical cost trend in 2012:

We can show you how to save money on your health care costs:

Group Health Plans

• Small Business (2-50 Employees)

Individual / Family Health Plans

• Standard Health Insurance
• Children Only Insurance
• Health Savings Account Plans

Healthcare Costs Trends Slow Down

Healthcare costs continue to rise, but at a declining rate, according to a report by the S&P Healthcare Economic Commercial Index. The cost of healthcare services covered by commercial insurance and Medicare programs increased 5.77% in 2011. David M. Blitzer, Chairman of the Index Committee at Standard & Poor’s said, “If you look over the last year or so of data, it is apparent that the rates of increase in healthcare costs continue to slow down.” Blitzer said that most of the annual growth rates peaked in the late winter/early spring of 2010. Since then, most of these rates have fallen by two percentage points or more.

The biggest slowdown has come from the Hospital Medicare Index, where the annual growth rate fell from 8.30% in August 2009 to 1.18% in March 2011. “On the other hand, we have not seen an equal trend for the Hospital Commercial Index where the annual growth rate peaked at 9.36% in May 2010 and is still reporting a healthy 8.36% as of March 2011,” he said. Blitzer said that two things may explain this phenomenon: costs for Medicare patients are being better contained than costs for patients with commercial insurance plans. Also, hospitals are using more procedures and services covered under commercial plans, contributing to the increase in total costs.

The index is virtually back to the lowest annual growth rate in its six-year history, which was 5.76% in June 2007. The highest annual growth rate was during the 12-months ending May 2010, when it posted 8.74%. In the following 10 months, the index had a sharp deceleration, down 2.97%. Over the year ending March 2011, healthcare costs covered by commercial insurance rose by 7.57%. Medicare claim costs rose 2.78%, which is the lowest annual rate of growth posted for the Medicare Index in its six-year history.

For more information, visit www.standardandpoors.com

IRS Announces 2012 Cost-of-Living Changes for HSAs

The IRS released the 2012 cost-of-living adjustments affecting HSAs. The HSA contribution limits and HDHP out-of-pocket maximums will increase slightly while the HDHP minimum required deductibles remain unchanged. Here are the details:

•    HSA Contribution Limits — The 2012 annual HSA contribution limit for individuals with self-only HDHP coverage is $3,100 (a $50 increase from 2011) and the limit for individuals with family HDHP coverage is $6,250 (a $100 increase from 2011).

•    HDHP Minimum Required Deductibles — The 2012 minimum annual deductible for self-only HDHP coverage remains $1,200 and for family HDHP coverage remains $2,400.

•    HDHP Out-of-Pocket Maximum — The 2012 maximum limit on out-of-pocket expenses (including items such as deductibles, co-payments, and co-insurance, but not premiums) for self-only HDHP coverage is $6,050 (a $100 increase from 2011), and the limit for family HDHP coverage is $12,100 (a $200 increase from 2011).

For more information visit http://www.irs.gov/pub/irs-drop/rp-11-32.pdf.

New Wage and Hour Division

The Wage and Hour Division (WHD) of the U.S. Department of Labor (DOL) underwent several new developments to be effective on May 5, 2011. The developments relate to amendments made to the federal Fair Labor Standards Act (FLSA) and the Portal to Portal Act. Based on the updated federal regulations that may be different from regulations in your state, the following illustrate some of the major provisions:

• Tips and Wages. As long as an employee’s pay (plus tips) equals or exceeds the federal or state minimum wage (whichever is higher), an employer may pay a non-exempt employee (who earns tips) less than the minimum wage and may use the individual’s tips to make up any difference. In addition, an employer should notify employees of any tip credit usage, and the employees are to keep all tips received unless tip pool amounts are to be shared among those who customarily earn tips. Also, while the FLSA does not impose a maximum contribution to a valid tip pool, an employer must notify employees of any required contribution amount. (Note: The DOL raised the maximum federal tip credit from $4.42 to $5.12 per hour.)
• Sub-minimum Wage. An employer may pay an employee (who is under 20 years of age) a sub-minimum wage of not less than $4.25 per hour for the employee’s first 90 calendar days of employment.
• Stock Options. Stock options are to be excluded from the calculation of an employee’s regular rate of pay.
• Fire Protection Activities. Regarding employees involved in fire protection activities, the amount of non-exempt work in which such an employee (considered as exempt) may participate is not limited. Regarding exempt employees engaged in law enforcement activities, however, a 20 percent limit for such work remains in effect.

More developments and updates from the WHD continue to be expected. So, in the efforts of protecting against costly compliance violations, be sure to take the time to learn about how these and other new provisions could impact your business.

Good News for Businesses, Obama signs Repeal of ACA 1099 Mandate

President Obama Signs Repeal of ACA 1099 Mandate

On April 14th, President Obama signed legislation approved by the U.S. Senate, repealing the Internal Revenue Service1099 tax reporting provision of the Affordable Care Act (ACA). The 1099 provision would have required businesses to file an extended 1099 form for payments made for goods and certain services.

Americans would be in trouble if they lost their paycheck.

70% of working Americans would be in trouble within 1 month if they lost their paycheck.

 This from a study by the Life and Health Insurance Foundation for Education. There is a GREAT need for disability income protection - make you are not left out without income.

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Many Small Business Owners Would Use Health Care Exchanges

Fifty-five percent of small business owners surveyed by Pacific Community Ventures said they would be likely to participate in the healthcare exchanges set up by the state. When given basic information about the exchanges, 55% said they would be likely to participate and 32% of those not offering coverage said they would be more likely to offer it because of the exchanges.

Also, 43% of small businesses that don’t offer insurance said they would be more likely to do so after learning about small business healthcare tax credits, according to the survey of 804 California small employers with fewer than 20 workers. However, 48% of small employers in the state are unaware of provisions in the law that will benefit small businesses.

Fifty-seven percent of small businesses don’t know about the small business tax credits they can claim this year to offset healthcare costs and 62% don’t know about health insurance exchanges.
• The survey also includes the following findings:
• 52% of small businesses that offer insurance said they would be more likely to continue providing it because of the small business healthcare tax credits
• 35% of small businesses that offer insurance said the exchange makes them more likely to continue providing coverage
• 30% said the exchange is more attractive if employee choice is included
• 45% identified as Republicans, 26% as Democrats, and 21% as Independents.

For more information on the survey results, visit http://www.pacificcommunityventures.org/insight/businesses

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