Category Archives: Business Reports

By Brian M. Johnson

Our country is going through a dramatic demographic shift. Baby boomers are now turning 65 at a rate of 10,000 per day. With this comes planning considerations we must address to protect those we love and the assets we’ve worked for. With proper planning, generational wealth can be created and preserved; however, most people fail to address risks.

One risk that will impact nearly all of us, and potentially decimate the savings of millions of Americans is the need for extended health care or long-term care. We hesitate to use the words “long-term care,” as most associate those with nursing homes. The stark reality is that 80 percent of care is received either at home or in the community, and it’s often provided by family members or other informal caregivers. This raises a few questions:

• Do I want to burden loved ones with my care or would I prefer they supervise the care?

• Do I want to stay home as long as possible?

• Do I want to protect my assets for my children, grandchildren or other philanthropic causes?

• How long can I afford to pay for care out of pocket and how would those costs impact my priorities?

By Michael Billok

You just started your own small business. Congratulations. Maybe it’s a delivery service, a retail store or a carwash. Regardless of what it is, you’ve learned the hard way how difficult it is to be an employer.

You’ve arranged for workers compensation insurance, unemployment insurance, payroll tax withholding, work authorization verification, and a host of other regulatory requirements. Well, get ready for one more: scheduling requirements for employees that, if not met, will significantly impact your payroll.

Currently, there is only one “call-in” pay requirement: non-exempt employees who are called in to work for something that isn’t quite their regular shift are currently entitled to call-in pay equal to: (1) the lesser of four hours of pay at the minimum wage or (2) pay for the number of hours in the regularly-scheduled shift at the minimum wage, whichever is greater.

By John Conroe

Do you wait for May to take down your holiday decorations? Coast up to the gas pumps with your tank on empty? Put off grocery shopping until the only food in the fridge is leftover meatloaf? Then chances are you’re a procrastinator.

When it comes to managing your finances, procrastination can put you at risk financially and keep you from reaching your goals. If your financial checklist seems overwhelming, remember that you don’t have to do everything at once. Performing tasks throughout the year can make managing your finances easier.

The Winter Months.

Reviewing and updating your spending plan in January can get the year off to a good start. Track last year’s income and expenses and adjust your plan accordingly. Determining your net worth—your assets minus your liabilities—at the same time each year provides a snapshot of your finances.

By Jane Marie Schaeffer, Esq.

As you approach retirement, you will be faced with choices about your IRA plans, and you will have many questions, such as how much will you be required to withdraw every year, and how will your distributions be taxed. This article will address some of those questions, and give you the information you need to make smart choices about your retirement plan.

1. When do I need to take withdrawals from my IRA?

You need to start taking distributions from your IRA the year that you turn age 70½. The distributions that you are required to take are called Required Minimum Distributions, or RMD. The distributions must be taken by April 1 of the year following the year in which you turn age 70½. So, for example, if you turn 70 on June 1, then you will turn 70½ on Dec. 1. You will need to take a RMD for 2018, but you have until April 1, 2019, to take the distribution. After the first year, distributions from your IRA must be taken by Dec. 31 each year.

By robert l. kind

As the new tax reform took shape in late 2017 and then was approved just a few days before Christmas, contractor services team were examining what elements could have the most impact on contractors and small business owners.

What is commonly being called the Tax Cut and Jobs Act (TCJA) of 2017 has caused a lot of discussion on whether companies will come out as winners or losers in 2018. While it has enhanced some tax breaks for contractors, it has also reduced or eliminated others.

Let’s start with the good news first. Here are some of the positive outcomes we think may be coming contractors’ way with the new law.

Expanded use of cash basis accounting method

Many contractors with average receipts over $10,000,000 have been required to use the percentage of completion method for tax purposes. The TCJA provides that, for tax years beginning after Dec. 31, 2017, taxpayers that have average annual gross receipts of $25 million or less during the preceding three years are not required to report on the percentage of completion method and can elect to be treated on the cash basis of accounting. The cash basis of accounting should present a more favorable deferral of income for a contractor.

An overlooked part of the hiring process is the reference checks.  In large companies, we sometimes leave this to HR.  In smaller companies (and the large ones too) we leave this to the end of the hiring process.  You know, when you say, I want to make an offer to this person, “Let’s check references.”

This shortchanges the reference process is several ways.  First, we have fallen ‘in love’ with this candidate. That makes us have ‘happy ears’.  We don’t hear warning signals.  We ask inane questions.  “would you hire this person again?  What were his/ her challenges in their position?  And others like that.

And, we are asking these questions of the people that the candidate gave us.  Face it, the candidate can find three people to say nice things about them.  Even then, they have been trained by lawyers never to answer real reference questions.

By James Marco

On Nov. 6, 2017, Albany County Executive Daniel P. McCoy signed an amendment to Albany County’s Human Rights Law that prohibits employers from inquiring about a job applicant’s wage history until after a job offer has been made.

The law went into effect 30 days later. Albany County now joins the cities of New York City and Philadelphia, and states of Massachusetts, Delaware, Oregon, and California who have similar laws.

While salary inquiries have often been used by employers to weed out candidates they consider too expensive, or as a checkpoint for someone that is simply looking to increase their salary, this new law is really an opportunity for employers to take control of this topic.

Without accurate market data, a sound compensation philosophy, and a strategy by which to execute a well-designed compensation system, employers may guess wrong and either miss out on a qualified candidate, or pay too much for a skill set they think they need.

It is Board transition time.  I recently ran into a friend who was celebrating rolling off a nonprofit board.  That also means there is a new member coming onto that board.

We generally accept board seats because we want to give back to our community.  You are identified (and recruited) to join the board because you have business expertise they want.  We accept the role because we have expertise that will enable a nonprofit to operate better.  And, board seats require our financial support.  So, we do not (and should not) accept the board responsibility lightly.

What is your role as a board member?  It should be to provide guidance to the mission of the organization.  The executive director reports to the board.  Therefore, you become his/her ‘supervisor’.  It requires us to make personal donations.  It also requires us to ensure the organization has a solid strategic plan.  Most importantly, it requires us to ensure that the nonprofit has the resources to accomplish its plan.  All of these responsibilities are covered clearly by the Independent Sector, a national nonprofit dedicated to effectiveness of nonprofits throughout the U.S. in an article called “The Principles for Good Governance and Ethical Practice” that can be found at www.independentsector.org.

By Frank Mayer

Many human resources professionals are struggling to fill open positions these days. At the same time, the tuition cost for individuals who are pursuing undergraduate or graduate degrees is daunting. One solution that may be a “win-win” for employers and employees is an educational assistance plan.

An educational assistance plan involves the employer agreeing to pay on behalf of, or reimburse, the employee for tuition costs when the employee is taking certain qualifying courses. If structured properly, employer-paid educational expenses may be excluded from the gross income of an employee if provided to the employee under an Internal Revenue Code, Section 127 educational assistance plan, commonly referred to as a “127 Plan,” or if the expenses qualify as a working condition fringe benefit to the employee, under Code Section 132.

This type of educational assistance is a much greater benefit to the employee, and a better retention tool, if the employee doesn’t have to pay income tax on the amount of assistance they receive.

Section 127 Plan. A properly drafted 127 Plan provides an exclusion of up to $5,250 annually from an employee’s gross income for the payment by an employer of certain educational expenses incurred by or on behalf of an employee. The amount excluded from the employee’s gross income includes the cost of tuition, fees, books, supplies and certain equipment.

While the excludable coursework does not need to be job related, no exclusion is available for education involving sports, games or hobbies (unless the education involves the business of the employer or is required as part of a degree program). In addition, no exclusion is available for the cost of meals, lodging and transportation or any payment for the cost of tools or supplies that may be retained by the employee after completion of a course. A qualifying 127 Plan must be a separate written plan and must satisfy certain employee nondiscrimination requirements.

By Dr. Diane MacDonnell

There is a silent epidemic of inflammation that wears many masks and goes by many names. Cancer, heart disease, thyroid disease, Alzheimer’s, multiple sclerosis, inflammatory bowel disease, allergies, asthma and a host of others diseases all have a major inflammatory component.

Every major disease, those diseases that steal our wellness, our vigor and sometimes our very lives, are fueled by inflammation and a resulting immune dysfunction.

Autoimmune disease, which can be considered inflammation gone unchecked for a lengthy period, occurs when the immune system is so reactive and overwhelmed by toxins such as food allergies, environmental toxins, undiagnosed viral or bacterial infections and stress, that it begins mistaking the body’s own tissue as “the enemy” and produces antibodies against thyroid, gut, joint, brain or other tissue. This “friendly fire” leads to tissue damage and the evolution of autoimmune disease. It is estimated that 24 million people in this country now suffer from autoimmune disease.

Physicians are trained in treating this inflammatory response without necessarily getting to the root cause of the inflammation. Conventional medicine does not recognize autoimmune disease as a disease of the immune system as a whole; rather, patients will typically see a specialist who focuses on the organ that is being affected: an endocrinologist for thyroid disease and diabetes, a rheumatologist for rheumatoid arthritis affecting the joints, a dermatologist for psoriasis and eczema, a gastroenterologist for celiac and inflammatory bowel disease.