Changes for 2012

Small business owners must be aware of the 12 laws that will be in effect for 2012 that could require them to make changes to the way they manage their businesses.
(1) Job Creation: The extension of the payroll-tax cut will have an impact on job creation changes because it includes a recapture provision for employees earning more than $18,350 in wages during the extension.
(2) Worker Classification: Several states will be enforcing stricter legislation changes for misclassified workers.
(3) Deficit Reduction: The government is attempting to reduce record spending for 2012, which would result in business and personal tax reforms put in place.
(4) Immigration Reform: Many states will enforce the federal E-verify system to help decrease the employment of illegal immigrants.
(5) Employment Law: The US Dept. of Labor and states are working together to clarify for employers minimum wage and overtime requirements so employers have a better understanding of what they are getting paid.
(6) Security and Privacy: To prevent cyber violations in companies, privacy and security systems are being implemented by many states.
(7) Dodd-Frank: Businesses may be hurt by the new financial changes such as banks limiting the availability of credit or capital, or the increase of of fees for borrowing.
(8) Health Insurance: The Supreme Court is debating on the new legislation, which may have a great affect on businesses.
(9) Unemployment Insurance: There may be higher unemployment taxes and more detailed employer reporting requirements to decrease unemployment insurance fraud.
(10) 401(k) Benefit: Changes for 401(k) providers include added fee disclosures and how many loans an employee can take from their 401(k).
(11) Tax: These changes will range from higher Social Security wage base to transportation and adoption-assistance-benefit limits.
(12) W-2 Form: Employers filing 250 or more W-2 forms in the past year must include the cost of employer-sponsored health coverage on their 2012 form.

Read the full article here

Happy Holidays

   

NPD Payroll wants to use this blog post to wish all of our readers a safe and happy holiday weekend. We encourage you to use this blog post to share your holiday traditions and recipes!What are your favorite holiday movies or songs?



How Payroll Management Companies Work

Having a professional payroll manager is something every small business owner should consider. Before choosing a payroll management company, a business owner needs to be knowledgeable of how payroll managers work.

First, a business owner needs to know if they want one person managing their employee payroll, or several. This is an important process: making sure time, taxes, and pay are calculated correctly, and checks are received in time. A business owner is usually responsible for making sure their employees are paid in time, however, they may pass that responsibility onto a payroll manager in the interest of time and productivity. Payroll managers are also responsible for shifting funds so money is available to payroll, and taking note to other aspects of payroll such as insurance, retirement funds and expenditures.

Before you choose a payroll management company, remember to keep in mind what is the best for you and your employees!


Read the full article here

What You Can Do...

The holidays are about everyone coming together to help others and to spread joy. In between the stress of buying presents and decorating the house, take some time to think about what you can do for others who are less fortunate. Volunteer at a soup kitchen, join an "Adopt a Family" gift program, go to your town's website and check out their social services to see if they have any holiday specific charity programs, send holiday cards, or go caroling.

These kinds of thoughtful actions are very popular during the holidays, however try to implement them into any day of the year!

No Holiday Break from Taxes

Happy December! You are probably very busy getting into the holiday spirit with shopping, baking, decorating, and taking time off from work to spend with family and friends. However, while you are enjoying this season, please do not get too lost in the holiday planning to forget about the pending tax deadlines. Continue to manage your finances because once this month is over, you must be prepared for 2012. Here is a schedule of deadlines in 2012 that will be helpful to keep you on track with your finances.

January

By January 17, 2012, forth quarter estimated tax payments are due. Also, college student's Federal financial aid should be completed by the end of the month.

February

Early to mid February is the time to pay nonfederal financial student aid, which means students need to submit their CSS/Financial Aid Profile to be considered more for financial aid.

March

The deadline for corporate tax returns is March 15!

April

This is a crucial month! April first is the deadline for RMDs, retirement accounts must be funded by April 15th, and of course, taxes. Individual, gift, estate and trust, estimated fourth-quarter returns and more are all due this month.

To continue reading about deadlines for May-December 2012, view the full article here.

Charity Tax Tips for the Holiday Season

Did you know that contributing and volunteering to qualified charities can lower your tax bill? With the holidays coming up, and people in the spirit of giving, I thought it would be a great time to list some tax tips for contributing to charities.

1. First, choose a charity that qualifies for tax deductions, such as churches, schools, and hospitals.
2. Remember to note each deduction on the Schedule A of Form 1040.
3. If you donate to a charity and receive something in return, your deduction must be noted as the amount exceeding the fair market value of the gift received.
4. Keep a record of your transactions if you are deducting a contribution of $250 or more.
5. You can decide if you want to donate now or later  based on your tax bracket. For example, if you expect to be in a higher tax bracket next year, deductions are more beneficial to you this year.
6. You don't always have to donate money - time is valuable as well. Volunteers can't deduct the value of their services, but they can deduct the cost of transporting themselves to their volunteer session.

Tis the season for giving!

Read the full article here

The True Meaning of Thanksgiving

Thanksgiving 2011 is just weeks away, and the same two things are on American's minds: food and football. It is the day where people can eat until they cannot eat any more, and sit on the couch with a room of family members and watch the Thanksgiving football game. In between your days of cooking and looking up football statistics and making bets all for the big day, take some time to think about the real reason you are coming together with your family for this annual tradition. Thanksgiving is a day to give thanks for everything you have been blessed with, such as the people you are sharing the day with, and the food you are able to have. Some people may have differnent things to be thankful for, whatever they are, keep them in mind along with how much you are going to eat and if your team will win.

Tax Deadlines Extended After Storm for NY, NJ and CT

The 2011 Autumn Snow Storm has caused an extension in payment and filing deadlines for taxpayers in areas directly affected by the snow storm. The areas include 13 counties in New York, and the states of New Jersey and Connecticut. New York deadlines have been postponed until November 16. 2011. Taxpayers do need to pay attention to the exceptions- not all of NY taxes are included in the extension, for example, withholding taxes on employees are not included. New Jersey's deadline is November 7th, and Connecticut's was postponed to November 15th.
Taxpayers who e-file or use web file returns and who are eligible for relief, need to note the   instructions  on the New York State Department of Taxation and Finance. Write "October Snow Storm" on the top center of the front page of any tax document along with a brief explanation of the circumstances that kept them from meeting the tax deadline. This information should not be written on the envelope.

Read the article here

Preparing for Tax Season

It is crucial to complete all of your tax forms well before the deadline to avoid the last minute crunch. Waiting to fill out all of the W-2s and 1099s for the minute before the deadline will only increase the amount of pressure from tax season, and your stress level. It is helpful to create an organized process that works for you, so that compiling documents and numbers and making decisions doesn't become a snowball effect of stress and chaos. There are five steps you can take to make your tax preparation manageable.

(1) Gather your receipts to know all of your deductions

(2) Make a list of all your income sources - employers, banks, mutual funds, etc.

(3) Consider an IRA contribution

(4) Review your withholding instructions

(5) Learn from this year and create a better system for next year.

Read the article at Forbes.com

Tax Cut Extension Supports Small Business

President Obama's American Jobs Act will cut employer and employee's tax contributions from 4.2 percent to just 3.1 percent.

For the 22 million small businesses, this tax relief will allow both the employers and employees to be paid portions of the FICA contribution. The employer will see their tax liability decrease, which will help small businesses grow long-term.
The tax relief will extend to four different types of business structures: sole proprietorship, partnership, corporation and Limited Liability Company. Each structure pays the same amount in FICA taxes, and each has certain advantages and disadvantages.

 Millions of businesses will generate economic activity and help the economy return to prosperity from the tax relief.

For more, read

Obama vs. Romney

Obama's key argument in the upcoming presidential campaign: accusing former Massachusetts Gov. Mitt Romney of "flip-flopping".

David Axelrod, Senior Obama strategist, says that Romney has changed positions on a series of issues such as his stance on taxes, health care and trade with China.

"On health care, [Romney] continued to assert that his program, which was a model of our health program, was for the state of Massachusetts and that every state has to develop its own program," Axelrod said. "But in 2007, he told Newsweek that the Massachusetts plan would be a 'model for the nation'".

This leads Axelrod to question if Romney can be trusted as president.

"If you are willing to change positions on fundamental issues of principle, how cane we know what you will do as president?" Axelrod said.

At the GOP debate, Axelrod listened to Gov. Romney repeatedly talk about the middle class, however, his program does not benefit this group of people.

"When you look at his program, what you find is that.. the tax benefits largely accrue to corporations and upper income Americans. When you get down to the middle class, it means a $50 tax cut for the typical family," said Axelrod.

The Obama Administration estimates the tax cut extension will give workers an extra $1,500 in tax savings. However, Romney does not believe the extension will be a solution. Romney referred to Obama's payroll tax cuts as "temporary little Band-Aids". He is in favor of keeping taxes and burdens down on American businesses and employers. Rather than an extension, Romney prefers "permanent changes to the tax code". 

Senior Romney campaign adviser Eric Ferhnstrom responded to Axelrod on Twitter: “Mitt Romney believes this election is about saving America but @davidaxelrod thinks it’s about saving Barack Obama’s job.”

Further Reading: Washington Post , ABC News

Tax Holiday Extension to Avoid Recession

With the risk of another recession, businesses have been hesitating to hire. The unemployment rate was 9.1 percent for a third straight month in August. Even with the return of state government workers in Minnesota increasing payroll, the results were not repeated in September. The U.S. economy provided 103,000 new jobs in September, however, economists estimate it will take at least 100,000 new jobs every month to decrease the unemployment rate.
This is why the payroll tax holiday has been extended. Obama implemented the extension so businesses can add new workers, or raise salaries for existing employees. Businesses will have this privilege if they increase their payrolls by $50 million from the previous year. According to U.S. economist, Mark Zandi, a key attribute of the payroll holiday is that it is straight-forward and will help businesses without complicated direct-assistance tax credits. The payroll tax will be reduced from 6.2 percent to 3.1 percent for 2012.

For further reading: Gain in Payroll , Zandi , Snap Analysis

CT Unemployment Benefits to Rise $18 a Week on Oct. 2

On Monday, September 26th the Connecticut Department of Labor issued a press release that announced Unemployment Insurance benefits maximum will rise from $555 a week to $573. This increase will go into effect Sunday, October 2nd.

This means anyone applying for new unemployment benefits on or after Oct. 2, 2011 will receive the revised rate. New claims filed before this date, as well as those currently collecting unemployment benefits, will not receive the revised rate. Also unchanged is the weekly dependent allowance, it remains at $15 per dependent with a $75 maximum.

An increase in unemployment benefits is limited, by law, to $18 a week or 60 percent of the average wage - whichever is less. This revision was based on average manufacturing wages from the year ending June 30, 2011. These earnings averaged $995.88 a week in 2010-2011, up about 3.9% from the 2009-2010 average of $958.52.

Previously, unemployed workers in Connecticut would receive 26 weeks of unemployment insurance benefits, but Congress approved an extension of up to 99 weeks in states with high unemployment rates. In August the Connecticut unemployment rate was 9 percent. The year ending on August 31, 2011 saw unemployment benefits average $301 a week with claimants receiving benefits for an average of 19.6 weeks. This is a slight increase from last year's averages of $297 a week for 18.6 weeks.

According to the press release:
"Regular state unemployment benefits are funded by a separate assessment paid by 98,300 Connecticut employers. The tax is based on the first $15,000 of each worker's annual wages."

After reviewing the press release, especially the above paragraph, we do not believe that this $18 increase will affect how much our clients are paying into the unemployment benefits fund. We'll keep monitoring this situation and alert our clients to any changes.

Further Reading:
CT DOL Press Release 9/26/11 (opens as .PDF)

Special Assessment for Connecticut Unemployment Insurance

We've received a few inquiries this month about the Special Assesment for 2011, which occurred in August. While payment was due on August 31, we at NPD want to better inform our clients and other business owners in Connecticut about what they paid into.

The Connecticut Unemployment Trust Fund became insolvent on October 13, 2009. In layman's terms this means the fund is no longer able to pay out to the state's unemployed. The reason behind the fund's insolvency is an increase in workers filing for unemployment insurance benefits. There were about 40,000 filings in 2007, which has since grown to 130,000. The trend continued this year, and unemployment insurance payouts will greatly exceed tax revenue.


Paying out unemployment benefits is a legal requirement for the state of Connecticut and to keep in compliance with the law the state is borrowing funds from the U.S. Department of Labor. Connecticut has borrowed about $810 million and it is projected that in the next 2 to 3 years that number could reach $1 billion.

This loan is structured in a different manner than most federal loans. The American Recovery and Reinvestment Act of 2009 includes a provision that waives interest on unemployment insurance loans through 2010. However, interest will need to be paid in 2011 and moving forward (as well as repayment of the outstanding balance).

State law allows for annual Special Assessments to be collected from employers to make interest payments. This law excludes entities that reimburse the state for unemployment costs to former employees dollar-for-dollar.

Employers are already aware that the assessment was sent out on August 1st with a payment date of August 31st. The total for the 2011 Special Assessment is around $30 million. The average amount due from each employer varied based on amounts borrowed and total active employees as of August 2011.

Connecticut is one of 33 states to borrow money from the federal government for unemployment insurance payments, the total amount borrowed will near $4 billion  in the next two years. Additionally, states with outstanding loans for two consecutive years must make additional payments into the Federal Unemployment Tax Act system. The FUTA rate for 2011, due January 2012, will increase from 0.8% to 1.1%. Paying into FUTA pays down the loan principal, and the increase in tax rate is approximately $21 an employee. These payments will be applied to the loan balance, reducing the loan principal.

We hope this explanation was useful to you, as it affects all businesses in the state of Connecticut. If you have any other questions regarding the Special Assessment or the FUTA tax rate increase please contact NPD Payroll and we'll gladly help out.

Further Reading:
CT Dept. of Labor "Special Assessment At-A-Glance"

New Client Spotlight Video: Playhouse on Park

Last Thursday our cameraman was invited to the Playhouse on Park in West Hartford to film our second client spotlight video. Co-founders Tracy, Sean, and Darlene were gracious enough to sit down for an interview and let our cameraman into a closed-set dress rehearsal for their latest play, Around the World in 80 Days.

Over their first two seasons the Playhouse on Park has consistently put together a plethora of entertainment, from plays to musicals, comedy nights, cabarets, childrens theatre, and more. Their hybrid casting model affords local actors the opportunity to share the stage with a variety of professional performers, including Broadway actors. Working together with local restaurants, businesses, and schools their goal is to bring the community together over great theatrical productions.

I have personally attended their performances, as have other employees of NPD Payroll, and I can tell you first-hand that the Playhouse Theatre Group does a fantastic job. Their diverse selection of performances and training courses afford opportunities for both entertainment and education to children and adults alike. If you're local to the area I recommend that you take the time to check them out.

NPD Payroll provides a service to the Playhouse on Park, but it's more than a business relationship. We are supporters of local theatre and are happy that we can help the Playhouse with their day-to-day operations.

Thanks again to Tracy, Sean, and Darelene and please visit the Playhouse on Park website for more information. Around the World in 80 Days opens tomorrow, Saturday Sept. 17th for a six-performance engagement.

NPD Celebrates National Payroll Week!

The NPD office has been buzzing with excitement the past few days because of National Payroll Week. This celebration is sort of like our Christmas, as it highlights not only the hard work of payroll professionals but also the American worker. There are over 156 million employed Americans and we proudly help a portion of them access their wages.

American payroll professionals collect and report 71.9% of all federal revenues ($1.7 trillion annually), and it is our task to process wages, report earnings, and withhold employment taxes. NPD is staffed with highly skilled professionals who are required know all local, state and federal tax rules and regulations. Have you ever wondered what percentage of your salary should be deducted for FICA, SS, MED, and 401(k), much less what these abbreviations mean? Where does your money go between "gross pay" and "net pay"? Is the right amount of federal and state income tax being deducted? These are all questions that we have to answer on a daily basis at NPD Payroll.

National Payroll Week is also an opportunity for the uninitiated to become informed about how payroll works. I'd encourage you to check out the National Payroll Week website to find out more about this yearly celebration and learn more about your paycheck. While you're there be sure to take the "Getting Paid in America" survey for a chance to win a trip to Las Vegas.

Also in celebration of National Payroll Week, NPD is offering a special for new clients:

Become a Client of NPD Payroll Before December and get FREE End-of-Year Processing!

Become a Client of NPD Payroll After January and receive 2 Months of FREE Payroll!

For more information about National Payroll Week, to talk about your paycheck, or to become a client please contact us at (860) 284 0152 or send an email to fzeller@npdpay.com or sbanever@npdpay.com

Beyond the Paycheck: The Story of Mark Kelly

Writing a weekly blog is sometimes a challenging task. Staying current and topical often means a lot of searching for online resources regarding payroll and HR. During my usual Google News search for "payroll" I came across an article that stuck out among the rest. While it only mentions payroll a few times, I thought this was a touching story that more people should be aware of. This is the story of Mark Kelly and his battle with ALS.

Mark has been a police officer in Mesa, Arizona for six years. For over two of those years he has been dealing with the symptoms of amyotrophic lateral sclerosis; commonly known as ALS or Lou Gehrig's disease. Normally this would mean that an officer in Mark's situation would have to take a medical retirement. But being on the force only six years would mean that Mark, his wife Elizabeth, and their five children would have to live on about $600 a month provided in the retirement package. Since July of 2010 Mark has been unable to work, confined to a wheelchair as he perseveres in the face of an uncurable disease. A medical retirement seemed inevitable.

However, if Mark were to die as an officer his family would be provided full retirement benefits, about four times the amount of a medical retirement. The Mesa Police Association rallied around one of their own and donated their unused vacation time to keep Mark on the payroll. Hearing of his situation, firefighters and other Mesa city employees began donating their vacation time. Over the past year thousands of hours have been donated to Mark, enough to keep him on payroll for the time being.

In February Mark was down to 200 hours of donated time, leaving him five weeks away from a forced retirement. Using an eye-tracking computer he typed a plea out to his Facebook friends, one letter at a time:

"Medical bills and living with ALS have depleted our funds to the point we are living paycheck to paycheck... The only life insurance I have is through the city. So in order to help my family I need to die working for the city, which is sad."

The response to his heartbreaking message was overwhelming; nearly 270 city employees donated more than 2,737 hours to Mark. Enough to keep him on the payroll for the next year. Unfortunately, Mark's time with his family can't be measured in years. Mark is now completely paralyzed, has a machine forcing air into his lungs, and is on a feeding tube because he can no longer eat. Mark's time is almost up.

The community response to Mark's situation tells me that there are still good people left in the world. Let this story serve as a reminder that your co-workers may be going through difficult times, and that when they ask for help you should be there to heed the call. Friends, family, co-workers, and even complete strangers came to the aid of Mark Kelly and his family; consider doing the same and reaching out for a cause that you feel strongly about.

Weathering the Storm: Is Your Business Prepared?

On August 21st Irene became the first hurricane of the 2011 Atlantic hurricane season. A few days later, on August 24th, Irene was upgraded to a major hurricane and poses a serious threat to civilization in the Caribbean and the East Coast of the United States. Currently we here at NPD Payroll are preparing for the possibility of Hurricane Irene affecting not only our day-to-day operations, but the businesses of our clients.

As both an individual and a business there are several steps you should take to prepare for potentially dangerous weather. We recommend you visit the following websites for hurricane preparedness:
National Hurricane Center
NOAA Tropical Cyclone Preparedness Guide

NPD is currently taking all precautions to protect customer data, including both in-house and off-site backups. We've alerted our customers via email regarding their options during possible electrical outages, made it known that we plan to operate business-as-usual come Monday, and provided emergency contact phone numbers and emails if it's absolutely necessary to contact NPD over the weekend.

Not only should your business be prepared for meteorological storms, you should also be prepared to weather the storms that affect your bottom line. Surviving in a down economy, keeping up with the latest technology, appeasing disgruntled clients, and managing your financials are all tropical waves that can be upgraded to hurricanes if not monitored. Much like preparing for a hurricane, your business should develop an action plan to deal with these potential situations.

While this may seem like a daunting task, having a plan laid out will help guide you during difficult periods. Owners and employees that know what to do when faced with an emergency should be better able to solve them by planning ahead.

NPD Payroll can help you plan ahead and weather the storms of business. We will work with you to developan action plan, and help you execute that plan if an issue arises. There are real people at NPD Payroll and they are available to work with you and provide personalized solutions to meet your business needs. Whatever the weather, NPD is there for you.



Teamwork: Not Just for Athletics

More than 2,500 years ago the ancient Greeks began developing athletic competitions at Olympia. But around the same time, about 5,300 miles to the east, the Chinese were practicing a ritual that would become a modern sport. On the banks of Dongting Lake and the Yangtze River crews of twenty to fifty would gather to row their Dragon Boats.

The ancient Chinese believed that dragons were the protectors of rivers, lakes, and seas as well as clouds, mists, and rain. To honor these mythical creatures boats would be adorned with decorative dragon heads before the celebration. It was believed that paying tribute to the Dragon Diety would help local farmers have a successful rice crop, as the dragon would provide water so the crops would remain fertile.

Dragon boats were seen as tradition for centuries, until the first competitive race of the modern era occurred in Hong Kong in 1976. Since then, competitive dragon boat racing has spread from the Yangtze to have a global impact. Why did I tell this story? Because NPD Payroll's own Faith Zeller is part of the Glastonbury Chamber of Commerce dragon boat team. Check out the video of their final 2011 race below:

To have a successful dragon boat racing team many moving parts must be working in sync. The drummer at the front of the boat sets the beat that the paddlers follow, which moves the boat forward. Not only must the drummer set a consistent tempo, but each paddler must be rowing in the same rhythm for the boat to pick up speed. If even one person on the dragon boat fails to work with the others the race is lost.

Cooperation in the workplace functions in the same way; if one person isn't in sync with the others then the hard work of the team is in vain. A successful employer sets the tempo for their business and will positively motivate their employees to achieve. Employees share an implicit trust, not just between them and the employer, but between each other. Trusting that your fellow employees will consistently perform at the highest level allows the individual employee to focus more on their tasks. By paddling together employees move the business forward.

No one person can paddle a dragon boat alone, and no one person can compete in business without the help of their team. Working together helps prevent your business from sinking, no lucky dragon necessary. I'll leave you today with a quote that served as a rallying cry for the Glastonbury Chamber Paddlers:

"Coming together is a beginning.
Keeping together is progress.
Working together is success."- Henry Ford

Drug Free Workplace Act

Are you familiar with your drug testing laws? The Drug Free Workplace Act of 1988 imposes certain requirements on federal contractors and recipients of federal grants, specifically to take various actions to provide a workplace free of drug use. The Act does not require, but does not prohibit, drug testing as part of such a program.

This applies to all companies receiving federal procurement contracts for more than $25,000.00, to be performed in whole or part in the United States, awarded on or after March 18, 1989, must comply with the Act. The Act does not apply, however, to subcontractors.

Requirements
Essentially, the Act requires federal contractors to certify that they have established a program to promote a drug free workplace by doing the following:

• Publishing a statement notifying employees that the unlawful manufacture, distribution, possession or use of a controlled substance in the workplace is prohibited, specifying what actions will be taken if this policy is violated and requiring that each employee receive a copy of the same;
• Establishing a drug free awareness program to inform employees about the dangers of drug abuse in the workplace, employer policies regarding the same, available counseling, rehabilitation or employee assistance programs and penalties for drug abuse violations;
• Requiring and notifying employees that, as a condition of their employment, they must abide by drug free workplace policies and must notify the employer of any criminal drug convictions within five days of the same;
• Notifying the federal contracting agency within ten days of any notice of employee drug convictions;
• Disciplining and/or requiring employees convicted of criminal drug offenses to participate in a rehabilitation program;
• Making a good faith effort to maintain a drug free workplace by implementing the program outline above.

Enforcement
Violations of the Act can result in the loss or suspension of specific federal contracts and/or debarment from receiving any federal contracts for up to five years. The Act is enforced by individual governmental contract-awarding agencies.

 

 

Despite being contracted by the government, employers and employees should be made aware of drug laws and the prohibition in the work environment. It is important to stay clean and free of any drugs that are not for medicinal purposes. keeping healthy and safe and just as important as your career.

The Employee Retirement Income Security Act (ERISA)

Did you know that there is a federal law that establishes a minimum standard for employee health benefits and retirement plans? While an employer is not required to establish a plan, ERISA does require those who establish and administer plans to meet certain standards.

Not all companies offer a benefits plan, but it's important that if they do, to ensure that the benefits of that plan is legitemate. Employers should delegate information regarding the health and retirement plans properly and ahead of time and should follow 5 simple tips to avoid a potential lawsuit, which in a recent case, Cigna v. Amara  was accused of having misleading information on the benefits plan and was sued for the described plan on the summary plan description.

• Summary Plan Descriptions. Draft and distribute SPDs that are brief and easy to read without overt contractual terms or legalese.
• Communications Officer.  Determine the company representative who will have authority over plan administration and communications.
• Regular Reviews. Routinely verify that plan documents are current and that communications are consistent and accurate with the summaries and are compliant with ERISA requirements.
• Transparency in Changes. Employee communications should fully disclose in advance any changes, especially those that may result in adverse circumstances (i.e. a decrease in benefits).
• Non-SPDs.  While an SPD may include both a complete description of the plan's terms (i.e. a Certificate of Coverage) and required ERISA disclosure language, an insurance provider's Master Contract or Certificate of Coverage itself is not considered an SPD. 

More can be read here.

New Perspectives at New Hope Manor

As Sales Manager at NPD, I am constantly visiting potential new clients and organizations that our company can get involved with. While each visit and cosultation is rewarding and educational in a unique way, this morning was particularly inspiring as I was given the opporunity to take the Journey of Hope Tour at New Hope Manor in Manchester, CT. New Hope provides comprehensive and effective treatment to young people and their families with mental health, behavioral, and/or substance abuse problems since 1971. New Hope offers a variety of services ranging from residential treatment to school-based and transitional living programs. Focused on helping their clientele build healthy relationships, their programs are designed to foster personal growth and build self-esteem, while developing the independent skills necessary for success. It was extremely interesting and eye-opening to learn about their programs; however, the most refreshing and inspiring aspect of my time spent at New Hope was the dedication of both the staff and patients to aid young people on their journey into becoming successul assets in society. It is amazing how far individuals will go to make a difference in other people's lives.

The next Journey of Hope tour is August 23rd at 4:30pm. If you can find the time in your schedule to make the visit, I strongly encourage you to go. I am confident once you learn and visit with New Hope, you will genuinely want to get involved. Below I've included the "New Hope Manor Wish List" that they include on the back of the literature you receive on your visit.

New Hope Manor Wish List

1. Ways kids can participate in the community: free or discounted tickets to events, plays, sportings game, concerts, museums, recreational activities for summer fun (mini-golf, go-karts, water parks, Six Flags, etc.)
2. Scrapbook supplies and scrapbooks.
3. Toiletries - soaps, shampoos, body lotions, boys and girls hair products.
4. Boys: boxers (men's S, M, L), t-shirts (men's M, L, XL), socks, sneakers. 
5. Ladies: underwear, socks, bras, sneakers. 
6. Workout and recreational equipment - free weights, weight benches, bags, machines. Including outdoor sports equipment - bikes, helmets, balls, basketball hoops, fishing poles. 
7. Lawn furniture - tables and chairs, picnice tables, gas grills. 
8. Indoor (gently used) furniture - sofas, chairs, love seats, kitchten tables, end and coffee tables, bedroom furniture, pictures, air conditioners. 
9. Appliances - blenders, toasters, griddles, mixers as well as washers, dryers, and dishwashers.
10. Minivan 

In addition to the above list, New Hope loves volunteers and is always looking for new mentors to share their time and talent with the kids. Any contribution you can make, be it your time or materials, makes more of an impact than you can imagine and is another way we encourage you to think beyond the paycheck.

U.S Department of Labor Launches Free Smartphone App, Made For Employees

On May 9th, 2011 The U.S Department of Labor launched its first smartphone application, nicknamed "DOL-Timesheet", this app will allow employees of any sized businesses understand their rights and empower them to take action if employers have denied them of pay for the work they have done.

This application will allow employees and employers keep track of the hourly wage, company defined work week and hours worked that week. This includes break time, meal periods, and overtime hours. The employer will also have a daily, weekly or monthly format showing the employers the hours worked and gross pay for depending on what they choose to view it as. The user will also have the ability to customize the application, allowing email updates to the user or employer. A glossary section is also included in the application which provides references and web site links to wage and hour laws. Users can also contact the Department of Labor if they have any questions regarding the application or any concerns they have about their rights.

There will be potential resistance to the use of this application at the workplace. As employers may prohibit the use of this application. There may be discrepencies between the employer and employee that cannot be resolved just based on application use. Employers should consider the pros and cons of this application as it could ensure accuracy between their time clocks and book keeping with the mobile app.

Do you believe that this app can be beneficial to you? Should employers consider the use of this application? Let us know your opinion.


This is currently available for the iPhone and iTouch.

Up to Date: Changes You Need to Know

As of July 21st, 2011, The Dodd-Frank Amendment Act to the Fair Credit Report Act(FCRA) requires employers who use consumer report with a credit score to determine job eligibility, must inform the applicant that a credit score was used, specify that score and identify the agency that was used in determining that score.

Ontop of the current fierce competition in the job market, this new requirement will further reduce the amount of applicants businesses maybe looking at for employment.

This could be a disasterous attempt at fostering the nations employment or a way to weed out canidates that may appear unfit for their position because of various reasons linked to bad credit. With the ever growing pool of resume's being sent in, it may help to reduce that pile by adding one more job requirement, but is it a good way to measure a persons ability to do the job?

Government Talks: Tax Plan

Both Republican and Democratic parties are still at a stand still on arriving at a tax budget plan. Talks still remains afloat because of the ambitious plans  Obama and Boehner has for the economy but aiming to cut the debt by $4 trillion in the next few years.

The Democratic-controlled Senate on Friday planned to dispense with a House-passed measure that would raise the debt limit by $2.4 trillion on the condition that Congress sends a constitutional balanced budget amendment to the states for ratification and approves trillions in long-term spending cuts. But Senate Majority Leader Harry Reid said "The legislation doesn't have one chance in a million of passing the senate.

One short-term plan proposed by some of the House Republicans would cut spending by $1 trillion or more immediately and allow the debt ceiling to be raised by a similar amount that will allow the government to borrow into 2012 but Obama insists on an increase that is larger that will allow for borrowing into 2013.

More can be read here.

The future of the nations economy is something that everyone should express their opinions about. Let your voice be heard, what kind of plans would you propose that will bolster the nations current economy? Do you think the government is doing a good job in handling the current situation? Express your concerns on what the government should be focusing on.

Understanding the Earned Income Credit

Did you know there are ways to help you pay the bill? With the right information you could relieve the stress of everyday bills by taking a second to read the below, you could save some money.

What is EIC (Earned Income Credit)? It is a tax credit provided to help offset the basical living expenses (including FICA taxes) of low income employees.

Are you eligible?

1. With no qualifying child: (a) must have expected 1995 earned income and adjusted gross income of less than $9,000, (b) must have lived in the US for at least 6 months, (c) must be over age 25 but below age 65, (d) cannot be claimed as a dependent by anyone, (e) cannot be the qualifying dependent child of another person, (f) must have worked and earned income even if such income is not taxable, (g) must have a filing status other than married filing separately, (h) must not be able to exclude any income that is earned in foreign countries, and (i) must file a return that covers a 12 month period; or
2. With one qualifying child: (a) must have expected 1995 earned income and adjusted gross income of less than $24,396, (b) must have the child living with him in the US for more than 6 months out of the year (12 months for foster children), (c) must claim the child as a dependent, (d) whose qualifying child cannot be the qualifying child of another person whose adjusted gross income is more than his, and (e) requirements (e) through (i) under number 1 above.
3. With more than one qualifying child: (a) must have expected 1995 earned income and adjusted gross income of less than $26,673, and (b) requirements (b) through (h) under number 2 above.

With a child the requirements are

A qualifying child: (a) is the employee's child, adopted child, stepchild, foster child, or a descendant of his child or adopted child, (b) is under age 19 or is a full time student under age 24 or is permanently and totally disabled, and (c) lived with the employee in the US for more than 6 months out of the year (12 months for foster children) or was born, or died, during the year and the employee's home in the US was the child's home for its entire life.

The above information is for those who are in a tough financial position. There are benefits which the government could provide if you are working and are barely making ends meat. With the right information and paperwork you can take advantage of these certain benefits.

More can be read at http://www.payroll-taxes.com/articles/211-the-earned-income-credit.htm.

Being Prepared: The Auditor's 401(k) Wishlish Guide

Audit deadlines for employee benefit audit plans can be a real headache. It's important to follow three simple rules if you want to save yourself and your auditors that migraine. The three important things auditors should take into consideration when working with their plan sponsor clients.

Be Prepared
Be Available
Be Proactive

Being Prepared requires being organized. Make sure to check your plan records in advance for the first auditor communication you receive. Make sure your auditor has all the necessary items to perform the audit. Procrastinating may result in scheduling delay, fees and possibly DOL penalties. Keep copies of plan documents and amendments to avoid scrambling to for information when asked by the auditor. Send all requested information from the third-party administrator all at one time, to avoid missing information or constantly sending one piece at a time. Keep plan/account transactions seperate from regular accounting files and maintain this information on a consistent basis.

Being Available means making yourself available to the auditors when they are working on your employee benefit plan audit. Sometimes important information maybe required from your auditor, lacking in communication could cause delays or misinterpreted information if your not there to provide the necessary facts. Provide your auditor with electronic access to your TPA's secure portal is a good alternative to provide information access. It is important to be able to trust your auditor as they will have access to financial data in depth or else they shouldn't be your auditor in other circumstances. It is also important to respond to your auditor within one business day as audito teams are often organized to work on your 401(k) during a set time frame.

Be Proactive so that you are on the same page with your auditors, by being engaged with them it allows you to kno where they are in the process. When there is an issue to resolve, you can work with the auditor to fix it immediately. If there you have a question, just ask, by being involved in the process you can work to remedy any possible delays or misinformation so you don't have to worry as much the closer the approach audit deadlines are.

By following these steps, you could bring your 401(k) auditors a dream come true.

Nathan Group's First Ever Video

This is an exciting week for First Global, NPD Payroll, and Nathan Accounting Group as we are launching a new initiative: Client Spotlight videos. These short videos will detail the day-to-day business of our clients and help expand awareness of their brand. We at FGMS want to see our clients grow their business and hope that these videos will entice you to become patrons.
Our first ever Client Spotlight features the wonderful Hartford Belle Cruises. This is their fifth year on the Connecticut River offering tours and private charters of the Hartford Belle. Their website provides a full schedule of cruises, however the next big event is the Fireworks Cruise on Saturday, July 9th. The Hartford Belle will anchor out on the Connecticut River so you can have a front row seat to the Riverfest ’11 fireworks extravaganza.
We really appreciate having Hartford Belle as a client and thank them for letting us come aboard for this video. FGMS, NPD, and Nathan Accounting have provided credit card processing, payroll, and accounting solutions to Hartford Belle for four years and we look forward to a continuing partnership.

If interested in participating in this new project, contact us at fzeller@npdpay.com or anathan@fgmsusa.com

New Company Spotlight: Family Adult Day Care

We'd like to introduce everyone to one our of newest clients: Family Adult Day Care!

Located in Newington, CT Family Adult Day Care provides a vibrant and home like social community for your senior loved one to enjoy their day while still receiving the the care and support they need. Staffed with trained nurses, Family Adult Day Care provides complex health-related needs while also providing a safe and comfortable environment. With an easily accesible location, handicapped accesible transportation options, delicious meals, and stimulating activties we believe Family Adult Day Care is a wonderful place for you or your senior loved ones. We can't wait to work with them and hope to aid in their success.

If you'd like more information on Family Adult Day Care we encourage you to visit their website: http://www.ctfamilycare.net/

Also, below is their brochure from their Opening Day. It provides more in depth-details and further information about their services, fees, and community atmosphere.

Wishing you all a safe and relaxing weekend wherever you may be!

Benefits of Outsourcing Your Business Payroll?

Privacy, ensuring employees salary are kept confidential from each other.

Leveling cash flow, most payroll services will pay for the payroll and payroll taxes, so when payroll taxes are due, payroll requirements do not have to be taken in account. Time

Time, a very important commodity, by outsourcing it, employee's in the office can focus on other tasks while a company like NPDPayroll can help handle all the payroll and tax's.

Avon Chamber of Commerce Event

First Global Merchant Services, Nathan Accounting Group and NPD Payroll would like to thank everybody for coming to the annual Avon Chamber of Commerce Event, it was a pleasure seeing old and new faces alike join us for a wonderful evening. We’d also like to congratulate our newest member’s who has joined our amazing group and to continue building stronger connections with The Avon Chamber of Commerce.
The Avon Chamber of Commerce is a growing innovative group with over 340+ businesses who represents over 4000+ local jobs. The Avon Chamber of Commerce is always looking to facilitate growth and find new members in joining our family. More information can be found here

Race for the Cure CT

Saturday was a perfect day to spend outside, and we at NPD Payroll spent it participating in the 18th Annual Susan G. Komen Race for the Cure. Along with around 15,000 other supporters the Nathan & Friends team gathered at Bushnell Park in Hartford to show support for breast cancer research and awareness. Check out the whole team!

We're happy to announce that the Nathan & Friends team exceeded our goal and raised about $7,000 for the Susan G. Komen Foundation. This was our 17th time participating in the Race for the Cure, and we couldn't have done it without all of our friends, family, and generous sponsors. If you didn't get to donate before race day it's not too late! The Komen Foundation is accepting donations for this year's race until June 30th. Click here to donate to the Susan G. Komen Foundation

We had a great team this year, but we're looking for even more participation in 2012. Keep checking our blog and Twitter accounts as we'll be posting more information the closer we get to the big day!

More Pictures

Check out that t-shirt!

Look who it is! Faith (@NPDPayroll) and Austin (@FGMSCCProcessor) enjoying the weather at Bushnell Park.

A parting shot of the team. Will you be in this picture next year?

Free Compliments

At many colleges today you can start a club or organization for viritually anything. A club that caught my eye at one university is the "Free Hug" club. Each Friday a pack of students stands in the center of campus with signs that read things like, "Free Hugs - One Size Fits All!" or "Got Hugs?" Without fail, these students will be out there in rain, snow, or sky-high temperatures with smiles on their faces. Initially, the idea of a "Free Hug" may seem ridiculous or boarderline creepy, but when you think about it, it's not very common in the working world to find a group of people willing to donate and dedicate a portion of their personal time simply to enrich someone else's day.

With that in mind, this past weekend a group of people in North Hampton, MA continued to extend the importance of a random act of kindness via a truck adversiting "Free Compliments"

When's the last time you were offered a free compliment?

While the beautiful sunshine in Avon, CT today may be enough to keep you smiling on this Monday, some other people might need a compliment or maybe even a hug. Remember, they're free and everybody loves them....

More Than Just a Business

NPDpayroll is part of the Nathan Accounting Group which dedicates itself to providing exceptional services to individuals and business owners. We are a full-service CPA firm and understand the importance of thinking outside the box when providing help to you or your business.

It is important to maintain a level of professionalism but also a sense of moral and ethics when conducting business in these tough times. Below is a video of what we believe is a take home message of what NPDpayroll is about and the importance of maintaining both 5 star service and what thinking outside the box can do for you.