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