Table of Contents
Cover Story:
Small Business is BIG Business
In Rockland, small businesses are the engine that drives the economy
RBD Round-Up:
How'd He Do That?
The interesting rise of Mal McLaren
RBD Business Survey
How do you communicate?
DEPARTMENTS:
Economic Round-Up
• The Smart Investor
Your portfolio is doing great, so why rebalance?
• Economic Viewpoint
The U.S. Attraction Factor
Business Round-Up
• Down, But Not Dirty
The best way to handle company layoffs is to provide options
• Marketing By Design
The top 15 campaigns of the last 100 years. You know them all, but why?
• Receivables
One of the largest headaches for small businesses
Ask The Experts
• Talking Taxes
• Payroll: Key Issues
• Workplace Hotline
Invest in Your Community
• Where's the Fire?
Rockland Volunteers - increasing efforts and awareness
Odds & Ends
• The Last Minute
• Rockland Newsmakers
Dedicated Section:
Rockland Business Association:
The President’s Desk
New Healthcare Tax
will hurt small and midsized businesses. Here's how.
RBA/United Way Golf Outing
The Rockland Open: Monday, May 21st
RBA Happenings
• Committee and Council Info
• Calendar of Events
• New Members
Ask the Experts:
Talking Taxes, Key Issues in
Payroll, The Workplace Hotline
Q: My health insurance costs are extremely burdensome. Is there any tax planning that can be done to help alleviate some of my medical costs?
A: People who have a high deductible health plan (one with an annual deductible higher than $1,100 for individuals or $2,200 for families and for which annual out of pocket expenses under the plan do not exceed $5,500 for individuals and $11,000 for families) should consider opening a health savings accounts (HSA). Similar to an individual retirement account, an HSA allows the taxpayer an above the line deduction for contributions made into the HSA.
Contributions into an HSA for 2007 are capped in strictly dollar terms—$2,850 ($237.50 monthly) for self-only coverage, and $5,650 ($470.83 monthly) for family coverage. The contributions to the account grow tax free, and any withdrawals from the HSA to pay qualified medical expenses are not taxed to the HSA account owner when withdrawn. Contributions to your 2007 HSA can be made until April 15, 2008 to be deductible on your 2007 tax return.
Q: Should married couples always file a joint tax return?
A: In most circumstances married couples benefit from filing a joint tax return; however, there are certain occasions when filing separately can be beneficial. One such situation is where both spouses are income earners and one spouse has extremely high medical expenses. Medical expenses are deductible to the extent that they exceed 7.5% of adjusted gross income (AGI). Therefore the separate filings will create lower AGI’s on each tax return, allowing for a greater medical expense deduction and higher overall tax savings. Consult your tax advisor to see if filing separately makes sense for you.
Andrew Rotter, JD, CPA and Patrick Daly, CPA are tax professionals at Citrin Cooperman & Co., LLP, an accounting and consulting firm with offices in New York City, White Plains and Springfield, New Jersey. Their radio show, Talking Taxes, can be heard weekly in Rockland County on 1300 am, WRCR, from 10:07 am to 10:30 am on Mondays. You can reach them via
e-mail at talkingtaxes@citrincooperman.com.
Key Issues Concerning Payroll in 2007
Q: As a business owner what are the most prevalent issues I should be aware of as far as payroll for 2007?
A: In order to handle payroll you need to be abreast of every payroll related law and figure in order to insure compliance with the federal and state government. There are however a few changes for 2007 every business owner should be aware of even if they are not intimately involved with payroll.
The most significant changes for this year in our area are the maximum taxable earnings for social security and New York state minimum wage. The maximum taxable earnings for social security was raised from $94,200 to $97,500 last year, and NY minimum wage is up to $7.15 an hour from $6.75.
Q: Are employers required by law to honor wage garnishment orders?
A: Yes. The Family Support Act of 1988 requires employers to calculate, deduct, and disburse court-ordered garnishments from an employee's earnings. In addition to facing fines and penalties, a company that fails to garnish the proper deductions may become responsible for its employees' actual payments.
Q: What kind of new hire information do the states require?
A: According to the minimum standards required by federal legislation, your new hire report must contain the name, address, and social security number of the employee, along with your company name, address, and Federal Employer Identification Number (FEIN). However, you should check with the agencies in the states where you report new hires, since they may require additional information.
Scott Leopold is District Manager for Automatic Data Processing, Inc. (ADP). He can be reached by phone at: (973)739-3125 or via e-mail at: scott_leopold@adp.com.
Q: We just fired one of our employees for stealing from the company, keeping articles which were returned by customers. Do we have to pay him for his unused vacation time? Can we offset what we owe him with what he stole?
A: Unless the written policy provided to employees or posted says that employees terminated for misconduct will not be paid for unused vacation at termination, you are required to pay employees for unused vacation. Any ambiguity will generally be interpreted in favor of the employee. You cannot deduct the cost of what he has taken. However, you can pursue recovery of the stolen goods both by bringing a civil action or filing a criminal complaint.
Q: One of our employees has been coming to work smelling of alcohol. A number of coworkers complained. When we approached him, he said he needed some time off to “get his act together” and wanted to check into a rehab. What are our obligations?
A: Both the Family and Medical Leave Act and state and federal human rights laws require leaves of absence to accommodate disabled employees, including those dependent on alcohol. Leaves may be unpaid.
On the other hand, consistent with your policies and past practice, employees, including alcoholics, may be disciplined for violating work rules, including reporting to work under the influence of alcohol or drugs, if you have such a rule.
Q: We made a written job offer to an applicant to start work on a particular day, which she accepted. Since then, the applicant has been unable to start due to childcare problems. She keeps putting us off. As this is getting to be ridiculous and disruptive, how long do we have to hold the job?
A: It really depends on whether the employee’s starting date is clearly spelled out in your offer letter. If it is, I suggest that you either inform the applicant that she must report immediately or simply withdraw the offer. Whichever you choose, it should be done in writing.
Q: Some of our employees are curiously absent on the day before or after long weekends whenever a holiday occurs. Can we have a policy requiring employees to be at work both the day before and after a holiday in order to be paid for the holiday?
A: Yes. As long as a policy is in writing and provided to employees, such a policy is enforceable.
Robert Heiferman is a partner in the law firm of Jackson Lewis LLP in White Plains, the nation's largest law firm representing management exclusively in workplace law and related litigation. The Workplace Hotline is a column devoted to answering questions in the area of personnel and employment law. It is not a substitute for legal advice on specific matters.
