(1 votes, average: 5 out of 5)
Loading ...The Present State of the 401-K
A few new findings that you should know:
Audit Programs:
A 401k audit is most likely going to become part of your future this year. A recent United States Supreme Court ruling has paved the way for retirement plan participants to sue the sponsors of retirement plans for losses incurred if any fiduciary misconduct or mismanagement can be shown. In order for companies to protect themselves from such litigation, a 401K audit is going to have to be carried out, and the estimated cost of such audits are running about $15,000. This is a considerable expense, but the risk of a lawsuit could be so much greater. Can you afford that risk???
The best way to avoid exposure is to discuss with CBR the advantage of shifting the risk and liability for your 401K over to CBR and completely removing yourself from the risk of getting sued. How is this possible? It is possible through the Multiple Employer Plan, or MEP. The MEP allows many employers to have their own plan, administered by CBR without the risks. The CBR MEP has features that protect our client companies from traditional fiduciary and plan trustee liabilities. If your current 401(K) plan is out of compliance, employees are able to pierce the corporate veil and go after the personal assets of the plan sponsor-usually the business owner.
I also saw this recent survey from BLR.com:
"A survey of compensation and HR professionals indicates that 80% of employers have maintained their matching contributions to employee 401(k) plans throughout the recession. What’s more, of the organizations that suspended their match, half say they will consider reinstating it this year. "
Posted February 8th, 2010 by Jessica Spinks - Posted in 2009 Money-Saving Strategies, Wages | | 3 Comments
(2 votes, average: 5 out of 5) Loading ...10 Problems a PEO can Solve
Found this on Facebook…
1. Time
PEO’s remove non-productive tasks that take away time and resources so you can focus on bottom line activities such as strategic planning, marketing, and customer service. Could you make more money if you had time to work your business? Time is money in business.
2. Cash Flow
PEO’s improve your cash flow by integrating most of your employee cost-centers into a single cost factor; including employer matching FICA, FUTA, SUTA, Work Comp, Administrative Overhead, and employee benefits. Your cash flows in "real-time" right along with your business income.
3. Workers’ Compensation
PEO’s make buying and maintaining work comp easier than ever. No more BIG down payments. No more year-end premium audits. Because your work comp is built into your PEO rate, you pay as you go which frees up more dollars for company growth.
4. Employee Benefits
Most PEO’s have many "turnkey" benefit plans in place for your employees. Imagine instantly adding a 401(k) plan, a Section 125, Group Health, Vision, Dental and Life, and other valuable benefits to your business without spending a fortune. Best of all, the PEO’s manage the programs, payroll deductions, and benefit records, making employee benefits easier than ever to provide and manage.
5. Government Compliance
PEO’s simplify all the rules and regulations associated with employing people. They can assist you in complying with all federal, state, and local laws and statutes. PEO’s provide you with legally required employee forms and paperwork. They even maintain and store your employee files.
6. Human Resources
7. Operating Leverage
8. Employee Turnover
9. Risk Management
10. Payroll & Taxes
Posted November 6th, 2009 by Jessica Spinks - Posted in Benefits, Customer Service, Health, Human Resources, Immigration, Performance Reviews, Productivity, Recruiting, Wages, Workers' Comp | | 0 Comments
(1 votes, average: 5 out of 5) Loading ...Save a buck or maybe two…
We all need to save a buck or two in this economy. Have you looked at your vendor relations lately? There are some really simple ways to cut some of your monthly costs that would take an hour of your time to examine.
- Call your cable and internet provider and ask if there are any special promotions going on right now?
- Take a look at your companies cell phone plan. Are you using all of your minutes, texts? I guarantee there is at least one way you can save money.
- Stop buying bottled water, and use filters. Give your clients a glass of water when they come visit.
- Look for coupons for your office supply order and actually use them!
- Revisit your vendor contracts and see if you are still using all of the services you are paying for.
You see not enough people take the time to do this and what the worse they can say? No? Its really not that bad.
Posted July 16th, 2009 by Jessica Spinks - Posted in 2009 Money-Saving Strategies, Wages | | 0 Comments
(2 votes, average: 4.5 out of 5) Loading ...Layoffs, furloughs, pay cuts can result in lawsuits
Friday, May 15, 2009
Layoffs, furloughs, pay cuts can result in lawsuits
Phoenix Business Journal - by Mike Sunnucks
The recession has many people feeling like they’re living the life of characters in the anticorporate movie “Office Space,” with consultants and managers looking to cut costs everywhere possible and workers fretting over furloughs, pay cuts and layoffs.
For employers, these cost-cutting measures involve plenty of potential legal pitfalls, including companies getting sued for targeting a specific group or type of worker with layoffs, and businesses being forced to shift all of their workers to an hourly pay basis because salaried workers were checking their business e-mail or voice mail while on mandated furloughs.
A number of Valley employers — including Arizona State University and The Arizona Republic — have put workers on forced unpaid leave to save money. The biggest legal problem related to furloughs is that employers might get in trouble with the U.S. Department of Labor if salaried workers do any kind of work during that forced off-time, said Christy Hubbard, an employment attorney with Phoenix-based law firm Lewis and Roca LLP.
Hubbard said salaried workers who do a glimmer of work during their unpaid furloughs — including checking e-mail or voice mail — can spark complaints to the DOL or lawsuits. Those actions can lead to businesses losing their ability to employ salaried workers and force them to pay hourly wages, even to professional staff. Such a circumstance could be a big hit to businesses, as it would require them to pay overtime and track hourly work.
“You have to be doing it right, or you are violating the law,” Hubbard said.
Many businesses — including those in the troubled construction and financial sectors — have cut workers’ pay across the board by 5 percent or 10 percent. Others are encouraging employees to take surplus vacation time to reduce payout costs. Still others are laying people off.
When it comes to layoffs or pay cuts, employers need to make sure those actions don’t target classes of workers protected by federal discrimination laws, such as older workers, women or minorities.
Dona Nutini, an employment attorney with the Phoenix law office of Polsinelli Shughart PC, said employers’ biggest mistakes when it comes to layoffs, pay cuts and furloughs is that they fail to communicate with employees. Frustrations are exacerbated by dictums from headquarters rather than direct communication from local managers.
“The biggest problem is that (companies) don’t communicate with their employees,” Nutini said. “They don’t keep them in the loop.”
She said things like Friday layoffs and short notices lead to staff frustrations that can lead to discrimination claims, other lawsuits or unionization efforts.
Nutini, former staff counsel with the National Labor Relations Board, said businesses need to be able to prove their cuts are not discriminatory.
Mike Tope, CEO of Creative Business Resources, a Phoenix-based consulting and human resources firm, said that’s the biggest legal challenge for employers facing staff cutbacks.
“Layoffs usually cause the most legal problems if the terminated employees feel they were discriminated against,” Tope said.
Both Tope and Nutini said employers need to document and quantify their actions to protect against costly lawsuits.
John Egbert, an attorney and head of the labor practice at the Phoenix law office of Jennings Strouss & Salmon PLC, said employers need to be especially aware of disclosure rules and worker protections under the Older Worker Benefit Protection Act, the federal law related to employees who are 40 or older.
Posted May 15th, 2009 by Jessica Spinks - Posted in Human Resources, Wages | | 0 Comments
(2 votes, average: 3.5 out of 5) Loading ...A BIGGER Salary is not always a good thing
Everyone always thinks a bigger salary equals a better life, more security, and that one will just be all around happier. Unfortunately this might not be true anymore. According to a recent article on CareerBuilder.com this is an idea that one should think about a little more closely. The article gives four clear points to back up this theory. First off, if after some negotiation you actually get a raise, in the case of downsizing you could be the first one to be laid off because your pay might not match your talent or skill level. Secondly, you will lose more money at a higher salary when you get placed in a higher tax bracket. In addition, your salary could price you out of the market. Eventually at your next job, your salary could definitely outweigh your skill set and when you move jobs no one is going to pay you as much as you were earning before. Lastly, many people say that if they earned more they would be that much happier, but truthfully the time when you will be happier will be when you don’t care anymore about how much you are earning. So the next time you don’t think you earn enough sit back and enjoy the life you currently lead, it’s not so bad after all.
Posted August 25th, 2008 by Jessica Spinks - Posted in Wages | | 0 Comments
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