Retirement Planning – 3 Key Questions

From Wikimedia Commons

 
If you're between the ages of 55 and 65, you've probably spent at least a little time dreaming about life after work. But before you turn off the computer and turn in your retirement paperwork, consider three important questions.
 

1.  What will you do in retirement?

If you love golf, and dream of getting up late and hitting the greens every afternoon, retirement may be just the ticket. But your hobby may not hold the same appeal after a few years. That's why it's important to take stock of your interests, hobbies, and activities before retiring.

Consider "field testing" activities you intend to pursue in retirement, such as joining a band, volunteering for a nonprofit organization, or taking classes at a community college. Doing "retirement activities" before you retire can be an eye-opening experience, and may help to separate daydreams from reality.

2.  Will you work?

Studies show that the number of older Americans either holding jobs or looking for work has been rising for at least 15 years. Of course, some folks seek employment out of necessity: bills need to get paid. But for many people, work also provides needed social interaction and a sense of satisfaction. Consequently, some may decide to work at least part-time during retirement — whether or not they need the money.

Another idea that's gaining popularity is called "serial employment." With this strategy, you spend part of your "retirement" years employed in a series of full-time jobs interspersed with periods of travel and leisure. Such a plan can generate a healthy supplemental income for you and benefits for talent-starved employers.

3.  Have you saved enough?

This is the million-dollar question.

How much money you'll need to comfortably retire depends on many factors, including the status of your mortgage and other loans, your general health, expected rates of return on your investments, the size of your current nest egg, life expectancy, plans during retirement (including travel), pensions and other sources of income, the cost of health care and insurance, and myriad other considerations.

One size doesn't fit all. So it's important to confer with a trusted advisor who'll help you take a hard look at the numbers - before you wave goodbye to your employer. Your trusted team at BCWS is here to help provide guidance in your retirement planning.

 

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Healthcare Reform Requirements – an Employer’s Perspective

There are several changes that employers will be implementing this coming year as a result of the Healthcare Reform act (often called Obamacare). These changes affect workers, but they also affect employers.

Following are questions some employer’s are asking about Reform Requirements in 2013.

Summary of Benefits and Coverage (SBC)

Q. What is it?

A.  The SBC replaces the Plan Summaries employers and employees are used to getting from their carriers, which explain the terms of their coverage. The SBC will provide employees with details of coverage, limitations, etc. in a certain specified, uniform format that all carriers must follow. 

Click here to see a Sample SBC template.

 

Q. Where does an employer get the SBC’s?

A. The employer’s insurance company, referred to as the “issuer,” began sending the SBC’s directly to employers for distribution beginning September 23, 2012.

Q. What must an employer do with the SBC’s they receive from the carrier?

A.  SBC’s must be distributed to all currently enrolled employees on a firm’s first day of open enrollment after September 23, 2012 or to new enrollees beginning on the first day of the firm’s plan year following September 23, 2012.

Note: More information about SBC’s can be found here.

W-2 Reporting Coverage Reporting Requirement

Q.  Who must report the cost of an employee’s coverage on employee W-2 forms issued after January 1, 2013.

A.  Employers with 250 or more W-2 forms, who provide coverage under a group health plan, are required to report.

 

Q. What about employers filing fewer than 250 W-2 forms?

A.  The reporting requirement for employers with fewer than 250 W-2 forms will not apply for future calendar years until the IRS publishes guidance giving at least six months advance notice of any change in this “transition relief.”

 

Q. What coverage must be reported?

A. Major Medical, Health FSA's and certain other coverage.  Click here for more details:  http://www.irs.gov/uac/Form-W-2-Reporting-of-Employer-Sponsored-Health-Coverage.

Note: Click here for more FAQs from the IRS regarding the W-2 reporting requirement.


Health Flexible Spending Account Limits

Q. What is the maximum Contribution limit to a Health FSA for medical expenses beginning January 1, 2013?

A. $2500 increased annually by the cost of living adjustment.

 

Q. What is the limit if both spouses are enrolled in a Health FSA?

A. Each spouse may contribute $2500 even if both spouses participate in the same Health FSA under the same employer.

Q. Does the $2500 contribution limit apply to Flex Credits?

A. The $2500 limit does not apply to Flex Credits.

 

Q. Does the $2500 limit apply to contributions for dependent care assistance?

A. The law does not limit the amount of salary reduction contributions for dependent care assistance, an employee’s share of health coverage premiums, salary reduction or any other contributions to HSA’s, or to amounts made available by an employer to an HRA.

 

For IRS guidance and details on the $2500 limit and IRS FAQ go to http://www.irs.gov/pub/irs-drop/n-12-40.pdf

Here is a link to a Health Reform Implementation Timeline published by the Henry J. Kaiser Family Foundation Health Reform Resource – it’s a helpful list of which laws are being implemented, and when: http://healthreform.kff.org/timeline.aspx.

 

Your trusted advisors at Brigante, Cameron, Watters and Strong are here to help with the year-end planning that will ensure your business' growth and profitability in the coming year.

Information compiled by Bruce Langdon.

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Are You On Top Of Your 2012 Tax Deadlines?

This is the time of year when accounting offices ramp up from "normal busy" to "year-end planning" busy.

The deadlines start crowding together, fast and furious in September, all moving steadily toward next April's 2012 Tax Day.

The time to schedule with your accountant is now, before the year-end, and any possible pre-January 1 tax savings, have passed you by.

To assist you with planning, BCWS has gathered all the important Federal 2012 deadlines below:

September

Mon 10	Employers: Employees are required to report to you tips of >=$20 earned during August.
Mon 17	Deposit payroll tax for Aug if the monthly deposit rule applies.
Mon 17	Individuals: Pay the third installment of your estimated tax for 2012.
Mon 17	Partnerships: File 2011 Form 1065 if you timely requested a 5-month extension.
Mon 17	Corporations: File calendar year 2011 Form 1120 or 1120S if you timely requested a 6-month extension.
Mon 17	Deposit third installment of your 2012 estimated tax.

October

Mon 1	File Form 730 and pay tax on wagers accepted during August.
Mon 1	File Form 2290 and pay the tax for vehicles first used during August.
Wed 10	Employers: Employees required to report to you tips of >=$20 earned during September.
Mon 15	Deposit payroll tax for Sep if the monthly deposit rule applies.
Mon 15	Individuals: File 2011 Form 1040, 1040A, or 1040EZ if you requested a 6-month extension.
Mon 15	File 2011 Form 5500 if you timely requested an extension on Form 5558.
Wed 31	File Form 720 for the third quarter of 2012.
Wed 31	File Form 730 and pay tax on wagers accepted during September.
Wed 31	File Form 2290 and pay the tax for vehicles first used during September.
Wed 31	File Form 941 for the third quarter of 2012.
Wed 31	Deposit FUTA owed through Sep if more than $500.

November

Tue 13	Employers: Employees required to report to you tips of >=$20 earned during October.
Tue 13	File Form 941 for the third quarter of 2012 if you timely deposited all required payments.
Thu 15	Deposit payroll tax for Oct if the monthly rule applies.
Fri 30	File Form 730 and pay tax on wagers accepted during October.
Fri 30	File Form 2290 and pay the tax for vehicles first used during October.

December

Mon 10	Employers: Employees required to report to you tips of >=$20 earned during November.
Mon 17	Corporations: Deposit the fourth installment of your estimated tax for 2012.
Mon 31	File Form 730 and pay tax on wagers accepted during November.
Mon 31	File Form 2290 and pay the tax for vehicles first used during November.

The information here was culled from Tax.gov's Important Tax Dates for Small Business calendar. For a complete resource for all the Federal Tax Developments for 2012, click here. BCWS wants to keep as much money as possible in your pocket.

If you have any questions about these deadlines, or any other tax issues, please contact our office.

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Critical Mass for Business - The BCWS Interview

Two of our partners, John Cameron and Chris Strong, will be interviewed by Ric Franzi this afternoon on Critical Mass for Business. This online radio show, produced by Paul Roberts, will play live today at 4 pm PT.

Discussion Topics:

• John and Chris discuss their early work experience.
• Their Guiding Principle: What key lesson helps them lead today?
• Valuable business lessons learned through difficult experiences.
• Can you leverage growth opportunities facing your business?
• What differentiates BCWS in today’s market?
• Plus, a discussion of fraud in business – who steals and what do they steal?

All episodes of Critical Mass for Business are recorded as podcasts, allowing you to listen as often as you want. A list of all of OC Talk Radio’s weekly shows can be found here.

We hope you tune in!

In the meantime, BCWS wants to connect with you! Please come join the conversation on:

Facebook: http://www.facebook.com/bcwscpa

Twitter: http://www.twitter.com/bcwscpa
LinkedIn: http://www.linkedin.com/company/652999

Or subscribe to our blog by clicking the sign-up link in the right sidebar.

Have You Been By The “Corner Office" Lately?

Some of the favorite business columns floating around our office hallways are the Corner Office pieces from the New York Times. Without fail, Adam Bryant manages to consolidate a thought-provoking message about leadership and management.

Below are links to some of our favorites from the first quarter of 2012, along with a quote from the interview:

January 14^th – Bill Kling of American Public Media
Sometimes You Need To Blow the Fuses

“I don’t think that there is one formula for leadership. There are cheerleaders who are really good at motivating people. There are innovative leaders who are really good at conceiving of products or spotting talent and who have a great vision for the company. There are leaders who are strong on personality, leaders who are strong on creativity. Some of the most effective leaders don’t fit a mold. The ones who I think make a real difference tend to be totally different from the standard definition. I think the strongest criterion is creativity or innovation.”

January 21^st – Katherine Hays of GenArts
Ensuring that Ideas Are Employee-Owned

“Talk to the customer, and if you ask them in the right way and you really listen, you will find out what you need to be successful in your business. They can give you a huge amount of guidance in pointing you to the right answer, and helping you realize something you might have been missing.”

February 18^th – Steve Stoute of Translation Ad Agency

Do You Share Our Goals? Sign our Constitution.

“You have to set a belief system in your organization. Once you do that, if you have people who have not bought into the philosophy, you need to identify them and move them out quickly. It’s to their benefit and your benefit. If you ask most executives, they know within the first 30 or 60 days if a person is going to work out, but it takes them seven months to a year to get them out of the organization. That’s a waste of time.”

March 10^th – Jim Whitehurst of Red Hat
The Memo List: Where Everyone Has An Opinion

“Your most creative ideas are going to come from people on the front lines who see a different way of doing the jobs they do every day. You have to create vehicles for those ideas to be heard.”

March 17^th – Tracey Matura of Smart Car
Can’t Acknowledge Failure? Don’t Apply.

“If you’re going to tell me you’ve never failed,” she says of job candidates, “then it makes me wonder if you always hide your failures.”

Possibly the best quote from this series came from the first article above by Bill Kling:

“A mentor of mine taught me that every perspective is additive, because every person sitting in a room is looking at things differently. Each of them has a different perspective. They come from a different way of thinking and different experiences. And their collective perspective gives you a better outcome. So you have to value the perspectives and try to organize those perspectives in some useful way that lets you go forward. Anybody who tells you that they can do it all themselves needs an ego adjustment.”

What leadership lessons do you value the most? Does your leadership team read the Corner Office series?

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2011’s IRS Hot Buttons for Form 1040

As you begin preparing for your 2011 taxes, it’s important to be aware of the areas that are being scrutinized this year.

First, here’s a quick single-stop index of terms for you from Fairmark.com:

Form 1040 and Attachments

Form 1040	U.S. Individual Income Tax Return Form Instructions Use this form if you can't use Form 1040EZ or Form 1040A.
Schedule A Schedule B	Itemized Deductions Interest and Ordinary Dividends Form Instructions The IRS combines both forms in a single electronic file, and also combines the instructions for both forms in a (different) single electronic file. Schedule A: For more information see Your Itemized Deductions. Schedule B: Most taxpayers don't need this schedule unless they have $1,500 or more of interest income, or $1,500 or more of ordinary dividend income.
Schedule C	Profit or Loss from Business Form Instructions Use to report income and deductions from a sole proprietorship (a business or profession of your own). For more information see Your Business.
Schedule C-EZ	Net Profit from Business Form & Instructions You can use this easier version of Schedule C if you don't have a loss, have business expenses of $2,500 or less, and meet other requirements set forth at the top of this form.
Schedule E	Supplemental Income and Loss Form Instructions Use to report income and deductions from rental real estate, royalties, partnerships, S corporations, estates and trusts, and residual interests in REMICs.
Schedule EIC	Earned Income Credit Qualifying Child Information Form & Instructions File this schedule if you claim the earned income credit and you have one or more qualifying children. For more details see Pub 596 below.

 

Form 1040 Red Flags

Inconsistencies or incomplete information in the following areas are hot buttons on Schedules A, C, and E that are likely to earn you a closer look, either from your tax professional or from the IRS:

Schedule A

• Unreimbursed employee business expenses claimed on Form 2106;
• Mileage;
• Travel, meals, and entertainment expenses that require documentation; and
• Receipts for cash charitable contributions and adequate documentation of noncash contributions.

Schedule C

• Gross receipts not fully reported;
• Expenses must be ordinary and necessary; and
• Expenses must be paid or incurred during the taxable year.

Schedule E

• Rental income and expenses not property reported;
• Depreciation not properly calculated; and
• Passive activity and basis limitations not properly calculated.

It’s never too early to start preparing for the April 15^th deadline. When do you usually get started with your taxes?

BCWS would like to connect with you!

 

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QR Codes: A How-To Guide For Business Use

Are you capitalizing on the latest little bit of free Techie gadgetry that's all the rage? We’re talking about QR codes, which are one of the easiest (and cheapest) marketing tricks a business can take advantage of.

Click here for eight more low cost social media tips we posted a few weeks ago and sit back to bask in the warmth of a new piece of technology fun that doesn't cost a thing!

What is a QR Code?

QR stands for Quick Response and was created by the automotive industry to help track vehicles during the manufacturing process. A QR Code is a barcode that stores a web address of your choosing.

If you scan the one above, you'll go to our Facebook page where we just posted some fun photos from our Halloween costume competition. There are apps available in both the Android and the iPhone that let you scan a QR code to quickly go to a website.

Note: To scan the code, you’ll need an app like QR Scanner [iTunes link] for the iPhone and iPod touch, or ShopSavvy for Android devices.

Marketing uses for QR Codes:

·    QR Codes are being used at some grocery stores and restaurants to give you recipes and nutritional information about the food you're buying.

·    To give you access to coupons, both in-store and on the internet.

·    On business cards, signs and brochures. A simple little barcode allows you to give the info you need to on the card or sign and, with a single click, also help the person to visit the webpage of your choice.

·    On clothing labels (Macy's and other retailers are already using this) to tell you about that item and others you may like in the store.

·    On anything with packaging, to push people to a website, Facebook or review page.

Can I get a QR Code of my very own?

Of course! There are tons of free spots to generate a QR code. Bit.ly and Social Oomph are two of the easiest.

To use Bit.ly:

·    Visit bit.ly, write or paste in a URL address, click “Shorten,” and add .qr to the end of the generated bit.ly link (like so: http://bit.ly/tm90xj.qr).

·    Copy the modified link into a new browser window to view the QR code.

·    Once you see the code on your screen, you can print it out, send to your friends via e-mail, post on your blog, etc.

To use Social Oomph:

·    You need to sign up for a free account, whereas for Bit.ly, you could sign in with Twitter (but it still asks for your email address).

·    Once you're signed in, l00k at the left navigation bar - "Shorten URL" is the fourth choice from the top.

·    Click the Shorten URL shortcut and type or paste the address in to the "Long URL" box and click the Shorten button.

·    There's a box that says QR Code - copy the link out of there and follow all the same steps as above in the Bit.ly example.

From Wikipedia: Users with a camera phone equipped with the correct reader application can scan the image of the QR code to display text, contact information, connect to a wireless network, or open a web page in the telephone's browser. This act of linking from physical world objects is termed hardlinking or object hyperlinking. Click here for more details than you probably want on how to work QR Codes. :-)

UPDATE: In the last few weeks since we wrote this post, viruses have targeted QR Codes here and there. That doesn't mean they aren't safe but, just like email, watch where you click. More details here on how to avoid viruses.

Does this give you any new marketing ideas for your business marketing or advertising efforts? Are you already using QR Codes? What has your experience been?

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