Taxable wage base for 2012: What Payroll needs to know

Here’s one important piece of info you can pass along to Payroll to help them better prepare for 2012.

The Social Security Administration has just issued the taxable wage base for next year.

Starting in 2012, the amount of employees’ pay that’s subject to social security tax will be $110,000.

That’s a significant increase from this year’s amount of $106,800. It’s based on the increase in average employee wages.

So for 2012, the maximum social security tax employees and employers will each pay is $6,826.20.

Note: It may be good idea to remind Payroll that there’s no limit to the wages that are subject to Medicare tax, which means your firm must take the 1.45% tax off all covered wages. 

Click Here for the original article and important links!

Tip Tuesday! Commit to be fit – and fight cancer while you’re at it

By Tanise Edwards, M.D.

You know every step you take is good for you. Movement is great for your heart, lungs, muscles and mood ... and the list goes on. But, exercise can protect your health in an important way you might not realize.

It may be an impressive cancer fighter.

According to the American Institute for Cancer Research, regular physical activity can lower your risk of certain cancers. For example, research shows that:

• Devoted fitness buffs may reduce their risk of colon cancer by up to 40 percent
• Active women are less likely to be diagnosed with breast cancer than those who are less active
• Exercise may also lower the risk of lung, prostate and endometrial cancers

How does working out protect against cancer?

First, it helps keep pounds from piling on. And, that's key because excess body fat increases the risk of several types of cancers.

Exercise also boosts your immune system. It can improve your cells' ability to fight off disease. And, being active may also help control hormone levels in your blood. Some of these may contribute to tumor growth.

Click Here to learn more and find more useful links!

2011 has been a record year for EEOC

The Equal Employment Opportunity Commission handled almost 100,000 discrimination cases  — a new record — in Fiscal 2011. And it also managed to achieve a 10% decrease in its “pending charge inventory” — the backlog of cases waiting for resolution.

Frankly, we’re not sure whether this is good news for employers or not.

The EEOC received a record 99,947 charges of discrimination in fiscal year 2011, which ended Sept. 30.

The agency also garnered $364.6 million in monetary benefits for victims of workplace discrimination — the biggest total in the agency’s 46-year history.

The fiscal year ended with 78,136 pending charges—a decrease of 8,202 charges, or ten percent. In previous years, the pending inventory had increased as staffing declined 30% between fiscal years 2000 and 2008.

For the complete article and a closer look at the EEOC numbers Click Here!

Twelve for ’12: A Dozen Ideas for Flexible Benefits

The year 2011 will soon be in the history books so it is not too early to work on the master “to do” list for 2012. Here are a dozen suggestions for benefits and insurance professionals who are involved with flexible benefits, by Rich Glass, JD, Chief Compliance Officer, Infinisource, Inc.

• Keep an eye on the agencies. We expect major guidance to be issued in 2012. Look for final rules on nondiscrimination testing for fully insured plans (a new Patient Protection and Affordable Care Act (PPACA) requirement that was delayed by Notice 2011-1) and cafeteria plans, updating the proposed cafeteria plan regulations the IRS issued in 2007.
• It’s not as easy as S-B-C. Effective March 23, 2012, group health plans must provide a Summary of Benefits and Coverage (SBC). The PPACA limits the document to four pages in 12-point font. The rules don’t apply to health flexible spending accounts (FSAs), but they might apply to health reimbursement arrangements (HRAs).

 For the complete master “to do” list, Click Here!

Managing Diabetes: The Oral-Vision Connection

Many are aware of serious diabetes-related complications such as heart disease, nerve damage, and limb amputation. However, people may not be aware of how diabetes can affect oral and visual health.

November is National Diabetes Month, and primary care physicians, dentists and eye-care specialists are ur

ging people to schedule regular checkups. For people with diabetes, these visits can help regulate the disease’s impact on dental, visual and overall health. For people who are not aware that they might have diabetes, certain signs and symptoms can help diagnose the disease.

According to the Centers for Disease Control and Prevention (CDC), one-quarter of the 26 million Americans with diabetes, and 90 percent of the 79 million adults with prediabetes, are unaware of their condition.

"There are many people who do not know that they have diabetes, or are at risk for developing diabetes, and this puts a premium on diagnosis. The eyes and mouth can be a window into your health," says Michael D. Weitzner, DMD, MS, vice president of National Clinical Operations for United Healthcare’s dental business.

Click here for the complete article and useful links.

Tip Tuesday! Top 6 retirement expenses employees overlook

The vast majority of your employees don’t want to work during their golden years – no matter how much they love their jobs. They want to sip margaritas on some tropical beach. And to help them get there, make sure they’re planning for these expenses.

The financial wizards over at Investopedia.com identified five retirement expenses workers overlook most often when calculating what they’ll need in retirement.

In addition, we’ve added one of our own to the mix.

Expenses to plan for

Planning for these will increase retirees’ comfort and stability in retirement:

1. Medical costs. It’s no secret these are skyrocketing. One thing workers need to do: Look at their own health risks, genetic info and family medical history, and ask themselves if Medicare will meet all of their needs. If not, it’s time to look at other forms of coverage (and how much they cost) to fill in the gaps.
2. Housing expenses. One great piece of advice from the pros at Investopedia: Workers should get their homes in resale condition before they retire. This will cut down on maintenance costs in retirement. Roofs, windows and home mechanicals are expensive. It’s also smart to set aside funds for upkeep (like landscaping and snow removal) in case retirees become unable to do it themselves.
3. Taxes. Remember: The funds withdrawn from a 401(k) are subject to taxes. So a balance of $500,000 isn’t really worth $500,000 in spending money.

Click here for the complete list and links.

3 snooze myths exposed

By William Weese, M.D.

If you're like many people, you're busy — make that super-busy. And, because you can't add hours to the day, you might skimp on the time you spend sleeping. Or, maybe you're a night owl who doesn't give a hoot about a reasonable bedtime.

The thing is, though, your body can't actually do more with less. To be at your best, put these sleep myths to rest:

Myth 1: Sleep isn't productive time
Actually, a healthy dose of sleep helps you learn, focus and make good decisions when you're awake. Getting enough sleep also reduces your risk of health problems, including diabetes and heart disease.

To reap these and other benefits, most adults need seven to eight hours a night.

Click Here for more 'Sleep Myths' and Sleep health from A to ZZZs

2 weight-wise numbers to know

By Michael W. Rosen, M.D.

Stepping on the scale. It's a morning ritual for many.

Yet, what the scale shows is just a number. It doesn't necessarily tell you if you're at a healthy weight. That's where two other simple measurements — body mass index (BMI) and waist circumference — can help.

Why these numbers matter
BMI is an estimate of body fat based on height and weight. Having too much excess fat raises your risk of health problems, including:

• Type 2 diabetes
• Heart disease and stroke
• Certain types of cancer, including breast and colon
• Osteoarthritis

And, where you carry your extra weight may be important, too. For example, if it's mostly around your middle, you're at a higher risk for diabetes, high blood pressure and high cholesterol.


Click Here for more information and the complete article with links.

Unemployment tax in Florida may rise sharply in 2012

If the Florida Legislature makes no changes, employers throughout the state will see significantly higher unemployment tax bills.

BY MICHAEL PELTIER

THE NEWS SERVICE OF FLORIDA

TALLAHASSEE -- Business owners who two years ago paid $8.40 per employee in unemployment taxes will see their bill go up to $172 starting Jan. 1 as the state continues to reel from a lingering recession, sluggish payroll growth and double digit unemployment.

Meeting Thursday to tweak estimates for the coming year and beyond, members of the revenue estimating conference were updated on a matrix of collections and payout data that call for rates to go up nearly $100 per employee from 2011 figures to a group of employers that pay the minimum fee.

If no changes are made, employers will see their bills go up based on two major factors. The figure used to calculate payments will increase from $7,000 to $8,500, an increase that will boost the maximum rate per employee from $378 to $459. For the approximately 220,000 employers who now pay at the minimum tax rate, the $1,500 threshold increase, coupled with a higher effective tax rate, will boost their 2012 tax bill from $72.10 per employees to $171.70.

Click Here to read more.

Tip Tuesday! 2 New Places To Uncover Health Savings

November 9, 2011 by Christian Schappel

Separate studies have uncovered two new things employers should be doing that can start saving them big bucks on healthcare costs.

They are:

1. Helping the aging retire on time

It’s no secret employees are planning to retire later. That may be better for workers’ 401(k)s, but it’s bad news for your health plan.

After analyzing its client data, Lockton Retirement Services found healthcare costs for employees over the age of 65 are more than double that of employees age 45 to 55.

In addition, a National Council on Compensation Insurance study found the average claim costs for older employees hurt in a work-related accident were more than twice as high as claim costs for younger workers ($27,000 v. $12,000 on average).

The solutions: Help employees improve their retirement outlook — whether it’s by reinstating or upping a 401(k) match, or providing more retirement or investment education.

The long-term savings of such programs could vastly outweigh the short-term costs.

2. Provide urgent care education

Trips to the emergency room aren’t cheap. But when employees seek spur-of-the-moment medical treatment, or treatment during odd hours (like early in the morning or late at night), the emergency room is where they often turn.

One reason: They are unaware that they could be using less-expensive urgent care facilities instead.

Click Here for the complete article and related stories.

Overscheduled kids: Is your child too busy?

By Arleen Fitzgerald, L.I.C.S.W.

Lessons. Clubs. Sports. Add school and homework into the mix. Stir in haphazard meals on the go — and lack of sleep — and ... voilà!

You have a classic recipe for one overscheduled, burned-out kid.

Of course, some kids cope well when there's a lot going on. But, others struggle. An overflowing plate can take a toll on anyone's well-being — whether you're 7 years old, 17 or 47! It can lead to anxiety, depression, fatigue, and frequent headaches and stomachaches.


Do you think your child is doing too much? Here are some tips on taking a look at activities — and striking a healthier balance: Click here for the tips and the full article.

Tactic to bolster HSA participation some companies don’t use

November 3, 2011 by Christian Schappel

Consistently encouraging employees to contribute to a health savings account (HSA) will only go so far. The best way to max out HSA participation rates is to stress its effectiveness as a retirement tool.

Here’s one thing many employees don’t know about HSAs: The funds left in them are not lost, they continue to grow.

The best way to relay that message to employees: Tell them HSAs work just like a 401(k), but with one big advantage — the tax-deferred funds that are put into the HSA can be withdrawn tax free when used to pay for qualified healthcare expenses.

And if a withdraw is made for another reason — say to pay for food, housing or a vacation — the money is taxed the same as a 401(k) withdrawal.

Now if employees wanted to use money from a 401(k) or IRA to pay for medical expenses, that money will be taxed as income by the IRS.

For the complete article and more related stories, Click Here!

Employees happy with benefits value, recommit to saving

November 4, 2011 by Christian Schappel

Nobody’s happy when the out-of-pocket costs they pay for their benefits increase (likely a common occurrence this year). But employees don’t seem to be unhappy with what they’re getting in return.

The number of employees who say the coverage they receive in exchange for the out-of-pocket costs they pay (including premiums) is “definitely worth it” or “probably worth it” is on the rise according to a recent Mercer study, which drew on survey data from multiple studies dating back to the spring of 2001.

In 2011, 86% of employees said what they pay out-of-pocket for their health benefits is “probably” or “definitely” worth it for the coverage they get. That’s compared to 83% in 2010, 73% in 2008, 69% in 2007, 78% in 2006 and 72% in 2005.

For some other interesting findings from the study and the complete article Click Here!

Tip Tuesday! 4 habits that are hard on bones

By Karis Gabrielson, R.N.


Strong, silent types. That's really what we should hope for when it comes to our bones. We want them to carry us through life — uncomplaining — to keep us moving and standing tall.


But, what if our bones could speak up? They just might have something to say about our habits — the things we do that are hard on them.

Stealers vs. builders

Bone is living tissue that renews itself. When more is lost than built, osteoporosis can develop. This means your bones are weak and brittle — and more prone to breaking, even from minor impacts.

Click Here for the full article and chart.

US Labor Department publishes final regulation to improve access to quality investment advice

Regulation implements prohibited transaction exemption under 2006 Pension Protection Act

WASHINGTON — The U.S. Department of Labor's Employee Benefits Security Administration today issued a final regulation that will enhance retirement security by improving workers' access to quality fiduciary investment advice. The regulation implements a prohibited transaction exemption under an amendment to the Employee Retirement Income Security Act and the Internal Revenue Code that is part of the Pension Protection Act of 2006.

"Given the rise in participation in 401(k)-type plans and IRAs, the retirement security of millions of America's workers increasingly depends on their investment decisions," said EBSA Assistant Secretary Phyllis C. Borzi. "This rule will make high-quality fiduciary investment advice more accessible, while providing important safeguards to minimize potential conflicts of interest."

The prohibited transaction rules in ERISA and the IRC generally prevent a fiduciary investment adviser from recommending plan investment options if the adviser receives additional fees from the investment providers. Although these rules protect participants from conflicts of interest, ERISA provides exemptions from the rules in appropriate circumstances and permits the department to grant exemptions that have participant-protective conditions. The new regulation implements an exemption that Congress enacted as part of the Pension Protection Act of 2006 to improve participant access to fiduciary investment advice, which contains certain safeguards and conditions to prevent investment advisers from providing biased advice that is not in a participant's best interest.

Click here to read more...

IRS sets 2012 benefits limits

The Internal Revenue Service’s cost-of-living adjustments affecting dollar limitations for defined contribution and pension plans have been released. The IRS also made a few other changes employees will need to know about.

The 2012 retirement plan limits:

• 401(k), 403(b) and 457 plan deferrals. The largest annual contribution an employee can make through salary deferrals has increased to $17,000. That’s up from $16,500 in 2011.
• Catch-up contributions. The catch-up contribution limit for those 50 and older is unchanged at $5,500.
• Maximum contributions. The limit on what can be added to a defined contribution plan will increase to $50,000 from $49,000.
• Maximum pension benefits. The limit on the annual benefit under a defined benefit plan will increase to $200,000 from $195,000.

Other key changes

Two other changes employers need to be aware of:

• Definition of a highly compensated employee. The earning threshold used in the definition of a highly compensated employee has been increased to $115,000 from $110,000.
• Benefits calculation. The amount of employee compensation that can be considered in calculating pension benefits and compensation to plans will rise to $250,000 from $245,000.

Click here for the original article and more links!

Tip Tuesday! Wellness: Use of incentives (and penalties) climbing - because they work

October 27, 2011 by Christian Schappel

Between 2009 and 2011, the use of financial rewards in health management programs increased by 50%. Meanwhile, the use of penalties increased by more than 100%, according to a new study.

The numbers show employers are starting to quickly warm up to the idea of penalizing workers for not participating in wellness programs — or not meeting certain health goals.

The findings are from The Towers Watson/National Business Group on Health Staying@Work study of 248 U.S. companies. 

A year from now, four in five companies expect to offer some type of financial reward for wellness/health management participation. But more surprising, the use of penalties is expected to double again (this time, in just one year) — with 38% of companies planning to use them in 2012, compared to 19% today.

What isn’t a surprise is why so many employers are using financial incentive/penalties to drive participation: They work!

Check out these stats:

• Among employers offering financial incentives to take health-risk appraisals, employee participation rates are 46% on average — compared to 19% at companies not offering incentives
• Participation in biometric screenings for those giving out cash to take them is 45% — compared to 25% for those keeping their wallets closed, and
• Participation rates are low for all disease management programs designed to deal chronic conditions at 14%, but providing financial incentives provide a slight bump in participation rates to 16%.

For the complete article and links Click Here.