New To Us, News To You : New To Us, News To You

Wednesday, November 26, 2008

Shopping

   I feel very comfortable talking about this topic. I consider myself an expert in the field of shopping. I have always been able to sniff out the bargains or clearance racks. As my children are growing up, I find it easier to give cash or gift cards, the “buy what you want or need” mentality.
     All the news reports lately are talking about not Black Friday, but Grey Friday. Some big-ticket items will have great price cuts and most stores will include their whole inventory as part of a sale.
     "It's the perfect storm," says DealNews.com founder and CEO Dan de Grandpre. "Consumers have cut back spending. Stores must slash prices to drive traffic to their stores. . . . And a $2,000 HDTV pops up for $1,199."
     There are several large corporate stores either filing for bankruptcy protection now or on the brink of bankruptcy. Gift cards are a gift idea needing careful consideration anymore. Many businesses in trouble will no longer honor them. So much for easy shopping…
     With all these great buys at large retail stores what happens to the mom and pop shops out there? Are they struggling to get the dollar conscious consumer in their business? How does the small business owner get a bail out package? Most don’t have corporate jets to fly to Washington and ask for the money.
     Keep in mind as you shop over the next few days that the small businesses are there and they are also competing for your dollar. I think the small business hold unique treasures that we need to keep in mind as we hit the stores for a Grey Friday? Happy shopping!

Laura Radebaugh - BASE Administration/Adjudication Specialist

Posted By BASE At 1:00 PM •

Monday, November 24, 2008

Effective But Underused Benefits

   In today’s market, it would seem to me that employers would want to use every tool available to increase their overall appeal to potential and existing employees. While on the mission of making a company more appealing to a qualified workforce, it would seem logical to find the most cost-effective methods available; anything that is, except increasing baseline salaries.
     This being the case, why is it that cafeteria plans are so underrated and underused? These benefits are free from federal, state, and FICA taxes, so an employee's taxable income is reduced, which increases their take-home pay. And because the pre-tax benefits aren't subject to social security withholding taxes, employers win by not having to pay matching FICA on those dollars. With so many advantages, I would think this would be the first benefit employers would offer to their employees.
     Why do I believe this benefit is so underused? A cafeteria plan is not a “money maker” for employers or administrators. Because employees are basically funding the benefit from their own paychecks, there is no significant employer expense attached to the benefit anywhere, nor is there any extensive revenue. I think there are many companies that are simply not aware that a cafeteria plan could be made available to their employees. Or if they are aware that it is exists, it is likely they have not researched what it takes to implement this benefit.
     My wife and I have participated in a Cafeteria plan for 3 years now. We elect $500 annually for our out of pocket medical expenses. We also elect $5000 (maximum allowed) for our son’s childcare expenses. That is a total of $16,500 we have elected over the last 3 years. We have saved over $4500 in taxes over that period of time. That is a priceless benefit.
   An added employee benefit that allows employees take home a bigger paycheck, and costs employers next to nothing…what employee would refuse such a benefit from their employer?

Joe Havenhill - BASE Group Products

Posted By BASE At 4:00 PM •

Friday, November 14, 2008

Dependant Law Change in Iowa

A new law was recently passed in Iowa and I am wondering if it will be a help or burden for Iowa parents? Iowa House Bill HF-2539 has 9 components to it, one being health care coverage for dependents up to 25 years of age. Effective January 1, 2009 your dependent(s) age 19-25 who are not full time students will be eligible for a continuation of coverage of an insured or enrollee. They would be covered at least through 25 years of age or as long as the dependent child maintains full-time status as a student in an accredited post-secondary educational institution, whichever occurs last.
Of course, there are eligibility conditions for your child (or children) to fit into the new dependent status.

the adult child is unmarried

the adult child is a resident of Iowa

reaches 25 years of age

The premium would be established in accordance with the insurer’s rating practices. This provision applies to Group and Individual insurance plans. A couple of things to keep in mind if you decide to cover that dependent:

these dependents are not considered “tax dependents” for federal income tax purposes
the difference in healthcare premiums when moving from one level of coverage to another may be taxable under federal IRS law
Flexible Spending Accounts (FSA) will not allow reimbursement for these dependents under the IRS tax law
If your dependent gets married, moves out of Iowa, or reaches 25 and is no longer a full time student, they will no longer be eligible for coverage

Let’s hope this new law doesn’t create a burden for those parents who will need to utilize it for their dependents. As a parent of 3 adult dependents (ages 19, 21 and 23) I am fortunate that they are all employed and carry their own health insurance.

Laura Radebaugh - BASE Administration/Adjudication Specialist

Posted By BASE At 9:00 AM •

Saturday, November 08, 2008

Cracks in the Glass

   Life as we know it has quieted considerably. All of the election hubbub now in our past, we all inherently ask ourselves the question..."What will REALLY change, and when?" There are pockets of us in the world that have felt somewhat "shielded" from the current state of the stock market, the credit crisis, etc. However, even in my shielded state as I peer through my protective window to the world, the cracks begin to show in spite of my denial. And I am not the only one who can see the cracks.
    Companies all across the globe are looking out their window, finding the cracks and putting plans in place to shore up what can be shored up. We have been a society of excess, we are now looking back into our memories of parents and grand-parents; the great depression, the dust bowl; how did they do it? There are lots of ways to describe it: scrimp, save, tighten the belt, be frugal....whatever you need to call it, do it. Start now and don't stop.
    The point of this blog will be to bring you little tidbits here and there to help in your efforts of saving and self-preservation. Mostly in the realm of healthcare costs for consumers, and benefit offerings for small business. We have some good ideas every now and then and we find lots of interesting little tidbits crossing our desks. When we do encounter these little gems of knowledge, we will pass them on to you, right here.
    So what is BASE, and what do we do? The core of BASE business is to administer HRA plans. That is, we administer tax plans that enable small business owners to deduct their medical care expenses on their taxes as a business expense. Seems simple enough. On average our clients are saving $3,800 a year on their taxes.

Now that's frugal.

Nina Easley - BASE Marketing

Posted By BASE At 9:00 AM •