Michael F. Yates & Company, Inc.
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HELPING MANAGE YOUR COMPANY'S MOST PRECIOUS RESOURCE
                     ...from the HR Perspective
Human Resource Update July 2009 
In This Issue
TWITTER
Global Health Update
FAS 157
HIRING OUR VETS
TRACK RECOVERY
Plan Reporting Calendar
HONEST PERFORMANCE

What you need to know before joining
 
twitter

Twitter is a free social networking website that enables its users to send and read messages known as tweets. Tweets are text-based posts of up to 140 characters displayed on the author's profile page and delivered to the author's subscribers who are known as followers. Anyone can read your tweets by "following" you (subscribing to your page), or by viewing your profile page. You can also use many search tools and third-party applications to search all of the tweets based on keywords or topics. At first glance Twitter may appear as just a bunch of noise, but if you listen closely, you will see that people are exchanging interesting and valuable information.
            Twitter has many valuable applications for business. SmartPulse, a weekly reader poll on social media, tracks feedback from leading marketers about social media practices and issues. Their May poll asked, "What is the primary way you use Twitter?"
    � 42% use it to stay on top of breaking news and trends.
    � 23% use it to broadcast messages and announcements about their company.
    � 9 % prospecting and lead generation.
    � 8% monitor what is being said about themselves or their company.
    � 5% use it for customer service.
            Joining Twitter is easy! Simply go to twitter.com to sign up. All you need is your name and an email address.  After signing up, here is a list of Benefits and HR people to follow:
Benefitnews - Employee Benefit News.
Benefitadviser - the Twitter feed of Employee benefit Adviser, EBN's sister publication covering broker news and trends.
Bjgrenier - if it relates to benefits and the law, she's got it.
Ebneditor - Employee Benefit News Editor-in-Chief Kelly Butler posts her take on the benefits news of the day and links the EBN's blog and podcast site.
EBRI - Employee Benefits Research Institute.
IFEBP - International Foundation of Employee Benefits Plans.
SHRM - Society for Human Resource Management.
�  401khelpcenter - a leading online source of 401(k) and financial planning news and information, offering great tweets on retirement news.

Twitter has its own language so here are a few tips:
    � D username + message - sends a person a private message that goes to their device, and saves in their web archive.
    � @username + message - directs a twitter at another person, and causes your twitter to save in their "replies" tab.
    � RT - Retweet, which means you are passing along information posted by someone else. 

One piece of advice if you join Twitter is do not post anything you would not want your boss, clients, coworkers, family members, or strangers to see.

Remember, your twitter profile is for public view and they are looking and tweeting 24/7.

"WORTH REPEATING"

Long term tea drinking may cut stroke risk

From Reuters Health (by Joene Heath)


NEW YORK (Reuters Health) - There could be good news brewing for tea drinkers: Drinking tea consistently -- particularly two kinds -- is linked to a significantly lower risk of stroke, according to a study of people in southern China.
In a study of the tea drinking habits of 838 Chinese men and women, Dr. Andy H. Lee, of Curtin University of Technology in Perth, Australia, and colleagues found that those who reported drinking at least one cup of tea per week for more than 30 years had a 60 percent lower risk of ischemic stroke.
Ischemic stroke occurs when oxygen-delivering arteries in the brain become partially or completely blocked. It's unclear why tea would protect against stroke, but the authors of the study note that previous research has suggested that tea or its components might reduce high blood pressure and other risk factors.
Those who drank more than 2 cups of tea daily had about a 40 percent lower risk of such strokes, and the risks were even lower in those who drank 2 cups daily of particular teas: Their study in the journal Stroke links drinking green and oolong teas with 72 and 79 percent lower risk for ischemic stroke, respectively.
"Tea is a safe and healthy beverage," Lee told Reuters Health. To obtain optimal benefits, "long-term tea drinking should be encouraged," he said.
The people in the study had an average age of 69 years. Of these, 374 had a medically confirmed ischemic stroke, and 464 (the "control" group) had no history of cardiovascular disease or medical conditions that placed them at increased stroke risk.
As expected, the stroke group had higher rate of high blood pressure, diabetes, and smoking. By contrast, the control group reported higher fruit and vegetable intake and a longer duration of tea drinking.
The researchers also took into account gender, body mass, level of education, lifelong physical activity, smoking and alcohol intake, the presence of high blood pressure, cholesterol level, diabetes, and weekly dietary intake.
There also seemed to be a benefit to using more tea leaves: Lee's team also saw 73 percent reduced risk associated with a "larger quantity of tea leaves used in tea brewing," Lee said.
Though these findings are consistent with previous research from Japan, Lee and colleagues suggest further investigations among populations in other countries, plus studies to "ascertain whether tea consumption can enhance survival of stroke patients," Lee said.
 
Seven Facts about the New Sales Tax Deduction for Vehicle Purchases ...


Taxpayers who buy a new car or several other types of motor vehicles this year may be entitled to a special tax deduction when they file their 2009 federal tax returns next year. The tax break is part of the American Recovery and Reinvestment Act of 2009. 
 
 Here are seven things you should know about this new deduction:

 1. State and local sales taxes paid on up to $49,500 of the purchase price of qualifying vehicles are deductible.
 2. Qualified motor vehicles generally include new (not used) cars, light trucks, motor homes and motorcycles.
 3. Purchases must occur after Feb. 16, 2009, and before Jan. 1, 2010.
 4. This deduction can be taken regardless of whether or not you itemize other deductions on your tax return.
 5. Taxpayers will claim this deduction when filing their 2009 federal income tax return next year.
 6. The amount of the deduction is phased out for taxpayers whose modified adjusted gross income is between $125,000 and $135,000 for individual filers and between $250,000 and $260,000 for joint filers.
 7. The deduction may not be taken on 2008 tax returns.
Consumers who are considering buying a new car may find that this tax incentive means there may have never been a better time to buy.
For more information about the sales and excise tax deduction for motor vehicle purchases visit the official IRS web site at IRS.gov.


Our staff
and firm are proud

members of the
following professional
organizations.

Society of Actuaries 

American Society of Pension Professionals Actuaries

Society for Human Resource Management

American Management Association

National Federation of Independent
Business

Better Business Bureau
 
It's never too late to plan ahead?
 
 
 
    It's like the diet you wish you had started a month ago? Well a month from now you'll be wishing the same thing if you don't get started today!
     Your HR concerns may not cure themselves. You need a solid plan for the road ahead. AND just like the diet, you should start with a through exam that will determine your strengths and point out your trouble areas. You should obtain a qualified opinion and guidance from an experienced HR consultant (HINT- HINT). And then execute the plan. You'll feel better, sleep better, and your companies position will improve for the effort. As always ... the hardest step is the first. From there things will get easier and like a diet, you may even feel ... healthier.


    I sincerely hope that our newsletter will be of help. We will try to cover as many of the vital changes we are all experiencing.
Please feel free to comment and/or ask a question at any time. We offer this timely information as another benefit of your relationship with our company. If you feel a friend or colleague would benefit from receiving our newsletter, please feel free to forward a copy.
 
Best Regards,
 
Michael F. Yates
President

 PS: You can view all of our newsletters by clicking the 'newsletter archives' link at our company website (www.mfyco.com).
______________________________

WHAT IS FAS 157? 
 

 
The Financial Accounting Standards Board (FASB) Statement of Financial Accounting Standards No. 157, Fair Value Measurements ("FAS 157") establishes a framework for measuring fair value and expands disclosures about fair value measurements in the notes to a plan's financial statements. FAS 157 must be implemented for all plans that prepare financial statements, without regard to whether the auditor is engaged to perform a full scope or limited scope audit.   For calendar year plans FAS 157 applies to plan years beginning after December 31, 2007.

What is "fair value?"
FAS 157 defines fair value as the price from the perspective of the seller the price that would be received to sell an asset in an orderly transaction between market participants as of the valuation date.   While FAS 157 defines fair value differently than in the past, in many cases there will be no difference in the fair value amounts reported on the plan's financial statements. The most visible change is the added disclosures that will appear in the notes to the audited financial statements.
It is important to note that, as has always been the case, the plan's management retains the ultimate responsibility for the oversight of the fair values reported in the plan's financial statements, including determining the adequacy of the related note disclosures. Plans that invest only in mutual funds and equity securities with readily determinable fair values should generally find it easier to implement FAS 157 than plans investing in assets such as limited partnerships, private equity funds, real estate and the like for which there is little or any market activity at the measurement date.

Understanding where the numbers come from.
FAS 157 establishes a fair value hierarchy that distinguishes between quoted market prices and investment values based upon observable inputs compared to fair values established based on the plan's own assumptions about the factors or unobservable inputs ­that market participants would take into account in pricing the asset, based on the best information available in the circumstances.
This hierarchy resulted in Level 1 Inputs (Quoted Prices), Level 2 Inputs (Observable Inputs) and Level 3 Inputs (Unobservable Inputs) and each plan investment must be dropped into one of these categories. Clearly, the easiest classification is the Level 1 Input. If the value of an asset is based on prices quoted on national recognized pricing services (i.e., the NYSE, NASDAQ or the Chicago Board of Trade) that investment belongs in the Level 1 Input category. Exchange traded mutual funds and equity securities fall into this group. However, even if a price is quoted on a national exchange, a lightly traded security may not meet the test for Level 1.
Level 2 Inputs are inputs other than quoted market prices included in Level 1 that are either directly or indirectly observable for the asset. This is why it's important to understand where the numbers come from. For example, common/collective trust funds (CCT) and pooled separate accounts (PSA) generally follow written procedures for establishing the unit value on a periodic basis (i.e., daily, monthly, etc.) although the CCT or PSA is not, itself, traded on an established market as described above. It also is important to know whether there are liquidity restrictions and whether the funds are open to new investors. The inputs, then, are observable but do not solely rely on quoted market prices to establish fair value.
Plans investing in CCTs and PSAs should review the audited financial statements of the fund to consider that fund's FAS 157 disclosure. In addition, those financial statements may provide additional information to aid the plan's management in designating its own FAS 157 input level.
Level 3 investments are based on inputs that are termed unobservable. Limited partnerships, hedge funds and venture capital investments most likely fall into this category because of limited trading. Values reported on the custodial statement may be merely a passthrough of the values set by the issuer or fund manager, which may not be fair value or may not be as of the plan's year end. In this case, the plan's management needs to understand how the value was determined in order to evaluate whether it is a reasonable estimate of the investment's fair value.

What about participant loans?
Since participant loans are considered investments they are subject to FAS 157. For practical reasons, loans are typically recorded on the financial statements as the remaining outstanding balance (as a proxy for fair value) on the assumption that the two values are not materially different. In theory, though, the outstanding loan value is not fair value because market interest rates often change daily. A common fair value method for loans would discount the cash flow of the loan based on an assumed interest rate; therefore, unless the assumed interest rate used in the valuation was exactly the same as the interest rate charged on the loan that is being fair valued, fair value does not equal the outstanding balance.
Whether participant loans fall are Level 2 or Level 3 is a highly debated issue right now. Proponents of Level 2 argue that consumer interest rates are observable and so participant loans should be categorized as Level 2, while proponents of Level 3 argue that since there really is no market (quoted prices or observable inputs) for participant loans, they should be categorized as Level 2.  So expect to have to defend your decision on which category participant loans belong in.

What can I expect from my service providers?
Most trustees and custodians are anticipating the need to assist plan sponsors in evaluating the various investments of plans in light of FAS 157. Many service providers are expanding their audit packages to include a recommended FAS 157 fair value hierarchy.

What should I do as the plan sponsor?
If you, as the plan sponsor, are drafting your plan's financial statements you should contact your auditors to begin a dialogue about the requirements of FAS 157 and to learn how your auditors will approach this subject during the audit process. The plan's management also should review any FAS 157 related materials provided by your service providers and ask for more information, if necessary.
As the plan sponsor, you must classify all plan assets according to the FAS 157 fair value hierarchy and draft notes to be incorporated into the plan's financial statements to appropriately disclose such determinations.

Where can I get more information?
The full text of FAS 157 is available at http://www.fasb.org/pdf/fas157.pdf.  The AICPA's Employee Benefit Plan Audit Quality Center (http://ebpaqc.aicpa.org) has developed several very useful FAS 157 tools that provide additional information for plan sponsors trying to understand the new rules.

young vets

HIRING OUR VETS 

 
Recruitment is often challenging, where to look, what pools haven't we tapped in to...When searching for candidates think about our returning Veterans.  Many Veterans return home, but find their jobs gone. Here is just one of many programs out there to tap in to that pool of prospects. 

The Agency for Workforce Innovation (AWI) is a Florida initiative designed to promote and maximize employment of veterans, which provides and supports a variety of available resources via Florida's 90 "One-Stop Career Centers."  These One-Stop Career Centers are staffed with a network of skilled Local Veterans Employment Representatives (LVERS) and Disabled Veterans Outreach Program Specialists (DVOPS) tasked with providing workforce services to veterans.  In Florida, services to veterans are considered a total One-Stop responsibility. All One-Stop associates are trained and tasked to identify veterans, especially disabled vets and veterans with barriers to employment, and ensure that the necessary positive workforce services are provided to them.  Veterans' Workforce Services provides the state of Florida with mandated priority employment and training assistance through Florida's One-Stop Career Centers and Employ Florida Marketplace.
Florida's One-Stop Career Centers and Employ Florida Marketplace's Program:
      � Promotes the employment of veterans to Florida's business community, utilizing the network of employer advocates, i.e., Enterprise Florida, Florida Chambers of Commerce, Florida Council of 100, among others.
      � Provides immediate access to education and training for severely injured/disabled veterans through the VA Vocational Rehabilitation and Employment Program, Workforce Investment Act (WIA), and other workforce resources.
      � Identifies and applies for federal, state and other veteran-focused grants and revenue generating resources.
      � Solicits statewide Veteran's Workforce Investment Program (VWIP) to train returning veterans for new careers.
An incentive to hiring Veterans is the Work Opportunity Tax Credit which is an incentive to private, for profit employers to hire individuals from certain targeted groups.  Employers can receive tax credits equal to 25% of qualified, 1st year wages up to $6,000 for a maximum allowable credit of $1,500 per employee if the individual works more than 120 hours but less than 400 hours.  If the employee works more than 400 hours in the first year, an employer can receive tax credits equal to 40% of 1st year qualified wages up to $6,000 for a maximum allowable credit of $2,400 per employee.  The maximum credit for Summer Youth is $1,200.  There is no limit to the number of qualified employees for which an employer can take the credit.
                                                                                          
 
Contact your State's Veteran's Affairs office; ask what they are doing to help train our returning Vets and where you can go to begin recruiting from their pool.
 
New Jersey Department of Military and Veterans Affairs www.state.nj.us/military

New York State Division of Veterans Affairs
www.veterans.ny.gov

Pennsylvania's Office for Veterans Affairs
www.milvet.state.pa.us/DMVA
 
Connecticut Department of Veterans Affairs
www.ct.gov/ctva
 
Florida Agency for Workforce Innovation
www.floridajobs.org
 

 
mh group
How to Track Government Recovery Spending ...
 
"The Board shall establish and maintain...a user-friendly, public-facing website to foster greater accountability and transparency in the use of covered funds. The website...shall be a portal or gateway to key information relating to the Act and provide connections to other government websites with related information." 

 
about MFYCO ...

  • Michael F. Yates & Company, Inc. can help you with a variety of services ranging from retirement plans to providing results-oriented survey instruments, training and development programs for your employees. Our products and services are intended to help you maximize the effectiveness of your Human Resources function.

  • These products and services incorporate our years of experience so that you receive rapid results and exceptional value. From onsite consulting, to strategic business integration, to Web enablement, we understand how Human Resources can be applied to solve your problems and achieve your goals. As a result, we can help you get the most out of your investment and turn your most precious resource into a competitive advantage.

  • We offer Consulting, Retirement Planning, Pension and 401(K) both qualified and non qualified Plans, Welfare Plans, Communications, Computer Systems, Executive Plans, Compensation, Mergers, Acquisitions, Divestitures and Other Services. 

    We offer a true and honest, Client Partnership.

Take the Michael F. Yates & Company, Inc. challenge!

 

 
MFYCO PRIVACY POLICY


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Plan Reporting Calendar

2009 FILING DUE DATES FOR
CALENDAR YEAR PLANS
 
This calendar is not intended to be an exhaustive listing of every due date under the Code or ERISA, but rather reflects some of the most common due dates.

View Calendar

HR Cat
Seriously ... how am I doing boss? 
 


Before you can review an employee's performance, you need to have a description of what constitutes good performance.
 

Most companies make two basic mistakes. The first is not taking time to explain the process to employees, including the managers who do the appraisals, and secondly not considering performance reviews a continuous process.

Performance appraisals should be like the cycle of a clock. High noon is performance planning when a supervisor meets with a worker and plots goals, objectives and development plans for the year. Three o'clock is execution, putting those plans in place. Six o'clock is the actual assessment by the employer of the worker's progress. Nine p.m. is when the boss and employee discuss the assessment face to face.
 
Berkshire Winter
 
Unfortunately most people think about six and nine and nothing else.
Other than keeping to the clock, the biggest thing that business owner's need when instituting performance reviews is courage. It's the courage to tell people the truth. That's the hardest part of the whole process, but if you do it, both you and your employees will be better off. Give it a try!
 
 
 
 
Final Thoughts
 
 "NOTE TO MYSELF"

final thoughts

 "What our company needs is a radically innovative and cutting edge
new way ... to keep everything exactly the same!"
FIN


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Michael F. Yates & Company, Inc.
_________________
 
101 Belvidere Avenue
P.O.Box 7
Washington, NJ 07882 
 
908-689-4200

fax: 908-689-6300
 
email: [email protected]

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