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Shirazi Notice

January 2012

Did you know there is now a generic for the brand name prescription drug Lipitor? Ask your doctor or pharmacist about Atorvastatin; you could start saving yourself some money!

The Internal Revenue Service announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for Tax Year 2012. In general, many of the pension plan limitations will change for 2012 because the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment. However, other limitations will remain unchanged.  

Highlights include:

• Annual addition limit (now $50,000, formerly $49,000);
• Salary deferral limit (now $17,000, formerly $16,500);
• Maximum compensation to be considered (now $250,000, formerly $245,000);
• Compensation used to determine a Highly Compensated Employee (now $115,000, formerly $110,000);
• Compensation used to determine a Key Employee (now $165,000, formerly $160,000);
• Social Security taxable wage base (now $110,100, formerly $106,800); 
• The catch-up contribution limit remains the same ($5,500).

Source: http://www.irs.gov/newsroom/article/0,,id=248482,00.html

Shirazi Benefits is stepping up

its commitment to your company's wellness in 2012

by teaming up with DailyEndorphin to offer quarterly wellness challenges ranging from exercise to weight loss to nutrition to steps.  To kick off 2012, a team-based exercise competition or weight loss competition is initially offered. You'll receive everything from customized flyers, to assistance on incentives and even the ability for our office to come to your location to do lunch and learns, all at no cost!

The challenges will be offered to you from our office at no cost; however, we've teamed up with a great partner, Daily Endorphin, for you to utilize in the tracking and administration of the provided challenges. For only $15/per person per year for an unlimited amount of challenges throughout that year, you'll have the opportunity to track and run these challenges using their internet-based program. This will completely take out the administrative task of managing your wellness programs and will also provide a one-stop login for your employees to participate. Of course, you do have the option to do all the tracking yourself via your own methods, but this is a great option for those who want to implement wellness challenges without a lot of administrative work.

Group wellness challenges are highly effective in engaging peers to move more and eat healthier.  Equally important: participants have a blast, morale will increase, and you'll be a hero. 

Utilizing our challenges, as well as the Daily Endorphin site, you'll be able to provide fully customized and planned wellness challenges to your company in 2012 to help encourage a healthy workforce!

If you are interested in learning more about the wellness challenges, please contact Jamie Dennis in our office at 970.313.4123 / jdennis@shirazibenefits.com 

W-2 Reporting - Delayed until 2013

The law initially required employers to provide employees with the aggregate value of their health coverage on their W-2 forms starting in 2012. In 2010, the IRS announced it would waive this for one year. For businesses with fewer than 250 employees, the W-2 reporting has been delayed until 2014. 

1099 requirement - Repealed

The law initially required all businesses to file 1099 forms with the IRS for each purchase more than $600 in goods or services from a store, vendor or other supplier during a calendar year. This was repealed in early 2011 by the House and Senate and was signed by the President in April.   

Starting with renewals in April of 2012 (in order to adhere to PPACA which requires that the employee meetings to be held greater than 30 days prior to renewal) and continuing thereafter, your Account Manager will present you with a newly developed Group Benefits Timeline.

This timeline allows both our team and your group to be proactive well in advance of your plan renewal so we can provide you with the most cost-effective and accurate information in your plan renewal. This timeline will also help communicate how much in advance to your plan renewal date we need to start working so that both parties have opportunity to effectively make decisions about your plan renewal.