...from the HR Perspective |
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Human Resource Update |
December 2014
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2015 Arrives!
More Wage and Hour and More Affordable Care Challenges
As we enter the New Year and later, we face more challenges. Changes in the overtime rules, the effective date for employers with 100 or more employees to comply with the Affordable Care Act, increases in minimum wages (21 States will increase in 2015), and the looming Cadillac tax effective in 2018 with just a couple of years to prepare for it are just a few.
Overtime
While it may be old news, and something we may have forgotten about in our compensation planning for 2014, the Federal Administration is fostering a change to the rules defining those eligible to receive overtime. While the rules defining who has managerial or professional responsibilities may be tightened up, the big target is the salary that determines who is an exempt employee (one who does not receive overtime). At the moment, that figure is $455 per week ($23,660 per annum). It is likely that will be increased dramatically, to as much as $960 per week (about $50,000 per annum). There is also the chance that the DOL will try to link future increases to the cost of living.
This action will add to the cost of commerce and will force more than a few companies to find ways mitigate the effects of the changes. Possible reactions include converting some jobs to part-time, lowering or eliminating pay increases, or eliminating higher paying jobs in their entirety and replacing them with lower paying ones. This possible action is on top of the procession of jobs from full-time to part-time status as a result of the Affordable Care Act (Obamacare).
Employer Compliance With the Affordable Care Act
The Affordable Care Act's employer mandate takes effect on Jan. 1, 2015 for employers with 100 or more full-time equivalent employees (FTE). These companies will have to offer acceptable health insurance to their full-time workers or risk being fined. The requirement for employers with 50-99 FTEs does not go into effect until 2016.
To determine the number of FTEs for a particular month, a company determines the number of those who worked 30 or more hours per week and adds to that a portion of those who worked less than 30 hours. To arrive at that portion, a company totals the number of hours of service for all employees who were not employed on average at least 30 hours per week for that month, and then divides that number by 120. The result is the number of FTEs for that calendar month. Fractions are rounded down. Sounds simple. It is not and there is more to tell. If you need assistance please contact our office.
Minimum Wage
A Presidential Executive Order increased the minimum wage for those working on Federal service and construction contracts to $10.10. 21 States are increasing their minimum wage in 2015 exceeding the current Federal minimum wage of $7.25 an hour. We will have more on this in our January newsletter including a comprehensive chart of the States' new rates for 2015.
Cadillac Plans
There is an onerous tax on "Cadillac" healthcare plans that is effective in 2018. A Cadillac plan is one with a premium of $10,200 for individual coverage and $27,500 for employee and spouse or family coverage (indexed for inflation). Adjustments to the thresholds can be made for plans with a disproportionate share of women and older workers and for those in high-risk industries. The tax is 40% of the premium that exceeds these thresholds. Sharing the premium with employees through employee contributions, flexible spending accounts or other means does not change how the tax is imposed, it is based on the premium, no matter how it is shared. Companies with insured plans will see the insurer pay the tax, companies with self-insured plans would pay the tax themselves.
Companies have just two years to plan to reduce the cost of healthcare benefits. Higher deductibles and increased co-insurance are the two means receiving the most attention at the moment. But, there may be other means to achieve the same end by examining usage patterns and ancillary (but not required) benefits.
We wish you, your families and your associates a very healthy, happy and successful New Year!
We would be pleased to assist you with any of your 2015 challenges.
Sincerely,
Michael F. Yates
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If you find value in this newsletter please let us know. Feel free to call me with a comment and/or ask a question at any time (908-689-4200) or send me an email (myates@mfyco.com). 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.
You can view all of our newsletters by clicking the 'newsletter archives' link at our company website www.mfyco.com.
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The United States Labor Department (DOL)
Who Are They, What Can They Offer You?
The DOL is a cabinet-level department of the U.S. federal government responsible for occupational safety, wage and hour standards which includes overtime, employment discrimination, unemployment insurance benefits, re-employment services, and some economic statistics; many U.S. states also have such departments. The DOL administers and enforces more than 180 federal laws via mandates and regulations.
The DOL is made up of 28 Major Divisions. They are:
Office of the Secretary (OSEC), Administrative Review Board (ARB), Bureau of International Labor Affairs (ILAB), Bureau of Labor Statistics (BLS), Center for Faith-Based & Neighborhood Partnerships (CFBNP), Employee Benefits Security Administration (EBSA), Employees' Compensation Appeals Board (ECAB), Employment & Training Administration (ETA), Mine Safety & Health Administration (MSHA), Occupational Safety & Health Administration (OSHA), Office of Administrative Law Judges (OALJ), Office of Congressional & Intergovernmental Affairs (OCIA), Office of the Assistant Secretary for Administration & Management (OASAM), Office of the Assistant Secretary for Policy (OASP), Office of the Chief Financial Officer (OCFO), Office of Disability Employment Policy (ODEP), Office of Federal Contract Compliance Programs (OFCCP), Office of Inspector General (OIG), Office of Labor-Management Standards (OLMS), Office of Public Engagement (OPE), Office of the Solicitor (SOL), Office of Workers' Compensation Programs (OWCP), Ombudsman for the Energy Employees Occupational Illness Compensation Program (EEOMBD), Pension Benefit Guaranty Corporation (PBGC), Veterans' Employment & Training Service (VETS), Wage and Hour Division (WHD) and the Women's Bureau (WB).
Over the next few months we will be looking at, in no particular order, the following divisions which relate to human resources and employee benefits.
- Employee Benefits Security Administration (EBSA),
- Pension Benefit Guaranty Corporation (PBGC),
- Bureau of Labor Statistics (BLS),
- Employment & Training Administration (ETA),
- Mine Safety & Health Administration (MSHA),
- Occupational Safety & Health Administration (OSHA),
- Office of the Assistant Secretary for Administration & Management (OASAM),
- Office of Disability Employment Policy (ODEP),
- Office of Labor-Management Standards (OLMS),
- Office of Public Engagement (OPE),
- Office of Workers' Compensation Programs (OWCP),
- Veterans' Employment & Training Service (VETS), and the
- Wage and Hour Division (WHD).
Scroll down to see our first installment on the Occupational Safety and Health Administration!
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Invitation to MFYCO Facebook
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DOL and OSHA
In this month's installment of our multi-part series "The DOL, Who Are They, What Can They Offer You?" we will be covering the Occupational Safety and Health Administration.
The Occupational Safety and Health Administration (OSHA) is the DOL Division which oversees workplace safety & health conditions in most private industries or the approved state programs which also cover public sector employers. The Occupational Safety and Health Act (the Act), is the law that ensures employees have both work and a workplace free of recognized, serious hazards. Employers have the general duty to provide their employees with work and a workplace free from these recognized, serious hazards. OSHA enforces the Act through workplace inspections and investigations.
You'll find OSHA under Agencies on the DOL.gov website's homepage. OSHA's site is broken down into a series of tabs Workers Rights, Anti-Retaliation, Regulations, Employers, Data & Statistics, Enforcement, and Training. Within each of these tabs are the sub-tabs: Home, Workers, Regulations, Enforcement, Data & Statistics, Training, Publications, Newsroom, Small Business and Anti-Retaliation.
To find an OSHA standard you go to the Regulations tab and select one of these six topics: General Industry, Construction, Maritime, Agriculture, Recordkeeping, and State Plans. The appropriate Standard Number or Part of Regulations (Standards - 29 CFR) is listed under each of the appropriate tabs.
A Frequently Asked Questions (FAQs) tab is found at the right, in the red top border. The FAQs tabs answers questions like what is OSHA, where can I find information on OSHA regulations, falls, requirements for an eyewash station, protective equipment, cranes, hazard communications, HAZWOPER (Hazardous Waste Operations and Emergency Response Standard) who is covered, inspections, general information, workers' rights, employer and record keeping, etc.
On the home page there is an Employers tab. Once on the page, Quick Links is to the far right and has a listing of quick links for employers. A to Z index, eTools, Frequently Asked Questions, Publications, Recordkeeping, Safety and Health Topics Pages, Small Business to name a few.
Two primary topics in OSHA are:
Recordkeeping (OSHA Forms 300, 300A and 301)
Within Quick Links is a tab for Recordkeeping. Within Recordkeeping you will find OSHA Forms 300, 300A and 301. OSHA Recordkeeping regulations (29 CFR 1904) requires covered employers to prepare and maintain records of serious occupation injuries and illnesses, using OSHA form 300, 300A or 301. Form 300 is the Log used to detail the work-related injuries and illnesses. Form 300A is the Summary of all the work-related injuries and illnesses and Form 301 is the Incident Report used to document the work-related injury or illness.
Whistleblower Protection Program
The Whistleblower Protection Program can be found under the Anti-Retaliation tab. It enforces the whistleblower provisions of more than twenty whistleblower statutes protecting employees who report violations of various workplace safety, airline, commercial motor carrier, consumer product, environmental, financial reform, food safety, health insurance reform, motor vehicle safety, nuclear, pipeline, public transportation agency, railroad, maritime, and securities laws. Rights afforded by these whistleblower acts include, but are not limited to, worker participation in safety and health activities, reporting a work related injury, illness or fatality, or reporting a violation of the statutes.
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Updated: Finding Missing Plan Participants
Steps Plan Sponsors May Take To Locate Missing Participants
Plan sponsors and administrators sometimes need to locate missing participants or beneficiaries. For example, correction of a plan failure under the Employee Plans Compliance Resolution System (EPCRS) may require payment of additional benefits to terminated participants.
Previously, the IRS provided letter-forwarding services to help locate missing plan participants, but with the August 31, 2012, release of Revenue Procedure 2012-35, the IRS stopped this letter forwarding program. The IRS will no longer process requests to locate retirement plan participants or beneficiaries.
In the absence of IRS letter forwarding services, sponsors and administrators may use a variety of other methods to locate missing participants and beneficiaries, including:
- commercial locator services
- credit reporting agencies
- internet search tools
Department of Labor Guidelines
The Department of Labor in Field Assistance Bulletin No. 2014-01 lists the following search methods as the minimum steps the fiduciary of a terminated defined contribution plan must take to locate a participant:
- Send a notice using certified mail
- Check the records of the employer or any related plans of the employer
- Send an inquiry to the designated beneficiary of the missing participant
- Use free electronic search tools
FAB 2014-01 also describes additional appropriate search methods and the distribution options for a terminating plan if a participant cannot be located.
Taken From IRS Employee Plans News Issue Number: 2014-15
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What would you like to see in a future issue?
Contact our office with your suggestions.
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Occupational Safety and Health Administration's (OSHA) Record Keeping Rule - UPDATED
OSHA recently revised its recordkeeping rule. The revised rule updates the list of industries that are exempt from the requirement to routinely keep OSHA injury and illness records. The new list of industries that are exempt is based on the North American Industry Classification System (NAICS) and 2007 - 2009 injury and illness data from the Bureau of Labor Statistics (BLS). Click here to access the updated list.
As of January 1, 2015, all employers, even employers who are exempt from routinely keeping OSHA injury and illness records due to company size or industry, must report:
- all work-related fatalities within 8 hours of finding out about them. Only fatalities occurring within 30 days of the work-related incident must be reported.
- all work-related inpatient hospitalizations, amputations, and all losses of an eye within 24 hours. These incidents must be reported only if they occur within 24 hours of the work-related incident.
An amputation is defined as the traumatic loss of a limb or other external body part. Amputations include a part, such as a limb or appendage that has been severed, cut off, amputated (either completely or partially); fingertip amputations with or without bone loss; medical amputations resulting from irreparable damage; and amputations of body parts that have since been reattached.
Employers do not have to report:
(i) resulted from a motor vehicle accident on a public street or highway, unless it happened in a construction work zone;
(ii) occurred on commercial or public transportation system (airplane, subway, bus, ferry, streetcar, light rail, train); or
(iii) occurred more than 30 days after the work-related incident in the case of a fatality or more than 24 hours after he work-related incident in the case of an inpatient hospitalization, amputation, or loss of an eye.
- an inpatient hospitalization:
(i) if it was for diagnostic testing or observation only; or
(ii) due to a heart attack, if the heart attack resulted from a work-related incident.
You can report to OSHA by
- Calling OSHA's free and confidential number at 1-800-321-OSHA (6742).
- Calling your closest Area Office during normal business hours.
- Using the new online form that will soon be available.
When making a report of a fatality or severe injury, the following information is needed:
- Company Name,
- Location of the work related incident,
- Time of the work-related incident,
- Type of reportable event (i.e., fatality, inpatient hospitalization, amputation or loss of an eye,)
- Number of employees who suffered the event,
- Names of the employees who suffered the event,
- Contact person's name and phone number, and
- Brief description of the work-related incident.
For more information about the updated reporting requirements, visit OSHA's webpage on the revised recordkeeping rule.
Note: Establishments located in states that operate their own safety and health programs (State Plan States) should check with their state plan for the implementation date of the new requirements. OSHA encourages these states to also implement the new coverage provisions on January 1, 2015.
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Top Employer-Offered Holidays in 2015
Holidays come in all sizes, on nearly every calendar day of the year. The Society for Human Resources Management has assembled a list of the top holidays, both religious and federal, that employers expect to be closed for 2015 in order to allow their employees some time to enjoy themselves and their families.
Christmas Day
The only religious holiday to make the list, and 97% of employers say they expect to be closed December 25 in observance of the Christian holiday.
Thanksgiving Day
Turkeys, mashed potatoes, parades and football are some of the activities many people enjoy on this November holiday. Tied with Christmas, 97% of employers also say they will close their doors on this holiday.
New Year's Day
To ring in the New Year, and perhaps sleep off the night before, 95% of employers say they plan to let employees take the day off.
Labor Day
While not all employers plan to "unlabor" their employees, still an extreme majority, 95% of employers, will turn off the lights on this holiday.
Memorial Day
To herald in the summer, 94% of employers say they will shut things down to let employees have some time off.
Independence Day
In commemoration of adopting the Declaration of Independence and declaring liberation from Great Britain, 76% of employers (who say they are normally open on Saturdays) will be closed.
Day after Thanksgiving
Otherwise known as "Black Friday," shopping malls and stores will be flooded with people as 76% of employers say they will be closed the day after Thanksgiving.
Day before Independence Day
Getting to the nitty gritty, only 60% of employers planning say they plan to close office the day before Independence Day.
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15 Oddball Interview Questions for 2014
Interviewing for a job is not what it used to be. These days employers are often looking for applicants with creative-thinking skills and those that stand apart from the crowd. Here are 15 of the most oddball interview questions posed to recent interviewees, according to career-site Glassdoor.com.
If you could throw a parade of any caliber through the office what type of parade would it be?
This question was asked as part of a customer loyalty team member interview at Las Vegas, Nevada-based Zappos.
How lucky are you and why?
Asked during an interview for a content manager at Airbnb. One commenter on Glassdoor.com urged interviewees to reply, "I'm so lucky life led me to this interview opportunity!"
If you were a pizza deliveryman how would you benefit from scissors?
An applicant for an Apple specialist position was asked this unique interview question.
If you could sing one song on American Idol, what would it be?
An interviewer at Red Frog Events asked this question of an applicant for an events coordinator position.
Are you more of a hunter or a gatherer?
An interviewee in Round Rock, Texas was asked this question while applying for an account manager position with Dell.
If you were on an island and could only bring three things, what would you bring?
Yahoo asked this interview question as part of a recent search of a quality analyst.
If you were a box of cereal, what would you be and why?
This question was asked of a sales associate applicant for Bed Bath & Beyond.
Why is a tennis ball fuzzy?
This question was asked during an interview for a Xerox client manager position in New York, NY. One commenter on Glassdoor.com answered, "To make them cuter."
What is your least favorite thing about humanity?
An operations associate applicant in New York, NY, was asked this question during an interview with ZocDoc.
How honest are you?
Obviously, Allied Telesis was trying to weed out individuals with questionable ethics when it asked an executive assistant applicant this question during an interview in San Jose, California.
How does the internet work?
The Cambridge, Massachusetts based tech company Akamai asked a potential director to answer this complicated question.
If there was a movie produced about your life, who would play you, and why?
An applicant for an inside sales consultant position at the New York-based tech company SinglePlatform was posed this entertaining question.
What's the color of money?
An interviewer at the American Heart Association asked a potential project manager to answer this odd, yet though-provoking question.
What was the last gift you gave someone?
Known for polling just about everyone, the consulting firm Gallup asked a data analyst applicant to reveal a little about his or her giving nature.
What is the funniest thing that has happened to you recently?
An interviewer at Applebee's in Wauwatosa, Wisconsin asked a potential bartender to share this story of recent laughter.
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2015 Retirement Plan Limits
All limits are based on the calendar year.
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2015
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2014
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2013
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Maximum Annual Defined Benefit
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$210,000
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$210,000
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$205,000
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Maximum DC Annual Addition ($$)
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$ 53,000
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$ 52,000
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$ 51,000
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Maximum 401(k) Deferrals
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$ 18,000
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$ 17,500
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$ 17,500
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Older EE Catch-Up Contribution
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$ 6,000
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$ 5,500
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$ 5,500
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Maximum Plan Compensation
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$265,000
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$260,000
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$255,000
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Highly Compensated Threshold
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$120,000
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$115,000
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$115,000
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Key Employee in a Top-Heavy Plan
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$170,000
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$170,000
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$165,000
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SSA Social Security Wage Base
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$118,500
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$117,000
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$113,700
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PBGC Maximum Monthly Guarantee*
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$5,011.33
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$4,943.18
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$4,789.77
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Maximum DC Annual Addition (%)
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100%
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100%
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100%
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Social Security Tax - Employee
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6.2%
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6.2%
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6.2%
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Social Security Tax - Employer
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6.2%
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6.2%
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6.2%
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Medicare Tax**
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1.45%
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1.45%
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1.45%
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DC Plan Deduction Limit
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25%
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25%
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25%
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Definition of Compensation for DC Plan Deduction Limit
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Includes
Deferrals
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Includes Deferrals
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Includes Deferrals
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*Life Annuity at age 65
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** Individuals with earned income over $200,000 pay an additional 0.9% in Medicare taxes
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If you have not received our business card with these numbers printed on it and would like one, please let us know! We would be happy to mail you one (or a few to share!)
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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.
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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.
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We offer a true and honest, Client Partnership.
Take the Michael F. Yates & Company, Inc. challenge! Call us today ... 908-689-4200 |
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."
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Michael F. Yates & Company, Inc.
_________________
101 Belvidere Avenue P.O. Box 7
Washington, NJ 07882-0007
908-689-4200
fax: 908-689-6300
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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
GAPS (Global Association Pension Services)
WorldatWork
American Management Association
National Federation of Independent Business
Better Business Bureau
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The site ("from the HR perspective" hence herein referred to as MFYCO.com) is made available by Michael F. Yates & Company Incorporated. All content, information and software provided on and through 'from the HR perspective' and MFYCO.com ("Content") may be used solely under the following terms and conditions ("Terms of Use".)
YOUR USE OF THIS WEBSITE CONSTITUTES YOUR AGREEMENT TO BE BOUND BY THESE TERMS AND CONDITIONS. IF YOU DO NOT AGREE TO THESE TERMS, YOU SHOULD IMMEDIATELY DISCONTINUE YOUR USE OF THIS SITE.
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"Human Resources provides the leadership, supportive services, guiding principles, policies, structures and standards needed for a quality organization to survive in today's business environment."
MFYCO PRIVACY POLICY
Michael F. Yates & Company, Inc. believes strongly in protecting the privacy of its users.
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Concluding Note
As always, any statements regarding federal tax law contained herein are not intended or written to be used, and cannot be used, for the purposes of avoiding penalties that may be imposed under federal tax law or to market any entity, investment plan or arrangement. |
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