Year End Tax Tips You Can Share With Your Employees

December 11, 2012

Talk of the fiscal cliff is everywhere these days, so many of your employees may be concerned right now about what will happen to their tax rates.  While no one knows what Congress will ultimately decide regarding next year’s income tax rates, there is one cold, hard fact that isn’t getting much press – the Medicare surcharge.  I wrote about this new surcharge tax last month, which increases the Medicare tax rate from 1.45% to 2.35% on amounts of earned income over $200,000 for single filers and over $250,000 for married filers.  Here are 2 tips you can share with your high income employees who may be in danger of this surcharge: Continue reading “Year End Tax Tips You Can Share With Your Employees”

Can You Change Your Workforce Culture to Increase Their Financial Wellness?

November 20, 2012

No matter how much financial education you provide to your workforce, ultimately it is up to your employees themselves to alter their financial bad habits and focus on improving their financial well-being.  It all starts with creating a culture of accountability, according to best-selling author Roger Connors. I was fortunate to pick up a free copy of his book Change the Culture, Change the Game a few months ago at the SHRM Annual Expo in Atlanta.  Although some of you might disagree, one of the things I like most about attending these conferences is the ability to visit all the vendors’ booths, find out what’s new in the benefits arena, and best of all, collect the freebies and giveaways.  At one of the booths, Roger Connors was autographing his latest book, where he outlines a breakthrough strategy for energizing your workforce and creating accountability for results.  Continue reading “Can You Change Your Workforce Culture to Increase Their Financial Wellness?”

Providing Workplace Financial Education Doesn’t Have to be Taxing

November 13, 2012

With so many upcoming tax law changes, many of which are still up in the air, employees may be starting to feel the financial stress of worrying how these changes will impact them.  Now is a great time to start planning for a year-end tax education workshop for your workforce to help prepare them for the following tax law changes: Continue reading “Providing Workplace Financial Education Doesn’t Have to be Taxing”

Is Now the Time for an In-Plan Roth Rollover?

November 06, 2012

It’s been two years now since the IRS issued Notice 2010-84 to provide guidance on in-plan Roth rollovers for 401(k) and403(b) plans, but have you had many employees take advantage of this option?  The majority of employees I’ve spoken to over the past few years have shied away from doing an in-plan rollover due to the tax implication, with the exception of those employees who had previously made after-tax contributions and could roll those funds to the Roth without much, if any, of a tax hit.  I had tended to agree with many of the employees who couldn’t justify paying taxes on income that had been deferred  with the sole purpose of delaying that same tax, but now with the large tax increases scheduled to take effect in 2013 without congressional action, I am having second thoughts on the benefits of considering an in-plan rollover. Continue reading “Is Now the Time for an In-Plan Roth Rollover?”

Helping Employees Prepare Financially for the Frankenstorm

October 30, 2012

Are your employees prepared to weather a storm?  As Hurricane Sandy rushes toward the mid-Atlantic area today, many companies across the area are telling their workforces to stay home.  But is that enough?  Certainly, employers should be concerned about their employees’ physical well-being, keeping them off the roads and updated on the availability of nearby shelters that employees can go to in case of flooding.  But what about their financial well-being?  Continue reading “Helping Employees Prepare Financially for the Frankenstorm”

When’s the Last Time You Got Good News from the IRS?

October 23, 2012

The IRS has perfectly timed the annoucement of the 2013 pension limitations during National Save 4 Retirement Week, which ends this Saturday.  Notice IR-2012-77   declares the COLA adjustments that will impact the dollar limitations for pension plans and other retirement accounts for tax year 2013 for both employer and employee contributions.  It is important to let your employees know how these increases can help them save more for retirement, so make sure to share this information with your workforce in the messaging format that best fits your workplace culture.  Continue reading “When’s the Last Time You Got Good News from the IRS?”

Does Your Plan Include NS4RW?

October 16, 2012

Although October is usually the month employees are focusing on their health insurance options for next year, it’s good to redirect their attention to a decision that has a much longer term impact then what type of health coverage they’ll have for 2013, and that is how much they are contributing towards their retirement. It’s not a fund ticker symbol or license plate number, but what NS4RW stands for is National Save For Retirement Week, created by Senate Resolution 555 that calls for the week of October 21, 2012 to highlight 3 goals: Continue reading “Does Your Plan Include NS4RW?”

How Much Should Employees Have Saved Up For Retirement So Far?

October 09, 2012

I’ve just come off of a 3 week road trip, where I zig-zagged across the western half of the U.S., speaking to a variety of workforces on planning for retirement.  One common question I heard again and again from many of the mid-career employees was “how much should I have saved up so far?” towards their retirement nest egg.  Similar to my journey as I traveled from one workplace location to another, I knew what the final destination was on the map, but it was just as important to know how many miles I had driven and how many more miles to go, so I would know when I had to stop for gas or take a pit stop.  Continue reading “How Much Should Employees Have Saved Up For Retirement So Far?”

Are You DEVOted to Your Older Workforce?

September 25, 2012

As a pre-teen back in 1978, I remember the first time I watched Saturday Night Live and the musical guest that night was Devo singing Whip It.  Imagine my amazement when my stepson got us free tickets to a concert this weekend to see none other than Devo, who is on tour with Blondie this fall.  The band members may now be eligible for Social Security, but they still got the crowd to their feet with their electric sound.  And who says you can’t teach an old dog new tricks?  The silver-haired band members even wrote a new song this year, Don’t Roof Rack Me, Bro, dedicated to Republican presidential candidate Mitt Romney’s dog incident, which occurred in 1983 when Romney traveled twelve hours with the dog in a crate on his car’s roof rack.  The Devo band members are like many of the oldest of the Baby Boomer generation who refuse to see themselves as old or ready to retire.  You may have a large population of these aging rockers yourself, so how can you help them face the reality of approaching retirement?  Continue reading “Are You DEVOted to Your Older Workforce?”

A Sad Farewell

September 11, 2012

In 1980, the concept of the 401(k) as we know it was born at the Johnson Cos., a benefits consulting firm located not too far from my home in Pennsylvania. Sadly, the founder of the firm, Edwin T. Johnson, passed away last month at home after a long battle with cancer.  Mr. Johnson had been helping his clients with pensions, retirement plans, and health insurance since he started his company back in 1963.  Continue reading “A Sad Farewell”

Are You Ready for National Payroll Week?

September 04, 2012

Now that we’re all back to work after celebrating Labor Day, don’t let the fun stop – continue the celebration by recognizing National Payroll Week(NPW) at work. This special week celebrates the economic, cultural, and social achievements of workers and the significance of “an honest day’s work for an honest day’s pay.”  Started in 1996 by the American Payroll Association, NPW is a national campaign to help America’s workers understand more about their paychecks, the payroll withholding system and other payroll-driven benefits.  Shining a spotlight on employees’ paychecks is a great way to transition to your upcoming open enrollment by getting your workforce already starting to think about their paycheck and current deductions.  Continue reading “Are You Ready for National Payroll Week?”

Can You Game Your Employees To Take Action?

August 28, 2012

On the final day of the ISCEBS Symposium held this past month in San Francisco, Adam Wootton, Ph.D. with Towers Watson, kicked in the fun factor during his morning session on Using Games to Increase Employee Education.  It was obvious that Adam loves his job as Director of Social Media and Games, and he shared some very interesting facts about gaming in the U.S.  It was no surprise that 2/3s of American households play computer games, but what did amaze me was that 40% of all players are women and that adult women represent a greater portion of the game-playing population than boys age 17 or younger (which is what I envision as the typical gamer).  Actually, the average gamer is 34 years old and has been playing for 12 years.  Now, when I think about online games, what comes to mind is Angry Birds or World of Warcraft, which so far I have avoided getting hooked on.  But what surprised me was that frequent flyer programs can also be considered games since members accumulate points, you can win prizes, and there are the status goals of reaching gold or platinum levels.  So what does this have to do with helping your employees? Continue reading “Can You Game Your Employees To Take Action?”

What’s Ahead for the Future of Our Retirement System?

August 14, 2012

Over the next few weeks, I will be providing a summary of some of my favorite sessions I had the pleasure of attending during this year’s 31st Annual ISCEBS Employee Benefits Symposium.  The 3 day event in August was held in San Francisco and brought together hundreds of credentialed benefits and compensation professionals from both the U.S. and Canada. Continue reading “What’s Ahead for the Future of Our Retirement System?”

Are Your Employees Falling for These Social Security Myths?

July 17, 2012

Last week I hit the road to conduct retirement planning sessions for a couple of mid-sized companies up in New England, and many of the attendees had some serious concerns about the future of Social Security. I heard younger workers complaining that Social Security is a Ponzi scheme and older workers expressing their confidence that any fixes to Social Security probably won’t hurt their own benefits since past changes have been gradually phased in over time.  Not surprisingly, many of the misconceptions that were being voiced to me are on the list of The Top Ten Myths About Social Security by Morningstar columnist Mark Miller. Continue reading “Are Your Employees Falling for These Social Security Myths?”

Should (and Would) Employees Pay for One-on-One Financial Guidance in the Workplace?

June 26, 2012

As financial wellness becomes more of a common component to workplace wellness programs, many smaller employers are considering the cost sharing aspect of bringing financial guidance to their employees.  With tight budgets, some CEOs view the ability to meet with a financial planner during working hours as a perk that employees should be happy to pay for.  But are they willing? Continue reading “Should (and Would) Employees Pay for One-on-One Financial Guidance in the Workplace?”

Do Employees Have A False Sense of Security About Their Finances?

June 19, 2012

As we move farther away from the height of the Great Recession, many employees appear to have put it behind them, since we are seeing stress levels due to financial concerns steadily decreasing over the past few years.  This drop in financial stress levels is based on recent trend analysis research that I wrote about last month for our 2012 Special Report on Financial Stress. Continue reading “Do Employees Have A False Sense of Security About Their Finances?”

Inspiring Savings with a 5k Challenge

May 29, 2012

I managed to cross the finish line last weekend at the Kennett Run, a local 5k race I’ve run the past few years.  I don’t like to exercise, but this event provides enough incentives that even I am inspired to lace up my sneakers and hit the pavement.  Here are some of the tactics that got me motivated: Continue reading “Inspiring Savings with a 5k Challenge”