ClientConnection November 2015

Transcription

1 ClientConnection November 2015 IN THIS ISSUE 1 Called to the Principal's Office: Documenting Employee Discipline 2 Performance Evaluations 3 Family Risk Management: Updating Your Beneficiaries 4 How will a W-4 Affect my Taxes? 4 Effective Job Descriptions 5 The Integration of Human Resources and Payroll 6 Include Affordable Care Act provisions in your Planning Integration of HR and Payroll Learn more about how integrating HR and payroll could help your company! Page 5 ACCOUNTING FINANCIAL SERVICES GOVERNMENT AND NON-PROFIT CONSULTING HUMAN RESOURCES Called to the Principal's Office: Documenting Employee Discipline What s the old real estate quote? Location, Location, Location. Well, in managing your human resources, the three words that can defend a termination decision are: Documentation, Documentation, Documentation. Despite its importance, many organizations and supervisors fail to document discipline or do not document correctly, leaving your company exposed to liabilities. Richard C. Healy, Senior Consultant rhealy@donnelly-boland.com x1147 Performance management, in regard to compliance, includes things like performance documentation, performance evaluations, progressive discipline, and termination. Managing your risk in this area includes providing your employees with clear expectations and standards of performance and enforcing policies and employee expectations consistently and fairly. You should provide timely, direct, and honest feedback to your employees on a regular basis. Documenting employee discipline is a difficult task for managers, supervisors, and even Human Resource professionals. Why? Because, Nobody likes confrontation The documentation process may be too cumbersome or time consuming They ve never been properly trained in documenting employee behavior or performance, or Some companies do not even have a policy regarding a discipline TAXES Continued on page 2

2 Donnelly-Boland and Associates can come in or even develop a progressive discipline policy and help you implement that policy. We can review or revise the policy and then help your supervisors to understand how to properly utilize the process to recognize, document, and communicate disciplinary issues. Our HR professionals will help you: Understand what you must document Create disciplinary documentation that will stand up in court or other legal proceedings, such as unemployment hearings Create a documentation culture in your organization Understand the importance of communicating the process to the employee If the discipline process is outdated or if it is not enforced consistently, you could find yourself facing a myriad of employment related lawsuits or even just the threat of being sued and needing to defend, which will cost you money. Proper documentation and communication can not only help reduce the possibility of lawsuits, but it can also reduce your unemployment claim losses. Through the use of Donnelly-Boland and Associates, our team of HR professionals can help shield you from common mistakes employers make when it comes to employee discipline. Companies should strive for a policy everyone in the organization knows and understands, and is compliant with all the necessary regulations. Let Donnelly-Boland's knowledge, experience, and team of professionals help you with developing or refining your discipline process, or any of dozens of other HR related topics that you face, knowingly or unknowingly, every day. What you don t know CAN hurt you. Call us today at so we can start working together to help and protect your business. Rebecca Shearer HR Assistant rshearer@donnelly-boland.com x1112 Performance Evaluations A performance evaluation is an integral part of retaining a performance management system. It provides the opportunity for a supervisor to formally discuss and assess the employee s job performance and productivity in relation to pre-established criteria. Performance management programs can be utilized in order to: Determine compensation and/or promotion Identify training needs Enact disciplinary actions Establish career goals Well-developed performance evaluations can benefit organizations in many ways. Performance evaluations can: Assess employee performance fairly and accurately Motivate employees and teams to perform at maximum capacity Provide effective feedback and coaching Identify education and training needs Develop performance plans aligned with organizational goals Unfortunately, some companies are missing out on these benefits and legal responsibilities of utilizing a performance management system. Many companies are re-evaluating their decisions to conduct evaluations due to the time commitment, expense, and the lack of effectiveness. Companies may feel this way because they have outdated versions, poorly developed adaptations, or have inappropriately implemented performance evaluations. Regrettably, their employees will most likely experience this procedure as a tedious process that has no real benefit. Companies may believe that performance management systems are a lot of work with little payoff. However, when a company administers a properly constructed and implemented performance management system the payoff far exceeds the inconvenience. Let Us Help With careful design, Donnelly-Boland and Associates can help your organization to develop a better performance evaluation system. We can facilitate your organization in the development and implementation of performance appraisals that provide participants with detailed feedback regarding their performance. Additionally, we can ensure your management system promotes constant feedback and monitoring that encourages motivation in your employees. We can coach evaluators to ensure that they are calibrated to have the same standardized understanding of how the performance scale is categorized and scored. This will ensure that your staff avoids common rating biases, so that ratings are as fair and accurate as possible. Page 2 Client Connection

3 Family Risk Management: Updating Your Beneficiaries By Kevin P. Boland, CPA Executive Vice President ext One of the common family financial management issues we all face is family risk management* identifying and taking steps to limit our risks and protecting the people who are important to us. One often overlooked but extremely important task in this area is a periodic review and update of your coverages and your beneficiaries. Updating Your Beneficiaries Most of us seldom, if ever, give any thought to this. If we do, it s because we have a life changing event marriage, divorce, birth of a child and we get a notice from our employer. Unfortunately, sometimes it happens when you or your spouse passes away and at that point it s too late to fix a problem. Do you know who your beneficiaries are on all of your accounts? That orphan 401(k) plan from your first employer 25 years ago do you really want that going to (one of) your former spouse(s)? If a minor child is a beneficiary, do you want the child s remaining parent to have control of those assets in the wake of your demise? Or do you want a minor child to have instant access to significant sums without any oversight mechanism in place? Remember that the disposition of the assets in benefit plans follows the instructions on file without regard to your intentions, filings with other plans or other conflicting information not available to the plan sponsor and trustees. What you should be looking for Some people may think that their only important information where this is a concern is handled through their employer: their retirement plan and their health insurance. And while these may both be current, what about your other accounts? What about your qualified accounts with banks, insurers and investment companies? What about other retirement plans from previous employers? Many people have a number of other accounts which should be considered in the event that those assets have to be distributed after their passing. group that would control your assets if something were to happen to you. Remember that if a person under 18 takes over funds, the custodian of the account would then have access to that money. This is particularly important for people who have gone through a divorce. Who is your child s custodian? What you should do The first step is to conduct a periodic review all of your accounts, and ensure that your information is up-to-date. After setting-up a check list of all of your accounts, you can more easily monitor them on a regular basis. How we can help If you are feeling overwhelmed, schedule an appointment to sit down to talk with us. I would be happy to discuss your options, ensure that you have everything in order, and can help you develop an approach to Family Risk Management that best suits your needs. Contact Jackie to schedule an appointment Why it s important The reason you identify a beneficiary is that you are naming the person or Jackie Graves, Executive Assistant x1139 Kevin P. Boland, Fay K. Boland, Susan E. Levi, and Michael C. Wilson, Advisory Representatives. *Securities offered through H.D. Vest Investment Services sm, Member SIPC. Advisory Services offered through H.D. Vest Advisory Services SM Investment and Insurance Products: NOT FDIC Insured NO Bank Guarantee MAY Lose Value Donnelly-Boland and Associates is not a registered broker/dealer or independent investment advisory firm. Page 3

4 All employees must fill out a W-4 Form when starting a new job, but few think to go back and review their allowances. What was good for you when you began your job may no longer be the best thing for your particular tax situation. How will a W-4 Form Affect My Taxes? By Jamie Scherich Branch Manager jscherich@donnelly-boland.com What is a W-4 Form? The W-4 is an Internal Revenue Service (IRS) form employees must complete to let employers know how much money to withhold from their paycheck for federal taxes. The form is extremely important to fill out accurately so that employees do not owe a big lumpsum of money at the end of the year or overpay and have less money in your pocket throughout the year. Claiming allowances The W-4 is based on the idea of "allowances." The more allowances you claim, the less money your employer will withhold for taxes. You are able to claim one allowance for yourself, one for your spouse, and one for each dependent you report on your tax return. There are also some additional allowances you may withhold. The best way to find out what you are eligible to withhold would be to use the Withholding Calculator on the IRS website: Claiming 0 In some instances, individuals may wish to claim 0. This would mean that more money would be withheld from your paychecks, but also that you would be more likely to receive a tax refund. One reason why an individual would do this would be because that person is making interest off of investments and will have to pay the gains at tax time. What s best for you? Claiming allowances on your W-4 form can have significant impact on your tax refund. What was best for you at one time may not still be the same. Major life events can change your W-4 allowances such as marriage, the birth or adoption of a child, a significant pay increase, or a spouse getting or losing a job. If you d like to work out the math with a professional, schedule an appointment with Donnelly-Boland and we can help you have a better understanding of the upcoming tax season. Effective Job Descriptions Rebecca Shearer HR Assistant rshearer@donnelly-boland.com x 1112 Job Descriptions are a communication tool that correlates to your organization s recruitment and hiring success. One of the benefits of a strong job description is to sell a specific job to qualified candidates. Job descriptions are an essential part of hiring and managing employees. When effectively developed, they can: Help attract the best candidates Describe the major areas of an employee s job Outline performance expectations, job training, evaluation, and career development Provide a reference point for compensation decisions and fair hiring practices In addition, job descriptions should express how the organization differs from their competitors by efficiently communicating the organization s mission statement. When constructing a job description, there are specific criteria that should be included. There are three fundamental sections of information that should be included in every job description. 1. Description of the Organization- Give a brief synopsis of who you are, what you do, your location, your size, etc. Describe the organization as a whole as well as the specific department where the job is located. 2. Description of the Specific Job and Qualities of a Successful Candidate- Provide specific details so that the applicant can decide if they want to apply. Include a job description including the title of the position, level of responsibility, tasks, work environment, travel expectations, benefits, relocation requirements and provide a salary range. Include the specific skill set, required work experience, educational background, etc. 3. Contact Information- Include information on who to contact for more details on specific questions/ instructions. Also, ensure there are no errors or typos in this section! Include the name and contact information of a Contact Person to field questions about the position. Also, make it clear how applicatans should apply (normally via or web application). Can you remember the last time you reviewed your company s job descriptions? While there isn t a specific time frame for how often job descriptions should be reviewed, it is important to periodically evaluate and update them to ensure they accurately reflect the employee s current duties. If you need help writing proper job descriptions and/ or updating current job descriptions, please contact Donnelly-Boland and Associates. We have dedicated and welltrained HR Representatives here to help. Page 4 Client Connection

5 The Integration of Human Resources and Payroll By Kim Latzy Staff Accountant ext For both large and small businesses alike, it is generally acknowledged that human resource functions are kept separate from general accounting payroll functions. However, as we move forward into a more technologically-advanced future, we are seeing a rising number in systems that are receptive to both payroll and HR. Donnelly-Boland has implemented Replicon as their database of choice, but with numerous systems out on the market, there is surely one to fit your company s needs. Whether you are a business owner looking to save time, costs, or resources, this type of collaboration might be just what you re looking for. Saving Time Are you looking for an efficient process that will help save time for both your payroll processors and human resource generalists? By initiating a database that can be used by both departments, human resources would be able to spend more time on other integral tasks such as the company s recruitment process for new employees. Human resources would be able to collect and enter all new hire information such as tax form or benefits information one time into a database. With an electronic database, human resources would also be able to quickly and simply go into the system to update an employee s information at any time. Saving Costs Are you looking to implement a new process that will reduce costs and potentially help save money for your company? With the increased accuracy of using a combined system, you will be able to reduce the number of times that a costly mistake may occur. While you are decreasing the amount of time to correct a mistake or error as stated previously, you are additionally cutting costs of labor associated with these tasks. Saving Resources Are you trying to cut down on the amount of resources that your company is using? With a combination of efforts, you could easily cut back on the amount of paperwork being used between the human resources and payroll departments. If payroll processors are able to retrieve the same information that human resources is updating through a combined database system, you can save on the amount of paperwork needed to go back and forth between departments. Additionally, this process will allow for fewer errors when relaying changes in documentation. Still not sure if this integration is right for you? Contact Donnelly-Boland for more information on human resources, payroll processes, or general outsourcing of either practice. Did you know Donnelly-Boland specializes in working with CONSTRUCTION companies? Partnering with us allows you to spend more time doing what you do best! Trust a group of professionals who know the industry and can support your accounting and business consulting needs. Page 5

6 Include Affordable Care Act provisions in your planning In June, a U.S. Supreme Court ruling allowed the Affordable Care Act to continue in its present form. That means you ll need to consider the law s provisions in your year-end planning. Here s a review. Premium credit for individuals. This federal tax credit provides a subsidy to help pay health insurance premiums. The amount you can claim depends on income and family size. Planning tip: Adding a dependent or getting a raise can affect the amount of your credit. Run the numbers before year-end to avoid an April 15 surprise. Individual penalty. The penalty applies when you or your dependents do not have health insurance during the year and don t qualify for an exemption. Planning tip: If you were uninsured for no more than two months during 2015, the penalty doesn t apply. Net investment income surtax. The 3.8% surtax applies to net investment income when your adjusted gross income (AGI) exceeds $250,000 when you re married filing jointly ($200,000 when you re single or filing as head of household). Planning tip: Net investment income includes dividends, interest, and capital gains (minus related expenses). Consider tax-efficient moves such as rebalancing assets between taxable and tax-deferred accounts. Medicare surtax on wages. The 0.9% surtax applies to wages, compensation, and self-employment income when your AGI exceeds $250,000 and you re married filing jointly ($200,000 when you re single or filing as head of household). Planning tip: Your employer is not required to withhold for the surtax unless your wages exceed $200,000. If you re married and your joint income exceeds the threshold, revise 2015 estimates or withholding to avoid penalties. Employer penalties. These penalties apply when you don t provide affordable health insurance to employees. For 2015, the penalties can apply when 100 or more full-time employees work in your business. The penalties begin in 2016 when your business employs 50 or more fulltime workers. When you employ fewer than 50 workers, you re not subject to the penalties. Planning tip: Make sure workers are classified correctly as employees or independent contractors. Do you have questions on the Affordable Care Act? How will I report my health insurance coverage on my tax return? How will the Affordable Care Act affect my tax return? Donnelly-Boland has answers! Baldwin Brentwood Orlando Waynesburg 2801 Custer Avenue, Suite G 3730 Brownsville Road Hartford Run 69 S. Washington Street Page Pittsburgh, 6 Client PA Connection Pittsburgh, PA Orlando, FL Waynesburg, PA Page Page 6 Phone (412) Phone (724) Phone (412) Phone (412)

7 About Us Donnelly-Boland and Associates, a certified woman-owned business enterprise, is a CPA and management consulting firm that provides an array of professional services including accounting, financial services, government and nonprofit consulting, human resources, and taxes. We have extensive experience in providing these services to governments, nonprofits, individuals and service businesses. Donnelly-Boland and Associates was incorporated in 1992 and is headquartered locally with offices in Baldwin, Brentwood, and Waynesburg as well as an office in Orlando, FL. We assist a variety of organizations, large and small, on both an interim or more permanent basis. The Value of Proven Results We serve every client with a depth of resources and the highest level of expertise, yet offer the personal attention and accessibility that builds strength and trust. We ve proven it s possible to offer comprehensive accounting, financial services, government and nonprofit consulting, human resources, and taxes by top-notch professionals without sacrificing value. Let Donnelly-Boland and Associates be the breath of fresh air you need to find temporary or long term solutions, project assistance, or a different perspective. Our owners and many of our employees are not just accountants, they are business owners and entrepreneurs themselves and have confronted many of the same challenges you face every day. Feel assured that your financial information is accurate, precise and always available in a timely fashion. Now you ll have the time you need to focus on the growth and success of your business or organization. Offices Baldwin 2801 Custer Avenue, Suite G Pittsburgh, PA Phone (412) Fax (412) Brentwood 3730 Brownsville Road Pittsburgh, PA Phone (412) Fax (412) Orlando Hartford Run Orlando, FL Phone (412) Fax (412) Waynesburg 69 S. Washington Street Waynesburg, PA Phone (724) Fax (412) Page 7

8 The Hough Building, Suite G 2801 Custer Avenue Pittsburgh, PA 15227