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Employment Resources

Apr 01
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Are Workers Comp Benefits Taxable Income?

By Employment Resources

While every state operates under different workers comp laws and regulations, most employers are required to carry workers comp coverage. It typically pays two-thirds of your regular income, and workers comp benefits cover medical treatment associated with work injuries.

 

Workers comp is usually temporary, but you can receive it for an extended time period depending on the injury you sustained. If you are injured and can no longer work, workers comp may cover job training and job search expenses.

 

Whether you received workers comp benefits in 2014 or are you currently receiving benefits, you’ll want to know if those checks are considered taxable income. This information helps you prepare to file taxes this year and decide if now’s a good time to buy a house or vehicle.

 

What are the IRS Rules?

 

In general, the IRS does not consider workers comp benefits to be taxable income. According to IRS Publication 525, “Any amount an employee receives as workers’ compensation is fully exempt from tax if they are paid under a workers’ compensation act or a statute in the nature of a workers’ compensation act.”

 

What do Lenders Think?

 

Mortgage companies and auto lenders look closely at your income as they determine your eligibility for a loan. However, they typically will not count your workers comp benefits as income, especially if you still have your job and your rehab and recovery time is short. In this case, they may use your regular income to decide if you’re a good credit risk.

 

If you’ll be off work for a long time period, lenders may look at your credit score to determine if you’re a good loan candidate. It definitely pays to keep that score up at all times, including as you receive workers comp benefits.

 

Understanding whether or not workers comp benefits are taxable income helps you during tax season and as you purchase a home or vehicle. Although these benefits are usually not considered taxable income, discuss the details of your specific case with your human resources manager, insurance agent or accountant.

Apr 01
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Four Ways Your Tax Refund Can Make a Big Financial Impact

By Employment Resources

It’s tax month! Before you spend your entire refund on a shopping spree or exotic vacation, consider four ways your refund can make a big financial impact on your household budget, asset portfolio and financial health.

 

  1. Boost Retirement Savings

 

Are you lucky enough to work for an employer that matches your retirement savings? Take advantage of that free money and increase your contribution to ensure you get the maximum matching funds. You probably won’t miss those dollars in your paycheck now, but it will grow and make a big impact on your future retirement. Plus, your tax refund check can go into a designated account and cover gaps in your household budget if needed.

 

  1. Pad Emergency Savings

 

Do you have enough money saved to cover emergencies like a broken washing machine, damaged roof or health insurance deductible? Many financial planners suggest households save at least three to six  months of living expenses. Pad your emergency savings with your tax refund, and be prepared for whatever life throws at you in the near future.

 

  1. Pay Debt

 

The average American household carries $15,611 in credit card debt according to the Federal Reserve. Erase that burden or at least reduce it thanks to your tax refund. Apply this money to the debt balance with the highest interest rate. Whether it’s credit card debt or a student loan, car loan or mortgage, reducing your debt boosts your momentum to keep working toward financial freedom.

 

  1. Update Insurance Policies

 

Have you been putting off boosting your insurance coverage or buying a dental or life insurance policy because you couldn’t afford it? Turn your tax refund into insurance coverage. Your agent can provide details about coverage and costs to make sure you get insurance that’s right for you.

 

This tax season, take charge of your refund check and use it to make a big financial impact. Which one of these steps will you take this year?

Apr 01
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Five Steps Keep Food Safe and Employees Healthy at Work

By Employment Resources

Are you planning to celebrate World Health Day on April 7? This year’s theme is food safety, and it’s an important topic because two million people die each year from consuming unsafe food. Plus, over 200 diseases spread through food that’s contaminated by bacteria, parasites, viruses and chemicals. Follow five important tips at work that keep food safe and employees healthy this month and year round.

 

  1. Promote Cleanliness

 

Nobody wants to clean the break room, but cleanliness is the first step in food safety, so make sure someone takes responsible to:

 

*Disinfect the counters and tables daily.

*Wash and dry the dishes daily.

*Clean the fridge weekly.

 

While you’re promoting break room cleanliness in the break room, remember to wash your hands before  and after you eat.

 

  1. Separate Raw and Cooked Foods

 

Whether you bring or buy meals, strictly ensure that raw and cooked foods remain separate. Use designated cutting boards, cooking utensils and storage containers to ensure your meals and snacks remain safe to consume.

 

  1. Cook Food Thoroughly

 

Did you bring your famous egg omelets or beef soup to work? Heat your food properly. Soups and stews should be brought to boiling, and heat meats and poultry to an internal temperature of 165 degrees F.

 

  1. Keep Food at Safe Temperatures

 

Have you ever gotten distracted and forgotten about your food in the microwave? Cooked foods that sit at room temperature for longer than two hours are unsafe to eat. Monitor your food and eat it as soon as it’s hot. Then refrigerate cooked and perishable foods immediately as you maintain safe food temperatures.

 

  1. Use Safe Water and Raw Materials

 

Food safety depends on safe ingredients. Prepare beverages with water that’s safe to drink, and wash all fruits and veggies before you consume them. Toss expired foods right away for added food safety.

 

You don’t expect to get sick from your lunch break. That’s why you’ll want to follow five food safety steps at work. They help you and your coworkers celebrate World Health Day and stay healthy.

Mar 02
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Which Employee Benefits Do Professionals Value Most?

By Employment Resources
If your employer offers a generous benefits package, be grateful. Your company understands that providing things like health insurance, matching retirement funds and wellness programs improves employee satisfaction and loyalty. Which benefit is your favorite? While that may depend on your current life situation and needs, a recent survey by One Medical Group reveals the top employee benefits professionals value.
Top Benefits According to Employees
So which benefits do professionals value most? Medical insurance tops the list and is followed by life insurance. The 401(k) plan comes in third. The survey found, though, that many companies don’t offer employee matching for 401(k) contributions. Encourage your company to participate in this key benefit or discuss your retirement accounts with your insurance agent as you maximize your savings.
Benefit Package Goals
Because companies constantly evaluate the bottom line, they may cut benefits or place more financial responsibility on employees. Managing costs isn’t what employees want from their benefits packages, though. Two-thirds of the survey respondents want their benefits to prioritize health. Employee retention and future planning are also top goals employees would like benefits to address.
The Road to Wellness
Less than 30 percent of survey respondents think their benefits provide adequate wellness programs. Nearly half want to see more focus on wellness, which includes weight loss management and smoking cessation. Let your employer know your opinion and join forces with your coworkers to promote wellness at work.
Receive Enough Benefits
The majority of survey respondents believe their benefits package compares or exceeds the benefits offered by other employers. Almost 40 percent, however, think their benefits are decreasing. If your company offers competitive benefits, take advantage of them. However, if you’re seeing reduced  benefits, contact an insurance agent and purchase additional coverage that offers the protection you need.
Communication is Important
The survey goes on to reveal that almost three out of four employees understand all the ins and outs of their employee benefits package. Unfortunately, the other one-fourth still have questions about what’s covered, how much it costs and even which benefits are offered. Talk to your human resources manager or insurance agent today and become familiar with all the benefits available to you.
Overall, many professionals feel that their benefits package is adequate, but there’s always room for improvement. Do you agree? Discuss your opinion and benefits options with your human resources manager today as you maximize your benefits, including the ones you value most.
Mar 02
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Do Single Employees Need a Flexible Spending Account?

By Employment Resources
Does your employer offer flexible spending accounts? They’re a convenient way to save money for a variety of dependent and medical expenses. As a single adult, you may not have children or huge medical expenses. Should you open a flexible spending account?
What is an FSA?
A flexible spending account allows you to save money for medical expenses that aren’t covered by your health insurance. It also covers certain dependent care expenses. Set it up through your employer, and take advantage of tax savings since FSA funds are exempt from payroll taxes.
How Does an FSA Work? 
When you sign up for an FSA, your employer sets money aside from each of your paychecks. New rules for 2015 allow you to contribute up to $2500 annually into your FSA. Previously, unused FSA funds expired at the end of the year, but the Patient Protection and Affordable Care Act now allows you to transfer $500 in unused FSA funds into the next year.
What Expenses are Covered? 
The money you save in an FSA can be used for numerous expenses. Dependent care is one of the most popular expenses FSAs cover. You’ll be able to save up to $5,000 and pay for day care expenses required by dependents younger than 13 or any child with a physical or mental disability that prevents him or her from providing proper self-care.
As a single adult, you might not have children, though. Then use the money to pay for dependent expenses related to the care of your senior parents or grandparents. As long as you claim your older family members on your taxes, you can use FSA funds to pay for their care.
So what if you don’t have kids or older parents? Consider opening an FSA anyway and use the money to pay for medical expenses like those listed on IRS publication 502. They include:
  • Copays
  • Deductibles
  • Medication
  • Crutches, bandages and other medical devices
  • Dental and vision expenses
An FSA allows you to save money each week for dependent care or medical expenses. As a single adult, you may not need an FSA, especially if you don’t have children, senior parents or costly medical needs. However, this tool is a wise and highly recommended way to cover expenses that are unpaid by your insurance policy. Talk to your human resources manager or insurance agent today about opening an FSA.
 
Mar 02
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How to Choose a Medical Specialist Your Insurance Covers

By Employment Resources
Regular visits to your primary care physician provide essential preventative care that helps you stay healthy. However, you sometimes need to see a heart, diabetes or surgery specialist. Do you know where to turn? Learn how to choose a medical specialist who accepts your insurance as you reduce expenses and improve your healthy.
1. Ask Your Primary Care Physician for Referrals
Your primary care physician is an excellent resource when you need a reputable, experienced and trusted specialist. Ask him or her for a list of suggested specialists who can handle your unique needs.
2. Read Your Policy
Many insurance policies include details about covered services, including specialists, so inspect the paper or online copy of your policy. Look for the specialists your physician recommended or search for doctors who practice near your home or office.
3. Call Your Insurance Company 
Your insurance agent or a customer service representative will gladly help you find a covered specialist. Simply state which specialist you need to see, share the desired location or provide the names of specialists your primary care physician recommended.
4. Call the Specialist
If you know exactly which specialist you want to see, call him or her directly. The front desk clerk can usually advise you on whether or not the specialist accepts your specific insurance.
General Tips to Consider When Choosing a Specialist
While insurance coverage is an important factor to consider when choosing a medical
specialist, think about several additional factors, as well.
*Verify board certification. Ideally, the specialist you see should have completed a residency and passed a competency test in his or her field.
*Check for good standing. The Federation of State Medical Boards offers details on a specific specialist’s standing and helps you choose a reputable one. 
*Ask about payment details. Even with insurance coverage, copays, x-rays, blood work, tests and your deductible can be pricy. Some specialists also require you to pay in advance. Discuss these details and make payment arrangements before your first appointment.
A specialist provides advanced medical treatment and care and is an invaluable part of your overall health. Be sure the specialist you need to see is covered by your insurance before you schedule your next appointment. If you change jobs, move or need to switch insurance companies for any reason, consider insurance options that include your preferred specialist.
Mar 02
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Top Five Workers Comp Injuries

By Employment Resources
In 2013, the Bureau of Labor Statistics reported that 3,007,300 people were injured on the job. The majority of those injuries fit into five main categories. Understand the top five workers comp injuries you face as you protect yourself at work.
1. Overexertion
Whether you lift heavy packages, pull large laundry carts or perform a repetitive motion all day, overexertion is a real threat. It caused over a quarter of all worker comp injuries in 2012 and cost companies $15.1 billion according to a 2014 Workplace Safety Index report. Protect yourself when you bend at the knees to lift, wear appropriate protective equipment, take frequent breaks and employ other appropriate techniques that protect you from overexertion.
2. Falls, Slips and Trips 
Slippery floors, snow-covered sidewalks and loose carpeting all contribute to falls, slips and trips. Together, these injuries create the second highest cause of workplace injuries, and they cost companies $9.19 billion in 2012. Because these injuries that can occur in any place of business, wear sturdy shoes, watch where you’re walking and avoid slippery spots as you prevent falls, slips and trips.
3. Being Struck by an Object 
Being struck by an object can occur when objects fall off a high warehouse shelf or projectiles fly around the lab. Proper stacking can prevent some of these injuries, but you’ll also want to pay attention to your surroundings and consider wearing protective gear like a hard hat or steel toe boots.
4. Falls to a Lower Level
This type of injury cost companies $5.12 billion in 2012. As you climb ladders, inspect roofs, walk up stairs or perform other duties from an elevated surface, protect yourself with a safety harness, sturdy shoes and caution.
5. Bodily Reaction
Sometimes, people slip or trip but use their body to prevent injuries. Unfortunately, this bodily reaction may cause injuries to knees, elbows, wrists and ankles. Take care as you walk and pay attention to your surroundings because these protective measures could prevent a painful and serious injury.
Preventing workplace injuries is possible, but accidents do happen. Protect yourself with safety gear and attention to details. Also, make sure your employer offers workers comp insurance and understand what it covers as you stay safe on the job.
Feb 02
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Four Facts You Need to Know About 2015 IRA Contribution Limits

By Employment Resources

Do you want to retire comfortably? Your IRA can play a big part in your ability to enjoy this season of life. Because this financial resource is one you’re solely responsible to fund, understand four IRA contribution facts for 2015 as you prepare for the future.

 

1. Contribute the Maximum Amount

Contribution limits from 2014 remain the same in 2015, so plan to save the maximum amount. If you’re under 49 years old, contribute up to $5,500. If you’re over 50, contribute $6,500.

 

2. Consider Your Birthday

 

Will you turn 70.5 years old this year? If so, you won’t be able to contribute to your traditional IRA. Roth IRAs don’t cap contributions based on your age. Think about your birthday and the type of IRA you own as you maximize your retirement savings.

 

3. Track Your Income

 

No matter how old you are or which type of IRA you have, your modified adjusted gross income (AGI) can decrease the amount of money  you can contribute.

Contribute the maximum amount if you file a joint tax return and your modified AGI is less than $183,000 or if you’re single and earn less than $116,000.

 

Contribute a reduced amount if you file a joint tax return and your modified AGI falls between $183,000 and $193,000, if you’re married but file separately and your modified AGI is under $10,000 or if you’re single with a modified AGI between $116,000 and $131,000.

 

You can’t contribute anything to your IRA if you file jointly and your modified AGI is greater than $193,000, if you’re married filing separately and have a modified AGI greater than $10,000 or if you’re single and your modified income exceeds $131,000.
With this information, you’re better able to plan a retirement savings strategy that’s right for you.

 

4. Think About Your Taxes

Your IRA contributions this year can impact your tax obligations for 2016 and beyond. Add money to your traditional IRA between now and April 15, 2016, and deduct the full amount on your 2015 tax return. You’ll pay taxes on the withdrawals you receive from a traditional IRA when you retire, though. A Roth IRA features no tax deductions now, but you won’t owe taxes on distributions during your retirement years.

 

Understanding these four  2015 IRA contribution facts assists you in preparing for your future. In addition to investing in your employer-sponsored 401(k), consider opening an IRA as you save for a comfortable retirement.

Feb 02
Love0

Top 2015 Health Insurance Trends That Affect Your Workplace Coverage

By Employment Resources

Is employer-provided health insurance a perk of your job? Discover top trends for 2015 that can affect your workplace coverage.

 

1. Employee-sponsored health benefits cost more

 

The average cost of health insurance per worker is rising. According to Aon Hewitt, it averaged 10,266 in 2013, rose to $10,717 in 2014 and is projected to cost $11,304 in 2015, an increase of 5.5 percent. If your employer decided to pass the rising cost onto you, expect to pay an average of $5,000 in health care contributions and out-of-pocket expenses this year.

 

2. Employer mandated penalties kick in

 

Companies with more than 100 full-time employees must offer qualified, affordable coverage to their workers. The penalty is at least $2,000 per employee. This penalty will prompt most companies to add health insurance to their employee benefits package, so look out for enrollment information.

 

3. Personal penalties are due for the uninsured

 

If you can’t afford your employer-sponsored health insurance and don’t buy your own policy, expect to pay a penalty. The Affordable Care Act stipulates that individual adults without health insurance in 2014 will pay the greater of $95 or one percent of their family’s income over $10,000. While the penalty is capped at $2,448, it increases in 2015. Sign up for your employer-sponsored plan or apply at the Healthcare Marketplace today to avoid this penalty.

 

4. Consumer-Driven Health Plans are on the rise

 

Health insurance expenses are rising and so are consumer-driven healthcare plans. Almost half of all large employers offer them now, reports the Mercer consulting firm. Typically, these plans feature high deductibles, but they also offer health reimbursement accounts (HRAs) or health savings accounts (HS As) that cover medical expenses and provides tax benefits. Compare all your options as you choose health insurance.

 

5. Wellness programs are emphasized

 

Healthy employees are cheaper to insure, so many insurance companies and up to a quarter of large employers are placing a greater emphasis on wellness programs. That means you could see decreased health insurance premiums or a bonus in your paycheck if you participate in a biometric screening, enroll in a weight-loss program, join the gym or quit smoking.

 

Now that you know the top health insurance trends for 2015, review your existing coverage or talk to your human resources manager or private insurance agent. Find coverage that fits your needs and protects your entire family.

Feb 02
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Tips to Consider if You’re Facing a Working Retirement

By Employment Resources

Even though you’ve reached retirement age, you might need to postpone a life of leisure due to financial concerns. A working retirement allows you to work at least a few hours every week and build your nest egg before you make the big transition to full retirement. First, though, consider several tips.

 

Boost Retirement Savings

 

According to a 2013 Employee Benefits Research Institute study, one-third of pre-retirees on the lower end of the income scale only have enough money to fund one year of retirement. Additionally, many of the pre-retirees in the same category don’t contribute enough funds to their 401k or other retirement accounts. Talk to your financial advisor about your retirement portfolio. If you don’t have enough money saved, take a job that offers matching 401(k) funds or set up automatic payday transfers that boost your retirement savings.

 

Maximize Social Security Benefits

 

You can almost double your Social Security benefits by choosing a late retirement instead of leaving your job at age 62. Talk to your human resources manager and crunch numbers as you maximize your Social Security benefits.

 

Choose the Career You Want

 

Maybe you love your current job and want to keep it. That’s okay, especially if you receive generous benefits like health insurance and matching retirement fund contributions.

 

However, don’t be afraid to switch careers or try something new. Learn a new trade, work as a temp in a variety of fields or start your own business. A career counselor can provide resources, revamp your resume and help you find a job that’s a good fit for your skills, talents and interests.

 

Get Medical Clearance

 

Before you sign up for a working retirement, visit your doctor for medical clearance. For example, if you suffer from chronic back pain or a heart condition, your physician may give you the okay to work in data entry but not package delivery. Ultimately, you need to prioritize your health and safety.

 

Stay Active

 

Working during your retirement provides you with an outlet for your boundless energy and active lifestyle. It also keeps your mind sharp, a benefit most seniors appreciate.

 

Deciding to take a working retirement with full-time or part-time hours might be a wise decision for you. Consider these facts, talk to your human resource manager and financial planner and crunch the numbers as you make this important decision.

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