It’s Beginning to Look at Lot Like………….Enrollment Time!!!!

You thought I was going to say the name of a popular wintertime holiday didn't you? From the looks of the retail stores it seems that may be true, but for many it’s Flexible Spending Account enrollment time.

It’s fast approaching, so before you can cozy up next to the fire with a cup of cocoa and listen to your favorite Bing Crosby or Alvin and the Chipmunks Album, you have to decide what you’re going to incur in medical or dependent care expenses for the New Year.

So how can you predict the future? Last I checked, you can’t, but here are some tips to help you forecast your medical and dependent care expenses:

Dependent Care Expenses: For me this is simple. With a young child at home I know that I will surpass the $5,000 per year IRS maximum allowed amount. It may be a little easier to estimate dependent care expenses since you most likely know exactly what dependent care expenses you’ll have for the upcoming year and it’s really rare to leave money behind in this account. Just remember each employer has different guidelines on the time-frame to submit claims, so check out the fine details for your plan (or just give us a call, we are here).

Health Flexible Spending/Limited Purpose Flexible Spending: This is where being able to predict the future would come in handy. How can you really decide what your medical expenses are going to be? Well we don’t have a crystal ball either, so it’s really just an educated guess. Currently, the IRS maximum pre-tax benefit amount for Health FSA or Limited Purpose FSA for a plan year is $2,500.  Your employer might have a lower maximum benefit amount, so again, check with them for the details or give us a call. Some employers offer a grace period or a carryover to allow participants more options to use up their balances. If your employer doesn’t offer one of these features you need to incur enough expenses during the plan year to cover your election amount. Otherwise, you will lose it. Unused funds are held by your employer and the IRS has strict guidelines on how the money can be spent. Sorry, no lavish parties.

If you currently have money left in your 2014 benefit account, it is still early enough to think about what expenses are coming up for the rest of the year or consider what you might need to incur to spend down your remaining funds. If you need help determining what you can and can’t use your funds on, give us a call at (877) 661-4727.

Hopefully this information has been helpful and hasn't spoiled your upcoming holiday celebrations. 

The Author: April Van Hove, CFC 

Team Lead FSA/HSA Administrator

abgncs.com

avanhove@abg-mn.com

Our Payroll Team is Industry Certified and Ready to Serve

It is very important to us at Alliance Benefit Group North Central States, Inc. (ABGNCS) to stand by our core focus, “We take the worry away.”  For our employees to deliver on this promise, we believe it’s important to be knowledge leaders within the industries we serve. A key contribution to our knowledge base is our commitment to having our employees become certified within those industries.  

For our Payroll Department an important designation is the Fundamental Payroll Certification (FPC). Our Payroll Account Managers are proud to have these three characters displayed behind their names. As a payroll provider, this training helps us be prepared to fully support the payroll process from start to finish. 

What does FPC stand for?

FPC stands for Fundamental Payroll Certification, a professional certification administered through the American Payroll Association (APA).

What is the purpose of the FPC designation?

The FPC is a way for payroll professionals, consultants, analysts and sales representatives to demonstrate their knowledge of basic payroll concepts and systems to establish credibility.

Topics covered on this Exam:

1.      Core Payroll Concepts

2.      Compliance/Research and Resources

3.      Calculations

4.      Payroll Processes, Supporting Systems, and Administration

5.      Payroll Administration and Management

6.      Audits

7.      Accounting

We currently have three employees with the FPC. ABGNCS is proud to have this designation as part of our organization and supports that the rest of our Payroll Team working towards this certification.

These efforts help us keep up with the ever-changing payroll rules and regulations. We’re ready to help answer any questions you may have about your payroll systems. 

The Author: Sarah J. Barnick, FPC

Account Manager - Payroll

abgncs.com/payroll

sbarnick@abg-mn.com

Disclaimer: This blog is of an informative and educational nature, and should not be considered legal, financial or operational advice. Please contact the appropriate parties for those services. Thank you.

5 Things to Consider When Switching Payroll Providers

Processing payroll for your company is one of the most important tasks your organization manages from week to week, and it needs to be completed on time and accurately! That is why there are many things to ponder when you're considering switching payroll providers. Here are five things to think about before choosing a new payroll provider:

1.   How does implementation work? This is going to be the first time that your company and the new provider work together. You're getting to know each other and how you both do business. You will want to make sure that there is a main point of contact to reach out to with questions that you have, who will be a able to provide a quick response. It is also important that the provider has a implementation process to make sure that the project stays on track. Make sure to inquire about the amount of work you are responsible for and how much the payroll provider is handling.

2.   Who will handle payroll processing? It is  important to have someone to reach out to when you need assistance, especially when dealing with a new software solution. In most cases it is nice to have a dedicated person to work with so that you're not training the person each time you call. Be sure to ask the question of who will be processing your payroll, and how will you be able to contact that person. Your time is valuable and you don’t want to get stuck on the phone trying to get through to a real person.

3.   What additional services do they offer? Make a list of "must haves". This could be an Employee Self Service Option, WC Pay As you Go Insurance, HRIS system, remote access to the software, or an HR resource, and the list could go on. Once you have a list, you can compare the options that each provider has and really drill into what is important to you. In addition to the list, are there some services that the provider is able to offer that would help make your life easier? Make sure you ask questions about features that help streamline your payroll process. Also think in terms of the big picture. Is it possible they could provide other benefits including health savings or retirement services? Would it make everyone's lives easier to bundle some of these services? 

4.   How does pricing work? Every payroll processing company has their own pricing structure and a different approach to including or excluding additional services. Make sure you understand what's included and which services will cost you additional money. A quick list of things to ask about is:

a.  How is the tax filing charged? What if there are amended    returns needed?

b.  Reporting -- what reports are included and what reports are additional? Can you write your own, if so is this an additional charge? How will you get your reports? 

c.  What is included in the payroll processing charge? 

d.  Is there a charge for Employee self service?

e.  Is there a charge for additional administrator access to their system?

5.   What do they offer for tax filing services? It is important to ensure that the provider you choose offers everything you need for tax filing, this includes federal, state and any local tax deposits as well as quarterly and annual forms. 

Let us take some of the weight off your shoulders. 

Keep in mind that it is also important that the payroll provider fits the needs of your business and is able to grow with you. If you are interested in payroll services, Alliance Benefit Group North Central States, Inc. would be happy to provide information and offer guidance during your evaluation. 

The Author: Alysha Frie, FPC

Payroll Sales Consultant
abgncs.com/payroll
afrie@abg-mn.com

Disclaimer: This blog is of an informative and educational nature, and should not be considered legal, financial or operational advice. Please contact the appropriate parties for those services. Thank you.

Are you on track to pass your 401(k) testing for 2014?

It’s not too late to “check-in” with Alliance Benefit Group North Central States, Inc. (ABGNCS) to see if your retirement plan is on track for 2014. If your retirement plan year is the same as a calendar year, August and September is a good time to send your retirement administrative team an email requesting a preliminary Actual Deferral Percentage (ADP) test. 

Safe Harbor Plan? No need to worry! You are in position to pass the ADP test. If you are not a Safe Harbor Plan, you may want to pay attention to how much your Highly Compensated Employees (HCE) are deferring.

In 2014, a HCE is anyone who:

1.     During 2013 (year prior to being tested) received compensation in excess of $115,000.

2.     Any employee who, during 2013 or 2014, was a more than 5% owner, or

3.     Any employee spouse, child, grandparent, or parent of a more than 5% owner.

 If your plan is prior-year tested, a passing rate for this group has already been established. Your administrative team can run a preliminary test to see if you are on track to pass the ADP test.

If your plan is current-year tested, then your passing rate for 2014 is a moving target.  You will want to check in with your administrative team at least once during the year to see how you are doing, and maybe even more often.

Another idea you may want to implement to plan for a successful 2014 is using a planning tool:

1.     Create a spreadsheet with all of the 2014 HCEs listed.

2.     Enter their annual salaries.

3.     Enter their annual deferrals.

4.     Enter a formula to divide deferrals by salaries. Each HCE will have a percent here.

5.     At the end, you will add each individual percent and divide by the number of HCEs. This number is key and will let you know if you are on track, or if adjustments need to be made before the end of the year.

Here is an example of a planning tool:

Hopefully the information we've provided will help you plan for testing. Please contact your retirement administration team if you would like to begin the process. 

The Author: Lisa Dahl, QKA

Senior Account Manager
abgncs.com/RetirementAdministration
ldahl@abg-mn.com

Disclaimer: This blog is of an informative and educational nature, and should not be considered legal, financial or operational advice. 

Please contact the appropriate parties for those services. Thank you.