CJA is a national employee benefits company that specializes in designing innovative insurance products. It has over 30 years of experience working with leading insurance companies. CJA helps partners provide complex employee benefit programs to become more successful. The document discusses CJA's Section 79 plan, which allows tax-deductible contributions for life insurance and provides permanent benefits for key employees. Examples are given showing how Section 79 can benefit business owners through business transitions or implementing a class system.
Does your company have a section 79 plan Walter Hines
This document discusses Section 79 plans, which allow business owners to deduct the premiums paid for group life insurance plans from their taxes with no deduction limits. It provides an overview of what Section 79 plans are, the key advantages for business owners, and an example of how a Section 79 plan could benefit a medical practice and its owners. The example shows how the practice's owners and employees could receive life insurance coverage worth 2.5 times their salary while the business receives tax deductions for the premiums paid. This reduces the practice's total tax liability by over $60,000 for the first year alone.
Findley Davies' Ed Redder presented at Schneider Downs Not-For-Profit Symposium Health Care Reform and Compliance Challenges and Opportunities.
Discussion Points
- The importance of knowing who you are
- Employer Shared Responsibility
- Current regulatory obligations
- Future obligations
- Additional compliance challenges
This presentation provides a look at Performance-based Equity from three angles: Design, Legal issues (provided by Jennifer George at Orrick) and Administration concerns (provided by Paz Dizon of Gilead). The administrative concerns is especially interesting since Paz drills deep into some of the difficulties and how she handled them.
Health care reform - Comp & Benefits for Not-for-Profit EntitiesGrant Thornton LLP
With employer mandates and reporting requirements starting in 2015, these regulation details will help you
understand how to comply.
Learn more - http://gt-us.co/15LyvkI
This document summarizes key issues related to employee benefits for healthcare employers, including an overview of health care reform requirements. It discusses the play or pay rules and employer reporting requirements under the Affordable Care Act, including details on determining full-time employees, calculating penalties, and required reporting information. It also briefly outlines other ACA topics like 90-day waiting periods, PCORI and reinsurance fees, nondiscrimination rules, and executive compensation audits.
The total cost to the company (CTC) includes an employee's salary as well as other expenses like benefits, allowances, bonuses, and statutory contributions. The CTC is meant to show a higher salary amount but the employee's actual take-home pay is often lower after various deductions. Components of the CTC include basic salary, dearness allowance, housing allowance, medical reimbursement, leave travel assistance, provident fund, employee state insurance, gratuity, and more. Some expenses like training costs or relocation expenses are one-time costs not included in the annual CTC amount.
The document discusses the calculation of managerial remuneration under the Companies Act 1956. It states that total remuneration to directors, managers, and managing directors cannot exceed 11% of net profits as defined in the Act. Net profits are calculated by taking the gross profit and subtracting/adding certain items as specified. The document also provides details on calculating remuneration in cases of adequate and inadequate profits.
Using Employee Share Schemes To Build Shareholder Value - July 2011lizhunter
This document discusses rewarding employees with share schemes and considers the benefits, methods, and concerns around implementing such schemes. Some key points include:
Share schemes can align employee and shareholder interests to boost share value and productivity. They offer tax advantages like capital gains tax treatment. However, concerns include complexity, dilution of shares, and accounting standards.
Common types of schemes include share purchase plans, share option plans like Enterprise Management Incentives, and Share Incentive Plans which provide free shares to employees. Factors to consider include corporate strategy, legal requirements, taxes, and employee communications. Professional advice can help design and implement effective long-term incentive plans.
Does your company have a section 79 plan Walter Hines
This document discusses Section 79 plans, which allow business owners to deduct the premiums paid for group life insurance plans from their taxes with no deduction limits. It provides an overview of what Section 79 plans are, the key advantages for business owners, and an example of how a Section 79 plan could benefit a medical practice and its owners. The example shows how the practice's owners and employees could receive life insurance coverage worth 2.5 times their salary while the business receives tax deductions for the premiums paid. This reduces the practice's total tax liability by over $60,000 for the first year alone.
Findley Davies' Ed Redder presented at Schneider Downs Not-For-Profit Symposium Health Care Reform and Compliance Challenges and Opportunities.
Discussion Points
- The importance of knowing who you are
- Employer Shared Responsibility
- Current regulatory obligations
- Future obligations
- Additional compliance challenges
This presentation provides a look at Performance-based Equity from three angles: Design, Legal issues (provided by Jennifer George at Orrick) and Administration concerns (provided by Paz Dizon of Gilead). The administrative concerns is especially interesting since Paz drills deep into some of the difficulties and how she handled them.
Health care reform - Comp & Benefits for Not-for-Profit EntitiesGrant Thornton LLP
With employer mandates and reporting requirements starting in 2015, these regulation details will help you
understand how to comply.
Learn more - http://gt-us.co/15LyvkI
This document summarizes key issues related to employee benefits for healthcare employers, including an overview of health care reform requirements. It discusses the play or pay rules and employer reporting requirements under the Affordable Care Act, including details on determining full-time employees, calculating penalties, and required reporting information. It also briefly outlines other ACA topics like 90-day waiting periods, PCORI and reinsurance fees, nondiscrimination rules, and executive compensation audits.
The total cost to the company (CTC) includes an employee's salary as well as other expenses like benefits, allowances, bonuses, and statutory contributions. The CTC is meant to show a higher salary amount but the employee's actual take-home pay is often lower after various deductions. Components of the CTC include basic salary, dearness allowance, housing allowance, medical reimbursement, leave travel assistance, provident fund, employee state insurance, gratuity, and more. Some expenses like training costs or relocation expenses are one-time costs not included in the annual CTC amount.
The document discusses the calculation of managerial remuneration under the Companies Act 1956. It states that total remuneration to directors, managers, and managing directors cannot exceed 11% of net profits as defined in the Act. Net profits are calculated by taking the gross profit and subtracting/adding certain items as specified. The document also provides details on calculating remuneration in cases of adequate and inadequate profits.
Using Employee Share Schemes To Build Shareholder Value - July 2011lizhunter
This document discusses rewarding employees with share schemes and considers the benefits, methods, and concerns around implementing such schemes. Some key points include:
Share schemes can align employee and shareholder interests to boost share value and productivity. They offer tax advantages like capital gains tax treatment. However, concerns include complexity, dilution of shares, and accounting standards.
Common types of schemes include share purchase plans, share option plans like Enterprise Management Incentives, and Share Incentive Plans which provide free shares to employees. Factors to consider include corporate strategy, legal requirements, taxes, and employee communications. Professional advice can help design and implement effective long-term incentive plans.
Advantages and disadvantages of running a limited companyScott Moreton
Operating through your own limited company as a contractor has several potential advantages and disadvantages. The main advantages include paying less income tax than being employed or self-employed, having limited liability protection for the director, and being able to claim a wider range of business expenses. However, there are also additional administrative costs and time requirements associated with running a limited company. Contracting through a limited company may not be worthwhile for contractors expecting to work short-term or earning a lower income. Overall, incorporating is most advantageous for contractors earning higher amounts, but it does not suit all situations.
ESOPs are popular employee retention programs that allow employees to purchase company shares. Some key points:
- ESOPs give employees options to buy company shares in the future at a preset price, rewarding performance and loyalty.
- Over 63% of Indian companies surveyed had or planned to implement ESOP programs to attract and retain talent.
- ESOPs can be structured as direct grants to employees or through an employee trust to administer the program.
- Regulatory requirements depend on if the company is listed or not. Listed companies must follow additional SEBI guidelines.
Paycheck Protection Program (PPP) Loan ForgivenessAnneke Stender
The Paycheck Protection Program (PPP) is part of the larger government stimulus package, the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Paycheck Protection Program loans are meant to minimize the number of unemployed persons by helping small business owners make payroll through June 30, 2020. PPP loans are designed to help small business owners stay in business during this time of economic uncertainty. The hope is that if businesses can keep employees on the payroll now, they’ll be in a better position to recover fully. And as a result, fewer people will be jobless and in need of additional federal aid. And if they meet certain criteria, borrowers can request loan forgiveness.
This presentation goes over what requirements need to be met to qualify for loan forgiveness at this point in time.
Most business leaders believe that some portion of employee pay should be in the form of incentives, but are left struggling to find answers to key questions: How much of someone’s pay should be variable? And who should have incentive pay as part of their mix? How much of the incentive should be short-term and how much should be based on long-term performance? What type of incentive(s) should it be? What if I don’t pay incentives and just pay higher salaries than my competitors? Will that work just as well?
If these are questions you are facing, don’t miss this presentation!
Accounting "Oopsies" - Jennifer GoodmanDecosimoCPAs
This document discusses common accounting topics that can cause unintended errors, or "oopsies", including life insurance policies, compensated absences, stock compensation, legal fees, accruals, capitalization minimums, FOB shipping terms, and deferred tax calculations. It provides examples and guidance for properly accounting for each topic according to US GAAP. The expert, Jennifer Goodman, is available to answer questions on ensuring compliance and avoiding unintended accounting errors.
Executive compensation refers to remuneration packages for senior management and executives. It typically includes a base salary, annual performance bonus, long-term stock incentives, retirement benefits, and perks. Long-term stock incentives, like stock options and performance-vested stock, make up the largest part of compensation and aim to reward executives for achieving strategic goals that maximize shareholder value over 3-5 years. Performance-based pay seeks to tie compensation to company and stock performance.
Significant Changes to Overtime Pay Rules and How They Will Impact YouAdair Buckner
With the new Overtime Pay rules going into effect soon, it is time for employers to gear up and make the accommodations necessary to make sure they paying their employees correctly. Here are all of the ways that the new Overtime Pay rules will effect your company and what you can do to prepare for them.
Executive Compensation Strategies Bearing Capital Partnersjamielist
This document discusses executive compensation strategies for negotiating tax-efficient rewards. It provides an overview and assumptions, then covers topics like negotiated vs contingent compensation, quick planning solutions, entitlements, equity plans like stock options and SARs, US employment considerations, negotiating benefits, exit strategies, dealing with severance, and more. The overall message is that executives have opportunities to structure compensation to maximize wealth in a tax-efficient manner through various negotiated arrangements.
Understanding the Affordable Care Act: Should You Pay or Play?EPAY Systems
The Affordable Care Act (ObamaCare) is upon us and there’s a lot to do in order to be ready for the employer mandate coming in Jan 2015. It starts with determining if you should pay or play. Jennifer Kraft, gives us an update of where healthcare reform stands now and how to calculate your real cost. She’ll also cover: what steps should you be taking right now to determine whether you should pay or play; how can you ensure that you’re minimizing the financial impact of the ACA on your business?
Jennifer Kraft of Seyfarth Shaw LLP, will review this pay or play mandate and ways employers can mitigate the financial impact, including:
◾Are you even subject to the Affordable Care Act and if you are, what are your options? Which employees must you offer coverage to or pay a penalty? What are the state exchanges and how do they work with the employer mandate?
◾How is the employer penalty calculated?
◾How will the expansion of eligibility for Medicaid in your state affect the employer penalty? How do you discover whether your state’s ruling will impact your employees and who you will need to provide insurance to?
◾If your employee hours vary (i.e., part-time and fluctuating schedule workers in industries such as retail, hospitality, and health care), how do you calculate your ACA liabilities?
◾What steps should you be taking right now to determine whether you should pay or play? How can you ensure that you’re minimizing the financial impact of the ACA on your business?
In addition, EPAY will briefly discuss how a time and labor management system can help you monitor and track the data required to make these decisions and manage the ACA on an ongoing basis. Automated tools from your time-tracking system, such as reports and alerts, will be critical to managing who is eligible and mitigating the risk of non-compliance. For more than 60 years, Seyfarth Shaw has been recognized as one of the “go-to” labor and employment firms for business by providing extraordinary, cost-effective results. EPAY Systems, Inc. has joined forces with Seyfarth Shaw to educate employers of distributed labor environments on how compliance risk can be minimized
.
Pensions Regulator - automatic enrolment for accountantsHenry Tapper
The document provides an overview of automatic enrolment legislation in the UK, including employer duties, progress to date, and future developments. Over 540,000 employers have completed declarations covering 25 million workers, of which 10 million were already in a qualifying pension scheme. Upcoming changes include the end of transitional arrangements for defined benefit schemes in 2017, the completion of staged employers in early 2018, and increases in minimum contribution rates that year and in 2019. The document reviews which workers must be enrolled, exceptions, qualifying earnings thresholds, and other key aspects of automatic enrolment.
This document presents an executive bonus plan that allows businesses to reward key employees through tax-deductible insurance policies. The plan benefits businesses by attracting, motivating and retaining key employees, while benefiting employees through life insurance protection, tax-advantaged access to policy cash values, and income-tax free death benefits. The document outlines various plan design alternatives and tax implications.
The Autumn Statement & Draft Finance Bill 2014 - Provisions affecting businessesRobert Maas
An update for businesses that like to get ahead and what you should be considering as a result of the Autumn Statement and Draft Finance Bill 2014.
Robert Maas, one of the UK’s most respected
tax commentators, and Thomas Adcock, both
of CBW Tax, recently spoke about the practical
implications of the Autumn Statement
for businesses.
On May 18, 2016, the U.S. Department of Labor (DOL) announced a final rule regarding overtime wage payment qualifications for the “white collar exemptions” under the Fair Labor Standards Act (FLSA).
The final rule increases the salary an employee must be paid in order to qualify for a white collar exemption. The required salary level is increased to $47,476 per year and will be automatically updated every three years. The final rule does not modify the duties test employees must meet to qualify for a white collar exemption.
The document discusses various methods for evaluating jobs within an organization, including qualitative approaches like job ranking and classification that group jobs based on skills and responsibilities, and quantitative approaches like point factor and factor comparison methods that assign numerical values or points to different job characteristics to determine internal pay equity. Job evaluation is an important part of developing a compensation system and ensuring fair pay across roles based on objective analyses of job requirements rather than individual employee assessments.
An executive bonus plan is an employer-financed life or disability insurance arrangement for select employees. It provides valuable benefits to employees at no out-of-pocket cost through payroll deduction of premiums and bonuses to cover additional taxes. This demonstrates the employer's appreciation for valuable employees and multiplies the benefit's value compared to the tax deductible cost to the employer.
This chapter discusses corporate income tax, including calculating tax liability using tax rates, capital gains and losses, deductions that affect taxable income, and components of Schedule M-1. It outlines corporate tax return filing requirements and estimated tax payments. S-Corporations are discussed, including formation tax rules, accumulated earnings tax, and alternative minimum tax calculation. Learning objectives are provided to calculate tax liability, compute gains/losses, identify Schedule M-1 components, understand S-Corp taxation, and filing requirements.
This document provides information on the Walter model and Gordon model for calculating the value of a company's shares based on dividend policy. The Walter model assumes a constant rate of return and cost of capital, and that retained earnings are the only source of financing. It provides a formula to calculate share price based on dividend payout, earnings per share, cost of capital and return on investment. The Gordon model similarly calculates share price based on dividend payout, earnings, retention ratio and cost of capital, assuming a constant growth rate. Several examples are provided applying these models to calculate optimal dividend payout and share valuation for different companies.
Study all the main sections of PGBP (Profit & gain from business or profession) covered here in the presentation.
Most Useful for CA/CMA/CS student.
Income tax in hands of partnership firm are discussed here very well.
For presentation on PGBP this must be useful.
Executive compensation refers to remuneration packages for senior management and executives. It typically includes a base salary, annual performance bonus, long-term stock incentives, retirement benefits, and perks. Long-term incentives, like stock options and performance-vested stock, make up the largest part of compensation and are intended to reward executives for achieving strategic goals that maximize shareholder value over 3-5 years. Performance-based pay aims to tie compensation to company and stock performance.
This document summarizes retirement planning options for business owners. It discusses how lack of retirement capital can undermine business succession plans. It then outlines qualified retirement plans like defined contribution plans (401k, profit sharing) and defined benefit plans as tax advantaged ways for businesses to fund owner retirement. It describes features and benefits of these plans, how they work, and distribution options to ensure lifetime income. Hybrid plans combining features are also mentioned. The overall message is retirement planning is critical for business continuity and succession.
This document provides a summary and roadmap for employers to comply with upcoming health care reform requirements over the coming months. It begins with a quick recap of the major provisions of the Affordable Care Act, then discusses recent regulatory guidance. It outlines specific to-do items for large and small employers, including strategies for large employers to minimize penalties and reduce premiums through plan design changes. Strategies are also presented for small employers to potentially opt-out of providing coverage or utilize the SHOP exchange. The document concludes with additional considerations for all employers regarding defined contribution models and the potential impact of the upcoming Cadillac tax.
Advantages and disadvantages of running a limited companyScott Moreton
Operating through your own limited company as a contractor has several potential advantages and disadvantages. The main advantages include paying less income tax than being employed or self-employed, having limited liability protection for the director, and being able to claim a wider range of business expenses. However, there are also additional administrative costs and time requirements associated with running a limited company. Contracting through a limited company may not be worthwhile for contractors expecting to work short-term or earning a lower income. Overall, incorporating is most advantageous for contractors earning higher amounts, but it does not suit all situations.
ESOPs are popular employee retention programs that allow employees to purchase company shares. Some key points:
- ESOPs give employees options to buy company shares in the future at a preset price, rewarding performance and loyalty.
- Over 63% of Indian companies surveyed had or planned to implement ESOP programs to attract and retain talent.
- ESOPs can be structured as direct grants to employees or through an employee trust to administer the program.
- Regulatory requirements depend on if the company is listed or not. Listed companies must follow additional SEBI guidelines.
Paycheck Protection Program (PPP) Loan ForgivenessAnneke Stender
The Paycheck Protection Program (PPP) is part of the larger government stimulus package, the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Paycheck Protection Program loans are meant to minimize the number of unemployed persons by helping small business owners make payroll through June 30, 2020. PPP loans are designed to help small business owners stay in business during this time of economic uncertainty. The hope is that if businesses can keep employees on the payroll now, they’ll be in a better position to recover fully. And as a result, fewer people will be jobless and in need of additional federal aid. And if they meet certain criteria, borrowers can request loan forgiveness.
This presentation goes over what requirements need to be met to qualify for loan forgiveness at this point in time.
Most business leaders believe that some portion of employee pay should be in the form of incentives, but are left struggling to find answers to key questions: How much of someone’s pay should be variable? And who should have incentive pay as part of their mix? How much of the incentive should be short-term and how much should be based on long-term performance? What type of incentive(s) should it be? What if I don’t pay incentives and just pay higher salaries than my competitors? Will that work just as well?
If these are questions you are facing, don’t miss this presentation!
Accounting "Oopsies" - Jennifer GoodmanDecosimoCPAs
This document discusses common accounting topics that can cause unintended errors, or "oopsies", including life insurance policies, compensated absences, stock compensation, legal fees, accruals, capitalization minimums, FOB shipping terms, and deferred tax calculations. It provides examples and guidance for properly accounting for each topic according to US GAAP. The expert, Jennifer Goodman, is available to answer questions on ensuring compliance and avoiding unintended accounting errors.
Executive compensation refers to remuneration packages for senior management and executives. It typically includes a base salary, annual performance bonus, long-term stock incentives, retirement benefits, and perks. Long-term stock incentives, like stock options and performance-vested stock, make up the largest part of compensation and aim to reward executives for achieving strategic goals that maximize shareholder value over 3-5 years. Performance-based pay seeks to tie compensation to company and stock performance.
Significant Changes to Overtime Pay Rules and How They Will Impact YouAdair Buckner
With the new Overtime Pay rules going into effect soon, it is time for employers to gear up and make the accommodations necessary to make sure they paying their employees correctly. Here are all of the ways that the new Overtime Pay rules will effect your company and what you can do to prepare for them.
Executive Compensation Strategies Bearing Capital Partnersjamielist
This document discusses executive compensation strategies for negotiating tax-efficient rewards. It provides an overview and assumptions, then covers topics like negotiated vs contingent compensation, quick planning solutions, entitlements, equity plans like stock options and SARs, US employment considerations, negotiating benefits, exit strategies, dealing with severance, and more. The overall message is that executives have opportunities to structure compensation to maximize wealth in a tax-efficient manner through various negotiated arrangements.
Understanding the Affordable Care Act: Should You Pay or Play?EPAY Systems
The Affordable Care Act (ObamaCare) is upon us and there’s a lot to do in order to be ready for the employer mandate coming in Jan 2015. It starts with determining if you should pay or play. Jennifer Kraft, gives us an update of where healthcare reform stands now and how to calculate your real cost. She’ll also cover: what steps should you be taking right now to determine whether you should pay or play; how can you ensure that you’re minimizing the financial impact of the ACA on your business?
Jennifer Kraft of Seyfarth Shaw LLP, will review this pay or play mandate and ways employers can mitigate the financial impact, including:
◾Are you even subject to the Affordable Care Act and if you are, what are your options? Which employees must you offer coverage to or pay a penalty? What are the state exchanges and how do they work with the employer mandate?
◾How is the employer penalty calculated?
◾How will the expansion of eligibility for Medicaid in your state affect the employer penalty? How do you discover whether your state’s ruling will impact your employees and who you will need to provide insurance to?
◾If your employee hours vary (i.e., part-time and fluctuating schedule workers in industries such as retail, hospitality, and health care), how do you calculate your ACA liabilities?
◾What steps should you be taking right now to determine whether you should pay or play? How can you ensure that you’re minimizing the financial impact of the ACA on your business?
In addition, EPAY will briefly discuss how a time and labor management system can help you monitor and track the data required to make these decisions and manage the ACA on an ongoing basis. Automated tools from your time-tracking system, such as reports and alerts, will be critical to managing who is eligible and mitigating the risk of non-compliance. For more than 60 years, Seyfarth Shaw has been recognized as one of the “go-to” labor and employment firms for business by providing extraordinary, cost-effective results. EPAY Systems, Inc. has joined forces with Seyfarth Shaw to educate employers of distributed labor environments on how compliance risk can be minimized
.
Pensions Regulator - automatic enrolment for accountantsHenry Tapper
The document provides an overview of automatic enrolment legislation in the UK, including employer duties, progress to date, and future developments. Over 540,000 employers have completed declarations covering 25 million workers, of which 10 million were already in a qualifying pension scheme. Upcoming changes include the end of transitional arrangements for defined benefit schemes in 2017, the completion of staged employers in early 2018, and increases in minimum contribution rates that year and in 2019. The document reviews which workers must be enrolled, exceptions, qualifying earnings thresholds, and other key aspects of automatic enrolment.
This document presents an executive bonus plan that allows businesses to reward key employees through tax-deductible insurance policies. The plan benefits businesses by attracting, motivating and retaining key employees, while benefiting employees through life insurance protection, tax-advantaged access to policy cash values, and income-tax free death benefits. The document outlines various plan design alternatives and tax implications.
The Autumn Statement & Draft Finance Bill 2014 - Provisions affecting businessesRobert Maas
An update for businesses that like to get ahead and what you should be considering as a result of the Autumn Statement and Draft Finance Bill 2014.
Robert Maas, one of the UK’s most respected
tax commentators, and Thomas Adcock, both
of CBW Tax, recently spoke about the practical
implications of the Autumn Statement
for businesses.
On May 18, 2016, the U.S. Department of Labor (DOL) announced a final rule regarding overtime wage payment qualifications for the “white collar exemptions” under the Fair Labor Standards Act (FLSA).
The final rule increases the salary an employee must be paid in order to qualify for a white collar exemption. The required salary level is increased to $47,476 per year and will be automatically updated every three years. The final rule does not modify the duties test employees must meet to qualify for a white collar exemption.
The document discusses various methods for evaluating jobs within an organization, including qualitative approaches like job ranking and classification that group jobs based on skills and responsibilities, and quantitative approaches like point factor and factor comparison methods that assign numerical values or points to different job characteristics to determine internal pay equity. Job evaluation is an important part of developing a compensation system and ensuring fair pay across roles based on objective analyses of job requirements rather than individual employee assessments.
An executive bonus plan is an employer-financed life or disability insurance arrangement for select employees. It provides valuable benefits to employees at no out-of-pocket cost through payroll deduction of premiums and bonuses to cover additional taxes. This demonstrates the employer's appreciation for valuable employees and multiplies the benefit's value compared to the tax deductible cost to the employer.
This chapter discusses corporate income tax, including calculating tax liability using tax rates, capital gains and losses, deductions that affect taxable income, and components of Schedule M-1. It outlines corporate tax return filing requirements and estimated tax payments. S-Corporations are discussed, including formation tax rules, accumulated earnings tax, and alternative minimum tax calculation. Learning objectives are provided to calculate tax liability, compute gains/losses, identify Schedule M-1 components, understand S-Corp taxation, and filing requirements.
This document provides information on the Walter model and Gordon model for calculating the value of a company's shares based on dividend policy. The Walter model assumes a constant rate of return and cost of capital, and that retained earnings are the only source of financing. It provides a formula to calculate share price based on dividend payout, earnings per share, cost of capital and return on investment. The Gordon model similarly calculates share price based on dividend payout, earnings, retention ratio and cost of capital, assuming a constant growth rate. Several examples are provided applying these models to calculate optimal dividend payout and share valuation for different companies.
Study all the main sections of PGBP (Profit & gain from business or profession) covered here in the presentation.
Most Useful for CA/CMA/CS student.
Income tax in hands of partnership firm are discussed here very well.
For presentation on PGBP this must be useful.
Executive compensation refers to remuneration packages for senior management and executives. It typically includes a base salary, annual performance bonus, long-term stock incentives, retirement benefits, and perks. Long-term incentives, like stock options and performance-vested stock, make up the largest part of compensation and are intended to reward executives for achieving strategic goals that maximize shareholder value over 3-5 years. Performance-based pay aims to tie compensation to company and stock performance.
This document summarizes retirement planning options for business owners. It discusses how lack of retirement capital can undermine business succession plans. It then outlines qualified retirement plans like defined contribution plans (401k, profit sharing) and defined benefit plans as tax advantaged ways for businesses to fund owner retirement. It describes features and benefits of these plans, how they work, and distribution options to ensure lifetime income. Hybrid plans combining features are also mentioned. The overall message is retirement planning is critical for business continuity and succession.
This document provides a summary and roadmap for employers to comply with upcoming health care reform requirements over the coming months. It begins with a quick recap of the major provisions of the Affordable Care Act, then discusses recent regulatory guidance. It outlines specific to-do items for large and small employers, including strategies for large employers to minimize penalties and reduce premiums through plan design changes. Strategies are also presented for small employers to potentially opt-out of providing coverage or utilize the SHOP exchange. The document concludes with additional considerations for all employers regarding defined contribution models and the potential impact of the upcoming Cadillac tax.
The document provides information about Farmers Insurance, including:
1) It is an established insurance company with over 90 years in business and over 10,000 exclusive agents serving over 5 million households.
2) It offers a variety of insurance and financial services products, including auto, home, life, and commercial policies as well as financial products.
3) The Flex program is a 36-month support program for new agents that provides bonuses and incentives for high performance levels.
The document provides information about Farmers Insurance and their retail opportunity program for new agents. It discusses Farmers' history and brand recognition, the types of insurance and financial products they offer, and details of their 36-month retail program which provides bonuses and support for new agents who meet production goals. The retail program offers quarterly, monthly, and annual bonuses on qualifying sales in addition to commissions to reward high performance.
This document provides an overview of compensation and benefits training. The training covers:
- Identifying appropriate compensation policies for firms and weighing strategic advantages of different options.
- Establishing internally consistent job-based compensation schemes linked to the labor market.
- Types of compensation including direct financial, indirect financial, and non-financial.
- Ensuring compensation complies with legal requirements like statutory obligations and benefits.
- Developing compensation philosophies, establishing pay equity, and determining compensation components.
Payroll compliance is vital for HR teams and business owners. Fail to stay on top of it and you could see serious fines or penalties coming your way.
Let’s dive into how to stay safe with the Affordable Care Act (ACA) Employer Mandate Compliance, tracking sick time, and COVID-19 Compliance in Dynamics GP.
The document provides an overview of the lines of business, product model, and policy lifecycle available in the PolicyCenter application. It describes the key components included in each line of business implementation and how the product model is used to configure insurance products and policies. It also outlines the major stages in a policy's lifecycle including submissions, changes, renewals, cancellations, and integration points with other systems.
The document provides an overview of the lines of business, product model, and policy lifecycle available in the PolicyCenter application. It describes the key components included in each line of business implementation and how the product model is used to configure insurance products and policies. It also outlines the major stages in a policy's lifecycle including submissions, changes, renewals, cancellations, and integration points with other systems.
Leveraged Planning Solutions are financial strategies designed for business owners. They allow business owners to use funds from a commercial loan to invest large sums tax-deferred through an insurance or annuity product. This leverages the business owner's funds to grow tax-deferred over time. A case study examines how a $1 million loan at competitive rates could provide a physician business owner over $3 million in tax-free retirement income starting at age 65 through an indexed universal life policy. Leveraged Planning Solutions offer business owners flexible financing options to fund tax-advantaged retirement plans.
This document provides an overview of introducing a sales compensation program to an organization. It discusses engaging key stakeholders, key design considerations like salary/incentive splits and performance measures, transition considerations, developing a pilot program, and preparing to administer the plan. The presentation agenda includes are you ready for a sales comp plan, engaging stakeholders, design considerations, transition, pilot program, and administration. The document also provides a case study example of a company that implemented a sales compensation plan.
The document summarizes a study on CEO incentive compensation plans among 600 large, mid-size, and small U.S. companies. Key findings include:
1) Larger companies have a higher percentage of variable pay, with CEOs of top 200 companies having an average of 87% of target pay in variable compensation. Performance-based long-term incentives represent the largest portion of long-term incentive value across all company sizes.
2) Earnings metrics are the most commonly used and heavily weighted performance metric in annual incentive plans, present in over 85% of plans across all company sizes. Larger companies tend to include more performance metrics in their plans.
3) Usage of environmental, social, and
This document discusses different types of incentive plans that organizations can implement to motivate employee performance. It covers individual incentive plans like piecework and commissions. It also discusses team and group incentive plans like gainsharing and profit sharing. Finally, it addresses incentive plans for different types of employees including salespeople, professionals, and executives. The overall goal of the document is to outline incentive plan options and considerations for successfully implementing pay-for-performance programs.
Employee benefits - compensation management - Manu Melwin Joymanumelwin
Employee benefits and benefits in kind (also called fringe benefits, perquisites, or perks) include various types of non-wage compensation provided to employees in addition to their normal wages or salaries
Irish Share Plan expert, Seán Quill discusses the three most tax efficient share plans in the Irish market: APSS, Clog Schemes and SAYE Schemes.
Topics covered:
• Why these are amongst the most popular schemes in Ireland
• Trends in the market
• Real-life examples
• Tax treatment
• T&Cs
• Approvals and documentation required
Chapter 5 Business Objectives and stakeholders Objectives.pdftajqaiser
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2. For Producer Use Only – Not for Use with General Public
Successful
Innovative
Experienced
CJA is a national employee benefits company
CJA specializes in the design and marketing of innovative
insurance products and employee benefit plans for the small
business and estate planning markets.
CJA has over thirty years of experience working with leading
insurance companies. Our actuarial, marketing, legal and
administrative offer expert support and expertise to help you in
the field.
We help our partners become more successful with complex
employee benefit programs.
About Us
3. For Producer Use Only – Not for Use with General Public
Where are we today?
• State of economy
– Concern for retirement and
income in a down market
– Concern with discretionary
income
– Cost of living rising
– Inflation on the rise
– Housing market
– Fuel costs
– Uncertainty
4. For Producer Use Only – Not for Use with General Public
Where are we today?
So what does that mean for us as planners?
Different motivations for clients
Time to re-evaluate
Additional tax burden
5. For Producer Use Only – Not for Use with General Public
Qualified Retirement Plan
• Take monthly pension income (taxable)
• Plan can provide monthly benefit
• Roll assets to an IRA
Tax-leveraged Medical Account for retirement
• Titanium Plan-Single employer welfare benefit plan
• Tax deductible and Tax deferred
• Tax free reimbursements for medical expense at
retirement
Section 79 –Ultimate 79
• Tax deductible
• Addition/alternative to qualified plans
We have solutions to help your clients
6. For Producer Use Only – Not for Use with General Public
Section 79– How it works at a glance
7. For Producer Use Only – Not for Use with General Public
Section 79– How it works at a glance
Section 79 is not just group insurance
Regulation say that plan can provide “permanent benefits” as well
What is a permanent benefit:
“…an economic value extending beyond
one policy year (for example, a paid-up or
cash surrender value) that is provided
under a life insurance policy.”
Simply stated:
The plan may use cash value life
insurance contracts
8. For Producer Use Only – Not for Use with General Public
Section 79-Ultimate planning tool
How it works
Death
Benefit and
Tax-free
withdrawals
Pre-tax
dollars
Offers non-discriminatory benefits to employees
Typically only key employees/owners opt for
Permanent benefit
Indexed Universal
Life permanent
policy
Corporation sets up a Group Section 79 Plan
5 Year commitment*
*when using certain products designed for Section 79.
9. For Producer Use Only – Not for Use with General Public
Section 79– How it works at a glance
• Not another retirement plan
– Tax deductible contribution for corporation
– 5 year commitment
– Tax free income
– Permanent life insurance
– Competitive product with guarantees
– flexibility
• Not a “new” financial planning tool
10. For Producer Use Only – Not for Use with General Public
Section 79– How it works at a glance
Can only be adopted by a C Corporation
11. For Producer Use Only – Not for Use with General Public
Section 79– How it works at a glance
•100% deductible to Employer under §162*
•Employee excludes value of up to $50,000
of pure insurance protection (IRS Table I Term Cost)
•Employee must include
Value of Permanent Benefit
Value of Insurance protection > $50,000
•Bottom line: Employee gets to exclude
35-40% of premium
•Plan is terminated after 5 years
Key Planning Points:
12. For Producer Use Only – Not for Use with General Public
Section 79
Section 79 Group Life Insurance
[Providing Permanent Benefits for Key Employees]
PROGRAM CENSUS AND BENEFIT SUMMARY
For Program Year 10/18/2008 through 10/17/2009
OWNER
INITIAL DEATH
BENEFIT
FIRST YEAR
PREMIUMEMPLOYEE AGE SEX RATING SALARY
Valued Client 45 Male Preferred Yes $208,381 $2,083,810 $100,000
Employee 35 Male Preferred No 40,000 400,000 13,554
13. For Producer Use Only – Not for Use with General Public
Section 79
Section 79 Group Life Insurance
[Providing Permanent Benefits for Key Employees]
SUMMARY OF PROGRAM BENEFIT OPTIONS
For Program Year 10/18/2008 through 10/17/2009
OPTION A OPTION B OPTION C
PERMANENT INSURANCE TERM INSURANCE $50,000 TERM
Premium
Assumed
Taxable
Income to
Employee*
Guaranteed
Value
Taxable
Table I
Cost
Premium
Taxable
Table I
Cost
Premium
Taxable
Table I
Cost
EMPLOYEE
Valued Client $100,000 $57,453 $50,754 $3,377 $2,236 $3,661 $159 $0
Employee 13,554 7,647 6,995 347 182 378 75 0
14. For Producer Use Only – Not for Use with General Public
Section 79
Section 79 Group Life Insurance
[Providing Permanent Benefits for Key Employees]
FIRST YEAR SUMMARY OF COST FOR CORPORATION
(Assumes employees waive benefits in excess of $50,000 minimum)
For Program Year 10/18/2008 through 10/17/2009
Annual Insurance
Premium: $100,159
1st. Year Trust Fee: 500
Total Annual Contribution: $100,659
Tax Savings @ 40.00%:* $40,264
1st
YEAR AFTER TAX COSTS:* $60,395
15. For Producer Use Only – Not for Use with General Public
Section 79
Total after tax contributions: 301,975
Total tax due from W-2: 135,466
Net cost to owner: 437,441
Total tax free withdrawals: $3,557,380
OPTION A
PREPARED FOR: Valued Client
Annual Premium: $100,000
Assumed Tax Rate: 40.00%
Death Benefit: $2,083,810
Policy
Year
Age
Planned
Premium
Assumed
Employee
Taxable
Income1
Employee
Net Tax on
Income1
Tax to
Employee1
Cash
Surrender
Value
Policy
Loans2
1 45 100,000 60,831 24,332 24,332 0 0
2 46 100,000 63,823 25,529 49,861 69,547 0
3 47 100,000 67,272 26,909 76,770 157,227 0
4 48 100,000 71,175 28,470 105,240 251,759 0
5 49 100,000 75,566 30,227 135,466 353,779 0
10 55 0 0 0 0 539,703 0
20 65 0 0 0 0 1,257,012 177,869
40 85 0 0 0 0 199,177 3,557,380
16. For Producer Use Only – Not for Use with General Public
Section 79
This is the equivalent of
8,893,450*
of income from a retirement plan.
*Assuming a tax rate of 40%
17. For Producer Use Only – Not for Use with General Public
Section 79- practical applications & case studies
• Business transition
• Family business
• Physician Groups
• Multiple Business Owners
• Use Section 79 to create segregated funds
for buy-out of business
• Allow tax leverage and flexibility
• Defined benefit plan too costly
Business transition
Challenges:
Cost of the plan design with employees too high for current employer
Both owners wanted additional future income
Needed to equalize benefits to both owners.
18. For Producer Use Only – Not for Use with General Public
Section 79- practical applications & case studies
BENEFITS AT AGE 65
DEATH
BENEFIT PREMIUM
ANNUAL
LOAN
TOTAL
LOANS
REMAINING
BENEFITAGE SALARY
Wiley 48 $200,000 $2,000,000 $53,058 $157,071 $3,141,420 $498,072
Bird 34 $100,000 $1,000,000 $32,728 $70,519 $1,410,380 $223,272
$85,786
After tax cost at 5
years $257,358
Total tax free loans $4,551,800
% to Owners
Defined Benefit Plan 81.7%
Section 79 Plan 97.6%
Business transition
19. For Producer Use Only – Not for Use with General Public
Section 79- practical applications & case studies
• Numerous Highly compensated
employees
• Employee cost too high for company
• Use Section 79 to create plan utilizing class system
• Provided key employees with benefits at reasonable
cost
20. For Producer Use Only – Not for Use with General Public
.
Section 79-practical application & case studies
Class system solution
Challenge:
Older employees drove the cost of the plan too high for current employer to implement
21. For Producer Use Only – Not for Use with General Public
Section 79- practical applications & case studies
• Implemented Section 79 Program
Owners premium $279,000 – 93.6% of benefits
Rank and file cost $19,000
Total Program cost $298,000
• Owners each received over $2,000,000 in Death
benefits
• Provided key employees with benefits based on their
functions and positions at reasonable cost—allowed
important employees to receive greater benefits
(bonus for Table I)
Class system solution
22. For Producer Use Only – Not for Use with General Public
Must be adopted by a C Corporation
•Section 79 is for “employees”
•The following are not “employees”
Self-employed individuals
Partners
2% owners of S corporations
•Owner must have W-2 income
from a C corporation to
be a participant
Section 79- Key considerations
23. For Producer Use Only – Not for Use with General Public
Who do you know….
• Owns a small profitable business
• Complains about paying
income tax
• Incomplete Estate Planning
• Interested in wealth transfer and flexibility
24. For Producer Use Only – Not for Use with General Public
Contacts
Regional VP List
Tom Bacharach, New England Region
800-256-0164
tbacharach@cjamarketing.com
David Jones, West Coast Region
800-476-7964
djones@cjamarketing.com
Ken Shapero, Mid-Atlantic and Southeast Region
954-688-4063
kshapero@cjamarketing.com
Mike Seltzer, Mid-West Region
800-685-8317
mseltzer@cjamarketing.com
25. For Producer Use Only – Not for Use with General Public
Resources
www.cjamarketing.com
www.plangen.com
Due diligence materials
Brochures
Sample Illustrations
Q & A’s
Webcast replays
Websites
CJA is a national employee benefits company. We specialize in the design and marketing of employee benefit plans for the small business and estate planning market. We have over thirty years of experience in the pension planning market and partnering with leading insurance companies. Our actuarial, marketing, legal and administrative experts help our partners become more successful with complex employee benefit programs. Our home office is in Chicago and in addition we have offices and sales VP’s throughout the nation to help you.
We are all here as financial planners. Most of us have a history of working with successful business owners, clients that have a high net worth, for the most part the are financially savvy and are well-educated. In the past, we’ve been able to help our clients enjoy their success and protect their hard earned assets as best we could. But the recent past has been a bit different. All over the place, we hear the state of the economy is horrible and uncertain, are we in a recession?, the list goes on and on.
What does that mean for us as planners and how is that affecting our sales? It used to be that our sales were typically “greed” sales—motivated by tax deductions. Now we’ve seen our clients operating from a place of fear-or uncertainty. They want to limit their risk in the market and have SECURITY in their future. Many clients are contacting us and asking us about the plans that they didn’t want to adopt before because they didn’t appreciate the guarantees that we were offering. We are re-evaluating their situation and current retirement plans and making necessary adjustments. Not only are clients fearful of the losses they are worried that the money they are making will be taxed at a higher rate depending on what happens with the election.
With this in mind, first and foremost, we help our clients re-evaluate their current retirement plan. This includes qualified pension plans, their estate plan, and ongoing life insurance needs. We have over 35 year history in qualified plan administration and employee benefits and know how important a well-rounded planning is.
Section 79 of the Internal Revenue Code permits a corporation to provide group term life insurance for full time employees. This cost is fully deductible to the corporation. U.S. Treasury Regulation under IRC Section 79 also states that group term insurance can include a “permanent benefit.”
Section 79 is not just group insurance. U.S. Treasury Regulation under IRC Section 79 also states that group term insurance can include a “permanent benefit.” simply stated. We can use a permanent cash value contract.
Lots of companies already have a group insurance plan set up—they just don’t know it. A death benefit attached to group heath insurance, etc., but they aren’t taking advantage of the full benefits allowed in the section of the Code. The “permanent benefit” is where our Ultimate Section 79 plan comes into play. There are many benefits, to name a few: Pre tax dollars, tax-deferred growth, and tax-free income (At any point after plan completion—subject to the needs of your clients– not 591/2) and a 5 year commitment.
Why consider Section 79 as a planning tool:
Tax deductible contribution for corporation
5 year commitment
Can access tax free income prior to age 591/2
Permanent life insurance
Competitive product with guarantees
I
Lets take a look at how the plan usually plays out: The company has to offer non-discriminatory benefits to all employees. In practice, there a basically 3 levels of benefits in shown to employees and they have the option to elect what works best for them: First, the Code permits a corporation to provide up to $50,000 of group term life insurance for full time employees at no cost to the employee. This is what most of the employees choose through the plan. Second, they could choose a full face amount of benefit, but with term insurance—they have to pay tax on the Table I costs. Or Third they could choose the permanent benefit. The cost of this permanent benefit that is paid by the corporation will appear on the employee’s W-2 as “other compensation.” This amount that is includable in taxable income to the employee is typically equal to 60-65% of the premium. Therefore, the net result is tax leverage on 35-40% of the contribution. Although all employees have the right to choose the type of coverage they desire, in most plans, rank and file employees opt for non-permanent coverage to minimize their tax liability and key employees and owners elect the permanent benefits. This allows key employees and owners to reap the benefits of the plan with minimal cost associated with rank and file employees.
So to recap: Plan is 100% tax deductible to the corporation, plan is terminated after 5 years and owner has numerous planning opportunities:
Tax free income, wealth transfer, estate planning, and the living benefit options of the product.
Let’s take a quick look at a sample group. 2 employees-one owner.
On our proposal, we can show the 3 options available to the employees. You can see the difference in benefits and tax consequences of the 3 options we discussed before and why the rank and file employees often choose the $50k benefit.
Assuming the rank and file chooses the free benefit, the life insurance contribution is $100, 159. Including fees, the after-tax contribution for the corporation is $60,395.
So we’ve put in a little less than $60,500 per year for 5 years. Which totals 301,975. The owner had to pay tax on the economic benefit of roughly $25,000 for 5 years for a total of $135,466. The real net cost then is $437,441. He’s received a paid up permanent policy of $2,083,810 and the opportunity for tax-fee income. If he starts withdrawals at age 65, he get almost $180,000 of tax free income for 20 years for a total of $3,557,380.
We began with the original census that was provided to us and created a plan spending approximately $500,000.
In presenting the plan to the client and discussing some overall objective of the owners, we learned some valuable information that helped us meet their specific goals.
During the conversations with the agent, they indicated some key points:
One of the owners was considering the sale of the business to other partner within 5-7 years as he was approaching retirement soon
Partner wanted to continue in the business upon his retirement
Interested in any options to assist with buying the business upon his retirement
Need for funds for buy out was more eminent than funding retirement right now.
They also had monetary constraints as they were still continuing to invest in the growth of the company.
Bird reduced his salary from $200k down to $100k and contributed the $100k to the Section 79 program for the company. They had agreed that the value of the business was roughly $1 Mil currently but projected the business worth to be closer to $2 Mill in the 17 years at Wiley’s retirement. They had an separate agreement of that in case of death prior to age 65 in regard to transition and proceeds. At 65, when Wiley retired he would receive 1.7 million more than Bird would receive at retirement. That plus the 265k that was contributed for Wiley would equal a payment of approx $2Million for the business. There was minimal cost for the employees to implement this plan and within 5 years of funding the section 79 and re-evaluating they could make adjustments to their qualified plan if they wanted.
When looking at original census, we knew that a defined benefit plan would be too costly for the highly compensated employees.
Our Regional Vice Presidents would like to meet each one of you to continue this discussion. We travel frequently throughout our regions and would appreciate the opportunity to introduce ourselves. Please call us and let us make 2006 a great year end. Our contact information is listed above and we will be following up with you as well. You can also go to our website at www.cjamarketing.com to learn more about who we are.
Thanks for joining us for this presentation. We know your time is valuable and we hope that this was beneficial for you.