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•MISSION STATEMENT
•
•To serve our clients in a manner =
=
that allows a forum =
of <=
span
style=3D'font-family:Arial;font-size:39%;color:black'>professionalism,
objectivity, and comfort in defining needs and solutions to a compa=
ny's retirement plan goal=
s. To provide these servic=
es on
a fee basis only unattached to any products or pre-defi=
ned
results.
•
•
•DID YOU KNOW . . .
•
•More than one third (37%) of workers who describe themselve=
s as
“very confident” about their financial outlook for retirement =
have
never calculated a retirement savings goal.1
=
;
•
=
•
=
•1 Employee Benefit Research Instit=
ute,
April 2006
• NEWSLETTER=
---- AUGUST 20=
06
•
•Workers
not meeting retirement targets
•Source: Techn=
ical
Answer Group / Employee Benefit News
•Nearly 45% of U.S. households are at risk of being unable to
maintain their standard of living in retirement, according to a new retire=
ment
index (http://www.bc.edu/centers/crr/ib_48.shtml=
) from the Center for Retirement
Research at Boston College. Younger workers are more vulnerable, with near=
ly
half of households at risk of falling short in retirement.
•
•
•
•"Even if people retire at age 65 and annuitize all the=
ir
wealth, including the receipts from reverse mortgages on their homes, 43% =
will
be at risk," Boston College researchers state. "But the situatio=
n is
not hopeless. If people choose to work longer, even just two years, and sa=
ve
3% more, they can substantially improve the outlook for their retirement
security."
•Households that fall more than 10% short of their necessary
income replacement rate are considered at risk. Most people need to replace
65% to 85% of their pre-retirement income to be secure in retirement,
researchers estimate. Working to age 67 and not drawing income from Social
Security or 401(k)s until then would allow most people to have a secure
retirement.
•"Baby boomers and Generation Xers will retire in a
substantially different environment than their parents did," the
researchers note. "The length of retirement is increasing, as the ave=
rage
retirement age hovers at 63 for men and 62 for women, and life expectancy
continues to rise. At the same time, [income] replacement rates are
falling."
Page 1
=
•A business must base its determination as to
whether a worker is an employee or an independent contractor on all facts =
and
circumstances of its relationship with the worker. Businesses can use Form SS-8, Determination of W=
orker
Status for Purposes of Federal Employment Taxes and Income Tax Withholding=
, to
have the IRS make the determination.
It is critical that =
the
business correctly determine whether the individuals providing services are
employees or independent contractors. An employer must withhold income tax=
es,
withhold and pay Social Security and Medicare taxes, and pay unemployment =
tax
on wages paid to an employee. In addition, other tax issues, including the
provision of certain employee benefits, depend upon the proper classificat=
ion
of workers.
A business generally=
does
not have to withhold or pay any federal taxes on payments to independent
contractors. However, independent contractors are subject to self-employme=
nt
tax and should plan accordingly.
•There may be relief for employers who want to
correct any errors they may have made by classifying an employee as an
independent contractor.
•IRS Headliner 152 , IRS
Offers Tips on How to Correct Misclassification of Employees , contains additional information
about correcting worker classification. Also, additional information about
worker classification and classification correction are in:
•
=
Publication 15-A , Employer’s Supplemental Tax Guide
Publicati=
on 1779
Publicati=
on 1976 , Independent Contractor or Empl=
oyee?
Section 530 Employment Tax Relief Requirements
The Headliner, Form SS-8 and the
publications are all available on IRS.gov.
![](3D"slide0003_image007.gif")
=
•IRS Reminds Businesses to Classify Workers
Correctly
•Source: Technical Answer Group, Inc./Inte=
rnal
Revenue Service
The rash of natural
disasters that have hit the United States in the last several months have
caused many businesses to hire additional workers to help them meet increa=
sed
demand for their goods or services. These businesses must make sure they t=
reat
their workers properly to make sure everyone can meet their tax obligation=
s.
Most workers fall in=
to two
categories. They are Indepen=
dent
Contractors and Common-law employees.
The main factor a bu=
siness
must use in determining how to classify its workers is the degree of contr=
ol
the business has over its worker. The more control the business has over a
worker; the more likely it is that the worker is an employee rather than an
independent contractor.
Page 2
•
•We are excited to announce as of July 31st the addition of Stef=
anie
Weigel to our staff. She wil=
l be
working with Michelle Walters as an administrative assistant.
•With the addition of Stefanie to our staff we will be
restructuring. Connie Ison w=
ill be
working with Aneila Hynick as an administrative assistant and Gloria Conner
will be working with Heidi Paul as an administrative assistant.
•
•Please
note our summer hours:
•
•Monday
through Thursday 8:00 – 4:30
•Friday
8:00 – 12:00
•
•October
2 we will resume our normal business hours:
•
•
Monday through Friday 8:00 – 4:30
•
•To view this newsletter and past issues visit us on t=
he
web at www.northwesternwisconsin.com under the News and Informa=
tion
section.
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What is going on in our of=
fice .
. . . .
Page 3
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