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Netti Consulting Services launches privacy and security division
DeWITT — A consulting firm based in DeWitt has formed a new division to help physicians shore up their privacy and security practices. Netti Consulting Services, headquartered at 6443 Ridings Road, is calling its new division the Mountain Creek HIPAA Group. The division will specialize in security assessments, privacy assessments, and breach assessments for medical […]
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DeWITT — A consulting firm based in DeWitt has formed a new division to help physicians shore up their privacy and security practices.
Netti Consulting Services, headquartered at 6443 Ridings Road, is calling its new division the Mountain Creek HIPAA Group. The division will specialize in security assessments, privacy assessments, and breach assessments for medical practices and hospitals as they adopt and use electronic health records.
The new group spawned from Netti Consulting’s original line of business, which is helping physicians adopt electronic health records and utilize them in a way that qualifies for federal reimbursements. In order to qualify for reimbursements under an initiative known as the Medicare EHR Incentive Program, for example, practices have to meet certain “meaningful use” measurements.
“What kept sticking out is the fact that this particular security-risk analysis, measure 15, was not particularly understood by the practices,” says John Netti, who founded his consulting firm in October 2011. “And then, as we started looking at larger organizations, we realized it really wasn’t a function just of the smaller practices.”
The consulting firm found that many medical practices and hospitals were concerned about meeting the privacy and security requirements. Only large hospitals, which often employ their own security officers, don’t seem very interested in outside help, according to Netti. It’s an important issue, as medical providers could be audited by the federal government, he adds.
That led the Mountain Creek HIPAA Group to target a wider range of medical organizations than Netti Consulting does in its other line of business. The new division will consult for large practices and smaller hospitals, while Netti Consulting launched last year with a goal of serving medical practices with about five doctors. Regardless of its focus, Netti Consulting and its new division will work with medical groups and hospitals of all sizes, Netti says.
The Mountain Creek HIPAA Group could also help Netti Consulting branch out beyond the upstate New York market. Most of the consulting firm’s work to date has taken place Upstate, and the new group will probably follow that footprint when it launches, Netti says. But he sees concern about electronic health records’ security and privacy as a national trend.
“This is not going to be limited,” Netti says. “We are going to go wherever it takes us. As a small business, you have to look at everything.”
The small business has grown from a one-man consulting firm at its founding last year to a firm with nine consultants, including Netti. All of the firm’s new consultants work as independent contractors.
The firm could double its revenue in its second year if the Mountain Creek HIPAA Group gains traction in the market, Netti says. He declined to share specific revenue totals, though. He also wouldn’t offer hiring projections, saying only that he hopes to continue to add consultants.
Netti Consulting is headquartered in suite 130 at 6443 Ridings Road in DeWitt. E.F. Thresh, Inc. owns that building, according to Onondaga County Office of Real Property Tax Services records. Netti Consulting leases about 320 square feet in the building.
Its new division meets a need that’s springing up as electronic medical records increase the amount of information and availability of information, according to Regina Blakeslee, a consultant in the Mountain Creek HIPAA Group. For instance, a health-care worker might want to take home a laptop carrying patient data in order to finish a report, she says.
“That’s a vulnerability,” Blakeslee says. “We need to go in there and give them a shot in the arm and say that you need to start taking this seriously and start training your staff. You need to have a policy that you shouldn’t be taking that laptop home. If you do want to work from home, set up a VPN and sign in remotely and go through the proper channels.”
Few firms of Netti Consulting’s size have set up divisions dealing explicitly with privacy and security, according to Keith Gutchess, another consultant in the Mountain Creek HIPAA Group.
“There’s maybe a couple dozen small shops out there, or maybe the big guys, accounting firms like KPMG,” he says. “For Syracuse, this is a pretty cool service that’s sprouting up.”
Blakeslee, Gutchess, and Netti work in the Mountain Creek HIPAA Group. And Netti Consulting has another consultant focused on privacy and security in smaller medical practices.
The new group’s services include physical walk-throughs of health-care organizations, checks of technical safeguards, and reviews of management, policy, procedure, privacy, and security.
Contact Seltzer at rseltzer@cnybj.com
Watertown Audiology, P.C. listens to rising patient demand
WATERTOWN — Watertown Audiology, P. C. has cranked up its efforts to meet rising patient demand in the last year. The hearing-care provider invested in both equipment and a second audiologist. It added a new sound booth at its office at 53-59 Public Square in Watertown, purchased new videonystagmography equipment, and acquired otoacoustic-emissions equipment. The
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WATERTOWN — Watertown Audiology, P. C. has cranked up its efforts to meet rising patient demand in the last year.
The hearing-care provider invested in both equipment and a second audiologist. It added a new sound booth at its office at 53-59 Public Square in Watertown, purchased new videonystagmography equipment, and acquired otoacoustic-emissions equipment.
The practice added the new sound booth and otoacoustic-emissions equipment in June. It added the videonystagmography equipment in January 2012.
Otoacoustic-emissions equipment uses a small microphone to measure whether the outer hair cells in the inner ear function. Providers mostly use it in tests for infants and children.
Videonystagmography testing evaluates a patient’s balance system. It determines whether vertigo, dizziness, and balance problems stem from inner-ear problems.
The new equipment was necessary because of rising patient demand, according to Watertown Audiology’s president and owner, Sarah Grimshaw-Sugden. Few providers offer hearing and hearing-aid care in Watertown Audiology’s coverage areas of Jefferson, Lewis, St. Lawrence, and Oswego counties, she adds.
“There are a lot of people with vertigo,” she says. “There aren’t a lot of audiologists up in this area.”
Watertown Audiology spent about $50,000 to acquire the sound booth (its second) and equipment, Grimshaw-Sugden says. The sound booth and otoacoustic-emissions equipment totaled $30,000, and the videonystagmography equipment tallied $20,000. The practice funded the acquisitions with financing from Watertown Savings Bank.
Installing the new sound booth required expanding the practice’s footprint by about 150 square feet. It leases about 2,000 square feet from the Woodruff Professional Group, according to Grimshaw-Sugden.
The second sound booth was necessary because Watertown Audiology hired a new audiologist, Sarah Fritz Brady, in July. Brady has experience in adult hearing testing, pediatric hearing testing, hearing-aid fitting, hearing-aid management, vestibular testing, and newborn hearing screening, along with tinnitus evaluations, dizziness testing, and balance testing. She previously worked in Columbus, Ga.
Brady’s addition to Watertown Audiology will help the practice serve its growing patient base and serve them quickly, according to Grimshaw-Sugden. It increased the number of patients the practice can see to 24 or more per day.
“When I was by myself, I was seeing 12 to 16 patients a day, which was difficult,” Grimshaw-Sugden says. “This has been needed for a long time. It’s just hard to find someone.”
Grimshaw-Sugden declined to share revenue totals for Watertown Audiology. She hopes the practice grows its revenue by 10 percent in 2012, which she says would be on par with recent years’ increases.
Watertown Audiology employs six people full time and two people part time. In the past year, it has added two new full-time positions, including Brady’s, as well as a part-time position.
Grimshaw-Sugden would eventually like to build a standalone facility to hold her practice. Owning its own building would give the practice more space and offer it more freedom to expand as needed, she says.
“I’m on the second floor of the Woodruff Professional Building, which has been a great place, and everybody in the building has been wonderful,” she says. “But sometime I’d probably like to expand. There’s no firm plan, but we’ve definitely been talking about it.”
The new building would likely be between 2,500 square feet and 3,000 square feet, Grimshaw-Sugden says, declining to disclose possible locations for the facility or a target date for construction. She wants to stay in Watertown, she adds.
Contact Seltzer at rseltzer@cnybj.com
Robert Wood Johnson grant to fuel spread of joint nurse-training model
SYRACUSE — A joint nurse-training program pioneered by Syracuse’s St. Joseph’s College of Nursing and Le Moyne College is becoming a model for institutions across the state because of a grant from the Robert Wood Johnson Foundation. The program, known as the Dual Degree Partnership in Nursing program, will be spread to other nursing schools
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SYRACUSE — A joint nurse-training program pioneered by Syracuse’s St. Joseph’s College of Nursing and Le Moyne College is becoming a model for institutions across the state because of a grant from the Robert Wood Johnson Foundation.
The program, known as the Dual Degree Partnership in Nursing program, will be spread to other nursing schools using funding from the Princeton, N.J.–based Robert Wood Johnson Foundation. The foundation granted $300,000 over two years to the cause and could renew its funding for an additional two years and $300,000.
The Dual Degree Partnership in Nursing program has students earn both associate and bachelor’s degrees in nursing in four years. It also lets students sit for the National Council of State Boards of Nursing’s National Council Licensure Examination for Registered Nurses after three years.
St. Joseph’s and Le Moyne launched the program in 2005.
“It really came about because we wanted youth,” says Marianne Markowitz, dean of St. Joseph’s College of Nursing, which is located at St. Joseph’s Hospital Health Center and offers associate degrees in nursing.
“The youth were having difficulty doing my program in two years,” Markowitz continues. “They were taking three. We realized they needed that first year to get acclimated to college.”
St. Joseph’s and Le Moyne structured the joint nurse-training program to have students live on Le Moyne’s campus for four years. Students spend their first year at Le Moyne taking classes, then commute to St. Joseph’s for their middle two years to earn their associate degrees. They can take the National Council Licensure Examination after their third year, before returning to class at Le Moyne in their fourth year to earn their bachelor’s degrees.
That program model has helped retain students and boosted their success on the National Council Licensure Examination, according to Markowitz. In 2011, 96 percent of Dual Degree Partnership in Nursing program students passed the exam on their first attempt, she says. That compares to a statewide average of 84.7 percent of students coming out of associate-degree programs who passed the test on their first try that year.
All of the Dual Degree Partnership in Nursing students passed the test on their second try in 2011, Markowitz adds. About 50 students enter the joint program between St. Joseph’s and Le Moyne each year, she says.
The Robert Wood Johnson Foundation grant will help spread the joint nurse-training program’s model by funding coordination between schools that are already working to follow it. And the grant will give those schools a stipend for expenses like marketing, according to Susan Bastable, chair of the Department of Nursing at Le Moyne.
“[Markowitz] and I are going to serve as consultants and travel around the state, individually visiting programs,” Bastable says. “The purpose in doing so is to give them best practices. We didn’t struggle when starting the program, but we learned as we went along. Why not share that knowledge? We learned a lot of really good things to make sure that the student is really successful.”
Currently, 18 institutions are following the joint nurse-training model, including St. Joseph’s and Le Moyne. But that number could be on the rise.
That’s because some of the grant funding is earmarked for outreach to nursing schools that do not take part in a joint-training program. Bastable has identified about eight more schools that would be good candidates to establish their own dual-degree partnership programs, she says.
Data collection will also be funded by the Robert Wood Johnson Foundation grant. The Foundation of New York State Nurses, a not-for-profit organization that attempts to increase public knowledge of nursing, is slated to set up a data repository to collect information from schools with joint nurse-training programs.
The Foundation of New York State Nurses is administering the Robert Wood Johnson Foundation funding. Money will be channeled through the New York State Future of Nursing Action Coalition.
Bastable says that although schools are modeling their programs after the one set up between St. Joseph’s and Le Moyne, they aren’t going to duplicate it.
“The partners, the institutions, they may encounter things we haven’t,” she says. “We felt that others could replicate, not necessarily duplicate like a cookie cutter.”
Contact Seltzer at rseltzer@cnybj.com
Highfield answers energy company’s call with expansion
SYRACUSE — A Syracuse–based call-center firm is lined up for growth over the next several months thanks to a new contract with an energy company. Highfield Call Centers, based at 807 N. Salina St. in Syracuse, has signed a contract with a Canadian firm, Superior Plus Corp. (TSX: SPB), and its upstate New York arm,
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SYRACUSE — A Syracuse–based call-center firm is lined up for growth over the next several months thanks to a new contract with an energy company.
Highfield Call Centers, based at 807 N. Salina St. in Syracuse, has signed a contract with a Canadian firm, Superior Plus Corp. (TSX: SPB), and its upstate New York arm, Griffith Energy, which is based in Brighton, outside Rochester. The Syracuse company will handle after-hours call-center services for customers in the Northeast and Mid-Atlantic states as well as crisis overflow on weekends. Highfield will also probably take on daytime support services in the future.
“We’re in the early conversion, starting to fulfill the responsibilities of the contract now,” says Joseph Bonacci, president and CEO of Highfield Call Centers. “We’re really in a growth period, and that’s a good thing.”
Highfield won the contract in June and has already hired eight full-time employees to work on it. The company plans to hire eight to 10 more people in the next month. And it expects to continue to hire until it has added a total of about 50 people to work on its new contract, according to Bonacci. Those employees will come on board by early 2013, he says.
They will be in addition to 65 people who already work for Highfield. The company has other call-center contracts, including one with the pharmaceutical giant Merck (NYSE: MRK).
The new employees working on the contract with Superior Plus and Griffith Energy will be in 3,500 square feet of newly leased space at 5990 Drott Drive in DeWitt. Highfield leased that location from Gregory Rinaldi, who owns it, according to records from Onondaga County’s Office of Real Property Tax Services.
Highfield spent about $50,000 of its operating cash to ready the new space to hold a call center. Kingsfort Builders, Inc. of DeWitt performed the work, according to Bonacci.
“You have to retrofit it for technology,” he says. “Phone systems, servers, wireless, televisions, computers, and then you also have a lot of electrical work that needs to be done. And you also have the interior-type work, workstations.”
In addition to the new location on Drott Drive, Highfield houses call-center operations for its other contracts at 7222 Fly Road in DeWitt. It leases 6,400 square feet of space there from Frank Magari, Bonacci says.
Most of Highfield’s employees currently work at Fly Road. It also has four employees in its headquarters of 807 N. Salina St., a building Bonacci owns. About 1,500 square feet of the building space is dedicated to the call-center company’s headquarters, he says.
Highfield will cast a wide net as it tries to nearly double in size over the next several months to meet the demands of its Superior Plus and Griffith Energy contract, according to Bonacci. The call-center firm will try to find new employees through classified advertisements in print, online advertising, and word-of-mouth.
“We’re in a business that’s a ramp-up business,” Bonacci says. “All of a sudden, you win another contract, and you have responsibilities. You have to find people, and you have to find people quickly. And you have to find talented people.”
Highfield may need to find even more talented people soon, he adds. The company is attempting to win two more contracts. Bonacci says he can’t be specific about the potential contracts, only divulging that one would be with a local firm and the other would be with a national company.
He does estimate that Highfield would probably need to double its labor force if it lands both deals. That doubling would occur after the Superior Plus and Griffith Energy-related hiring is complete, meaning Highfield’s employment rolls would swell to exceed 200 people.
Bonacci projects 2012 revenue at Highfield will total about $5 million. That’s up from $4.6 million in 2011 and $3.5 million in 2010.
It is too early to predict revenue for 2013, Bonacci adds. But he says the upstate New York area is a perfect place to expand a call-center business.
“This is a reasonable and realistic place to run,” he says. “There is a very good labor force with the universities.”
Contact Seltzer at rseltzer@cnybj.com
A democracy … can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that point on, the majority always votes for the candidates promising the most benefits from the public treasury with the result that a democracy always collapses over loose fiscal policy … The American Republic
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A democracy … can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that point on, the majority always votes for the candidates promising the most benefits from the public treasury with the result that a democracy always collapses over loose fiscal policy … The American Republic will endure until the day Congress discovers that it can bribe the public with the public’s [own] money. — Alexis de Tocqueville (1830s)
There are 47 percent of the [American] people … who are dependent on government, … who believe the government has a responsibility to care for them, who believe they are entitled to health care, to food, to housing … That’s an entitlement … These are people who pay no income tax. — Mitt Romney (2012)
Alexis de Tocqueville was clearly prescient, although he didn’t anticipate Congress’s ability to bribe the public with other people’s money. Gov. Romney, who incorrectly conflated those who don’t pay federal-income tax with “dependency,” nevertheless is warning us correctly that America is now approaching a tipping point where government responsibility for funding our national defense, education, interest expense, infrastructure investments, foreign policy, many anti-poverty programs, and other operational concerns will be funded by a minority of the populace. The clear inference is that those who have no skin in the game — soon to be the majority — are inclined to vote for more largesse because they aren’t paying for it.
The dirty secret of dependency that nobody mentions is that we are talking about entitlements for the middle class, which first got hooked on government largesse back in 1935 with the introduction of Social Security. The middle class later benefitted from the introduction of Medicare in 1965. Entitlement was granted to all citizens with workers supporting the programs through mandatory contributions. After eight decades of government distribution to millions of the elderly, Americans are quite comfortable with the concept of government disbursing funds to them as individuals.
What is less apparent is the growth of other entitlement programs for the middle class, which are funded by taxes and not by direct contributions. One that may surprise you is the group of anti-poverty programs. The official definition of poverty is established by the U.S. Bureau of the Census, which determines an annual income figure. In 2010, a single person making less than $11,344 or a family of four with two children making less than $22,113 was considered poor. Congress allows some latitude in its guidelines to account for the differences in incomes and living costs: up to 130 percent of the poverty level for those not disabled and up to 200 percent for those with disabilities.
Government is quietly redefining poverty up? In 2010, the federal government spent $666 billion on anti-poverty programs, an increase in three years of 40 percent after accounting for inflation. The programs cost as much as the defense budget or Social Security, and more than Medicare. (If you add in the states’ contribution, the total U.S. anti-poverty programs consumed nearly $1 trillion of our taxes.) A review of the federal food, health-care, housing, and income-redistribution programs all show a dramatic increase in spending, especially since 2007. Some of it is attributable to the recession and the subsequent stimulus program as well as to modest inflationary pressures. Most, however, is directly attributable to increased enrollment, with more than half of the new enrollees living above the official definition of poverty.
David J. Armor and Sonia Sousa, writing in the Fall 2012 issue of National Affairs, conclude that if the government enforced its own anti-poverty guidelines, federal taxpayers could save nearly $170 billion annually. Of course, another option is to stop calling these programs “anti-poverty” and redefine them as entitlements of the middle class.
Government continues to take a larger portion of our economic output, crowding out the free-enterprise marketplace and those civic, fraternal, charitable, cultural, and religious institutions that build both society and individual character. Our concern should be about the growing numbers of our citizens who are not and need not be dependent concluding that they nevertheless are entitled to government benefits.
Yuval Levin, the editor of National Affairs, suggests that dependence is pernicious and enervating. “Because not only the poor but the great mass of citizens becomes recipients of benefits in our welfare state, too many people in the middle class come to approach their government as claimants, not as self-governing citizens.”
That brings me to the presidential election on Nov. 6, which will have a profound impact on whether this dependence continues to grow. I absolutely agree with President Obama that this election is about two different visions of America. He sees an ever larger government filling the space between the individual and government, the space we call civil society. In his worldview, individuals should turn increasingly to government for protection against the vagaries of life, and big government should be the driver of the marketplace, replacing the “Social Darwinism” of the private sector. Our citizens should trade their radical individualism for an understanding that things are only built because the preconditions for success were created by the greater society. Ergo, the government must continue to play a bigger role, according to the president’s vision.
In de Tocqueville’s words, the president’s plan is a prescription for the end of the Republic. It denies private initiative and achievement. His view degrades the importance of the family, our religious congregations, civic and fraternal groups, and private charities. Government may be capable of redistributing funds, but it cannot replace a family’s love, friendship, personal ambition, mutual support of your neighbors, love of country, or a desire to give your children and grandchildren more than you have. In short, what we need is a government that protects the space between the individual and the government, not a government that crowds it out through bloat.
This election is about putting limits on government and about a strong middle class that sees itself as self-reliant and not as claimants. The choice couldn’t be clearer.
Norman Poltenson is publisher of The Central New York Business Journal. Contact him at npoltenson@cnybj.com
Former Hancock lawyers start new firm, Crisafulli Gorman, PC
FAYETTEVILLE — A new law firm is aiming to tap into the potential of the region’s small, emerging companies. “We really think that this area is headed where they’re headed,” attorney Douglas Gorman says of the region’s startups. “The more we can nurture them and make them our focus the better.” Gorman and his partner,
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FAYETTEVILLE — A new law firm is aiming to tap into the potential of the region’s small, emerging companies.
“We really think that this area is headed where they’re headed,” attorney Douglas Gorman says of the region’s startups. “The more we can nurture them and make them our focus the better.”
Gorman and his partner, Timothy Crisafulli, launched their firm, Fayetteville–based Crisafulli Gorman, PC in September. They previously worked together at Syracuse–based Hancock Estabrook, LLP.
And while the partners hope to be seen as friendly to small and emerging companies, they also say their practice will pursue work with larger, established companies, nonprofits, and individuals. The entire market seems poised for growth, Crisafulli says.
“The greater Syracuse region is not at a time of stagnation,” he says. “We realized that this is really a tremendous market to be served. We wanted to position ourselves to be able to serve it well.”
Crisafulli Gorman’s practice areas include trusts, estates, and elder law; tax law; corporate, finance, and commercial law; and business succession and exit planning.
Both partners grew up in Central New York — Gorman in Minoa and Crisafulli in Oswego. They both attended Le Moyne College and ended up teaching for some time before attending law school at Syracuse University, where they met on the first day.
Gorman practiced in Delaware for a while after graduating, but eventually landed at Hancock Estabrook with Crisafulli. They worked there together for five years, often on joint projects involving business succession planning, Crisafulli says.
Gorman brought a concentration in business law to those efforts while Crisafulli brought tax and estate planning and administration knowledge.
The two eventually felt a pull to serve clients on their own terms and using their own model, Gorman says.
That model includes an increasing use of technology to deliver legal services in response to the demands of younger clients, Crisafulli says.
“It seems as if what they are seeking in legal services, as they were raised on technology, may be a little different than what earlier, older consumers of legal services were seeking,” he says. “We’re able to reach them free of geographic constraints.”
As a small, two-man shop, Crisafulli Gorman can focus on providing cost-effective services as well. That will come in handy when working with smaller companies, Gorman notes.
“They’re young, they’re not especially well capitalized,” he says. “They need a cost-effective solution.”
In addition to business succession, the partners also cross practice areas in work with nonprofits. Gorman frequently works with organizations on governance issues while Crisafulli helps them attain and keep tax-exempt status.
The partners also bring joint expertise in estate planning and asset administration, Gorman says. Gorman’s other expertise includes corporate finance, commercial transactions, divestitures, mergers, and acquisitions.
Crisafulli’s additional experience includes asset preservation, trusts and estates, and tax law.
Small Business Health-Care Credit Alert
Arguably the most sweeping change to U.S. health care since the passage of Medicare and Medicaid is upon us. The combination of the Patient Protection and Affordable Care Act and the Healthcare and Education Reconciliation Act create myriad changes in health care. Most major provisions will be effective by January 2014, with others being phased
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Arguably the most sweeping change to U.S. health care since the passage of Medicare and Medicaid is upon us. The combination of the Patient Protection and Affordable Care Act and the Healthcare and Education Reconciliation Act create myriad changes in health care. Most major provisions will be effective by January 2014, with others being phased in by 2020, and from a CPA’s perspective, that presents a wide range of financial and tax-planning challenges for business owners and managers.
One of the hottest topics of course is the small business health-care credit. In general terms, for years through 2013, qualifying small-business taxpayers may claim a credit of 35 percent, while small tax-exempt employers are eligible for a 25 percent credit. In 2014, an enhanced version of the credit will be available.
Many small businesses are trying to figure out what this means for them. The first step is to determine if your business is eligible. In order to claim the credit, an affirmative response to each of the following is necessary.
– Do you employ fewer than 25 full-time equivalent employees? Note: Multiple part-time employees are added together to determine FTEs.
– Is the average annual wage per FTE less than $50,000? Note: Total wages are divided by total FTE.
– Do you cover at least 50 percent of the cost of single (not family) health-care coverage for each of your employees?
If you were able to answer yes to all of these questions, your business could reap some significant benefit. And because the tax credit works on a sliding scale, businesses supporting more FTEs earning lower average wages will receive a larger benefit.
A quick example shows that a small-business employer eligible for a 15 percent credit who pays for qualifying health-care coverage that costs $75,000 per year will end up with a credit of $11,250.
The credit may be carried back to prior years or forward to future periods. And, in some cases, for tax-exempt organizations, the credit is refundable even if no taxes were paid. Of course, there are any number of limitations and caveats, so gaining a clear understanding is vital.
It is important to note that this is a tax credit. A tax credit differs from a deduction. Why is this important? Good question. Because small businesses may be able to claim both a deduction and a credit. The deduction is based on premiums paid in excess of the credit claimed.
If your head is spinning despite instructions available for Form 8941 and 990-T and information on the IRS website (www.IRS.gov) , you are not alone. Earlier this year, a report by the Government Accountability Office indicated that many small businesses passed on the health-care tax credit in 2010. According to the report, approximately 170,000 small businesses claimed the credit while 1.2 million to 3.8 million did not file for the credit even though they were eligible. If your business is part of the group that passed on the credit, it might make sense to re-visit the issue and consider amending your return.
Of course, there is much more to determining the right course of action than being eligible for a tax credit. Your CPA can help you make sense of the credit and more.
Gail Kinsella is a partner in the accounting firm of Testone, Marshall & Discenza, LLP. Contact Kinsella at gkinsella@tmdcpas.com
Navigating OSHA regulations when using temporary employees
Many businesses utilize temporary employees. There are several things to be aware of when you contract through a temporary agency to provide employees. Companies need to be cautious in assuming they are the employer of these workers. While this is the case in many circumstances, such as payroll and taxes, there are several other state
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Many businesses utilize temporary employees. There are several things to be aware of when you contract through a temporary agency to provide employees. Companies need to be cautious in assuming they are the employer of these workers. While this is the case in many circumstances, such as payroll and taxes, there are several other state and federal laws where the company needs to be concerned with the “joint employer” relationship.
One issue is who is responsible for compliance with the various OSHA regulations when temporary or leased employees are involved. Through interpretive letters and compliance directives to staff, OSHA asserts that it can be a shared, or “joint employer,” responsibility.
Due to its ongoing relationship with the employee, the temporary-staffing service could likely carry some recordkeeping and training obligations. However, the primary responsibility resides with the client employer, which creates and controls conditions at the workplace. For example, it’s the company that ensures machinery is guarded and necessary personal protective equipment is used. However, the temp agency would maintain all medical monitoring and exposure records created by a client employer on agency employees.
The issue of “client employer” versus “temporary-service agency” responsibility is focused mostly on the area of employee training. There is no waiver of the various training requirements simply because a temporary employee’s assignment is of a short duration. For instance, training or safety instruction must be given to construction employees, even for very short-term jobs. OSHA often finds that permanent employees are properly trained as required by a particular standard but their temporary counterparts aren’t. That results in citations and significant penalties.
The need to define responsibility is frequently raised with the hazard- communication standard and its training requirements. In those cases, the temporary-service agency would be expected to provide some generic training. The client employer would then have to provide the specifics about the hazardous chemicals used at the work site, along with training on the implementation of its hazard-communication program at the site.
Similarly, the blood-borne pathogens standard would require generic training by the leasing agency with site-specific training and implementation by the client employer. Under that standard, the temporary service would also need to ensure that employees receive required vaccinations and follow-up evaluations after exposure incidents.
OSHA points out in interpretive documents that a client employer may wish to specify the qualifications it will require of personnel supplied to it. That could include training on specific chemicals, use of personal protective equipment, and the like. It is also advisable that contracts between the parties clearly define their respective responsibilities so that all OSHA requirements are met.
A recordable injury or illness of a temporary worker should be entered on the client employer’s OSHA 300 log if the company performs day-to-day supervision of the worker. The temporary labor service should not record the case. OSHA regulation 1904.31 suggests that client employers and labor-supply services coordinate their recordkeeping efforts to ensure that a case is recorded only once.
Bill Ranous is the director of human-resources services at the Manufacturers Association of Central New York (MACNY). This article is drawn and edited from the July-August issue of Manufacturing Matters, MACNY’s newsletter.
Syracuse law firm involved in Medicaid lawsuit
SYRACUSE — The state pharmacists society and several individual pharmacies are suing the state’s Medicaid program over rules requiring beneficiaries to use mail-order pharmacies for some prescriptions. Syracuse–based Hiscock & Barclay LLP is representing the plaintiffs, including the Pharmacists Society of the State of New York, a number of named pharmacists, and Medicaid beneficiaries. Requiring
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SYRACUSE — The state pharmacists society and several individual pharmacies are suing the state’s Medicaid program over rules requiring beneficiaries to use mail-order pharmacies for some prescriptions.
Syracuse–based Hiscock & Barclay LLP is representing the plaintiffs, including the Pharmacists Society of the State of New York, a number of named pharmacists, and Medicaid beneficiaries. Requiring prescriptions to be filled by mail deprives patients of one-on-one counseling with pharmacists they trust, says Linda Clark, an attorney with Hiscock & Barclay.
“There’s a risk that there will not be adequate coordination in terms of drug interactions and the like,” she says. “There’s really no one there to effectively look at the whole patient profile that a pharmacist would normally look at.”
The issue arose last year when prescription drugs became part of Medicaid Managed Care, in which subsidized health plans reimburse pharmacies for prescriptions as opposed to Medicaid paying directly, Clark says.
When the plans became responsible for drug coverage, the New York Legislature specifically passed laws mandating that patients have the right to choose their pharmacies, as long as that pharmacy meets or beats the mail-order price, Clark explains. The one exception was for drugs that are extremely expensive, exotic, or difficult for a local pharmacy to handle.
The Department of Health began developing a list of those drugs, but it quickly became clear that many routine prescriptions were being added, Clark says.
“The exceptions started to swallow the rule,” she says. “They came up with a list of over 400 routine drugs for all kinds of basic chronic conditions that community pharmacies have been serving forever. It’s pretty clear that was not the intent of the exception. That’s why we ended up in court.”
Mail-order drugs can create serious issues for patients, Clark says. Some people might get some drugs from the mail while others come from the pharmacy. That can create confusion.
And some of the drugs involved are critical and time sensitive, Clark notes. One patient in the case is taking anti-rejection drugs after a liver transplant.
“If you’re not at home at the moment that UPS stops by, you don’t get your drugs,” Clark says.
UPS could just leave the drugs, but that’s not a great option when therapies can cost thousands of dollars per month.
The lawsuit, filed in State Supreme Court in Albany County, is seeking to stop the list of exceptions from moving forward. Clark notes that pharmacists recognize there are some drugs that legitimately belong on the list.
The mail-order program is temporarily on hold while the suit moves ahead, she adds. No one from the state Health Department could be reached for comment on the matter.
The issues in the suit don’t just relate to patient health, Clark says. There are hundreds of millions of dollars at stake.
The mail-order program could send up to $1 billion in taxpayer funds to mail-based pharmacies that are located outside New York state, Clark says.
“Medicaid patients lose choice and access, in-state pharmacies lose prescription volume, and New York state loses the tax revenues it needs,” Craig Burridge, executive director of the Pharmacists Society of the State of New York, said in a news release. “It’s a money-grab by the nation’s largest prescription-benefit managers who are building prescription volume on pharmacies they own and control.”
Hiscock & Barclay has 360 lawyers and support-staff members. The firm has additional offices in Albany, Buffalo, New York City, Rochester, Boston, Toronto, and Washington, D.C.
Contact Tampone at ktampone@cnybj.com
Changing Estate-Planning Rules Require Careful Consideration
Is your estate plan current? The federal estate-tax rules drastically changed in 2010, were altered again in 2011, and will change again in 2013. Following is a summary of these laws. I encourage you to review your own estate plan to see how it is affected. Our federal estate-tax exemption, which is the amount you
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Is your estate plan current? The federal estate-tax rules drastically changed in 2010, were altered again in 2011, and will change
again in 2013. Following is a summary of these laws. I encourage you to review your own estate plan to see how it is affected.
Our federal estate-tax exemption, which is the amount you can pass estate-tax-free at your death, was $3.5 million in 2009, and the maximum federal estate-tax rate was 45 percent. In 2010, the estate tax was repealed. For this one year, the step-up in basis rules (which would allow heirs to sell assets they inherit with a cost basis equal to the estate fair-market value) were replaced by carryover basis. These new rules permitted a step-up of $1.3 million plus an additional $3 million for assets passing to a surviving spouse. In lieu of these rules, an election could have been made in 2010 to elect an estate-tax exemption of $5 million and a full step-up in basis.
In 2011, the federal estate tax ex-emption was $5 million with an estate tax rate of 35 percent. For the 2012 tax year, the exemption is $5.12 million. During this entire time, there is an unlimited federal and New York State marital exclusion, and the New York State exemption is $1 million. The 2013 federal exemption is scheduled to decrease to $1 million with an estate-tax rate of 55 percent. With these wild swings in federal estate tax, it’s hard to structure your estate plan wisely. Although everyone’s circumstances are different, here are some general guidelines.
It’s important to list your assets at fair-market value, and include the death benefit of your life insurance that you own in the total. Once the fair market value approaches $1 million, tax planning is imperative.
For married couples, equalizing your estates may result in the lowest estate tax. Putting disclaimer or credit-shelter trusts, which maximize the use of both spouse’s exemptions, in your wills could double the amount passing free of estate tax for a married couple. If you have a formula clause, you should review it. Depending on the estate-tax exemption amount in the year of your death, it could potentially disinherit the spouse if the tax-exempt amount is left to children and the balance to your spouse.
Making gifts of real estate or closely held business interests may be wise, and valuation discounts as well as low interest rates work in your favor. Gifting appreciating assets during your lifetime and placing life insurance into an irrevocable life-insurance trust could leverage your exemption even more. Reviewing beneficiary designations and coordinating them with your overall estate plan is of prime importance, since many people pass more assets by beneficiary than by their wills. Flexibility is key, with the fluctuating exemptions, basis rules, and estate-tax rates.
Durable powers of attorney, health-care proxies, and living wills are lifetime documents that everyone should have in place. A durable power of attorney states who would make your financial decisions, and a health-care proxy designates who would make your medical decisions, if you were unable to do so. HIPAA language should be included in your documents so that the privacy laws allow your agent access to your personal information. A living will states that you do not want to be kept alive by artificial means if you are in an irreversible coma with no chance of recovery, and if that mirrors your wishes, you should sign a living will.
Are you confused yet? Congress may adopt new legislation for 2013. Uncertainty makes it difficult to plan, but waiting to see what happens next may not be the best course of action. The earlier you implement flexible tax and estate planning to respond to these changes the better. This article just scratches the surface. There are many rules not shown here that you would need to consider.
Grace Ghezzi is vice president with Benefit Consulting Group (or BCG), specializing in fee-only financial planning. Contact her at (315) 413-4460 or via email at gghezzi@bcgcny.com
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