The new health insurance reform package (Affordable Care Act was enacted on March 23, 2010) includes an immediate tax break for qualified small businesses: the Code Sec. 45R small employer health insurance tax credit.  Qualified moving & storage companies (other companies and non-profit organizations may qualify for some or all of this credit) may reduce the cost of providing health insurance to their employees this year through the year 2013. The tax credit is retroactive to January 1, 2010.  You may have received a postcard from the IRS announcing this tax credit.

 Small Employers

Employers that have no more than 25 full-time equivalent (FTE) employees paying wages averaging less than $ 50,000 for each employee per year qualify for this tax break.  To determine eligibility for the credit, you have to calculate the number of FTEs and the average annual wages.  See the applicable descriptions for these calculations later in this article.  Also see the 3 Simple Step worksheet developed by the Internal Revenue Service as part of this article that will help determine if you may qualify for this credit.

 Family Members

Since many moving & storage companies are family owned, it is important to point out some limitations in this tax credit:

1. Generally, a sole proprietor, a partner in a partnership, a shareholder owning more than two percent of an S corporation, and any owner of more than five percent of other businesses are not considered employees for purposes of the credit. Thus, the wages or hours of these business owners and partners are not counted in determining either the number of FTEs or the amount of average annual wages, and premiums paid on their behalf are not counted in determining the amount of the credit.
2. A family member of any of the business owners or partners or a member of such a business owner’s or partner’s household, is not considered an employee for purposes of the credit. Thus, neither their wages nor their hours are counted in determining the number of FTEs or the amount of average annual wages, and premiums paid on their behalf are not counted in determining the amount of the credit. For this purpose, a family member is defined as a child (or descendant of a child); a sibling or step-sibling; a parent (or ancestor of a parent); a step-parent; a niece or nephew; an aunt or uncle; or a son-in-law, daughter- in-law, father-in-law, mother-in-law, brother-in-law or sister-in-law.

 Tax Credit Amount

The maximum tax credit is 35% of the qualified health care premiums paid by the employer for its employees.  However, the moving & storage company must pay premiums for each employee enrolled in health care coverage offered by the employer in an amount equal to a uniform percentage (not less than 50 percent) of the premium cost of the coverage to qualify for the credit. The credit is subject to phase-out rules.  The credit is reduced by 6.667 percent for each FTE in excess of 10 employees.  The credit is also reduced by four percent for each $ 1,000 that average annual compensation paid to employees exceeds $ 25,000.  This means that the credit completely phases out if the moving & storage company has 25 or more FTEs and pays $ 50,000 or more in average annual wages.

 There are some other limits that apply to the amount of the premiums paid that can be considered for this credit. These limits may be determined by the Department of Health and Human Services (HHS).

Employees (FTE)

This is determined by dividing the total hours of service (including paid time off) for all employees (but not more than 2,080 hours for any employee) by 2,080.  The result, if not a whole number, is rounded to the next lowest whole number.  The 2,080 hours comprise the number of hours in a 52-week period assuming a 40-hour work week.  Any hours beyond 2,080, such as overtime hours, are not taken into account when calculating FTEs.

 Average Annual Wages

This is determined by first dividing the total wages paid by the moving & storage company to employees during the year by the number of FTEs (calculated per above) for the year. The result is then rounded down to the nearest $ 1,000 (if not otherwise a multiple of $ 1,000).  Remember to exclude from the total wages any wages paid to an employee for hours in excess of 2,080.

 Example of Moving Company Receiving Credit

Moving & Storage Co. with 12 employees in 2010:

            Employee Class           Number              Wages

            Drivers                             2                   $   60,000

            Helpers                           5                   $ 100,000

            Warehouseman               2                   $   45,000

            Dispatcher                      1                   $   35,000

            Salespersons                   2                   $   60,000

            Owner/Family                N/A                   N/A

            Totals                          12                   $ 300,000

Average Wage per Employee                         $ 25,000

 Employee Health Care paid by Company      $ 72,000

 2010 Health Care Credit @ 35%                    $  25,200

 Claiming the Credit

The credit is a general business credit that will be claimed on your annual income tax return.

 Investing in business assets or employees is never just a matter of taxes.  Please consult with your tax advisor before acting on this topic.  Your tax advisor can ensure you receive the maximum tax benefits considering your company structure, income tax rates, etc.  You can also visit the Internal Revenue Service web site http://www.irs.gov/ for more information on this issue.

 Thomas L. Broderick, C. P. A. is the Treasurer of Pickens-Kane Moving & Storage Co. in Chicago, Illinois. He has served as Chairman of the Board of Trustees of the Illinois Movers’ and Warehousemen’s Risk Management Trust since 1996. Many individuals, small businesses and non-profit organizations consult him for various accounting, investment, insurance and tax issues.

ADDENDUM A

3 SIMPLE STEPS

If you are a small employer (business or tax-exempt) that provides health insurance coverage to your employees, determine if you may qualify for the Small Business Health Care Tax Credit by following these three simple steps:

1 Determine the total number of your employees (not counting owners or   family members): 

            Full-time employees: _____________________________

            (enter the number of employees who work at least 40 hours per week)

+

            Full-time equivalent of part-time employees: __________________________________

(Calculate the number of full-time equivalents by dividing the total annual hours of part-time employees by 2080.)

            = ______________________ total employees

            If the total number of employees is fewer than 25 GO TO STEP 2

2   Calculate the average annual wages of employees (not counting owners or family members):

            Take the total annual wages paid to employees: ______________________________

÷

            Divide it by the number of employees from STEP 1: ___________________________

            (total wages ÷number of employees)

            = ______________________ average wages

            If the result is less than $50,000, AND

3   You pay at least half of the insurance premiums for your employees at the single (employee-only)

            coverage rate, then

→→  you may be able to claim the Small Business Health Care Tax Credit.  Find out more information at IRS.gov.

It has been brought to our attention, there are several emails that are in the circulation and an ad on  Craig’s List by someone using the identity of a legitimate moving company trying to sell a vehicle.  The actual company, Absolutemovingandstorage.com  has nothing to do with the emails, it’s a scam.  One of the scam emails or postings tell of an individual or couple that lost their son in Iraq, in combat.  They are trying to sell his vehicle for $4000.00 (including shipping) to offset debts and expenses, etc.

The scammers ask potentail purchasers to send a moneygram or wire funds in the amount of $4000.00 and once received Absolute-Moving.net will guarantee delivery.  Everyone PLEASE BE ON THE ALERT!  This is a moving scam.  Do not release any banking information, do not send any money, NO VEHICLE IS GOING TO BE DELIVERED.  The people responsible for this scam are most likely outside the U.S. so the chance of catching them or recovering any transferred money is near zero. 

Please review  the sample email below of what is being sent to people.  There is another email being sent (mentioned above) about a couple’s lost son.  The number listed does go to the actual moving company but the mover has nothing to do with the scam and has no knowledge of any delivery.  Everyone should become familiar with the article to see how the scam works.  Any questions, comments, or input regarding this scam or others should be sent to support@emovingstorage.com.  The original person who  received this informations name has been deleted for protection of their identity.

Dear (Name not published to protect the email recipients identity)
>  
> We suggest that you print this page for future references
>  
      
> Transaction # 74832021977  Description: 2007 BMW M6 Registered by: Anthony Garcia
 
> Details:
> ====================================
> Vehicle Description BMW 2007 BMW M6 
> Tracking # 1IL852E8BCPTERZPQ
>  
> Shipping:  Paid     
> Taxes:  $0 
> Total:  $4,000.00
> ====================================
>
>     
> Delivery address:
> ====================================
> Full name: this information has been deleted to protect the recipients information
> Street:
> City: Elizabeth
> State: NJ
> Zipcode: 07208
> Country:  USA
> ====================================
>
>
> How it works:
>
> 1. The buyer and seller agree to use the Absolute Moving & Storage © for payment transfer.
> 2. The buyer transfer the funds to Absolute Moving & Storage © in order to begin the shipping procedures and take the vehicle of the market. The funds should arrive at Absolute Moving & Storage © within 2 business days.
> 3. Upon receipt of the funds, Absolute Moving & Storage © notifies the seller that the funds are on hand with Absolute Moving & Storage ©
> 4. Absolute Moving & Storage © ship the vehicle , a tracking number will be provided to the buyer.
> 5. After the buyer has inspected ( 5 business days ) the vehicle and agreed to buy it, Absolute Moving & Storage © sends the funds to the seller and takes care for the buyer of the paperworks and title transfer that needs to be done for registration
> ====================================
 
> $4,000 money order must be made through MoneyGram ( Same-Day service ) to our company Lawyer`s name and address:
>
> Name: Brandon Anderson
> Street: Service Rd.
> City: Selma
> State: NC
> Zipcode : 27576
> Country : USA
> ====================================
> Note: Our Lawyer is directly involved in this transaction because Mr.Garcia have paid for title transfer service.
 ====================================
>
> Once your MoneyGram same-day transfer is completed please reply this email to and provide the following information:
>  
>  
> – MoneyGram Sender’s full name, address, city, state, zip and phone # (that person who completed the MoneyGram transfer)
> – The MoneyGram Reference Number  ( 8-digit number located on your confirmation receipt)
> – Total amount transferred
>  
> ====================================
> 
  
> Moneygram is a money transfer service. You can essentially send cash to another person or business.
> How MoneyGram works:
> 1) Go to a MoneyGram Agent location (currently there are more than 25,000, including all 3.400 Wal-Marts) and complete a short form ( MoneyGram same-day service ) with your information and the recipient’s information ( our Lawyer`s full details )
> 2) MoneyGram agent will process your transaction and give you a 8 digit reference number
> 3) Money have been sent!
>  

>
> Please confirm your phone # , We will call you to confirm your address and discuss accessibility.
> If accessibility is limited the driver may suggest meeting at a local supermarket or mall with ample space to unload your car.
> Your car will be transported on an 8 or 10-car hauler, the same type of trucks used to deliver new cars to your local dealerships.
> These trucks are 75 to 80 feet long and are almost 14 feet high. Therefore they are very hard to maneuver and are restricted to main roads that do not have any overhanging trees or low clearance bridges.
> Our drivers will call you the morning of your delivery date to give you a three-hour block of time during which your delivery will be made.
> This call also confirms to us that you will be available to receive the delivery on the scheduled date. If you are not home when we attempt to make your delivery on the scheduled delivery date, we will help you reschedule your delivery for the next available date.
>  
>  
>  
>
>  
>  
> Please save/print this email for your records
> If you have any question, please do not hesitate to contact us>
>  
> Email:
> Support@Absolute-Moving.net
> Phone:
> 800-549-4578
>  
>  
>
>
>
>

Who's on the other end of your computer?

This article caught my attention, because a family member went through the same situation last year with his company.  His bank account was drained by cyber criminals, causing the grueling process of getting federal investigators involved, and the loss of hundreds of thousands of dollars.  The way they scammed,  was they obtained access to the member’s bank account, and made an ACH wire transfer to a middle man or holding account and then transferred the funds by western union overseas, and the money was untraceable. Who would have thought this would happen to us?!  Well guess what, you never know when or where they are going to strike!  Whether you own a moving company, another business, or even have a bank account, this story applies to you.

Cyber crime is growing at an alarming rate and stories like  Click Here To Destroy Your Business highlights one small business owner’s story of how cyber criminals took $100,000 out of his business bank account (of which he only recovered half).  Besides the businessman’s story, it gives tips on how to safeguard your business and questions to ask your banker like do you offer any authentication devices or security questions?  Do you encourage password resets and if so how frequently?  Does your system allow multiple users with different rights and privileges?  Is there a system of checks and balances in place for ACH or wire transfers?

It lists some keys to cyber safety like protect your passwords, scrutinize messages and delete suspicious looking emails, update antivirus software, know who’s responsible for a security breach and browse carefully (social networking sites can be popular place for malware attacks).

Most people probably feel that having their computer keep a default password and other loose practices isn’t a big deal because cyber crime is something that happens to other people.  Well trust me, like I said this did occur in my family and it can happen to you.  Preparing yourself and being vigilant is the best thing you can do.

Nancy Joerg, Esq of Wessels, Sherman, Joerg, Liszka, Laverty, Seneczko, P.C in St. Charles, IL  has written an article on the topic of independent contractors and the IRS in 2010.  For movers with owner operators this has been an issue for years, whether or not someone is an employee or contractor.  The criteria to determine this has been a cloudy issue for movers but one thing is clear in 2010, the IRS is declaring war on companies that use independent contractors in the form of 6000 audits.  The audits will focus on 5 main categories:  worker classification (independent contractor vs. employee), fringe benfits, reimbursed expenses, officer compensation, and non filers.  The tax year of 2007 and 2008 will be the focus but the scope could broaden if they so choose.  The frightening part is that companies will be selected at random from different industries and different sizes so there really isn’t anything companies can do to avoid the threat.  A report produced by the government in 2009 states that only 3% of determinations submitted to the IRS showed workers to be independent contractors, costing the misclassifying companies over 64 million dollars in taxes and penalties.  The article concludes with 5 steps companies should take if they have independent contractors and the warning to not talk to an IRS agent or auditor without legal counsel.  If you would like to read more about this, check out the article IRS audit program.

 Written By:  Douglas Pierovich, Compliance Specialist, Oregon DOT

 In the summer of 2009 the Oregon Legislature amended the laws making it easier for companies to obtain authority to provide intrastate household goods moving services.  Existing moving companies can no longer block issuance of new household goods transportation authority.  Companies who wish to offer household goods transportation services within Oregon can now apply to the Oregon Department of Transportation for a certificate by completing an application packet, which is available on line at the ODOT website, and submitting a $300 application fee.  Criminal background checks on all new applicants is also now required. 

 As of January 1, 2010, to better help protect the moving public, all companies providing Oregon intrastate household goods moving service must also obtain criminal background checks on all employees or persons “whose duties may require contact with the public or entry into a private residence or storage facility for the purpose of providing or facilitating the transportation of household goods”.  Moving companies are now restricted from using persons with certain criminal records, as can be found in Oregon Administrative Rule (OAR) 740-060-0045.

Information on moving in Oregon, and obtaining authority to offer and provide Oregon intrastate Household Goods transportation service can be found at http://www.oregon.gov/ODOT/MCT/MOVING.shtml  or http://www.oregon.gov/ODOT/MCT/news/Movers.shtml  .

An on line application packet can be found at http://www.odot.state.or.us/forms/motcarr/9057fill.pdf  .

Inquiries can also be directed by phone to Martin Loring at (503)378-5985 or

Douglas Pierovich at (503)378-6207.

 

The Illinois Movers’ and Warehouseman’s Association  (IMAWA) has been recognized by the Senior Transition Alliance™ for their efforts to support senior consumers as they move from their homes to community or care settings. IMAWA has long recognized the need for specialized services to support the often fragile older consumers as they transition from a long-time family home. For the past year IMAWA has worked with the Senior Transition Alliance to create a certification and training program that defines the new service standards for moving companies licensed to do business in Illinois.

 The program was introduced to Association members in December, 2009.  Licensed moving companies are encouraged to register for the program, which will accredit businesses based on current service standards, customer complaints, licensing and insurance compliance, education, and security screening guidelines.  

“When relocating elderly relatives from their family home, it’s important to choose moving professionals who have been trained to understand this special dynamic.  We’re excited that IMAWA members will be among the first in the industry to achieve ‘Senior Move Certified’ status,” says Patricia McLaughlin, IMAWA Executive Director.

 Projected increases in the aging population will double the number of senior consumers over the next 15 years.  With the 60^th anniversary of the Baby Boomers, it is estimated that 10,000 people are now turning 60 each and every day!   IMAWA is among the first of traditional organizations who will take a new approach to the increasingly important senior market. 

 “Moving is stressful enough at any age, but later life relocation is often complicated by extreme downsizing, illness, personal loss, dementia , family dynamics and any number of high liability issues. It is critical that all residential service providers understand these issues and know how to manage them through appropriate resources,” says Nan Hayes, spokesperson for the Senior Transition Alliance™.

 Among other organizations recognized by the Alliance for steps they have taken to protect senior consumers are The National Association of Realtors- Senior Real Estate Council, the National Study Group on Chronic Disorganization, The National Certification Board for Alzheimer’s Care, the Society of Senior Advisors, and The Caring Transitions Franchise.  

 Consumers may search for a variety of Certified providers approved by the Alliance at www.MoveSeniors.com. Alliance members will be recognized in Chicago March 19, 2010 in conjunction with the American Society “Aging in America” conference.

 For more information:

 www.imawa.com

www.seniortransition.org

www.asaging.org