Author: Debra Watkins

The Great Recession

The jobless recovery was discussed on the March 5, 2010, broadcast of The Takeaway.   Lakshan Achuthan, managing director of Economic Cycle Research Institute , a market analysis company,   tells a tale of two economic Americas. Contrary to popular belief, the current recession has not been all that bad for many Americans. Unfortunately, the other 40 percent of unemployed fall into what Lakshman calls the “long term unemployed;” and he adds that their plight may not be over any time soon.

Achuthan comments that the Jobs Package which offers a payroll tax reduction incentive to employers will not address the problem of the long term unemployed as employers will only accelerate hiring that is already on the table.


Children’s Health Insurance (CHIPRA)

There are new notice and disclosure requirements associated with CHIPRA.   Employers must notify all employees of their potential eligibility for the subsidies under Medicaid or CHIP.  Model notices have been developed by the Department of Labor and the Department of Health and Human Services.  Employers are not required to provide these  notices until the first plan year after the model notices are issued by he first day of the plan year after February 4, 2010 or  by May 1, 2010, whichever is later.
Find the model notice here.

Help! It’s time for my tax appointment!

Here’s a checklist that will help you organize the documents that are necessary for your tax preparer to assist you in the preparation of a complete and accurate return.

  • Estimated tax payments
  • Wages, salaries, and other employee compensation – Forms W-2
  • Pension and annuity income – Forms 1099R
  • Social Security benefits received – Forms SSA
  • Interest income, statements of tax exempt interest earned, and
  • seller-financed mortgages – Forms 1099-INT
  • Dividend income and statements of tax exempt dividend earned – Forms 1099-DIV
  • Miscellaneous income – Forms 1099 or other forms
  • Stock brokerage statements
  • Income from business – Attach a schedule of income and expense for each business
  • Details of home office expenses
  • Capital gains and losses – Forms 1099-B and 1099-S
  • Sale/purchase/refinance of personal residence; home equity loans
  • Job-related moving expenses
  • Rental income – Provide a separate schedule for each property
  • Income from partnerships, estates, trusts, or S corporations – Forms K-1
  • Contributions to retirement plans including IRA’s and ROTH IRA’s
  • Alimony paid/received
  • Itemized deductions including:
  • Medical and dental expenses
  • Taxes (including Sales Tax!)
  • Interest – Mortgage, student loan, other
  • Contributions, including expenses incurred in performing volunteer work, auto mileage
  • Casualty and theft losses
  • Investment-related expenses
  • Employee business expenses
  • Business mileage and travel
  • Child care expenses
  • Education Expenses
  • Please note any changes in dependents or filing status.

ps, a nice bottle of wine is always appropriate.

To friend or not to friend, that is the question

Therapists and many other independent professionals need to keep a clear line between their professional relationship with clients, not stepping over the line into being friends.

Many therapists are asking how to draw the line on dual relationships when they are also active on social media, and a client sends them a friend request.

For a great resource on how to respond when clients send a “friend request” on Facebook, MySpace, LInkedIn, Twitter, or other social networking sites go to   http://www.zurinstitute.com/facebook_clinicalupdate.html.

Thanks to Pat Wicklund of Leading Your Organization of One for the notice.

Three Steps to Protect Data from Rogue Employees

Robert Grapes, Chief Technologist of Cloakware, Vienna, Va., posted these tips at Business Week’s, Today’s Tip:

1. Know who has access to privileged information. Assess who has access to what data so you can understand and manage access as appropriate.

2. Apply appropriate policies to protect sensitive information. Create an actionable plan and put it into place, applying privileged passwords and access management controls throughout each level of information.

3. Update security and access credentials regularly to monitor and maintain control. Implement a regimented program to automatically update access management and passwords so you can ensure that the right people have the right amount of control over critical information.

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The Sky is Falling-Paulson as Chicken Little

Source: CPA Letter Daily

In his book “On the Brink,” former Treasury Secretary Henry Paulson recounts the 48 hours before Lehman Bros. declared bankruptcy. Paulson explains the conversations he had with various Wall Street CEOs, including Ken Lewis of Bank of America, John Mack of Morgan Stanley and Dick Fuld of Lehman as federal officials and bankers scrambled to find a resolution. Paulson also delves into how he was feeling as he explained the situation to his wife. ” ‘What if the system collapses?’ I asked her. ‘Everybody is looking to me, and I don’t have the answer. I am really scared.’ ”

Lent is Coming-Consider a Financial Fast

Michelle Singletary writes the nationally syndicated personal finance column, “The Color of Money,” which appears in The Post on Thursday and Sunday. Her award-winning column is also carried in more than 120 newspapers. Her third book, “The Power To Prosper,” is scheduled to be released in January 2010. In her spare time, Singletary is the director of a ministry she founded at her church, in which women and men volunteer to mentor others who are having financial challenges. She was recently selected to receive the Distinguished Alumni Award from The Johns Hopkins University.

See her column on a financial fast. Good words here.