You may have heard about a possible payment employers will have to pay to the new Mass Health Connector program. This payment maybe as high as $295 per employee per year. The Fair Share Contribution is a fee that an employer will pay if he/she/they do not make a "fair and reasonable" premium contribution to the health insurance of his/her/their employees. These fees will be used to help fund the health plans that the state subsidizes and are available to those who do not have access to employer-sponsored health insurance plans.

1. The employer has 11 or more full-time equivalent employees who are employed at Massachusetts locations AND...
2. The employer does not make a "fair and reasonable" premium contribution towards health insurance for their employees

          An employer makes a "fair and reasonable" premium contribution if EITHER:

• There is at least 25% participation by full-time employees in the employer's group health plan, OR...
• The employer offers to contribute at least 33% of the premium cost of its health plan to all full-time employees employed more than 90 days during the period October 1, 2006 to September 30, 2007

The IRS now offers an opportunity to lower your tax bill somewhat while establishing a pension plan for your employees, which, as you know, can help you retain better employees. If you start a pension plan, you can take a credit of up to $500 a year for each of the first three years of the plan. The credit is for 50% of certain start up costs you incur in each of those years. Those costs include the expenses you incur in establishing and administering the plan as well as the cost of any retirement planning education programs you sponsor for your employees. Thus, if you spend $1,200 this year in establishing a plan, and $1,100 in the next two years on administration and employee education, you would be eligible for a $500 credit against your taxes in each of those three years.

You must meet several requirements to qualify for this credit:

• you must have no more than 100 employees who received at least $5,000 of compensation in the year before you start the plan (i.e., you can have more than 100 employees, as long as no more than 100 of them earned at least $5,000);
• you must have at least one employee participate in the plan who meets the definition of a "nonhighly compensated employee"-generally someone who makes $95,000 (as adjusted for inflation for 2005) or less a year and who is not an owner of the company; and
• you cannot have had a pension plan during the three tax years right before the year in which you start your plan.

If you had a pension plan in the last couple of years, you may want to consider waiting three years from the time the plan was terminated before starting a new plan so that you qualify for the credit. As an example, if you had a plan that was terminated in 2004, you would have to wait until 2008 to start a new plan and qualify for the credit.

There are several types of plans you can establish for your employees and still qualify for the credit. For example, you could start a pension, profit sharing, or an annuity plan, among other choices. If you are interested in pursuing this further, please give us a call.

Undoubtedly you have seen the big purple trucks of Gentle Giant Moving Company all over town. You may even be aware of its stellar reputation for providing superb service to its customers. Well the Somerville-based business just received an award from the Wall Street Journal as a "Top Small Workplace," one of only fifteen in the United States.

The award was created to recognize small businesses who provide an exceptional environment for their employees. This includes providing rewarding and challenging opportunities for growth and development and a culture of respect and personal integrity.

There were more than 850 nominations from which a pool of 35 finalists were selected. Only 15 of the 35 made the final designation earned by Gentle Giant as a top small workplace. Rodman & Rodman would like to congratulate President Larry O'Toole and the exceptional team at Gentle Giant for this richly deserved award.

For the Wall Street Journal article and more information about Gentle Giant, please click here.

• Sales is a profession and not to be taken lightly.
• Whose reasons do people buy for?
• The power of the word 'no'.
• Always have clear next steps.
• Watch your buying habits.
• Commitment and passion.
• Having a referral mentality.
• Know your opponent.
• On-boarding your customers.
• You're worth what you think you're worth.

Scott Robbins is the Managing Director of Small & Emerging Firms at Next Level, Inc., an affiliate of the Sandler Sales Institute. Scott's focus is helping companies with challenges as they relate to sales in these three areas:  People, Process and Pipeline. Rodman & Rodman has referred several of our clients to Next Level over the years with excellent results. Rodman & Rodman is also a client and has been for ten years. There is no cost or obligation to attend. This program is to help the clients and friends of Rodman & Rodman, and is provided as a value added service. Please contact Jen Reading at 617.965.5959 to register. You may also reach Jen by email at jen@rodmancpa.com.