August2013

Health Care Reform Rebate

Member Profile Coalesce

Start Your Own Business Now!

America 'Permanently Debt-Bound'?

Meet the Members

101 E. Wisconsin Avenue | Kaukauna, WI 54130 920.766.1616

www.heartofthevalleychamber.com

What’s Inside

August 2013

2 Heart Beat | August 2013

To register, visit www.heartoftehvalleychamber.com

Lunch and Learn

Wednesday, August 21 11:30am - 1:00pm

Digging Deeper With

Pinterest

Realizing that you could be using Pinterest to engage with your online audience is a far different thing from

knowing how. And even knowing how is sometimes a far cry from

knowing how to best engage with them. Let's go deeper into Pinterest and explore making it a profitable resource for brand awareness and product conversion. Amanda Betts from Stellar Blue will review contest

strategies and best practices for Pinterest.

Arrive: 11:30 for Registration. Cafeteria will be open for lunch

purchases or bring your own bag. Seminar is 12:00 - 1:00

Time Warner Cable Cost: Members $10 Non-members $20

Business over Breakfast

Tuesday, August 13 8:00am - 9:00am

7:30am Registration & Networking

LinkedIn: Turning

Connections into Leads LinkedIn is one of the most powerful social media tools out there. Often

when people use LinkedIn they have no goal or strategy for making the

most of their connections.

This seminar will help you understand how you can turn your LinkedIn

connections into real life connections, generate leads for your business and

make the most of this powerful professional social media tool!

Presented by: Greg Linnemanstons, Weidert Group-a full-service market-ing agency with valuable and very

powerful Inbound Marketing expertise.

Chamber Office Cost: Members $5 Non-members $20

To register, visit www.heartofthevalleychamber.com

Mark your calendar for these upcoming events!

Business after Hours

Wednesday 8/14/13 5:00pm - 7:00pm

Ever been to a networking event and

just been flat-out bored? Tired of the same old go around the room

shaking hands, exchanging business cards with the same people?

Sometimes networking events get monotonous, and the longer you do it the less appealing it becomes (not even the motivation to get new

business gets you out there).

Well if you want to meet new faces and make new connections, attend

this Business After Hours, co-hosted by the Fox Cities Chamber of

Commerce

High Cliff Restaurant & Banquets

W5095 Golf Course Road

Sherwood, WI 54169

Members $5 registered in advance

$7.00 at the door Non-members $20

Presenters: Attorney Chris Snyder and Stephanie Fitzwilliam from Epiphany Law will talk about legal problems companies face with respect to their

workforce and how to successfully navigate those issues to stay out of the courtroom. Topics discussed will include: Interview tips to avoid potential discrimination claims, Independent Contractor vs. Employee-knowing the

difference, FMLA and other Federal regulations, Effective discipline techniques, Proper termination strategies and severance agreements,

and more.

Lunch and Learn

Wednesday, September 18 11:30am - 1:00pm

How to Handle Employee Problems and Stay Out of

Court

Hilton Garden Inn, Kimberly, WI Cost: Members $15 Non-members $20

Arrive: 11:30 for Registration. Seminar is 12:00 - 1:00. Lunch will be provided

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Thursday, October 17, 2013 Van Abel’s of Hollandtown

Early Bird Pricing! $30.00 per person before September 15, 2013

Last Year’s Participants: Arla Foods, Bakers Outlet, Cinder's Charcoal Grill, Cold Stone Creamery, Culver’s of Darboy, Darboy Club, Dunkin Donuts, GameDay Sports Bar, Grand Meridian, Granary Supper Club, High Cliff Restaurant, Hilltop Bakery, Landreman's Restaurant, Larry's Markets, Little Chicago, Mader's Catering, Mark's East Side, Mom & Pop's, Ponzies, Prime Steer Supper Club, Simon's Specialty Cheese, UNO Chicago Grill, Van Abel's of Hollandtown

Purchase Tickets

$30 each or

12 tickets for $300

The ticket is good for all the food you can eat (bring your elastic pants)!

This buffet style event allows you to taste food from

over 25 local food vendors!

Come and taste the best of the BEST!

This event is one of the Chamber’s largest fundraising events - we hope that you can show your support and get involved!! Call Kelli at 766.1616

or email [email protected] or purchase tickets at www.heartofthevalleychamber.com

Show your Support Make a cash donation:

Your business name will be listed on the item __ $25 __$50 __$75 __$100

Donate an item:

Gift Certificates, Event Tickets, Electronics, Tools, Jewelry, Work by Local Artists, Autographed Memorabilia

Fill a Basket:

The theme for this years silent auction will be “Happy Holidays” - featuring practical gift giving items to make

holiday shopping guilt free and items to make your celebration preparations a breeze! And to help...the

Chamber has baskets of all sizes if you would like to stop in and pick one out!

“A Culinary Extravaganza showcasing the many electable culinary creations from our area’s best

restaurants, delis, cafes and caterers.” Guests will sample an endless quantity of delectable

desserts, sinful salads, hometown pizzas, deli delights, favorite cheeses and creamy ice cream, ribs and chicken,

delicious eats and terrific treats


www.alliancebuilds.com

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As part of Health Care Reform, health insurance companies must now use a minimum percentage of their premium revenue for medical care and health care quality improvement. Those that do not meet this percentage, or medical loss ratio (MLR), must provide rebates.

While self-insured employ-ers will not receive rebates, if you are covered under traditional insurance you should watch closely, as you may receive one. If so, you are responsible for passing it along to your employees.

The MLR requirements, enforced by the Depart-ment of Health and Human Services (HHS), first be-came effective for calendar year 2011. Rebates for 2012 are to be issued by August 1, 2013.

How should you distribute the rebate funds? HHS and ERISA have previously issued guidance on how employers are to handle the rebate. It must be returned or used to benefit whoever paid the premiums within 90 days of receipt of the rebate. If the employer paid 100% of the premiums, the employer can keep the rebate. If employees paid 100% of the premiums, 100% of the rebate must be used for the benefit of the employees.

Of course, in most cases, premiums are paid by both the employee and employer. In this case, you must split the rebate accordingly based on the percent of premiums paid. (The guidance under HHS is a little different, but in most cases, the health plan will be covered under ERISA so the ERISA guidance below should be followed.)

After you determine how much of the rebate is related to employer versus employee paid premiums, you must eturn the employees’ allocated share of the rebate to them.

For some businesses, the cost to provide a portion of the rebate to plan participants is greater than or equal to the rebate. In these cases, your plan fiduciary can allocate the rebate to the current participants. If this is not cost-effective, you can also choose to apply the rebate to other permissible plan purposes like reducing future

employee premiums or toward benefit enhance-ments.

Let your employees know what you intend to do No matter what approach you use, you should com-municate your inten-tions to employees. Prior to the August deadline, your insurer will send a letter to your covered employees letting them know about the rebate. After receiving

these annual notifications, employees are likely to con-tact their HR and benefit representatives asking about the amount of the rebate. If you decide not to issue re-bate checks to your employees, it is important for you to communicate that decision and the reason for it as soon as possible.

Is the MLR rebate taxable? Generally, the rebate is taxable income and subject to employment taxes if the employee has paid health insurance premiums on a pre-tax basis. This is true if the rebate is paid in cash or if it is received in the form of a premium reduction (taxable income increases by the fact that the employee will pay less pre-tax premiums which increases their taxable wage).

The rebate would not be taxable for employees who paid premiums with after-tax dollars. If they deducted the premiums on their individual tax return, the rebate would be taxable on their income tax return to the extent they received a benefit for the deduction.

Because S corporation shareholders’ health insurance is included as income on their Form W-2, it would seem this is 100% employee contribution.

HealthCareReform:WatchforaHealthInsurancePremiumRebate

SummerAroundTown


Wraps, sandwiches, soups, salads, tea, coffee, cupcakes and cookies. A growing selection of

affordable, quality wool, natural fiber, and eco-friendly yarns, as well as locally hand-dyed yarns and paintings. www.kaukaunacoffeeandtea.com

...where you'll savor the finest hand cut steaks prepared to your liking, fresh seafood, and an impressive selection of lunch and evening entrées. The buffet varies throughout the week and features a tempting variety of main and side dishes flavorfully accented by a complete soup and salad bar. The restaurant's highly qualified chefs tempt even the most selective eaters to sample their culinary specialties. www.maineventsteakhouse.com/

They’ve been serving the Fox Valley since

1968! They invite you to enjoy the best home-style pizza in town. All of their pizzas are made at time of order. They can be prepared hot and ready-to-eat or for you to pick up and bake at home. www.butchs-pizza.com

Think back to your favorite childhood moments. Chances are you played in a world of imagination. A world where kids don't just swing...they rocket deep into outer space. Where they don't just slide... they plunge down a jungle waterfall. Where they don't just climb... they scale tall, snow-capped mountains. Get ready to relive the exhilarating fun your own children will have with their very own Castle or Clubhouse from Rainbow Play Systems — a place where imaginations soar! http://www.rainbownew.com/

Each restaurant still makes their deep dish pizza fresh, from scratch every day. With the times, Uno® is adjusting its menu to how people want to live their lives. It will always be about amazing flavor and wonderful menus that have the right balance between indulgent treats and delicious and nutritious choices. www.unos.org/

Kim's Place is a family restaurant located in Combined Locks, WI. They serve chicken buckets, homemade desserts, and ice cream treats. Enjoy great food and good conversation with family or friends in a relaxing and comfortable ambience at Kim’s Place. http://kimsplacewi.com/

Flowers, a gift to man to help him express his innermost feeling. Those feeling which emanate from down deep in his heart, feelings that so few of us are capable of finding the proper words to express. It’s only natural that we turn to flowers to carry our most difficult, happy and tender feelings. http://www.reynebeaufloral.com/

An Iced Coffee paired with your favorite donut is just what the weather ordered. www.dunkindonuts.com

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Want your business featured here? Email [email protected]

Heart of the Valley Chamber of Commerce Gift Certificates make the perfect gift for every one. From golf to gas, groceries to lumber, gift certificates can be redeemed at over 100 area business.

Where do you go for professional, afforda-ble and convenient Appleton facials and massages? Massage Envy Spa, your very own Appleton spa of course! www.massageenvy.com

For more than 25 years they’ve served up the finest, freshest ice cream, cakes, smoothies and shakes using only the highest quality ingredients, and of course, their signature process of prepar-ing your custom ice cream creation on a frozen granite stone. www.coldstonecreamery.com

Bakers Outlet sells Rich's

Products and is an outlet for Brownberry bread, Little Debbie snack cakes, and Old Dutch chips & snacks. The store

also sells Tyson and Melotte meat products. Featured Rich's products include a variety of cookies, cinnamon rolls, turnovers, breads, rolls, brownies, frostings, cakes, sugar-free items, danishes, kringles, croissants, scones, pies, and bagels. http://shopbakersoutlet.com

Clear Water Car Wash is a state-of-the-art

car care and detail center that is committed to helping customers protect their investment and the environ-ment by performing

professional car care services that conserves water and use only environmentally-friendly products. 920-739-5400. www.clearwatercarwash.net/

Their 1/3lb and 1/2lb Burgers are hand-pattied fresh, never frozen! They have homemade Tartar Sauce that goes great with their fish dinners, but also great for dipping fries into! Call ahead for the most tender and moist chicken ever! They have the perfect size dinners or buckets of chicken available! http://jacksburgershack.weebly.com/

Schenck is pleased to announce that the following employees have recently joined the firm’s Appleton office: Nykki Milhaupt, MBA, PHR joined the firm as a Human Resource Generalist. Bobbi Jo Huss, CPC joined the firm as a Medical Billing Coder. Matt Prentice joined the firm as a Health Services Accountant. Jaclyn Cropp joined the firm as a Staff Accountant. Jody Eggert joined the firm as an Administrative Assistant in the payroll department, Elizabeth Brown joined Schenck as a staff accountant, Jennifer Butzen was hired as a director of first impres-sions, Nick Fehrmann was hired as an associate account-ant, Ashley Fisher joined the firm as a staff accountant in the tax and audit department, Pam Hatfield joined the firm as a department executive administrative assistant, Christina Kanethavong, Denise Kastman joined the firm as an executive assistant, Ashley Murphy joined the firm as a staff accountant in the tax and audit department, Madelyn Sobieck joined the firm as a staff accountant, Tyler Starbird joined the firma s staff accountant in the tax department. Schenck would like to thank the following employees for their years of service to their firm: FOX CITIES OFFICE: 35 Years - Tom Jacoby, CPA, Shareholder 20 Years - Barb Geurts, Associate Accountant IV 5 Years - Craig Asher, Senior Accountant, Deb Johnson, Ed.D., Manager, Training & Development, Karie Zellner, Marketing & Business Development Specialist McClone was announced as one of the three winners for the 2013 Family Business First Awards of Northeast Wisconsin at an awards celebration held at Butte des Morts country club located in Appleton, WI. Sondra L. Norder, NHA, JD, has been appointed as president and CEO of St. Paul Elder Services by Thomas Verhagen, chair of the board of St. Paul Elder Services, Inc, Kaukauna, and Sister Laura Wolf, president of Franciscan Sisters of Christian Charity Sponsored Ministries, Inc. First National Bank-Fox Valley in Neenah hired Drew Bodway as assistant vice president, mortgage manager.

Keller, Planners, Architects and Builders of Kaukauna received a Silver ESOP Award from The ESOP Association, the national trade group for companies with employee stock ownership plans. Kelly Ann Hekler, convention sales manager for Fox Cities Convention & Visitors Bureau, was elected to a two-year term on the board of directors for Meeting Professionals International-Wisconsin chapter. Baker Tilly Virchow Krause, LLP (Baker Tilly) is pleased to announce Tim Christen, Chairman and CEO, has been named to In Business magazine’s 2013 Hall of Fame. Baker Tilly Investment Advisors, LP welcomes Kevin Moloney, Director of Wealth Management, Kevin Kosgard joined Baker Tilly Investment Advisors and will lead the firm’s Wealth Management practice in Appleton. Keller Planners, Architects and Builders has been ranked the number two, “Top Metal Builder” in the Nation in 2012 according to Metal Construction News’ annual ranking for tons of steel purchases. Keller purchased 8,652 tons of steel for construction in 2012. As part of its ongoing support of the local community and philosophy of “People Helping People,” Unison Credit Union made a donation of new pillows and bed sheets to Harbor House in Appleton. Stellar Blue Web Design LLC, a digital marketing agency, hired Chase Meidam as a Digital Developer. Dan Pichler has been named partner-in-charge of Wipfli LLP’s Green Bay office. David Briggs joined the Associated Bank as vice president, vendor management risk manager at Associate’s Holmgren Way branch in Ashwaubenon. Goodwill Industries of North Central Wisconsin hired Heidi Stachowiak as production and sales-floor leader for the Goodwill Outlet Store which is in the Shiner Center.


Any change or update within your business such as a promotion, new addition, award won, etc. can be included in this section. News must be submitted by the 15th of the month for the following month’s publication. Send to:

[email protected]

GOOD NEWS Is Worth Repeating

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www.ansay.com


11 Our next spotlight can be about your business. Call 920-766-1616 if interested.

Jean Landreman Owner Landreman’s Family Restaurant http://landremanfamilyrestaurant.com/ Year established - 1995

Give us a brief description/history of your business…. Landreman’s Family Restaurant was founded Dec. 2nd 1995 by Mark & Jean Landreman. Open 7:00am to 7:30 pm (8:00pm during summer). We serve break-fast, lunch and dinner all day. We have a beautiful outdoor patio where you can watch the garden grow over a ice cold beer or glass of wine. Q: How did you get started in your field? My husband, Mark. He has worked in the industry since he was 16. One day he came home from work and asked, "What do you think about buying our own place?” I replied, "Sure, as long as you are comfortable that you know what you need to know.” I didn’t know anything about running a restaurant. Q: Who is the one person that helped to make you who you are today? My Dad. He was very strict but also hard working. Q: What do you like most about working in the Heart of the Valley area? The people. We live in a giving community. Q: What is the worst job you’ve ever had. The one that had three shifts. Q: OK, now the good stuff. What do you like to do for fun? Travel, spend time with grandkids, bake, golf.

Q: What’s your favorite movie and why? I have 2: Forever Young with Mel Gibson and Ameri-can President with Michel Douglas and Annette Ben-ning. They are both really good feel good movies that make you laugh and cry. Q: Is your desk messy or organized? Organized mess. Q: Green Bay Packers or another team? Packers. Q: Where was your best vacation and why? Every vacation is awesome but I have two that really stand out. In 1997 Mark, myself and our two girls drove to South Carolina and up the East Coast to the Outer Banks in Connecticut to visit my brothers. This past February we went to Jamaica with the girls, spouses and grandkids. Seeing life through the eyes of a child is so rewarding. Q: What are the Top 3 items on your bucket list? 1) Hot air balloon ride. That will happen this year. 2) Alaska. 3) I want to travel with the grandkids, in particular, I want to bring them to the National Parks of the U.S. Hopefully next summer we will get them to the Badlands in South Dakota.


Meet The Members

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Give us a brief description/history of your business…. Epiphany Law began in March of 2004 as a law firm catering to businesses and their owners. Over the past 10 years we have stayed true to our roots and have achieved incredible success along the way.

Q: How did you get started in your field? School was easy and UW-Madison is a fun town for a young man. So I just went from engineering to MBA to Law school. I’ve always loved logical thinking, business and law so I combined the three in order to make a living doing something I enjoy.

Q: Who is the one person that helped to make you who you are today? When I began at McCarty Law in 1996, Randy Haak was one of the managing partners. He taught me a lot about the people side of business, law and human-ity. Most of the lessons I didn’t grasp at the time, but experience has proven that he understood far more than I did at the time.

Q: What do you like most about working in the Heart of the Valley area? I have 5 boys that mean the world to me. Having them grow up in a safe, friendly, ethical and hard-working community is the greatest gift I could ever give them.

Q: What is the worst job you’ve ever had. It’s a tie: roofing and laying asphalt in the heat of summer were brutal - though a beer has never tasted as good as it did after a 14 hour work day in the 100 degree heat.

Q: OK, now the good stuff. What do you like to do for fun? Travel with my 5 boys. I took my 18 year old to Whis-tler downhill skiing and whitewater rafting. I took my 16 year old on a 4 state Brewers road trip. I took my 15 year old to Vegas for free falling, zip lining and roll-er coasters. Finally, I took the 2 younger boys to Wis-consin Dells. When we’re not traveling, it’s ATVs, motorcycles, hunting and fishing. Q: What’s your favorite movie and why? Natural Born Killers because I’m a sucker for a love story. Q: Is your desk messy or organized? Messy to others; organized to me. Q: Green Bay Packers or another team? Packers. There really aren’t any other “professional” teams. Q: Where was your best vacation and why? Another tie: Jamaica and Italy. Completely differ-ent: one skiing in the Italian Alps and one lounging on the beach. Both were fabulous because of the company I was with. In my experience, it’s often more the people you are with, than the place you are at, that makes a vacation memorable. Q: What are the Top 3 items on your bucket list? It sounds trite, but I’ve accomplished everything on my bucket list. Lord knows this body isn’t going to have anything left in retirement so I’m living every day as an undeserved gift from the Almighty.

Kevin L. Eismann, JD, MBA Attorney Epiphany Law, LLC www.epiphanylaw.com

You don’t have to have a Harvard MBA to know that the economy hasn’t climbed out of its slump entirely just yet. Household debt has grown, unemployment remains relatively high, and Americans aren’t spending the way they once did. With all these obstacles, you’d think it would be the worst time to start your own business. But a struggling economy presents opportunities for ambitious entrepreneurs — you just have to know where to find them.

1. Real Estate Is Cheap With so many businesses failing in recent years, commercial real estate is widely available. Do your research — find a space that’s conveniently located and reasonably priced. Once you narrow the field to a few candidates, play hardball with your prospective landlord. If you can’t get a reduced monthly rent, try to get other concessions, such as paid utilities, free reno-vations, or lease termination flexibility. 2. Staffing Will Be a Breeze With the national unemployment rate hovering just under 8%, there are a lot of qualified workers out there looking for a good opportunity. Dig deep during the interview process to find folks who share your vision and passion. You should get a lot of resume submissions, so be discerning. When you in-terview candidates, try to get a sense of who’s in it for the long haul. Overqualified applicants may intend to coast through a job until the one they really want comes along.

3. You Have Protection Against Unemployment When layoffs and cutbacks are rampant, the best way to avoid being fired is to be your own boss. You may not be able to control how successful your business is, but you can control every decision, work every hour of every day, and if your business fails, it won’t be because some faraway board decided to cut 10,000 jobs. Success or failure lie primarily in your hands when you run the show.

4. The Economy Doesn’t Matter When Steve Jobs dropped out of college to found Apple Computer in 1976, the United States was coming out one of its worst recessions in recent memory. Do you think his parents thought that was a good idea? Ambition, intelligence, and drive are three entrepreneurial essentials that cannot be stopped, even by the weakest economy. If you surround yourself with the right people, create a work-friendly environment, and keep customer

service at a high level, you can succeed in any economic climate.

5. History Is on Your Side Not only Apple, but CNN, Mi- crosoft, and Burger King were all launched during recessions. Add to that MTV, Hyatt, FedEx, and General Electric and you’ve got an all -star roster of Ameri- can success stories. The foun- ders of these companies didn’t let a challenging economy stop them from pursuing their dreams. If the entrepreneurial bug has bitten you, waiting around for three years won’t increase your chances of suc-cess. Work hard, market yourself

aggressively, and don’t take no for an answer. Final Thoughts When you do pull the trigger on that startup, make sure you save on costs wherever you can. Market your business for free through social media, hire free labor from students looking to bolster their resume with internships, and negotiate with every contractor and vendor. Remember, they’re more likely to give you a discount in today’s economy. Success is out there waiting for you, so don’t let it wait any longer. If you have a business idea in mind, what are you waiting for? Andrew Schrage is co-owner of the MoneyCrashers.com Personal Finance website. The site strives to educate readers on a wide variety of topics, including how to budget for retirement, tips to increase your income, and the best small business credit cards.


6ReasonstoStartYourBusinessNow

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WhatourMembers

The Heart of the Valley Chamber has been an excellent asset in several ways. Our business has experienced growth from the con-nections made by participating in several events throughout the year. You certainly get out what you put in…and then some. Get-ting involved in the networking events are a great way to gain ex-posure and connect with local leaders within the business commu-nity. In addition, we found great benefit in the insurance programs of-fered as a chamber benefit, allowing us to provide an excellent insurance package for our employees when our company was small. During the past several years of growth, we have continued to benefit from the insurance program. I would recommend this to any new or existing small business.

AreSaying

Welcome New Members

Kelderman Plumbing provides residential and commercial plumbing ser-vices for clients in the Fox Cities and surrounding areas. We guarantee the best quality work and premier customer service at affordable prices. Call today for a free estimate. 920.450.5398

Some of the services available at Kelderman Plumbing Include:

New construction

Water heaters

Re-piping

Remodels

Sump pumps

http://www.keldermanplumbing.com/

Water softeners

Ejector pits

Garbage disposals

Repairs

Gas connections and appliances

Earlier this month, Apple’s App store celebrated its fifth an-

niversary and May marked the 50 billionth download. The

store has been a success both for Apple and for the indus-

try it created.

In 2012, Michael Mandel of the

Progressive Policy Institute esti-

mated that the App Economy

created 466,000 jobs since the

iPhone was launched in 2007.

As the popularity of smartphones

and tablets powered by Apple’s

iOS and Google’s Android con-

tinues to increase so have the

number of jobs supported by the

App Economy. Mandel’s updated

calculations to find that:

[employment in the App Economy

now comes to 752,000 jobs, up

roughly 40% over the past year.

This is a conservative estimate, based on tracking online help-

wanted ads.

He notes that the jobs created by this new industry have

quickly moved beyond the tech world to penetrate many

App Economy Supports Over 750,000 Jobs other areas of our economy. Scottrade, a leading online brokerage, is currently advertising for an Android Mobile Developer to work in St. Louis, Missouri. General Motors is advertising for a Detroit position for some-

one “certifying apps that get sub-mitted by third party developers and internal teams before publish-ing the apps to the curated app store hosted by GM.” This success hasn’t been due to

mandates and regulations by

Washington bureaucrats but by

creativity, innovation, and relentless

competition. Mandel wrote in 2012:

The key elements in the App Econ-omy "team"--Apple's development of the iPhone, Google's develop-ment of Android, the buildout of wireless networks by AT&T, Veri-zon and other providers--were not the object of heavy government regulation. Government did have a role in unlocking and distributing

spectrum and otherwise clearing the underbrush. But no gov-ernment agency was in charge of supervising the burgeoning App Economy. We’re witnessing a classic free enterprise story resulting in

better lives for millions of Americans, and it’s only just begun. 16 Heart Beat | August 2013

17

Most employers ask their non-exempt or hourly employ-ees to track the days and hours they work for payroll purposes. But did you know you are also required to record this information for your salaried employees?

There are at least two reasons why you should do so. First, it is a law in the state of Wisconsin. While the (federal) Department of Labor requires timekeeping for only non-exempt staff who are typically paid on an hourly basis and eligible for overtime, employers in Wisconsin must keep time and payroll records for all employees. This includes employees paid on a salary basis. The required records must include the time in and the time out on a daily basis, and the total number of hours worked per day and per week. The second reason is that provisions in the health care reform law require employers to perform various computations using actual hours for both hourly and salaried employees. The IRS has provided several methods to determine the number of hours a salaried employee has worked for those who

don’t track their salaried employees’ hours. However, these alternative methods may not be favorable to you.

Recently, the IRS announced they are delaying the en-forcement of the employer health insurance mandate penalties from January 1, 2014 to January 1, 2015. If you haven’t been tracking salaried employee hours, this de-lay is good news: now is the time to start tracking sala-ried employee hours so that information is readily availa-ble going forward. Debra Pagel provides strategic human resources advice to Schenck clients on issues ranging from recruitment and compensation to organizational development, pro-cess improvement and leadership development.

Terri Lillesand, CPA, tax shareholder, is a member of Schenck’s Health Care Reform Act Advisory team. She provides tax compliance and planning for corporate, indi-vidual, partnership, non-profit and fiduciary taxpayers.

EmployersMustDocumentHoursWorkedforAllEmployees

WMC’sTaxPolicyToolkit

The 2013-15 state budget includes significant tax policy

reforms that will improve the business climate in Wiscon-

sin, including tax relief amounting to nearly $950 million

over two years. WMC has assembled the “Tax Policy

Toolkit” to help navigate the changes made as part of

this historic reform. Among the provisions adopted un-

der the budget are:

Phase-In of the Manufacturing and Agricultural Credit

Federalizing Depreciation and Depletion (Including Section 179)

Federalizing Net Operating Loss Rules

Extending the R&D Expense Credit to Pass-Through Entities

Adopting an Internal Revenue Code Update

Cutting Income Taxes if Sales Tax Nexus for Out-of-State Re-tailers is Adopted

Creating an Appeal Process for Unreasonably High Municipal Fees

Phase-In of the Health Insurance Premium Deduction

Clarifications to the Manufacturing R&D Sales Tax Exemption

Elimination of Eighteen Business Tax Credits

Interest on Amounts Owed to Taxpayers


New Business Share Plans from Cellcom!

Cellcom’s new Business Share Plans are here! Heart of the Valley Chamber members can now receive a special discount!

These Share Plans offer shareable data for all devices on your account on the same

plan. Enjoy unlimited nationwide voice, unlimited texting, and mobile hotspot/tethering on all capable devices. We also have special rate plans available for basic devices only.

For more information on these exciting new plans, call Michele Koehler

Sales Support Specialist at (920) 224-6354

19

Ever since the Affordable Care Act became law, Democratic politicians and political staffers have praised its alleged ability to lower the cost of health care. Recently, however, it was reported that many of these self-same supporters of the law may abandon current employment on Capitol Hill if the federal government stops subsidizing their health insurance because of Obamacare.

They’re not the only ones who are concerned. Yahoo! News reports that the law’s requirements will leave many low-income working Americans out in the cold, with “the government…requiring employers to do isn’t really something their low-paid employers want.”

Of course, the federal government has a way to compensate non-rich Americans for many of the price problems they’ll face under Obamacare: tax credits to offset premium increases for Americans at certain in-come levels. In other words, the federal govern-ment is going to “give” Americans their tax dollars back to compensate for rate shocks the federal government has caused.

Unlike poorer Americans, those at the median level of income are unlikely to receive as many tax credits and other federal subsidies to offset increased costs. As Senate Minority Leader Mitch McConnell (R-KY) pointed out on the Senate floor in mid-June, young people will also face a massive burden because of the law, including its 20,000-plus pages of regulations. These are the people the law relies on to keep costs somewhat down – and is why HHS is targeting the NBA, NFL, and Hollywood to mar-ket the law to younger Americans, especially young adult males.

The Obama Administration, of course, has expressed com-plete confidence in the law’s alleged benefits. However, one former Democratic Congressman – now a D.C.-based lobbyist – who voted for the health care law seems a bit uncertain. Earl Pomeroy, a former North Dakota Democratic congress-man and state insurance commissioner, said insurance companies were facing “the most complicated rating chal-lenge” that he’d ever seen. “It involves the great unknown,” Pomeroy said. “New systems, new market structures and behavior responses from the population that will be impossible to predict."

In other words, more than three years after Obamacare became law, after tax increases and federal employees being brought on board to help implement the law…even a lobbyist with decades of health care policy experience has no idea what’s going to happen. But what else could be expected, when the IRS alone has 31 tax, fine, reporting, and other requirements on the books as a result of the law?

According to Kate Johansen, a leading expert on health care policy and the Manager of Health, Transportation and Civil Justice Policy for the Minnesota Chamber of Commerce, the law “will generally result in higher costs” because of coverage requirements. As a result, “many middle-class families [are] going to pay a lot more” for their health insurance. That’s just the direct cost. Indirect costs will be enormous – according to Johansen, overhead costs to insurance

companies are very burden-some under the law. One health care executive ad-vised Johansen that IT infrastructure costs alone would cost between $15 million and $25 million, which she fully expects will be shifted to the consumer. Add in that many young, healthy people may choose to pay the individual mandate penalty and save thousands of dollars annually by not having insurance, and some states with low rates of uninsured people may see a reversal.

Washington led America into Obamacare, but now appears to be beating a path away from its onerous requirements, restrictions, and cost. The IRS’ tax and reporting requirements, the HHS Mandate, and many other measures will ensure an even firmer hand on the necks of all citizens. Yet the same people who helped write and pass Obamacare into law – against public opinion, no less – are trying to avoid its burdensome costs and requirements. Do the rest of us have that option? Kavon W. Nikrad is a co-author of Taking Turns: Political Stalemate or New Direction in the Race for 2012 and the founder of Race42016.com, a campaign and elections website that correctly predicted the presidential results of 48 states in 2012. He was a 2011-2012 Policy Fellow at the University of Minnesota's Humphrey School of Public Affairs, and is currently finishing a Master's Degree in Public Affairs at the Humphrey School.

GUESTCOLUMN:CapitolHillBeginstheObamacareExodus


Concerns about the 2010 health care law have in-creased and undermine potential growth Small business owners’ concern about the economy remained steady this quarter; however, their concern about the 2010 health care bill rose significantly in the past quarter and for the third quarter in a row (from 42% in January to 49% in June). Since June 2011, anxiety about the requirements of the law has in-creased by 10-points since and now surpasses eco-nomic uncertainty as the top worry for small business owners. Only 17% of small business owners report adding em-ployees in the past two years, a slight decline from last quarter. Only one-in-five small business owners believe that they will add employees in the next two years. 61% do not have plans to hire in the next year.

The Q2 U.S. Chamber of Commerce Small Business Outlook Study was conducted online between June 21 and July 8, 2013 by Harris Interactive among a national sample 1,304 Small Business Executives (defined as executive level position in a company with fewer than 500 employees and annual revenue less than $25M).

Nearly one-in-four employers say the health care bill is their biggest obstacle to hiring more employees. These concerns stem from a lack of preparedness for require-ments of the law; only 30% say they are prepared, in-cluding understanding what is required to participate in the health care insurance exchanges. Despite the Ad-ministration’s delay of the employer mandate by a year, small businesses expect the requirement to negatively impact their employees. 27% say they will cut hours to reduce full time employees, 24% will reduce hiring, and 23% plan to replace full time employees (30 hours per week or more) with part-time workers to avoid triggering the mandate.

Immigration Reform 81% say the current immigration system does not work for the business community and needs reform. More than one-half (57%) say that immigration reform will strengthen the economy and increase global competi-tiveness.

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Economic outlook remains grim Small business owners have shown little change in their outlook on the economy since March. The majority of small business owners continue to indicate that the U.S. economy is off on the wrong track (77%); however, they are optimistic about their local economy and individual business. 49% of small business owners believe that their local economy is on the right track, and three-out-of-four small businesses believe that their business is headed in the right direction. Only one-quarter of small business owners (26%) indicated that the overall climate for small businesses has improved over the past two years. While the local outlook is improving, small business owners continue to have a negative view on how Washington is handling the economy. Only 11% say that they trust the federal government to implement policies that impact their businesses. When asked about specific actions from Washington, overwhelmingly small business owners wanted more certain-ty (85%) and for Washington to get out of the way (85%). The only thing that scares small business more than current federal regulations is what Washington will do next (63%). Less regulation and more solutions: Tax, Immigration and Entitlement reform Concern about regulations increased from 35% last quarter to 42% today. Regulatory concerns contribute to the uncertainty that small business owners face when planning for the future. Despite the President’s recent speech on increased energy regulations to address climate issues, 90% of small business owners support easing EPA regulations and opening up more federal lands for drilling in an effort to boost the economy. Seven-in-ten small business owners agree that high energy prices pose an immediate threat to the success of their business, and 80% do not think that the Administra-tion has done enough to keep gas prices low, increase domestic sources of energy, and develop an energy policy that supports the economy and American jobs. Debt, Deficit and Tax Reform Nearly two-thirds of small business owners see the current debt and deficit as a threat to the success of their busi-ness. 86% of small business owners support addressing entitlement spending to resolve America’s financial chal-lenges and escalating debt. Small business owners want Washington to reform tax policy: 83% say they support Congress’ efforts to comprehensively reform the tax code. And, the priority of small business owners is to create a less complicated system – 56% say the priority should be making the tax code less complex. That is more than twice the number who say tax rates should be lowered (22%). The desire to understand the code and to have certainty about what they face is more important than a lower rate.


Under existing policies, the federal government debt is expected to increase another 50% over the next

decade, according to a study released June 18 by the Heritage Foundation.

In just five years since President Obama took office, the federal debt has already doubled. The ratio of

government debt to economic output is only expected to rise as American taxpayers carry the staunch

burden of unaffordable entitlement programs.

A high debt ratio can severely negatively impact our economy by pushing up interest rates and lowering investment, leading to slower wage growth and slower economic growth overall. As J.D. Foster notes in the Heritage report, “the simple fact is that America is on the verge of becoming a country in decline – economically stagnant and permanently debt-bound.”

In a recent Wall Street journal article, columnist Kimberley Strassel similarly stressed the need to pursue entitlement reform. She writes that members of Congress must recognize that unsustainable entitlement programs are responsible for the widening fiscal hole.

If the government takes decisive steps to reform clear flaws in our entitlement programs, we can alleviate the debt, stimulate our economy, and ensure America’s prosperity.

AmericaonVergeofBeing'PermanentlyDebt‐Bound'

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Small business advertising is a science and an art. Companies often miss the fundamentals of advertising. Regardless of the size of your business an understand-ing of the laws of advertising can reap huge rewards. My understanding of these fundamental laws came years ago when I had the privilege of working for one of the all-time advertising success stories; NordicTrack. NordicTrack's advertising was based on flawless execu-tion of fundamentals. According to Small Business Administration, 5% of an entrepreneur's gross sales should be budgeted for advertising. A 5% small business advertising budget can only help if you understand the laws of advertising. 6 Laws of Small Business Advertising Success 1. Use One Message: A high response rate ad usually conveys a single message. NordicTrack's message of the "World's Best Aerobic Exerciser" was simple and compelling. Your small business advertising needs to quickly communicate its core message in 3 seconds or less. If you are fearful and overwhelmed by technology, which computer book do you buy? "DOS for Dummies" began a best-selling phenomena because its message was easily understood and to the point. 2. Add Credibility: It has become human nature to distrust advertising. Claims need to be real and credible. Roy H. Williams, best-selling author of the "Wizard of Ads" says, "Any claim made in your advertising which your customer does not perceive as the truth is a horrible waste of ad dollars." NordicTrack added enormous credibility from a University of Wisconsin-LaCrosse research study, rank-ing the cross-country ski exerciser first in the areas of weight loss, body fat reduction, and cardiovascular fitness. Ivory soap's advertising success was attributed to its credible statement that ivory soap is the 99-44/100% pure. 3. Test Everything: Large businesses have a greater margin to waste capital and resources without testing

advertising. Small businesses do not have the luxury. Use coupons, codes, and specials to measure the headline, timing, and placement of your ad. Test only one item at a time and one medium. Testing can be as simple as asking every customer for several weeks how they heard of your business. 4. Be Easy to Contact: Every single brochure, box, email and all company literature should have full contact information including: website and email address, phone and fax numbers, and company address. It seems simple but is forgotten by most companies. At NordicTrack, every box a ski machine went into had full contact information and the "World's Best Aerobic

Exerciser" tagline. Be everywhere. 5. Match Ads to Target: Successful business advertising speaks to one target market only. At NordicTrack, the ads were tailored to each market. An ad in a medical publication preached the cardio-vascular benefits of cross-country skiing to heart patients. Ads in women's magazines discussed the weight-loss and calorie burn from cross-country skiing.

Focus the message to the target group. 6. Create Curiosity: Successful business advertising does not sell a product or service. NordicTrack's ads sold the free video. Once a potential customer watched the video, they contacted the company for more information. The end result, millions of dollars of sales. Create ads that generate interest and make the customer want more information. Having a poor response is not the medium's fault. Often the problem is the message. Small business advertising is not a quick fix solution to marketing your company. It takes planning, testing and constant exposure to have an impact on your small business. Done correctly, small business advertising can be a winning strategy. From Darrell Zahorsky, former About.com Guide

The6LawsofSmallBusinessAdvertisingSuccess

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August2013