NOVEMBER 2014

November 2014 | www.naridayton.org – 1

As President of the Miami Valley Chapter of NARI, I, along with Michelle Bilbrey, UDCP, and Ric Kirchner were privileged to attend the NARI Leadership Summit, NARI 2020: The Journey Continues. I would like to share with you information on the two days that we spent in Portland, Oregon.

We left on Wednesday, September 17th from the Dayton Airport and arrived in Portland that evening. The long plane ride was productive. I had the chance to sit alongside Eric Hoyer, one of Cincinnati’s chapter directors. We enjoyed talking about our NARI chapters and how different and how alike they are. One of the best outcomes of the conversation was that their chapter and our chapter are only a short distance apart and that if we could partner up with them for special events we could make a much bigger impact and have a greater offering to our members. We realized that over 60% of our suppliers are supplying both markets. I had also brought up that we could partner with them to do our own home show half-way between Dayton and Cincinnati. Eric, thought it would be a good idea and that this is worth pursuing.

Our first meeting set the tone for the two days and featured Roger Crawford, Author of “I Can” and many other books. I have to confess I was a little leery, since it mentioned in the highlights that he is a Hall of Fame tennis player. Well, let me tell you, it was far from being boring and unenlightening. It was over the top and had

everything to do with leaders and good business practices. I recommend that anyone and everyone read one of his books.

Directly after his seminar and life experiences we started the Membership Idea Fair. This session proved to be very rewarding. It started out with different chapters gathering around tables in groups of six to eight. They had an allotted time of less than 10 minutes for discussion and questions before we moved to the next table with

different people. This went on for about an hour moving among eight tables. After the roundtable discussions, we compiled notes and had an open discussion for the whole quorum.

After a break, we started right in with the next meeting, “Fiscal Responsibility Starts with You”. I reflected upon my two years as president and the challenges that we have had as a chapter and I realized that all the hurdles we go through are worldwide and not just with our local chapter. It all comes down to the roles that we take, whether in our personal lives or our daily work. “Plan to

Work & Work the Plan.” It all starts at the beginning and balancing our daily lives. As executives and leaders, putting together the board of directors and liaisons to the committees is imperative at the highest level. Next is working with our members and chairing the committees with high energy committed people. This is the foundation to success for our chapter. It is our duty as board members and executives to work with (Continued on the next page)

AUGUST 2014

PRESIDENT’S COLUMN

Welcome to All!

2 – November 2014 | www.naridayton.org

2015 Miami Valley ChapterCotY Award Deadline is Near!

NARI invites its contractor members across the nation to compete for the prestigious Contractor of the Year (CotY) Awards in recognition of their achievements throughout the year. Companies—from one-person shops to the largest remodeling fi rms—report that winning a CotY Award is a major factor in enhancing their image within the industry as well as with the buying public.

The deadline for this year’s CotY Awards is on November 10th at 5 p.m. If you are thinking about entering, please take a look at these steps:

Start taking photos: Before and after photos are required for each entry. Make it a point to take before photos at the start of every project. Take your after photos from the same angle to show judges the same perspective. Take lots of good quality photos of your work.

Plan your entry: Winner’s entries are always well thought out. Arrange your photos, drawings, project descriptions, etc., in a way that’s easy to follow, from

the beginning to the end of the project.

Follow the rules: Choose your category carefully, fi ll out the forms completely, and submit your entry by the deadline.

Miami Valley NARI will have a recognition ceremony in January 2015. The recognition ceremony for regional and national awards will take place at NARI’s Evening of Excellence in the spring of 2015.

Entering: New this year for the local chapter is electronic entry! If you entered the national program last year, you will fi nd that the local submissions will be very similar to that format for 2015. This will dramatically reduce the amount of time it takes to prepare your entries

for submission, and will standardize everything to make administration and judging of the program signifi cantly more effi cient. Please go here to enter: https://omnicontests4.com/?comp_id=1429. If you have any questions, contact the chapter offi ce well in advance of the November 10th deadline.

President’s Column (Continued from the page 1)our committees and “engage” with them for the success of our chapter. I am very happy with the progress of our board of directors and executives for 2015 which will be led by Michelle.

Throughout the day and at a sit down meeting I met with our national suppliers and learned that we as a chapter only touch on all the rewards and discounts that are off ered to our members. We are in the process of branding the total packet for our members with all these benefi ts and will be mailing out shortly. These are all good reasons on why to be a NARI member.

There was also a meeting with NARI’s attorney. This meeting was very interesting and enlightening. As a chapter which has to comply with Ohio laws as well

as our own bylaws, it is important that we practice and educate our board of directors and executives on these topics. I found it to be very informative.

All in all I found the trip very productive and would highly recommend our board of directors and executives to attend one of these meetings. I have also brought up to National that they should record these meetings and off er them to all the chapters that couldn’t attend for a reasonable price.

I will leave you on my fi nal note: “Success” for a chapter is engagement. Without it, there is no success.

All the best, John A. Puslat Window & Door Designs & Total Remodeling

entering, please take a look at these steps: Entering: New this year for the local chapter is

November 2014 | www.naridayton.org – 3

You might not believe this, but I don’t like upsetting people. However, I need to say something that’s going to make a few of you upset.

If you are one of the many contractors who start an advertising message with, “We specialize in. . . “ good for you. But if you follow that statement with a long laundry list of the things you do, you’re not specializing in anything. And it hurts your business.

Contractors are often advised by their mentors and peers to learn all they can, to become a jack-of-all-trades. And they’re right to do that, especially in general remodeling where it helps to know as much as possible about all aspects of construction. But when remodelers decide to promote their business, they believe that telling everyone the long list of things they can do will make them more appealing to the buying public.

They’re also trying to generate leads for any work that they’re capable of doing. They’re trying to be all things to all people, to gain any leads possible. I understand that.

But today’s buyers are smarter than that. Today, potential clients know the value of hiring a specialist who knows exactly what they are doing. And they know that a jack-of-all-trades isn’t a specialist.

Webster’s dictionary has two definitions of “specialty”:1. Something that a person or place is known for making or

producing very welland2. An area of study or business that a person specializes in or

has special knowledge ofThat’s one thing, not a laundry list of things. When you

list all the things you believe you can do, your potential clients will keep looking for a specialist who truly specializes in the work they want done. They won’t give you or your company a second thought.

A Specialist’s Expertise & FocusMay I tell a personal story? Last spring I was having problems with my shoulder. I saw my doctor, a general practitioner, who gave me a steroid shot. It worked for one day, and then the pain was back. My doctor said I needed surgery and referred me to an orthopedic

specialist. Not just any orthopedic specialist, but an orthopedic specialist who only worked on shoulders and elbows, nothing else.

I should have seen the specialist in the first place. I didn’t need surgery; I needed a steroid shot that was properly placed. One shot given by a specialist who knew exactly where to aim. Problem solved.

Prospective clients know this. When they’re looking for a remodeling contractor, they don’t want one who also specializes in windows and doors, they want one who focuses on remodeling, every day, every job. When they want windows or doors replaced, they don’t want someone who also specializes in kitchens and decks, they want someone who replaces windows or doors every day, who knows every little detail about windows and doors. They want a specialist.

When I talk to contractors on the phone, it’s fairly clear that those who pick one thing and stick to it like glue are those who make the most money. This applies to other businesses as well. I’ve seen a number of people recently running multiple businesses. They have a construction company, a restaurant, a pet grooming business, and maybe a travel agency. Gang, there isn’t any specialty there. They might have one good business and three distractions. Don’t be distracted. Pick one thing and focus.

Here’s how to figure out what type of work you should specialize in: Review your last 15 to 20 jobs. Which jobs did you make the most money on? Which jobs gave you the highest gross profit margin? That’s where you should specialize.

When you start promoting your business as the best at your specialty, it can take up to a year for your advertising to start working well. So the sooner you start promoting yourself as the company to turn to for a particular type of work, the sooner the calls will start coming in.

Get focused. Do your work. Make some money.

Michael Stone runs Construction Programs & Results, in Camas, Wash. (360) 335-1100. This article was reprinted with permission from his Markup & Profit newsletter.

Why Calling Yourself a Jack-of-All-Trades is Bad for Business

Be good at lots of stuff, but advertise yourself as a specialistBy Michael Stone

4 – November 2014 | www.naridayton.org

AFFORDABLE CARE ACT DEADLINES NEARThere are three important deadlines right around the corner and October is the month to start focusing on them.

1. Health Care Reform ReportingThere are three main components or pieces to health care reform - (1) the individual mandate; (2) the employer shared responsibility provisions also called the play or pay rules; and (3) the health care exchanges or marketplaces.

The individual mandate requires most people to have health coverage or pay a penalty. The employer shared responsibility or play or pay rules require large employers to offer full time employees quality/affordable health coverage or pay a penalty. The health care exchanges or marketplaces are where people can go to get health coverage. Individuals may, depending on their household income, be eligible for government subsidies to help pay for their health coverage through the exchanges or marketplaces.

Sections 6055 and 6056 of the Internal Revenue Code obligate most employers to provide certain information to the government and the employees. The government will use the information to determine (1) which individuals are eligible for subsidies under the exchanges or marketplaces and (2) whether the employer owes a penalty under the employer shared responsibility provision or play or pay rules. The employees will use the information when they complete their personal tax returns (i.e. Form 1040s).

The IRS has released, in draft format, the forms (with the accompanying instructions) that employers have to complete to comply with these reporting requirements. There are four forms and the employer’s size and whether the employer’s group health plan is insured or self-funded dictate which forms and what sections of the forms the employer has to complete.

Employers may, but are not required to, report data for 2014, which will be due early in 2015. It is doubtful many employers will report 2014 information. However, employers must start gathering the information beginning January 1, 2015, and will have to submit the forms to the IRS and provide the information to the employees early in 2016. The following is a brief summary of the rules.

A. Small Employer – Fully Insured Health PlanIf the employer has less than 50 full time (i.e. employees working 30 hours or more per week) and full time equivalent employees and the employer sponsors a fully insured health plan, the employer need not prepare and file any reports with the IRS or distribute anything to the employees.

B. Small Employer – Self-Funded Health PlanIf the employer has less than 50 full time (i.e. employees working 30 hours or more per week) and full time equivalent employees but sponsors a self funded health plan, then the employer has to complete IRS Forms 1094-B and 1095-B and submit both forms to the IRS and provide a copy of Form 1095-B to the employees.

C. Large Employer – Fully Insured Health Plan If the employer has at least 50 full time (i.e. employees working 30 hours or more per week) and full time equivalent employees and sponsors a fully insured health plan, the employer has to complete only the top 2 parts of IRS Forms 1094-C plus Form 1095-C and submit both forms to the IRS and provide the employees a copy of Form 1095-C.

D. Large Employer – Self-Funded Health Plan If the employer has at least 50 full time (i.e. employees working 30 hours or more per week) and full time equivalent employees and sponsors a self funded health plan, the employer has to complete all 3 parts of IRS Forms 1094-C plus Form 1095-C and submit both forms to the IRS and provide the employees a copy of Form 1095-C to the employees.

Here are links to all four forms and the instructions. It is important to determine which forms you have to complete and to start gathering the data starting January 1, 2015.

http://www.irs.gov/pub/irs-dft/f1094b--dft.pdf

http://www.irs.gov/pub/irs-dft/f1094c--dft.pdf

http://www.irs.gov/pub/irs-dft/i109495b--dft.pdf

(Continued on the next page)

Legally SpeakingBy Paul Routh and BoB dunlevey

November 2014 | www.naridayton.org – 5

Legally Speaking (Continued from the page 4)

http://www.irs.gov/pub/irs-dft/f1095b--dft.pdf

http://www.irs.gov/pub/irs-dft/f1095c--dft.pdf

http://www.irs.gov/pub/irs-dft/i109495c--dft.pdf

There are special transitional rules that provide simplified reporting methods for the 2015 calendar year. However, now is the time to start preparing for the reporting requirements.

2. HPID (Health Plan Identifier)Almost everyone agrees the US health care system is not very efficient. To help streamline the system, group health plans will have to obtain and use a health plan identifier or HPID. The HPID is a uniform identification number health plans will use to receive and transmit data. If the employer sponsors a fully insured health plan, the insurance carrier will get the HPID. However, if the employer sponsors a self-funded health plan, the employer will have to get the HPID.

If the self-funded health plan is considered a large plan, the due date to register and get the HPID is November 5, 2014. The due date for a small self-funded health plan is November 5, 2015. A self-funded health plan is considered large for these purposes if the self-funded health plan paid at least $5 million in claims during the previous calendar year.

The following is the government’s website devoted to getting the HPID. This site contains educational material including videos on how to get the HPID.

http://www.cms.gov/Regulations-and-Guidance/HIPAA-Administrative-Simplification/Affordable-Care-Act/Health-Plan-Identifier.html

If you are sponsoring a self-funded health plan, now is the time to contact your third party administrator to start the process of getting your HPID.

3. Transitional Reinsurance FeeAs previously mentioned, one of the main components of health care reform is the marketplaces or exchanges where individuals can go to get health coverage. It is anticipated that the carriers participating in these exchanges or marketplaces will experience adverse selection. In other words, initially there will be a lot

of sick and unhealthy people signing up for coverage under the exchanges or marketplaces and their premiums probably will not cover all the claims.

As a result, all group health plans have to pay a transitional reinsurance fee to help stabilize the premiums for the products being offered through the health care exchanges or marketplaces. In short, the transitional reinsurance fee is designed to help compensate the carriers participating in the marketplaces or exchanges. The reinsurance fee is only in place for 2014, 2015 and 2016. The annual rate for 2014 is $63 per person covered under the plan and for 2015 the annual rate per person is $44. The rates have not been released for 2016.

In the case of a fully insured health plan, the carrier will pay the reinsurance fee but, not surprisingly, the fee has been built into the premiums. In the case of a self-funded health plan, the employer has to report and pay the reinsurance fee. The employer has to report the number of people participating in the self-funded health plan to the government by November 15, 2014.

The government will then invoice the employer for the transitional reinsurance fee. The fee has to be paid electronically and can be paid in either one or two installments. If the employer wants to pay the entire amount in one installment, the payment of $63 per person is due January 15, 2015. If the employer wants to pay the fee in two payments, the first payment of $52.50 per person is due January 15, 2015, and the second installment of $10.50 per person will be due November 15, 2015. Here is the link to the government’s webpage listing the transitional reinsurance fee rules.

http://www.cms.gov/CCIIO/Programs-and-Initiatives/Premium-Stabilization-Programs/The-Transitional-Reinsurance-Program/Reinsurance-Contributions.html

The government is still in the process of developing the reporting forms but, if you sponsor a self-funded health plan, now is the time to starting gathering the information. As a final note, the IRS has ruled the transitional reinsurance fee is tax deductible and the Department of Labor has ruled that employers can require the employees to pay some or all the transitional reinsurance fee without violating ERISA.

For more information, contact attorney Paul Routh who is our Benefits Law Group Manager at Dunlevey, Mahan & Furry (937) 223-6003.

October 21 Membership Meeting RecapThe Miami Valley NARI’s October Membership Meeting was held on Tuesday, October 21st at the NARI Offices, 136 S. Keowee Street, Dayton, OH 45402 in the early morning.

We would like to give a special thanks to our guest speakers; Amy Gephart of Insurance Works, LLC and Michael Martens of TransAmerica.

Amy talked about the increasing costs of healthcare and the options available to you including Medicare. Michael Martens spoke to us regarding “Planning for Income to Last – Understanding the Five Key Financial Risks Facing Retirees.” The five key financial risks included longevity, self-care expenses, inflation, asset allocation, and excessive withdrawal. This information allowed our attendees to determine how to maximize their income sources and develop a retirement income plan.

Please join us at our November 18th Membership Meeting in welcoming our guest speaker, Shawn Blatt, Attorney at Law. Shawn will speak to us on “Liability Concerns of Contractors – Things to Watch Out for on the Job.” You may visit our website, www.naridayton.org, and register today!

Featured Member: LegalShieldRon Chambers is an independent agent with LegalShield, which offers three levels of legal protection for different sizes of small businesses. The company is located in Cincinnati and in Dayton and covers the entire state of Ohio. It can also help members nationwide and is an affiliate of NARI’s national organization.

Chambers has been with LegalShield for over 13 years and has 15 years of experience in the construction industry. He joined Miami Valley NARI in August 2014 because he knew LegalShield could help protect and grow small businesses. He himself enrolled for the services while the owner of a small construction

company. Chambers hopes to serve the membership as a volunteer at functions and possibly serve on committees.

The way LegalShield works is that only pay for what you need—for help with any legal matter, from legal consultation and contract review to debt collection and more. They also offer a family legal plan and identity theft protection plans. LegalShield takes the stress and strain of legal and identity theft issues off of the employee’s shoulders so the employee can put their focus back at work, where it belongs.

 As an Independent Agent for LegalShield, Chambers has two employees and the assistance of a national pool of other agents to assist when needed. Visit him online at www.ronchambersls.com.

6 – November 2014 | www.naridayton.org

The Miami Valley Remodeler is published monthly by Miami Valley NARI.

Miami Valley NARI136 South Keowee StreetDayton, Ohio 45402(937) 222-NARI (6274)Fax (937) 222-5794

EXECUTIVE DIRECTOR ASSOCIATION EXECUTIVEKimberly A. Fantaci Ric Kirchner

THE REMODELER EDITORMichelle Crawley

2014 MIAMI VALLEY BOARD OF DIRECTORS

PRESIDENT John PuslatWindow and Door Designs & Total Remodeling

CHAIRMAN OF THE BOARDPeter Price, MCR, CKBR Stillwater Builders Company

VICE PRESIDENTMichelle Bilbrey, UDCP W E Bilbrey General Contractor, LLC

SECRETARYBilly BrinckFerguson Enterprises, Inc.

TREASURERScott BrunsRebuilding Together Dayton

DIRECTORSMatt JonesGreater Dayton Building & Remodeling

Lori Ring Hamilton Parker Company

John Harkleroad CR, UDCPBrentwood Builders Inc.

Gary LytleSibco Building Products

Jay Hurst, CRHurst Total Home, Inc.

Randy Light CRPossert Construction Company

The RemodelerMiami Valley