Always estimate your operating income conservatively. Your operating income is the sum of your company’s gross income minus the cash spent on expenses. There are three types of expenses: general, administrative and sales. By opting for a safe, realistic figure, you put yourself in the enviable position of exceeding your projections. This makes you look like a genius. Use the industry average as a benchmark. You can find it by checking trade group studies or research by investment bankers who specialize in cutting deals in your business. If your operating income exceeds the industry average, give reasons, such as your new expense controls. And don’t ignore taxes: Factor in your company’s projected after-tax income, because that’s a more accurate, complete way to interpret the numbers.
Most organizations still have much to learn and decide upon before the 2015 and 2016 deadlines. How is your organization using the time to prepare? What are your options… and what can you do now to minimize or avoid penalties? How can you estimate the amount of employer penalties to decide whether to offer health insurance in 2015 and beyond?...Click here to find out more.