Sometimes it seems like supervisors and employees work in entirely different places. Several recent studies show that bosses and front-line employees have widely varying views about their organization’s priorities, morale, compensation and benefits. Here are seven key flashpoints:

As an owner of the company, you’re probably entitled to your fair share of perks (p’s) and qualified benefits (q’s). Generally, the perks you receive, which are not available to other employees, are taxable as compensation. However, qualified bennies offered to the entire workforce are generally tax-free. Here’s a quick rundown:

Q. Can we legally set a mandatory retirement age for our workers?

An Arizona technician lost 100 pounds in a weight-loss competition to snag the grand prize: his first skydive. Read about that and other employee wellness initiatives from across the country. They're keeping employees healthy, and helping employers keep health benefits costs down.

Uncle Sam wants you to save for retirement—and this time he really means it. The agency has issued new guidance on retirement savings in a series of rulings that clarify the existing rules, enhance others and generally provide incentives for socking away more money for retirement. Here’s a roundup of the latest developments in this area:

Ohio Attorney General Richard Codray announced that a settlement with Merrill Lynch means the State Teachers Retirement System will be among the investors set to gain after the brokerage firm misstated earnings expectations before the housing market tanked a year and a half ago.

Merrill Lynch—now owned by Charlotte-based Bank of America—has reached a settlement with retired teachers in Ohio who sued when the brokerage firm allegedly misstated earnings expectations before the housing market tanked a year and a half ago. The Ohio State Teachers Retirement System’s windfall: $475 million.

Sometimes, it makes financial sense for companies to engage workers as independent contractors rather than as employees. It can have advantages for workers, too. But whether a worker is an employee or an independent contractor has nothing to do with the desires of the organization or the worker. Not even a written contract can make someone an independent contractor if that status isn’t legitimate.

At Securian Financial Group in St. Paul it pays to age. Employees who have worked at the firm for at least 25 years can join the organization’s North 25 Club, a social group open to long-time employees and retirees. And when employees turn 50, they can attend a company-sponsored, multisession retirement income planning course.

Sometimes it seems like supervisors and employees work in entirely different places. For years, researchers have known that bosses and line workers have widely varying views about things like priorities, performance ratings, communication and benefits. Here are eight areas for which recent studies have revealed major disconnects between what employees want and what their bosses think they want:

Employees depending on 401(k) accounts for retirement are getting another shock courtesy of the economic meltdown. According to a survey by accounting firm Grant Thornton, 29% of companies have modified or intend to modify their contributions to employees’ 401(k) accounts.

The U.S. Department of Labor has obtained a $50 million judgment against Chicago investment advisor John Orecchio for using money from six union pensions for his own private business interests. According to the SEC, Orecchio used pension assets to pay for private jet travel, Super Bowl tickets, construction at his Michigan horse farm and renovations to a Detroit strip club he owns.

Forgive us if we pat ourselves on the back. In two recent decisions, our firm, Bond, Schoeneck & King, was successful in recovering relief against employees. The cases offer good news for employers frustrated with losing money when they haven’t done anything wrong.

Employment agreements are contracts. When disputes arise, they’re typically litigated in state courts because they involve state contract laws. But under the right circumstances, the Employee Retirement Income Security Act (ERISA) may apply to the agreement, effectively making the contract a protected benefit plan.

If you happen to have 100 million Euros (about $150 million) to spare, you might be in the market for the yacht, The Why, pictured to the left. Yes, that’s the stern of a boat that was featured in the House & Home section of a recent edition of the Financial Times Weekend. 

As described in the FT, The Why is a one of a kind yacht with 3,400 meters of guest space and an optimal cruising speed of only 12 knots. (You can see more pictures of The Why at http://www.why-yachts.com .)

Is it time to take health care reform into your own hands? Strategy: Investigate the benefits of Health Savings Accounts (HSAs). Although these tax-favored accounts have been slow to catch on with the public, it might make sense for your situation. If it does, sign up for an HSA whether or not health care reform is enacted.

New York’s attorney general last week started issuing subpoenas to recent Long Island Rail Road retirees who receive federal disability pensions after a government report raised questions about whether their disability claims were fraudulent. The subpoenas are being issued to 108 recent retirees who Attorney General Andrew Cuomo suspects might be responsible for an unusually high rate of disability pensions among LIRR workers.

Question: “I feel that a new administrator doesn’t think I am right for my current position even though I’ve been in it many years. I’ve never had a bad review until he came. He micromanages everything I do and is never happy with the results. I hate to leave the company and give up the current benefits and start over. Age is a factor as I am near retirement age. How should I handle this?” -- Sandi

Nothing will land you in FMLA trouble faster than ignoring an employee’s request for leave. You’d never do that, you say. But what about an untrained supervisor? Make sure all managers and supervisors know how to handle medical call-ins. Ignoring a leave request could amount to “interference” with the employee’s right to take FMLA leave.

Insurance giant AIG has settled a dispute with three Ohio public employee pensions for $115 million. All of  them claimed AIG, its top executives and related firms used anti-competitive practices and fraudulent accounting that led to massive losses for the pensions.

In a complicated settlement, the Pension Guaranty Benefit Corporation (PGBC) has assumed the pension obligations of auto parts manufacturer Delphi Corp., formerly owned by General Motors. Delphi, which recently closed plants in Ohio and other states, has been in bankruptcy the past four years. However, it has continued to make pension contributions.

The Employee Retirement Income Security Act (ERISA) requires employers to follow the terms of their collective bargaining agreements when they contribute to employee benefit plans. The 9th Circuit Court of Appeals has refused to extend the concept of “joint employer” to ERISA’s collective bargaining agreement provision when the second entity has not signed that agreement.

Leadership advisor Marshall Goldsmith was having dinner with a top officer in the U.S. Army. Also at the table were seven new generals. The senior officer laughed as he looked at their bright new stars and contemplated his own retirement—a transition Goldsmith was helping him make. What advice did he give them?

Have you passed the Social Security wage base of $106,800 for 2009? Once you do, you save 6.2% in Social Security tax on every dollar of wages. Instead of pocketing the cash, you might allocate at least part of it to a 401(k) or other retirement plan.

A new Tax Court decision could produce a better tax result for many owners of LLCs and partners in LLPs. Strategy: Use a loss from an LLC or LLP to offset other highly taxed income. Previously, it was presumed that such losses usually could be used only to offset income from other “passive” activities. But the new case has opened the door to bigger tax savings.

If you're thinking of investing in gold, do it inside your retirement plan. As opposed to the maximum federal tax rate of 15% on most other long-term gains, the maximum tax rate on long-term gains from precious metals is 28%. By using retirement plan funds to invest in gold instead of personal funds, you can avoid a big tax hit on a sale.

Think your performance evaluations are tough? Try being an NFL quarterback. Bizjournals ranked all 36 NFL quarterbacks who threw at least 160 passes during the 2008 season to see who delivered the most bang for the buck. Last season’s New York Jets QB Brett Favre placed 34th out the 36 signal callers rated.

If you read only headlines, you may think U.S. employers are slashing employee benefits to the bone. Not so. But the weak economy is forcing organizations and their employees to make some tough choices, particularly in compensation and benefits. Here are seven key HR trends to look for, plus tips on how to respond.

According to a survey by accounting firm Grant Thornton, 29% of companies have reduced or intend to otherwise modify their contributions to employees’ 401(k) accounts. Of those employers, two-thirds have eliminated matching contributions altogether.

Q. I recently fired an employee for performance problems. At the end of the termination meeting, he asked for a copy of his personnel file. Do I have to give discharged employees copies of their personnel files?

Q. We need to fire an employee who has an employment contract that limits termination without notice to “for cause” events. Must we abide by this provision if another provision in the contract clearly indicates that his employment is “at will” only?

Texas’ Third Court of Appeals in Austin recently upheld a jury’s order that Carl Yeckel, the former president of the board of directors at the Carl B. & Florence E. King Foundation, give up $5.3 million in excess compensation that he and other board members allegedly authorized for themselves.

We usually don’t advise you to begin taking early withdrawals from your qualified retirement plans and IRAs. But you may be facing a cash crunch during this recession with no other alternative. The tax rules differ slightly for qualified plans and IRAs, but here are five ways to get your hands on the cash.  

Q. I plan on retiring at the end of the year. But if I work one month in 2010, will I qualify for IRA deductions?

Q. We recently offered employees the opportunity to participate in an early retirement program, and several employees elected to take us up on the offer. Are they eligible for the new 65% COBRA subsidy?

The Lilly Ledbetter Fair Pay Act was designed to ensure pay equity for women. It does a whole lot more than that! Learn how this landmark legislation affects all protected employee classes and could influence your employee benefits program.

Consumers are hanging on tightly to every penny. One main cost they’re skimping on: their own health care—a move that experts say will lead to sicker Americans and higher health care costs down the road for U.S. employers. Here are three ways your organization can keep workers focused on their health even as they skimp on other expenses.

FMLA rules say employers are required to let their workers know about the law and how to go about requesting FMLA leave for a serious health condition. Ignoring a leave request could amount to “interference” with the employee’s right to take FMLA leave. Make sure all managers and supervisors know how to handle medical call-ins so that a potential FMLA request doesn’t get lost.

With benefits election open-enrollment season looming at organizations across the country, here are 10 ways you can do a better job of communicating with your organization’s employees. None of them costs a fortune. All can help increase employee participation in your benefits program.

Have you looked into starting a retirement plan for your small business operation? You’d probably like to help employees salt away some money for the future, but you may have decided most options are too expensive to set up and administer. Strategy: Use a payroll deduction IRA. This is the easiest IRS-approved option available to employers. What’s more, you can set up the program and run it at virtually no cost.

Sometimes, the HR business makes for strange bedfellows. Consider what happened in one recent case when the U.S. Department of Justice sued the city of Dayton, claiming its rules for hiring police officers and firefighters unfairly screened out black candidates. The police and firefighters union stepped in to intervene in the litigation.

Public employees who become disabled may be entitled to disability retirement. But if the employee’s disability application coincides with discharge, consider aggressively challenging the application and asking for further medical review.

Claims of pregnancy discrimination have gained attention again with the U.S. Supreme Court’s recent decision in AT&T Corp. v. Hulteen. In light of the decision, now is the time to conduct an audit of your practices, policies and plans to make sure they comply with the  Pregnancy Discrimination Act ’s requirements.

When an alleged sexual harasser is a supervisor, employers aren’t liable if there was no tangible employment action taken—the harassed employee wasn’t fired, demoted or otherwise punished—and the harassment was stopped promptly. But it doesn’t always work out so neatly in larger organizations.

A federal appeals court has made it harder for employees to challenge your decision to deny a benefit covered by the Employee Retirement Income Security Act (ERISA).

Rep. Susan Davis (D-Calif.) recently introduced a bill in the U.S. House of Representatives that would add mandatory coverage for second opinions on medical treatments under several laws, including ERISA.

The economy is still funky. Unemployment continues to rise. And, with Boomers entering their retirement years, some of those older laid-off employees are crying foul. In fact, the EEOC last year reported a shocking 29% rise in age discrimination claims. The good news: A recent U.S. Supreme Court decision made it more difficult for employees to win such cases, as the following case shows …

Here’s something to keep in mind when you are tempted to give an employee a choice between termination and early retirement: He may allege that the retirement option was really a constructive discharge.

The weak economy is forcing organizations and their employees to make some tough benefits choices. Here are eight trends to watch:

Last year, U.S. employees filed a record number of legal complaints claiming they suffered discrimination at work. You know that U.S. anti-discrimination laws require managers to treat all applicants and employees equally. But what, specifically, do the laws require of supervisors and managers? Here’s a rundown:

For most Americans, cycling’s annual 15 minutes of fame has come and gone with Sunday’s conclusion of this year’s Tour de France. In case you missed it, this year’s winner was Spain’s Alberto Contador. Finishing third and making a comeback after a three and a half year retirement was the seven time winner Lance Armstrong. One thing that made the race more interesting than usual this year was that Contador and Armstrong were on the same team although you’d never have known that from the way they’re sniping at each other now.

In a post race press conference, Contador said, “My relationship with Lance is zero.  He is a great rider and has completed a great race, but it is another thing on a personal level, where I have never had great admiration for him and I never will.”

Armstrong fired back on his Twitter account. Quoting the tweet, "Seeing these comments from AC (Alberto Contador). If I were him I'd drop this drivel and start thanking his team. Without them, he doesn't win."

Snap and double snap.

Employees who blow the whistle on their employers’ alleged illegal actions are protected from retaliation. But that protection has important limits. One of those is that the retaliation must take place while the employee is still working for the employer.

Challenging the state’s mandatory retirement policy, 120 New Jersey state troopers have filed a class-action suit. Under current state law, state troopers must retire at age 55.

Relatively few lawsuits—including discrimination and employment-related cases—are actually tried in a courtroom. In most cases, the parties reach a private settlement. But what happens if the parties reach a settlement and the employer holds up its end of the bargain, only to have the employee have second thoughts and bring another lawsuit?

Q. Carlos, a longtime Latino employee, frequently complains that he is paid less than his white, non-Latino counterparts. He blames this pay discrepancy on a previous supervisor who allegedly denied him several promotions in the late 1990s because of his national origin. I have heard about the Lilly Ledbetter Act. Could it affect us in this case?

All of a sudden, the retirement nest egg you’ve been building all these years might not be enough. And you probably have less time left to make up for lost ground than most of your other employees. That’s especially true if you haven’t been able to max out on plan contributions in the past. Strategy: Add an “age-weighted” feature to a profit-sharing plan.

Treasury has formally released its explanations of President Obama’s tax proposals for the 2010 fiscal year. The long-awaited “Green Book” provides vital in-depth information for both individual and business taxpayers. The proposed tax changes hit hard: Revenue-raisers aimed at individuals total more than $736 billion over 10 years while business tax cuts amount to $71 billion over the same period.

Any executive who has ever been charged with leading a turnaround has to empathize at some level with President Obama. How would you like to be accountable for two wars, a shaky economy, fixing the health care system and dealing with Iran and North Korea – all at once?  If you’ve led a turnaround, you know that the flood of issues can overwhelm you and make you more than a little frantic. The image I have in mind is the little Dutch boy trying to plug his fingers into all the holes leaking water from the dike.

Regular readers know that I’m an Obama supporter, but I’m beginning to worry (as is Colin Powell) that he’s trying to plug too many holes at once. As he travelled to Russia, Italy and Ghana last week, Obama needed to take time out to walk back comments from Vice President Biden on the economy and Chief of Staff Rahm Emanuel on health care reform. You just get the sense of someone who is trying to keep too many plates spinning.

A podcast can turn a morning commute into a chance to work on your professional goals. And it’s completely free. Here are some of the best for administrative professionals.

When employees approach retirement, they sometimes go on autopilot, frustrating everyone involved, including co-workers and supervisors. But you can demand productivity from such employees and discipline them accordingly. Just be prepared to take special steps to stay away from age bias claims.

According to a complaint filed with the DOL, Kellogg Auto Supply of Cortland disbursed ESOP benefits in 1999 based on the stock’s 1998 valuation. But it made no further distributions until 2008. The DOL filed suit charging the company and its president, Richard Coates, with violating ERISA.

A jury recently awarded a fired employee more than $10 million in punitive damages for age discrimination after what may seem like fairly insignificant ageist talk. Although the court has said the award should be lowered, the employee will still collect more than $6 million in compensatory damages.

The New Jersey Senate Labor Committee has unanimously passed a bill requiring the state to establish a “Senior Labor Task Force” to study, evaluate and make recommendations in four key areas affecting senior citizen employment in New Jersey.

When employees of Penasco Valley Telecommunications retire, they walk away with health, dental, life and vision insurance for life—and free cell phone service for a year. The Artesia, N.M., telecommunications cooperative has 90 employees with an average tenure of 17 years.

If you need more incentive to persuade supervisors to stop making negative comments about employees’ ages, consider this: A jury recently awarded a fired employee more than $10 million in punitive damages for age discrimination after what may seem like fairly insignificant ageist talk.

Suspending contributions to employees’ retirement accounts can immediately save an organization some cash. As the recession wears on, more businesses are looking at that option. Still, few are actually taking this step, and the ones that are have said it is temporary.

In today’s pared-to-the-bone business environment, you can't waste time or money offering benefits no one cares about. If you haven’t already, now’s the time to take a magnifying glass to your benefits. Look for efficiencies in these eight places.

The cost of retirement benefits are one of the flies in the ointment of Chrysler’s plan to close eight plants—including its Twinsburg, Ohio, stamping facility. To help cut long-term expenses, the bankrupt company plans to offer lump-sum buyout payments to some members of the United Auto Workers.

The American Recovery and Reinvestment Act of 2009 gives small business owners a second chance at a “one-time” tax-saving opportunity. It revives the enhanced Section 179 deduction and “bonus depreciation” tax breaks that officially expired after 2008. These two tax goodies can be combined so that your small business can write off most, if not all, of the cost of new assets placed in service this year.

The Supreme Court has ruled that women whose retirement benefits are worth less because they weren’t credited for time spent on maternity leave before enactment of the Pregnancy Discrimination Act can’t sue to recover lost funds. The decision in AT&T Corp. v. Hulteen generally followed the reasoning the High Court used in its landmark Ledbetter v. Goodyear Tire & Rubber ruling: If a policy was legal at the time alleged discrimination occurred, employees can’t challenge it retroactively.

The Supreme Court on May 18 ruled that women whose retirement benefits are worth less because they weren’t credited for time spent on maternity leave before enactment of the Pregnancy Discrimination Act can’t sue to recover lost funds. Learn more about a case with important implications for benefits programs.

At PCL Construction in Denver, employees decide which wellness programs the organization will offer. Employee-run wellness committees at each corporate location focus on physical, financial and community wellness, as well as team building.

When you set up a deferred compensation arrangement between you and your company, you agree to provide current services in exchange for a future payday. But there’s a chance you won’t live to collect the deferred comp. Strategy: Name your favorite charity as a contingent beneficiary. If your designated beneficiary predeceases you, the money goes to the charitable organization.

The U.S. Department of Labor has filed suit against TMG National Holdings, a real estate development company based in Chicago, alleging it diverted funds intended for employee retirement benefits.

A recent report offers some ominous news for Illinois employers. Illinois is one of eight states that saw an increase in class-action wage-and-hour cases filed in state court last year, according to the Seyfarth Shaw law firm’s new Workplace Class Action Litigation Report.

Here’s a good reason to have a clear process for posting promotions and explaining that process to all employees: If an employee doesn’t use the process to apply, she can’t sue for failure to promote.

A recent report offers some ominous news for New York employers. New York is one of eight states that saw an increase in class-action wage-and-hour cases filed in state court last year, according to the Seyfarth Shaw law firm’s new Workplace Class Action Litigation Report.

On Jan. 26, the U.S. Supreme Court once again expanded the ability of employees to sue for retaliation. The court held that an employee who answers a question about a fellow employee’s improper conduct during an internal sexual harassment investigation is engaging in “protected activity” under Title VII of the Civil Rights Act.

A recent report offers some ominous news for Texas employers. Texas is one of eight states that saw an increase in class-action wage-and-hour cases filed in state court last year, according to the Seyfarth Shaw law firm’s new Workplace Class Action Litigation Report.

In its 1998 collective-bargaining agreement, Caterpillar promised to provide retiree health benefits to its workers at no cost to them. By 2005, Caterpillar recognized it could no longer provide the health benefits without the retirees chipping in. When labor and management sat down at the table to hammer out a new agreement, retiree health costs was one of the sticking points ...

Watch out! Some tests you use to see whether employees or applicants are suitable for a job could screen out individuals with disabilities. You could wind up in court defending against an ADA claim.

Q. We need to temporarily lay off some employees. It will be hard for them to make it on the amount of unemployment benefits. Can we supplement their unemployment benefits without interfering with the unemployment benefits?

A new EEOC document spells out the best practices employers should follow to avoid discriminating against workers who care for ill family members, an issue that's especially critical in a down economy. Follow our links to download your copy of this important EEOC guidance.

Last year, U.S. employees filed a record number of legal complaints claiming they suffered discrimination at work. You know that U.S. anti-discrimination laws require managers to treat all applicants and employees equally. But what, specifically, do the laws require of supervisors and managers? Here’s a rundown.

If you die with most of your retirement funds intact, your family could get walloped by estate tax on top of a hefty income tax bill for required plan distributions. Strategy: Use retirement plan funds to buy life insurance. When you die, the life insurance benefits are tax-free to the beneficiaries. They can use the cash to pay off their tax bills and pocket the rest.

Here’s yet another good reason to closely review employee compensation: Legislation overturning the U.S. Supreme Court decision in the Lilly Ledbetter case has been enacted. Employees will now be able to sue their employers for any discriminatory pay decisions made years ago that still show up in current paychecks.

Q. If an injured worker has a catastrophic injury under Florida’s Workers’ Compensation Act and subsequently retires, does that mean the employee is not entitled to permanent total disability (PTD) workers’ compensation benefits?

Some employers unknowingly misclassify some of their employees as independent contractors. In doing so, they risk suffering severe consequences. By becoming familiar with the following tests, you minimize the chances of misclassifying an employee.

Here’s a trend to watch out for as the economy continues to slow: As companies go out of business, employees sometimes lose access to their retirement funds. It’s not a new problem, but it’s one the U.S. Department of Labor (DOL) is trying to fix.

An Illinois court has ruled that employees who request FMLA leave before they’ve met the eligibility thresholds are protected from retaliation. An employer can’t, for example, fire such an employee because he says he will soon be taking FMLA leave and perhaps undergo expensive medical treatment.

A recent report offers some ominous news for New Jersey employers. New Jersey is one of eight states that saw an increase in class-action wage-and-hour cases filed in state court last year. Advice: Brace yourself for even more wage-and-hour litigation. Such cases typically increase during economic downturns ...

A recent report offers some ominous news for Pennsylvania employers. Pennsylvania is one of eight states that saw an increase in class-action wage-and-hour cases filed in state court last year, according to the Seyfarth Shaw law firm’s new Workplace Class Action Litigation Report.

The American Recovery and Reinvestment Act of 2009 contains several tax breaks for energy improvements. Among other modifications, the new law raises the nonbusiness energy credit for improvements to a residence from 10% to 30% and increases the maximum dollar cap to $1,500 (eliminating the $500 lifetime cap).

Don’t waste your time and money offering benefits no one cares about. Review all your coverages. Conduct eligibility audits. Those are just some of the tips comp and benefits expert Gary Kushner has for HR pros eager to maximize the value and reduce the costs of the benefits they provide.

Employees who have pending lawsuits against their employers may be among a group of employees who receive early retirement offers that are part of downsizing initiatives. If litigious employees accept such a buyout offer, they may lose their standing in their lawsuits.

In a common-sense decision, the 6th Circuit Court of Appeals has ruled that former employees who are disabled cannot sue their former employers under the ADA to recover retirement benefits that were reduced because they received Social Security disability payments from the federal government.

Minnetonka-based UnitedHealth Group has agreed to pay $895 million to settle a lawsuit alleging the health insurance company gave executives backdated stocks, a compensation scheme that lined the execs’ pockets but caused losses for investors.

Americans are spending less but not necessarily saving more as the economy slides. According to a survey by Bank of America, 62% are either behind schedule or have not started retirement planning ...

The economy is in trouble. But good marketing can still lure plenty of qualified buyers. It’s just harder to close the deal. A “shared risk” offer can warm up those with cold feet.

In the current economic climate, it’s a good idea for your company to save money for a rainy day. But you can run into serious tax trouble if you hoard too much cash in the corporate cupboard. Strategy: Stay within the prescribed tax-law limits. Otherwise, your company could be socked with the “accumulated earnings tax.”

Organizations that appeal most to employees age 50 and older make it a point to focus recruiting efforts on that group. And they stuff their benefits packages with perks that help older employees balance work with caregiving responsibilities. Here are five best practices your organization can adopt.

Late last year, Congress passed new pension-related tax breaks. The Worker, Retiree, and Employer Recovery Act of 2008 suspends the rule for required minimum distributions (RMDs) for one year. It also eases funding requirements for pension plans and clarifies certain other points in the massive Pension Protection Act of 2006. 

Boosting your benefits communication during troubled economic times can help your organization retain good employees and ease their worries so they can focus on work. The key: Show employees the value of their benefits.

Texan oil tycoon T. Boone Pickens, the 80-year-old who made a fortune on huge gambles, is placing his biggest bet yet. The trillion-dollar Pickens Plan would break U.S. dependence on foreign oil by developing wind and natural gas as native sources of energy.

Can you deduct medical expenses on your 2008 tax return? For most taxpayers, it’s a long shot. You’re entitled to a deduction only to the extent your unreimbursed expenses for the year exceed 7.5% of your AGI. But don’t give up so quickly. If you scour your records, you may find certain expenses that will push you over the 7.5%-of-AGI mark.

Even bosses who’ve been taught that one word can trigger a harassment or discrimination lawsuit can put their foot firmly in their mouths. If that’s the case and an employee starts the legal wheels in motion, it’s usually best to settle the case and move on.

As the economic meltdown worsens, employees facing personal budget crises may go looking for their own financial bailouts—by tapping into 401(k) savings. They may turn to HR pros like you to learn how to take hardship withdrawals or borrow against their investments. There are good reasons to steer them away from treating their retirement nest eggs as rainy-day funds.

Caterpillar, the heavy equipment company, used temporary layoffs to cut costs. Cisco Systems, the global information technology company, did a holiday shutdown in late 2008 to save money.

General Motors and Chrysler have offered blue-collar workers at selected plants early retirement packages. The buyouts allow the struggling manufacturers to cut short-term costs, but also reduce future labor costs.

Employees who can show direct evidence of age discrimination will get their day in court. That direct evidence often comes after someone who played a part in making an employment decision (e.g., helped select a candidate for hire or promotion) makes a careless statement after the fact.

As the economy worsens, rising health costs are driving more employees to cut their own spending on medical care. Here are three ways your organization can keep workers focused on their health even as they skimp on expenses ...

There’s no doubt Generation Y will fundamentally change corporate America. It’s already started. Managing Gen Y is a hot topic among consultants, HR executives and talent management professionals. For a Gen Y’er like me, this is great news. We’re primed to change the workplace for the better. Here’s how we’ll do it.

Offering an extra three to 30 days of paid leave to employees who donate bone marrow or organs could improve your organization’s reputation as a company that cares about its community. Less than half of 1% of those who register as potential donors will ever be called to give, so the benefit will cost your organization very little.

Tough times call for tough measures. To cope with the effects of the state’s $1.2 billion budget shortfall on its pension obligations, Gov. Jon Corzine has suggested a time-honored, if not terribly innovative, remedy: an IOU.

New regulations that gave the New Jersey Department of Education authority to review and reject pending contracts for top school administrators withstood a legal challenge from the New Jersey Association of School Administrators (NJASA).

Surprise! Supervisors sometimes say dumb things. It may be entirely innocent—they simply don’t realize the impact their words may have. If that’s the case, and someone complains, it may be best to settle the case and move on.

Many young adults fresh out of college find it daunting to save for retirement, especially during this economic downturn. Strategy: Extol the virtues of the “retirement saver’s” credit. This little-noticed tax break can provide a big boost to children who earn modest wages.

Employment law class-action litigation is growing at an explosive rate, and the economic meltdown will probably fuel even more lawsuits in 2009. So says a recent report that also predicts far greater financial exposure for employers that must defend their employment policies in court. Here are the gory details.

When Medical Mutual Insurance of Ohio learned that 11 computer disks mailed to state retirement groups in Columbus had not arrived, the insurer contacted the U.S. Postal Service. There was reason for concern: The disks contained personal information on 36,000 Ohio retirees ...

As the impact of the global financial crisis seeps into the roots of the American economy, employers and HR are being forced to make tough decisions. So far, one-fifth of U.S. employers have instituted layoffs, and another 26% expect to shed jobs in the next 12 months ...

President Obama signed the Lilly Ledbetter Fair Pay Act on Jan. 29, making it easier for women and others to sue for pay discrimination that may date back decades. Drafted in response to a 2007 U.S. Supreme Court decision that said employees had at most 300 days to file pay discrimination complaints, the new law counts each unfairly low paycheck as a fresh discriminatory act.

Employer retirement plans suffered huge losses in 2008, and employers would face even more burdens if they had to comply with new, stricter funding rules passed under the Pension Protection Act of 2006. For that reason, Congress last month voted to ease those rules ...

Are you having trouble scraping up the cash for an IRA contribution this year? The solution may be right under your nose. Strategy: Use your tax refund to fund your IRA contribution. Simply file your '08 return early, claiming the amount you intend to contribute.

You may not need a license to practice HR or benefits administration, but earning an HR certification tells your employer (and potential employers) that you know your stuff ...

Q. I was recently approached by one of our company’s board members and asked to act as the plan administrator for our health benefits plan. I am nervous about assuming formal responsibility for plan administration. Am I subject to personal liability for administering our company’s plan?

Q. I recently was talking with another manager at the company who told me that we had hired an independent contractor to work in our records room doing filing and data storage tasks. We also have employees performing that job. Could that cause any problems?

Donald Snyder, former director of the Illinois Department of Corrections (IDOC), forfeited his right to pension benefits when he was convicted of engaging in “a scheme to defraud the people of the state of Illinois,” Attorney General Lisa Madigan said.

The rocky financial markets are keeping many people up at night, especially if their retirement looms. Worried minds begin to wonder: Have I saved enough? Am I overexposed to the stock market? Before you hit the panic button, though, take a closer look at two of the biggest “warnings” you’ll hear in the retirement-planning world right now.

The 111th Congress wasted no time signaling its intention to enact employment law legislation that dramatically favors employees, quickly passing both the Ledbetter Fair Pay Act and the Paycheck Fairness Act. They promise equal pay for equal work. Find out why business and HR groups oppose both measures.

Anyone revved up to work longer and retire later? Workers may not have a choice, suggests a new book, Working Longer: The Solution to the Retirement Income Challenge.

If your business pays nonemployees for services, you have only until Jan. 31 to give copies of Form 1099 to recipients of certain payments. That includes independent-contractor compensation, dividends, interest, real estate transactions, attorney fees and retirement plan distributions.

What’s more frightening to parents than terrorism and violent video games? Paying for college, reports one recent parent survey. Whether you’re a parent who has been saving for years or are just starting, says money expert Jean Chatzky, take these three steps to prepare.

Boosting your benefits communication during troubled economic times can help your organization retain good employees and ease their worries so they can focus on work. The key: Show employees the value of their benefits.

Don’t think that employees who take their retirement benefits in a lump sum can’t sue for alleged fiduciary breaches. A recent federal appeals court decision says although retirees are not technically employees anymore, they still have standing to sue ...

Many California employers are viewing a recent decision by a federal appeals court as a setback. The court upheld the right of local governments to pass ordinances that essentially force employers to provide a certain level of funding for employee benefits.

Q. I am at the point where I must begin taking distributions from my retirement plans. Can I arrange to receive a lump sum each year instead of monthly payments?

Gov. Jon Corzine signed into law a new benefits package for state employees that raised the retirement age from 60 to 62 and increased the minimum salary workers must earn before being eligible for pension benefits. Now state government employees must earn at least $7,500 per year to qualify for a pension. The previous minimum was $500.

Congress recently passed the Worker, Retiree and Employer Recovery Act of 2008. The new law suspends the rule for required minimum distributions from IRAs and qualified retirement plans in 2009.

As the impact of the global economic crisis takes hold, a quarter of U.S. employers expect to make layoffs in the next 12 months. Find out how employers nationwide are hunkering down—and the HR lessons you can apply to your organization.

The 9/11 terrorist attacks, the devastation of Hurricane Katrina and the current fiscal crisis all were predicted years ahead and could have been prevented, says Michael Chertoff, Secretary of the U.S. Department of Homeland Security. “We have an inefficient system for managing risk.”

Say you converted your traditional IRA into a Roth IRA earlier in the year. The tax liability for the conversion is based on the value of your account on the conversion date. Strategy: Convert your Roth IRA back to a traditional IRA. That way, you’re not taxed on the higher value of the account at the time of the conversion.

You need both common sense and humility to send your people into the unknown. Adapt this 10-point checklist to keep them moving forward:

New research shows that more workers of retirement age are staying in their current jobs or returning to work, in part because of the sinking economy and dwindling nest eggs. Many of these older employees aren’t seeking full-time return at their past pay rates. They’re hunting for “bridge jobs.”

Q. I want to consolidate my IRAs in one place. Can I roll over a few IRAs and the retirement plans of previous employers to a Fidelity account this year?

Companies that self-administer their ERISA benefits plans, take note: Because your benefits decisions carry an implied conflict of interest (since rejecting a request for benefits such as retirement or payment of a medical bill means spending fewer company assets), courts expect your decisions to be transparent and based on good documentation.

The EEOC has been busy this fall in Texas. The agency recently sued the Edgewater Retirement Community in Galveston for allegedly refusing to hire a 78-year-old job applicant.                        

A cash-balance pension plan is one in which the employer contributes a set amount each month on behalf of an employee. The employee eventually collects pension benefits based on the cash balance in his or her account. Some employees have claimed that such plans favor younger employees and therefore are illegal ...

At first glance, the federal ADEA appears rather straightforward: It protects people age 40 and older from employment discrimination based on their age. But the law can affect just about anything managers do, from asking questions in job interviews to assigning job duties ...

Now that President-elect Obama’s administration is taking shape, what can taxpayers expect in the next year? Here are a few key proposals made by Obama late in his campaign.

The story of Dee Ward Hock is proof that you can use a life lesson to fuel your rise. As a 25-year-old married father of two with a third on the way in the 1960s, Hock had fallen deep into credit card debt ...

As the impact of the global economic crisis takes hold, a quarter of U.S. employers expect to make layoffs in the next 12 months—if they haven’t already done so. However, most companies are focusing on increased employee communication and smaller cost-saving measures.

Cadence Design Systems of San Jose recently agreed to settle two lawsuits brought by information technology workers who claimed they were misclassified and denied overtime and meal and rest breaks in violation of federal and California laws ...

According to a Deloitte study, 42% of 401(k) plans now include an auto-enroll feature, nearly double the 23% in 2006.

Is fear of real or perceived risk keeping your customers from committing?  If so, spend some time brainstorming about shared-risk offers that could turn your sale from cold … to gold.

Conventional wisdom says to salt away as much money as you can in tax-sheltered retirement plans and IRAs. Reason: The contributions grow tax-deferred until you take withdrawals, usually when you’ve retired. But can you have too much of a good thing?

The Social Security Administration (SSA) has unveiled a new online calculator that allows people to estimate their monthly Social Security benefit checks based on their retirement dates. Go to www.socialsecurity/gov.estimator.

As the impact of the global economic crisis filters down from Wall Street to office cube farms and shop floors, HR professionals will find their expertise in greater and greater demand. Unfortunately, you may have to spend much of your time on the least pleasant of all HR tasks—planning and executing layoffs and other staff cutbacks.

Has this rollercoaster economy got your customers holding onto their money tighter than ever?  A simple, common-sense marketing approach can calm the ride and help them let go.

Test your knowledge of recent trends in employment law, comp & benefits and other HR issues with our monthly mini-quiz ...

The following three case studies assume you convert a traditional deductible IRA or SEP account that's currently worth $50,000 into a tax-free Roth IRA account.

A valuable home can constitute the bulk of your estate. In certain regions, a rather modest-appearing home is easily worth $1 million or more.

You may feel this puts you into an estate-planning bind, because you are virtually forced to leave the home to your surviving spouse to avoid a big estate-tax hit. In turn, you may then feel forced to leave nothing but liquid assets to your children (either via a bypass trust or directly) or leave them nothing at all.

A legal secretary who formerly worked for the law firm Townsend and Townsend and Crew recently filed a motion for summary judgment on her claim that the intellectual property firm owes her money under a long-term disability claim regulated by the Employee Retirement Income Security Act ...

Retirement plan administration and health and wellness programs lead the list of functions HR departments ask outside firms to perform ...

More business leaders expect the impact of the recent Wall Street troubles to impact them personally rather than their department and/or organization, says a new survey ...

Two-thirds of organizations with traditional defined-benefit pension plans have closed them to new employees, frozen them for all participants or plan to do so within two years. A new survey by the Employee Benefit Research Institute also found that most employers increased their contributions to employees’ defined-contribution 401(k) plans ...

Many of the new teachers who take jobs with the Charles County, MD, public school system need help adjusting to small-town life after they are hired. That help comes in the form of a teacher-services department staffed by a secretary, a veteran teacher and an HR specialist ...

More than 60% of employees are counting on a defined-benefit pension plan to fund retirement, even though they acknowledge that the system is moving away from that traditional savings system. Among workers whose employers have reduced their retirement benefits, nearly 40% say they haven’t done anything to pick up the slack. Your organization can help employees build their nest eggs. Here are six ways ...

A new survey by the U.S. Labor Department Bureau of Labor Statistics (BLS) offers a great chance for HR pros to help employees understand the true value of their benefits. The key finding of the BLS’s National Compensation Survey  will come as no surprise: About half of the nation’s employees get health and retirement benefits through their employers. But other survey findings may provide a valuable opportunity to enlighten employees ...

No federal law mandates that employees who are in state-sanctioned same-sex unions must receive the same employee benefits that heterosexual married couples receive. But the writing is on the wall. And even employers in states that ban same-sex unions may find themselves targeted by advocates for greater benefits ... 

Question:  “Our new department head makes many inappropriate comments. For example, he told a co-worker that because I’m really old, he doesn’t know how I will fit into his future plans. Later, he directly asked me if I was thinking of retiring. I’m 53 and have worked here for 21 years. The thought of retirement has never crossed my mind. Another incident occurred when a young co-worker and I were laughing about something. The boss said that we got along very well considering our age difference. He also makes comments to women about their anatomy or weight. Everyone finds his remarks offensive. He’s our top manager, so what can we do?” — Insulted

HR Law 101: Under the Age Discrimination in Employment Act of 1967, employers with 20 or more workers can’t engage in personnel practices that discriminate against individuals age 40 and older. Most age discrimination cases grow out of wrongful discharge and mandatory retirement policies, but they can involve any adverse change in working conditions ...

HR Law 101: When designing compensation plans, employers should take into consideration whether the pay schedules have a negative impact on older workers. Several pay discrimination cases have reached the Supreme Court in recent years ...

Q. I’m age 68 and married. We own a home jointly with right of survivorship. All my other large assets have named beneficiaries except our cars. Do those assets have to pass through a lengthy probate when Idie?

Tough economic times raise some tricky HR issues—for example, when an employee’s financial straits begin to affect his employer ...

Texas employers that opt out of the state workers’ compensation system often adopt separate insurance plans to cover employees’ on-the-job injuries. Those plans usually provide no-fault benefits and are governed by ERISA. That doesn’t mean, however, that employees can’t sue under other state laws ...

Gov. Ted Strickland has directed state agencies to draft proposals for offering early retirement incentives to trim their staffs and save money. Spokesman Keith Dailey said Strickland is concerned about the possibility of a recession and its potential impact on the state budget ...

Thirty-five percent of organizations offered retiree health benefits in 2007, up from 29% the year before, according to the Society for Human Resource Management. Even so, benefits analysts say organizations are under pressure to drop the coverage to save money and to lessen a costly liability line on their financial statements ...

New Jersey is among seven states that have consistently underfunded the retirement plans of their public workers, according to a recent study by the Pew Center on the States. The center predicted that states on the bottom half of the list would have to choose between pension obligations and other public programs, as New Jersey has done ...

Prior to the start of a new year, the IRS announces cost-of-living adjustments (COLAs) for certain retirement plan thresholds. Because inflation has been relatively low, don’t expect any giant jumps for 2008. And a few thresholds didn’t budge at all.

North Carolina is one of only a handful of states with a fully funded pension, according to a recent study by the Pew Center on the States, although the state’s obligations for retiree health care and other benefits is underfunded by $139 million ...

About half the states—including Indiana—have underfunded their retirement plans for public workers, according to Promises with a Price, a recent study by the Pew Center on the States. Indiana’s funding has been uneven in the past and stands at 64% ...

Georgia is a national leader in saving up for its public employee pension bill, according to a recent study by the Pew Center on the States. The state’s pension trust is sufficient to cover 96% of projected pension costs, compared to the national average among states of 82% ...

Do you want to stay active in retirement? If you keep working, that’s great, but make sure it’s still worth your while.

Got a question about how to save for the kids’ college education? Or how much you can sock away in your IRA? This online resource offers one-on-one answers.

Florida is a national leader in saving up for its public-employee pension bill, according to a recent study by the Pew Center on the States. Even so, the state faces a $3.6 billion pension-funding shortfall. Most states are in worse shape ...

About half the states have underfunded the retirement plans of their public workers, according to a recent study by the Pew Center on the States. The center warns that states on the bottom half of the list may have to choose between honoring their pension obligations and funding other state programs ...

No doubt about it, the workers’ compensation system is a headache for employers. It’s full of frustrations and surprises. Consider, for example, the fairly common scenario of a retired employee receiving workers’ comp payments. Seems like retiring would end workers’ compensation payments, right? Not necessarily, as the following case illustrates ...

The EEOC has issued a final rule allowing the long-standing employer practice of coordinating retiree health benefits with Medicare without violating the age discrimination law. The new reg ends a seven-year battle to ensure  "bridge" coverage for younger retirees.

Conventional wisdom has been that isolated or “stray” remarks alone by an employer do not prove discriminatory intent. Conventional wisdom may be wrong. A recent 2nd Circuit Court of Appeals case (Tomassi v. Insignia Financial Group, Inc., 478 F.3d 111, 2007) has clarified what it deemed a misconception of the true meaning of the term “stray remarks”  ...

The maximum tax rate for long-term capital gains in 2007 is only 15 percent for high-income taxpayers. Even better, the rate is a minuscule 5 percent for some lower-income taxpayers. But how low can you go if you really try?

You’re probably under pressure to reduce benefits costs as your organization tries to remain competitive in the marketplace. But don’t neglect your competitiveness in the race to attract and retain the best employees. They’re probably looking for even better benefits to offset static pay raises. Five key issues are emerging in 2008 for compensation and benefits professionals ...

Employees who retire to avoid facing internal disciplinary charges can’t turn around and claim they were constructively discharged. That’s why employers might want to consider offering retirement in such cases as an option in lieu of discipline ...

Does your organization have a policy requiring employees to retire (or step down to a lesser position) once they hit a certain “unbecoming” age? If so, a groundbreaking $27.5 million EEOC settlement shows that you’d better retire those policies … not the people ...

The international law firm of Sidley Austin LLP, Chicago, will pay $27.5 million to 32 former partners to settle an EEOC lawsuit. The EEOC claims 29 of the partners were either expelled or demoted during a 1999 reorganization, and the remaining three retired under the firm’s age-based retirement policy ...

A noose on a table doesn’t mean the same thing to an all-white jury as it does to a 64-year-old black man, says retired city of Cocoa worker James Daniels. A six-member jury dismissed Daniels’ race discrimination lawsuit against the city, which centered on an incident involving a noose left on a break room table. “Most white folks don’t know what blacks go through,” Daniels said ...

Q. We’re a small company with about 45 employees, but we have another 20 employees who are temporary. Do we have to count the temps when complying with the EEO or other employment laws? ...

A federal judge recently gave final approval to a settlement of a wage-and-hour lawsuit involving 500 primarily Latino janitors in San Antonio, Dallas and Chicago. Judge Amy St. Eve of the U.S. District Court for the Northern District of Illinois approved a $1,138,000 settlement compensating workers who were employed through Contract Cleaning Maintenance Inc. ...

Electronic Data Systems Corp. (EDS), based in Plano, announced that it would offer early retirement to 12,000 eligible U.S. employees. The technology systems management and services company, which has approximately 136,000 employees in 64 countries, is making the offer in order to reduce costs ...

The Ohio Supreme Court has substantially limited the “voluntary abandonment” doctrine in claims for temporary total disability compensation under the Ohio Workers’ Compensation Act. That means employers may have to pay temporary total disability payments to employees even if they were injured while breaking safety rules ...

Issue: Employees too often see their base salary as their bottom-line compensation. Risk: Without a clear view of their total compensation package, employees become disillusioned and seek greener ...

The California Supreme Court has made it easier for employers to comply with the disability discrimination provisions of the Fair Employment and Housing Act (FEHA). The court ruled that employees must prove they are qualified for the jobs they seek, not the other way around ...

Due to recent stock market volatility, you may have taken a hit in your IRA holdings. To make matters worse, you could be “cashing out” the IRA when its overall value has dipped. Unfortunately, you can never claim a tax loss relating to funds inside an IRA … right? Wrong.

Turn your 401(k) into an auto-enrollment plan, so that employees are enrolled automatically, unless they opt out. By adding this feature, it’s likely that a higher percentage of non-HCEs (highly compensated employees) will participate in the plan.

Even if an employee has been wronged because his employer denied FMLA leave he was entitled to take, he still can’t just sit around and expect the employer to pay him until retirement age. He must make efforts to mitigate his losses by seeking out work that fits his medical restrictions ...

Florida’s public retirement fund will get rid of nearly $1.3 billion in investments with companies doing business in Iran and Sudan, a move state officials hope will prompt similar actions throughout the country. State Sen. Ted Deutch, who sponsored the law, said the state is “telling every one of these companies that from this day forward we won’t invest another dollar, Florida’s public dollars,” in them ...

The Employee Retirement Income Security Act (ERISA) was created to protect employee benefits plans. It preempts state regulation of covered plans. But many states, including Ohio, have specific laws that cover other aspects of the employment relationship. Those laws still apply in many cases, even if an employer mistakenly states ERISA covers a particular benefit ...

Employers that change benefits plans beware! Employees are entitled to know when their benefits will change under the Employee Retirement Income Security Act (ERISA). It’s best to make sure everyone knows about the changes before they go into effect—especially if the new plan requires the employee to do something to qualify for a benefit ...

It can be frustrating when employees don't rush to take part in optional benefits like financial-planning seminars or even your EAP. Yet when an employee does need help, the availability of your benefits can go a long way toward relieving stress and retaining that employee. Here are seven ways to communicate benefit information more effectively...

The U.S. District Court for the Southern District of Texas recently certified a class action of current and former participants and beneficiaries of a cash-balance pension plan sponsored by United Way of the Gulf Coast. The participants and beneficiaries claimed that the plan sponsor miscalculated early-retirement benefits when it switched the pension plan from a defined-benefit plan to a cash-balance plan ...

A participant in the Forum section of our HR Weekly e-letter posed this question: “One of our employees is nearing 80 and his performance is slipping badly. Is there an alternative to harsh evaluations and termination? We’d like him to depart with dignity.” Here’s how some HR professionals replied ...

As your organization shifts more responsibility to employees to manage their own health and retirement expenses, you risk alienating your work force. But it doesn’t have to be that way ...

Why put your spouse on the payroll? Because you can gain six tax benefits.

Can employees sue for a company practice that was perfectly lawful when it was implemented but has since become illegal? Yes, according to a recent 9th Circuit Court of Appeals case in which employees complained that a company policy didn’t give them full-service credit toward their retirement benefits during their pregnancy leave ...

As you continue to salt away money in your 401(k), you might wonder how you’ll create a steady income in retirement. Should you consider the financial services industry’s new pitch: the 401(k) annuity?

When the city of Ecorse hired a long-time city policeman to be chief of police, it seemed like a sound move. But problems began when the mayor terminated him because he was too old ...

An organization’s HR professionals and its employees don’t always see eye to eye when it comes to benefits. The Society for Human Resource Management’s “2007 Job Satisfaction Survey Report” revealed some good examples ...

The 3rd Circuit Court of Appeals has expanded the class in a class-action suit brought by former workers and retirees against their employer. The case centers on Conexant Systems Inc., which offered its own stock among the investment options employees could choose from when structuring their 401(k) plans. The stock fell from $7.42 per share to $1.70 in seven months during 2004 ...

Many employees have some type of medical condition or disability that affects their ability to perform their jobs. Employers need to understand their obligations to disabled employees and the rights granted to disabled employees under New Jersey law. A decision recently handed down by the New Jersey Supreme Court clarifies exactly what obligation employers have to accommodate disabled employees under the New Jersey Law Against Discrimination ...

The state of Pennsylvania is looking for a way to force employers to pay their share of health care costs without running afoul of the Employee Retirement Income Security Act (ERISA) ...

Suppose your organization decides to alter its retirement plan. You shoot out an e-mail about the change, but fail to secure written proof that employees have read and understand the modifications. Three months later, an employee retires based on promises made in the old retirement plan, resulting in lost pension dollars. He sues, saying he never got wind of the retirement-plan change. This true story occurs surprisingly often in U.S. workplaces ...

When it comes to determining employee wrongdoing and setting punishment, it’s essential to use a  complete and independent investigative process. Otherwise, the company can wind up being responsible if it turns out that a supervisor who was “out to get” an employee—perhaps in retaliation for filing a discrimination claim— trumped up performance problems or other employee deficiencies ...

Fresno city policeman, who claimed the city forced him into early retirement following an on-duty motorcycle accident, has settled his age-discrimination and failure-to-accommodate claim for $825,000 ...

A black female Michigan National Guard member has won a discrimination suit against the head of the guard, Maj. Gen. Thomas Cutler, and one of his top deputies, alleging they hired a less qualified white man for an airfield manager’s position ...

The National Association of Securities Dealers (NASD) fined Citigroup Global Markets Inc. $3 million to settle charges of using misleading sales materials during retirement seminars for BellSouth employees in North Carolina and South Carolina. NASD also ordered Citigroup to pay $12.2 million in restitution, and it suspended three brokers who conducted the seminars ...

The government hasn’t required much in the way of compliance when it comes to special executive retirement perks and bonuses. That changed in April, when Congress enacted a slew of IRS-enforced regulations known as 409A. Bring your deferred-comp plans into compliance now, or your executives could face stiff tax penalties.

Despite what you’ve heard about would-be retirees clinging to their jobs long into their golden years, the average retirement age is 62. That means the boomers are going to start racing into retirement. How many employees is your organization going to lose? Chances are, you don’t know. Most organizations don't know how old their employees are or when those in their 60s plan to retire. Supervisors may know on a case-by-case basis, but what the organization needs is an overall profile so a mad dash out the door doesn’t catch anyone by surprise ...

Use NASA's seven-question approach to help stem the loss of critical knowledge at your organization...

To streamline the work force, some employers encourage early retirement and may even include an inducement in the form of enhanced benefits. But unless the employer informs the employee her job is endangered unless she signs up, the employee is probably not eligible for unemployment compensation ...

Employers are not required to provide a light-duty position indefinitely, the New Jersey Supreme Court recently ruled, overturning an Appellate Division decision. A Gloucester County corrections officer was diagnosed with Graves’ disease, which gave him double vision and prevented him from working in contact with inmates ...

California’s legislature is moving forward on two “play or pay” bills that would require employers that do not offer cafeteria health plans to their workers to pay into a state-run health plan purchasing pool ...

The lines between “working” and “retirement” are blurring. Nowadays, many employees are likely to stay on in some limited capacity. Amend your company retirement plan to accommodate a “phased-in” retirement.

The day may be dawning soon when you plan to convert your traditional IRA into a Roth IRA. The pot of gold at the end of the rainbow: Future distributions from the Roth will be 100% tax free. But you might be better off taking a different route to “the Promised Land.”

The FMLA guarantees a qualified employee up to 12 weeks’ unpaid leave and the right to return to the same job (or a substantially similar one) after the leave ends. But employees don’t always return ...

Employees who receive additional benefits under the Workers’ Compensation Law 15(3)(v) lose those additional benefits as soon as they reach eligibility for federal Social Security old-age benefits ...

The Pension Protection Act of 2006 allows employers to pay pension benefits to employees age 62 and older who are covered under a defined-benefit pension plan even if they continue to work. The change makes phased retirement a viable option for employers who want to keep their mature, experienced workers ...

Whether you work with a comp and benefits team of one or 100, chances are you don’t have time to check every calculation you make. Yet mistakes that slip through can cost an organization millions of dollars in benefits overpayments ...

A 60-year-old administrator in the state treasurer’s office was urged into retirement after she called a fellow worker a “nappy-headed ho” one week after radio personality Don Imus made the phrase famous ...

Twenty years ago, an employee might have expected his employer to reward long years of service with a secure retirement. That’s no longer the case ...

Five former employees who say they were fired for being too old and costly have hit PPG Industries, Inc., the Pittsburgh-based paint, glass and chemical giant, with a class-action lawsuit ...

Various organizations offer an alphabet soup of certifications. But is certification even necessary for your career path? If it is, which certification is right for you? Here's a breakdown of your certification options. Do your homework: The most common certifications may not be your best career choice...

Employees age 55 and older—a group growing four times faster than the work force as a whole—make particularly loyal employees, a new study shows. But does your organization offer the type of benefits that will help you retain those older workers until they retire (and beyond)? Some organizations are taking that extra step ...

In August, President Bush signed the Pension Protection Act of 2006, which includes many benefits-related amendments to the Internal Revenue Code and the Employee Retirement Income Security Act (ERISA) ...

Nothing rankles employers more than being accused of discrimination when the statistics show that their workplace is a model of diversity and equal opportunity. You can turn those statistics in your favor ...

The U.S. Department of Health and Human Services has chosen Texas as one of six states that will participate in a long-term-care planning promotion campaign ...

The New Jersey law that grants all the rights and responsibilities of marriage to civil-union couples has plunged employers and employees into a legal quagmire ...

Turnover among female employees at New York-based KPMG has declined by 22 percent in the past three years. One big reason: The KPMG Network of Women, or KNOW, helps female staff with professional development ...

Employees have always looked to HR for help as they prepare for the changes that come with life’s big events, like childbirth and retirement. Get ready for more of them to start asking for your advice about how to prepare for death ...

Shifting some health care costs to employees can help control an organization’s ballooning expenses, but it doesn’t make employees healthier or reduce their need for services. Help your organization progress down the path toward employee engagement by using these eight tips ...

If your organization is considering early retirement as an incentive to move out highly compensated employees, do your homework first. To properly calculate seniority, you’ll need to check how unpaid leave was handled years ago ...

In the past two decades, 401(k) plans have become the dominant retirement plan offered by employers. In fact, 64 percent of plan sponsors responding to a recent Hewitt survey said a 401(k) accounts for their organization's primary retirement-savings program ...

If you plan to lay off employees, structure early-retirement offers carefully to avoid age-discrimination lawsuits. In particular, avoid making "take-it or leave-it" offers that force employees to choose between resigning with a severance package or being terminated ...

Your organization could lose critical knowledge if certain employees leave. Yet, top management often hesitates to address that risk. By taking steps to capture "at risk" information, you build a stronger organization ... and boost your own standing ...

One wrong move (especially during the firing process) can send employees running for courthouse. Teach supervisors to avoid unnecessarily angering employees by pointing out the following common mistakes ...

If your organization's Web site or intranet posts information on employee benefits, you could unintentionally open yourself to a lawsuit. How? The posted information could lead employees to rely on it ...

Fred C. Church Insurance in Lowell, Mass., offers child care assistance for its young parents and retirement-planning advice for older employers. But it lacked benefits for workers with teenage children ... Solution: The 130-employee company added a benefit that gives employees access to counselors who specialize in the college-application process ...

October marks the fourth annual National Work & Family Month, an honor that Congress commissioned in 2003 because, it said, "supporting a balance between work and personal life is in the best interest of national worker productivity" ...

Want to help your employees reap a bigger return on their retirement investments? Offer them personalized advice ...

One simple, inexpensive way to help older employees plan for their retirement years: Point them to a new 44-page booklet from the U.S. Labor Department, Taking the Mystery Out of Retirement Planning ...

The U.S. government's main survey on employee wages and benefits, Employer Costs for Employee Compensation (ECEC), offers a good quarterly snapshot that can help you benchmark your own pay and perks ...

Your 20-something employees are more worried about repaying student loans and moving into their first homes than saving for retirement. So convincing them to contribute to a 401(k) is often a tough sell. The solution: Make your pitch relevant to their lifestyles ...

If you're wondering whether a new employee will stick around, look at whether he or she signed up for your retirement plan. A new study confirms that employees who forgo employers' retirement plans also tend to change jobs frequently ...

The Pension Protection Act of 2006, signed by President Bush in August, swept in big changes for employer retirement plans. Educating employees about the law will likely fall to you. Here are five key points you should explain to employees long before the major provisions take effect in 2008 ...

If your organization helps older employees plan for their retirement, you've probably been asking them how they're set financially for their golden years. What you might ask instead is: What do you want to do with the next one-third of your life? ...

At least 15 percent of Americans are so stressed out about money that it affects their work, and about half say they spend more than 20 hours a week dealing with financial matters, says a Virginia Tech study. One solution: Ease employees' financial pains—and bolster your organization's retirement plan participation rates—by teaching employees how to better manage their money ...

Pennsylvania employers can look to a recent 3rd Circuit Court decision to keep their bonus plans in compliance with the FMLA. The case is the first of its kind in the country and provides employers with guidance beyond that found in the FMLA's regulations. The decision is now law in Pennsylvania, Delaware, New Jersey and the Virgin Islands ...

Two consecutive years of explosive job growth in the executive employment market are creating hiring headaches for HR professionals across the country. According to a recent ExecuNet survey, two-thirds of corporate recruiters already believe that the supply of qualified executive talent falls short of the growing hiring demands of corporate America ...

Supporting a balance between employees' work lives and personal lives "is in the best interest of national worker productivity." At least that's what Congress declared in 2003 when it decreed that October shall be deemed "National Work & Family Month" ...

It’s not uncommon during economic downturns for organizations to conduct a RIF and—if the expected savings don’t materialize—to follow up with a retirement-incentive plan. But be aware of one pitfall ...

If you don’t ensure that clearly qualified, post age-40 employees aren’t seriously considered for promotions, you could be risking an expensive lawsuit under the federal Age Discrimination in Employment Act ...

A federal district court judge in Texas recently ruled that an employee may proceed with a lawsuit claiming that he was entitled to rescind his early retirement because his employer misrepresented his pension benefits ...

The U.S. government’s main survey on wages and benefits, Employer Costs for Employee Compensation, offers a good quarterly snapshot that can help you benchmark your own pay and perks ...

The Pennsylvania Inspection of Employment Records Law guarantees employees the right to view their personnel files at work ...

Rep. John R. Carter (R-Texas) last month introduced legislation in Congress that aims to bar U.S. citizens from receiving Social Security benefits based on wages earned while they were in the United States illegally ...

A federal judge in Texas recently dismissed a lawsuit brought by an employee who sued his former employer under the Employee Retirement Income Security Act (ERISA), alleging that the company had breached its fiduciary duties ...

Corporate culture figures prominently at six companies headquartered in Georgia that made Fortune’s new list of the “100 Best Companies to Work For” ...

Chambersburg-based Alex C. Fergusson Inc. (AFCO) must pay $50,000 to a salesman after forcing him into retirement at age 65 ...

Pennsylvanians are more likely than the average American to go to the emergency room for treatment, a problem targeted by Gov. Ed Rendell’s proposed “Prescription for Pennsylvania” reform plan ...

Are you planning to use an early-retirement incentive to help reduce the size of your work force? If so, it’s wise to prepare contingency plans for the remaining open positions and carefully document them ...

In a perfect world, employees wouldn’t tap their 401(k) or other tax-qualified retirement plan until retirement. But a client might be forced to take drastic measures when facing a personal emergency.

HR Law 101: The EEOC has taken a proactive approach to enforcing the ADA's protections for disabled workers. In addition to issuing enforcement guidelines, the agency has settled many cases for substantial sums.

HR Law 101: Some supervisors try to skirt the whole issue of firing someone by resorting to constructive discharge. Their logic: If we make an employee’s time at work so intolerable, he or she will choose to resign. That’s an unwise strategy ...

HR Law 101: The Equal Pay Act of 1963 prohibits employers from paying different wages on the basis of gender for “equal work on jobs the performance of which requires equal skill, effort, and responsibility and which are performed under similar working conditions...” Female employees must also receive the same level of benefits as their male colleagues ...

Are you scrambling to complete your corporation’s tax return on time? Instead of slapping things together, take the easy way out.

HR Law 101: Your employee handbook should include statements on these topics: a welcoming letter from the CEO, rules and procedures, your employment policies, compensation and benefits, safety and health rules, an affirmative action statement and an acknowledgment receipt form ...

Q. We understand that employees on FMLA leave don't lose investment toward retirement plans. Leave time is counted as work time. But our policy says that if employees are out for more than 30 days, their anniversary dates will change. Accrued paid-time off and vacation time will be based on the new anniversary date. Can we do this? —K.A., Connecticut

Q. Are there any specific rules defining “early out” retirement packages offered to employees? Our company is planning to offer early outs. Our criteria mandate that an employee must have worked 15 years and be at least 50 years old. But we have employees who have worked as long as 28 years, but fail to meet the 50-year-old criterion. Is this age discrimination in a reverse sort of way? —T.G., Florida

Q. How many hours must employees work to be considered full time? Part time? —D.S., Texas

If you're a Texas employer that agrees to settle an on-the-job injury case out of court, be prepared to follow through. If you don't, you just may find your organization in a less favorable Texas court defending itself against breach-of-contract claims. And that can mean a big, fat award from an angry Texas jury ...

For Texas employers, the long-range forecast shows an unstable union atmosphere over the next several years, with pressure building from health care costs, outsourcing and immigration reform. As the united front of the AFL-CIO and the new Change to Win union blow through the state, damage may be significant ...

The federal Employee Retirement Income Security Act (ERISA), which regulates employee benefit plans, usually covers employees' claims related to their benefits. However, Texas employers who opt out of the state workers' compensation program may receive a nasty surprise ...

If you've ever wondered whether allowing an employee to take medical leave will tie your hands if it comes time to challenge that employee's disability claim, take heart. Just because you didn't ask for medical proof of disability once, that doesn't mean you can't later ...

Wal-Mart won a major victory this summer in the continuing battle against state lawmakers who want to impose benefit mandates on U.S. employers. Only time will tell whether that victory discourages other state legislatures from pursuing similar actions ...

If your organization plans a reduction in force, you can rest assured that you don't have to prove that your method for selecting employees is the absolute best way to achieve your business goals ...

Even though some provisions of the new landmark pension law don't take effect for 16 months, HR professionals need to start educating themselves immediately. The changes amount to the most sweeping reforms of pension law in more than 30 years ...

Since San Joaquin Gardens, a continuing care retirement community, began handing out candy bars and $100 bills, employee turnover has dipped 6 percent ...

t’s not a good idea for employees to invest too big a proportion of their retirement dollars in a single stock—even if it’s your organization’s stock. And the IRS says you have to point that risk out to employees four times a year on quarterly plan statements ...

No matter how highly educated your employees are, they’re probably not professional investment experts. Yet it’s likely your organization has shifted responsibility for retirement savings to those employees. But now the Pension Protection Act of 2006 makes it safe for employers to arrange for employees to receive personalized, specific advice on investments ...

Employers that want to trim their work force often sweeten the exit with severance payments. In exchange, employees sign away rights to lawsuits they may otherwise have contemplated. But what about employees who already have pending employment discrimination lawsuits or EEOC or state agency complaints? ...

If your organization aims to attract a younger, more hip clientele, watch how you convey that idea to employees who don’t fit your target demographic ...

Florida’s population is the oldest in the United States. So perhaps it comes as no surprise that older workers in the state are becoming increasingly litigious in filing Age Discrimination in Employment Act (ADEA) lawsuits ...

If you hire emotionally disabled employees, be sure to integrate them into your regular staff meetings and events. Avoid treating them as a separate (even if equal) component of your work force ...

HR Law 101: The Employee Retirement Income Security Act of 1974 (ERISA) governs the administration of employee benefit plans and the rights of plan beneficiaries. While many tend to associate ERISA only with retirement benefits, the law covers many other areas ...

HR Law 101: The Employee Retirement Income Security Act (ERISA) governs the administration of employee retirement plans. Pension plans fall into two major categories: qualified and nonqualified plans ...

HR Law 101: Employers must comply with the reporting and disclosure requirements of the Employee Retirement Income Security Act (ERISA), designed to protect employees’ rights to benefits. An employer’s benefits package must take the form of a Summary Plan Description, which you must provide to participants and beneficiaries to advise them of their rights under the plan ...

HR Law 101: To be considered exempt from overtime, an employee must generally be paid on a salary basis and his or her job duties must meet the Labor Department’s standards for one of the six exemption categories. Use this self-audit to test whether you’re properly classifying your workers as exempt under the FLSA ...

HR Law 101: When an eligible employee returns from FMLA leave, the employer must restore him or her to the same position or an equivalent one with equivalent benefits, pay and other terms and conditions of employment. The new position must involve the same or substantially similar duties, responsibilities and authority ...

Question: The company I work for needs to freeze their defined benefit plan due to underfunding and expense of the plan. As the HR person I would like some insight from others who may have experience with such a matter. Also I would like suggestions on other retirement plans to consider that would supplement the frozen accrued benefits of defined benefit plans, etc. ( I work for a small bank with about 30 employees.)  --  Blue Eyes

HR Law 101: Some employers and employees choose to enter into an employment contract. Usually the worker is seeking job security, while the company wants to protect its trade secrets and sales territories. However, if you sign an employment contract, you may find that you’ve given away more than you bargained for ...

Florida’s unemployment compensation law, like that of many other states, provides temporary payments to employees who lose their jobs through no fault of their own. The law is complex and in some cases holds employers liable for unemployment insurance payments even when former employees weren’t fired but quit their jobs ...

Georgia’s unemployment compensation law, like that of many other states, provides temporary payments to employees who lose their jobs through no fault of their own. The Georgia Employment Security Law is complex and in some cases holds employers liable for unemployment insurance (UI) payments even when former employees weren’t fired but quit their jobs ...

New Jersey’s unemployment compensation law, like that of many other states, provides temporary payments to employees who lose their jobs through no fault of their own. The law is complex and in some cases holds employers liable for unemployment insurance (UI) payments even when former employees weren’t fired but quit their jobs ...

The New Jersey Wage Payment Law seems like it should be rather simple, but it’s perhaps the most complicated employment law in the state. Full of traps for the unwary, the law can spell big trouble for even innocent mistakes, with fines of up to $1,000 per violation ...

New York’s unemployment compensation law, like that of many other states, provides temporary payments to employees who lose their jobs through no fault of their own. The law is complex and in some cases holds an employer liable for unemployment insurance (UI) payments even when a former employee wasn’t fired but quit ...

California’s unemployment compensation system, like that of many other states, provides temporary payments to employees who lose their jobs through no fault of their own. The law is complex and in some cases holds an employer liable for unemployment insurance (UI) payments even when a former employee wasn’t fired, but quit ...

Ohio’s unemployment compensation system, like that of many other states, provides temporary payments to employees who lose their jobs through no fault of their own. The law is complex and in some cases holds an employer liable for unemployment insurance (UI) payments even when a former employee wasn’t fired but quit ...

The Illinois Unemployment Insurance Act, like that of many other states, provides temporary payments to employees who lose their jobs through no fault of their own. The law is complex and, in some cases, holds an employer liable for unemployment insurance (UI) payments even when a former employee wasn’t fired but quit ...

The Michigan Employment Security Act governs the state’s unemployment compensation program. As in many other states, the law provides temporary payments to employees who lose their jobs through no fault of their own. The law is complex and in some cases holds an employer liable for unemployment insurance (UI) payments even when a former employee wasn’t fired but quit ...

Question: I am the executive assistant for the CEO/president of a small (45 employees) company. The boss frequently travels, either on business trips, family trips or hunting trips. While he's gone, he might check his e-mail once a day, but he relies heavily on me to check his e-mail, handle things that I can, return calls, answer questions, etc. Usually, once a day, he’ll call and get any pertinent info from me.

He gets about 30 e-mails a day and one or two calls. About five of his e-mails contain something that needs to be handled; most are simply “junk.”

When he’s around, I have JUST enough to keep me working very slowly. I feel as though I'm not used to my potential; I really prefer to be TOO busy! I have assumed all the responsibilities he will allow, I assist others in the company as much as I do him, and do a lot of research on potential customers, partners, vendors, etc., without being told. I have PLENTY of initiative, I go above and beyond constantly, and I do a lot of things. But when he's gone, I literally could get all my “work” done in one hour a day!

It’s very frustrating, because I don’t feel like I’m worth my paycheck, sometimes. But there’s nothing I can do to remedy it. He has specifically said I’m doing more than he would ever ask and that I’m capably handling SO much and the folks in the office all have their jobs to do and any offers of assistance I give are usually politely declined. I mean seriously: I don’t feel like he needs me to be in the office while he’s gone. We have a telephone system and VPN, and I could literally work from home and be JUST as available.

I don’t really want to push for that, because he really doesn’t like folks to telecommute. He likes them to be in the office, especially me being the “face” of him when he’s not here. Inevitably, things arise that I might need to make a decision on.

I paid for an online continuing-education course from a local college and have been doing my studies at work. Seeing as it’s an administrative course, I don’t feel bad about that. But after that, I'm still left with three to four hours a day with absolutely NOTHING work-oriented to do because I have DONE IT ALL, already!

My long story boils down to this: Should I look for another job that's more fast-paced and I feel like I’m worth my paycheck?

Should I try to talk to him about working part-time while he’s out of town?

Should I feel guilty on a day like today when our gas has been turned off due to a leak the gas company has to locate, I feel sick (several employees have the stomach virus going around), have a headache, have nothing to do, have received ONE single e-mail in two days that I could do anything with, and made a copy of a receipt for one other person? Should I be feeling guilty for checking my e-mail? What am I missing?

I’m so frustrated because I have a VERY strong work ethic and a fast-paced mentality, one can reorganize the files only so many times!

HELP! I don’t want to be watching the clock!  -- Liz

Question: I know before I start this that I'm going to sound like a shrew, but there is just no tactful way to put this.

I'm an executive secretary/admin for our company president and vice president of sales for a privately held manufacturer. We have about 500 employees at this location, and 150 of them are office personnel. Only three admin people serve this whole office. As I said, I have two executives and numerous requests from other managers, corporate personnel, as well as field sales personnel.

This is my complaint: On numerous occasions, we've catered lunches for meetings and mill visits. These meals are always delivered, served and taken away with little disruption of an admin’s day.

My VP of sales, however, is forever deciding to have a "working lunch," for which I have to order, pick up and deliver to him and others. This is at least one day a week, unless he’s traveling. Occasionally, our president will request this service, also.

These are usually orders for only three to five people, and none of the restaurants or fast-food places in our small town will deliver for fewer than 10 orders.

I have to spend my cash, my gas and time out of an already-busy work day to do this. I'm reimbursed for the money, but that in itself is a hassle, with forms and signatures required. Most of the time, it’s the next day before I can get it back.

To me, this seems to be an unreasonable expectation when my work load is already heavy. I'm not allowed to work overtime to catch up when I’ve lost an hour from my day.

I assure you that I'm not lazy. I love everything else about this job, but these too-numerous lunch requests are dragging me down.

Please don’t suggest that I try talking to the execs. When someone complains about their job at this place, it comes back to haunt them at review time. Also, please don’t suggest that I find a new job. I’m almost 59 years old and would like to retire from here. I’ve out-lasted four presidents and seven VPs, but I’m getting too old to be patient!  -- Elaine Cornwell, Senior Executive Secretary

Are you a gold bug? You may think the time is right to invest in gold or other precious metals (such as silver) as a hedge against inflation or for greater purchasing power. Of course, the price of gold has been known to fluctuate widely, so you need to pay close attention to the ups and downs.

Question: I like my job, and my manager and I want to keep working for my organization in the federal government. However, my salary has not increased in 6 years due to the job classification cap. I am about to retire in 3 years. How do I approach my manager to increase my salary, when I know the answer to a raise is negative?  -- Lynn

The first shot in Washington's tax reform battle was fired earlier this month when the President's Advisory Panel on Tax Reform issued its long-awaited list of tax-simplification suggestions.

As a small business owner, your company's 401(k) plan is one of the best deals around. You can salt away part of your salary tax-free within generous limits, while the company matches all or part of your deferral.

It's no fun paying a hefty tax bill when you file your annual return. But Uncle Sam doesn't want to wait that long for your cash. Estimated-tax rules say you must pay a certain amount of tax during the year. If you don't, you run the risk of an underpayment penalty on top of your regular tax bill. Fortunately, you can stop the bleeding with some minor band-aids. Following is the who, what, where and when of estimated taxes ... and how to avoid penalties.

For too many people, the tax season is a February-to-April affair. But trying to plan your tax strategies after Dec. 31 is as futile as a football team drawing up its game plan with two minutes left in the fourth quarter: You can't do much to affect the score.

Social Security taxes take a big bite out of your paycheck. That's why it's a huge relief to highly paid employees when autumn finally rolls around. Reason: Once they clear the Social Security wage base for the year, they won't need to pay any more Social Security tax for the year.

The new bankruptcy law that took effect Oct. 17, protects funds held in a qualified retirement plan from outside creditors. There's no limit on the amount you can shield from creditors.

Although Roth IRAs have been around for a few years, some taxpayers are still spooked by this newfangled version of the traditional IRA. As you'll see, 2005 may be an especially good year to look at different ways you can put money into a Roth IRA before year-end.

Should you contribute to a Roth IRA or a traditional IRA? You may be surprised to learn that the Roth IRA beats the traditional IRA almost all the time. Let's look at seven common scenarios. In all these examples, we've assumed you would leave an initial contribution in the Roth or regular IRA for a number of years and then pull out the money as a lump sum in retirement after age 591/2. For simplicity's sake, we'll assume a 10 percent before-tax rate of return for each example.

President Bush signed legislation that provides $6.1 billion tax relief for people and businesses reeling from Hurricane Katrina. While most of the tax-law changes apply to those in the hard-hit Gulf region, some breaks extend to charity-minded taxpayers throughout the country.

Q: I'm still confused about guaranteed withdrawal benefits and guaranteed monthly income benefits available with some variable annuities. I am interested in the guaranteed monthly income benefit. Can you explain the difference? V.G., via e-mail

As you thumb through the mail one day, an unassuming letter catches your eye. Return address: The IRS. You nervously tear open the envelope and your worst fears are confirmed: The IRS has chosen your return for a correspondence audit.

Question: I'm retiring before the end of the year at age 64. My accountant says I've earned too much salary this year to receive any Social Security benefits. I thought the earnings test was eliminated years ago. If not, is there anything I can do now? Or do I have to work longer? — J.M.B., Boise, Idaho

Q: I'm thinking about retiring early and moving to a foreign country to avoid U.S. income taxes. Will I still be taxed on retirement income from my pension plan and IRAs? J.L.S., Spokane, Wash.

Do you need extra cash to pay for your child's (or your own) college tuition? When you've exhausted other conventional sources, you can turn to your IRA in a pinch, even if you're younger than the age generally required for penalty-free distributions.

Question: I recently joined a company at a very low starting salary simply because a lot of people said there was going to be a separation between the partners who run the company and that would greatly affect our paychecks, and it had a great working environment.

A year and a half down the line, I see neither happening, although I must say the working environment is very good and it is a nice place to be. But I can see a lot of people slowly deciding to move on to greener pastures, and the company is either ignorant of the reason they are losing these people or chooses to be blind.

The management has recognized my contribution and is very supportive and aware of my hard work. I have been promised a lot of growth and a great future as the company grows. But, although the growth is a fact, I can't see much in terms of salary changes, given their history. My questions are:

1.      Is it worth having a talk with my manager, to revise my salary significantly?

2.      Should I waiting for the changes to take place?

3.      Should I just move on?

To make things worse, a few months ago, another person was hired in the same position as mine but at a much higher salary, although that person's performance is not at all at par with the company's standards or the claims on their CV. (This is based on a probationary review.)
Having had my annual appraisal around now, I expected an increment to at least level off our salaries, if not take me a level higher. It has, in fact, been just a 20% increase!

When you started your small business, you poured most of your earnings back into the operation. Unfortunately, that didn't leave much cash for retirement savings. Now that your business is running smoothly, you may hope to make up for lost ground—and fast.

Nobody's getting any younger. But if you own a small business and you're older than most of your employees, you may be able to max out on your retirement plan and jump-start your nest egg. That's especially true if your company doesn't have a retirement plan in place or you haven't been able to max out on plan contributions.

For many parents, the day of reckoning is right around the corner: the time when you start paying those hefty college tuition bills for your children. Even if you've been preparing for this day your entire adult life, you (and/or your child) may be forced to seek loans or other financing to pick up the slack.

Divorce isn't a pleasant undertaking. But at least you can minimize the tax fallout by taking a few key proactive steps.

Q: My father is retired and living in a retirement community. He insists that he doesn't have to file a tax return anymore. Is there a maximum age for filing? J.W., Old Tappan, N.J.

The IRS just released a new CD titled "Individual Retirement Arrangement (IRA) Resource Guide for Small Business Owners and Individuals."

It's rare when you can have your tax cake and eat it too. But a new private letter ruling issued by the IRS gives certain older business owners a generous slice. It allows them to preserve the tax benefits of a "grand-father election" made over 20 years ago.

The word is out on REITs. These investments aren't as desirable for your taxable brokerage-firm accounts anymore because of the income tax repercussions. (They're fine for tax-advantaged retirement accounts.) But the word on the street doesn't give you the whole picture.

Q: My daughter is switching jobs in a few weeks. She's accumulated about $20,000 in her 401(k) plan. Does her employer have to automatically roll the money into a Roth IRA? I read something about that issue recently. G.P., Hoboken, N.J.

For investors relying on variable annuities during their retirement years, it's no fun watching the stock market intermittently spike and then plummet. When the market is booming, so is your investment. But your return suffers when the market takes a nose dive.

Can't get enough of a good thing? To hoard even more money for retirement than the tax law allows for qualified plans (such as 401(k)s or pension plans), arrange things so your company makes contributions on your behalf to a nonqualified deferred compensation plan.

Q: You said retirement plan participants must pay a 10 percent penalty tax for withdrawals before 55 (see 4/18/05 issue). Isn't the correct age 59 1/2? C.F., via e-mail

First came the 401(k), which, in just a quarter-century, became the most popular retirement plan of all time. Then, Roth IRAs were born in 1998, allowing millions of Americans to build up retirement nest eggs that they could tap into tax-free.

Question: I am 62, married and plan to retire in June. I know that I can start collecting 80 percent of my Social Security benefits this year, but I'll also be taxed on those benefits. Should I hold off collecting benefits until I reach 65 or later to avoid the tax? Or should I start taking benefits now because of the new Social Security proposals? (I'm in the 28 percent tax bracket.) – J.H., Columbus, Ohio

Q: We run our business as an LLC (a husband and wife partnership) and have a SIMPLE retirement plan. The company deducts the contributions it matches for employees. Can it also deduct the matches for my husband and me? L.J.S.

If you're like most small business owners, your spouse does odds and ends around the office and pitches in when you need help. This is particularly true in the summer months when other employees take vacation leave.

You may have amassed hundreds of thousands of dollars in your retirement savings accounts, or maybe even a million or more. When you finally tap into that money, you'll be taxed on the withdrawal at rates that could reach a staggering 35 percent, plus any state income taxes due.

Q: One of my business associates says top-heavy requirements exist for employee group insurance plans as well as 401(k) plans. Is that true? J.A., Monterey, Calif.

For some people, waiting until mid-April to file their individual income tax returns simply represents a bad case of procrastination. Others hold out so they can keep their money until the last possible moment. Whatever your reason, if you haven't filed yet, you can still cut your 2004 tax bill with a few timely tactics and tax-smart choices.

As you grow older, it's critical to save as much as possible for retirement. As the person who calls the shots at your company, you can be even more creative than others in saving for retirement.

A recent IRS ruling on involuntary retirement plan cash-outs caught a lot of retirement plan administrators with their pants down. Now, the IRS is giving those plan administrators a break for the 2005 plan year.

Q: The "estimate of earnings" I recently received from the Social Security Administration showed that I had no income in a year I actually earned more than $100,000. I'm age 61. Is it worth going through the hassle to change this? And, if so, how do I do it? H.S., Wichita, Kan.

Question: It's "annual review" time in our office.  Each year, my supervisor asks me to write my own review and then we discuss it before he writes the final version.  Since I know my job so well, I work independently and require no supervision.  One of the questions on the evaluation form asks for "outstanding accomplishment(s) since the last review."  I've been working at the same job for 27 years and am running out of adjectives to describe how great a job I do.  There's nothing "new" to report and I'm concerned that I won't get the raise I think I deserve.  How do you handle your annual evaluation without repeating the same things year after year?  -- Anonymous

Q: When my friend retired several years ago, she did not roll over her company stock into an IRA. (She had bought some of the stock and her employer gave her some.) If she sells the stock, will it be taxed as capital gain? F.G., King of Prussia, Pa.

Scared off from investing by the mutual-fund scandals? You can reap the tax advantages of mutual funds by investing in other tax-advantaged vehicles.

Is most of your money tied up in investments? You're certainly not alone. But that may create a cash crunch if you need funds in a hurry for an emergency or an unexpected expense.

Q: My employees sometimes ask my advice about their personal financial affairs. That got me thinking about offering financial counseling from an outside firm as an employee benefit. Can this be offered as a tax-free fringe benefit? C.O., Detroit, Mich.

Q: My father passed away this year at age 69, and I am the sole beneficiary of his IRA. Do I have to take out all the money within five years? S.D., Massapequa, N.Y.

Q: My wife has taught in public schools for 30 years and participated in a 403(b) plan the entire time. Now she's thinking about opting for early retirement. Does she need to wait until she retires to roll over that money into an IRA? C.T., Sacramento, Calif.

As the owner or sole proprietor of a small business, you reap most of the rewards. But you also run most, if not all, of the risks. So you might be hesitant to sponsor a qualified retirement plan for yourself and your employees. One reason: Creditors could gain access to your plan assets if the business ever goes under.

Take home more pay. If your teen works a summer job, taxes can put a dent in his or her take-home pay.

If you want to pay the absolute minimum to Uncle Sam, tax planning must be a year-round pursuit. With summer right around the corner, you can cash in on several key tax breaks by springing into action now. If you procrastinate until the end of the year, you'll miss out on valuable deductions and credits for yourself, your business and your family. This special report explains a dozen timely moves you should take before the leaves begin to fall.

IRS bigwigs are predicting increased audit activity of employer retirement plans.

Many employees forget—or don't realize—that employer-provided benefits make up a big portion of their compensation.

Real estate values are scorching hot in many parts of the United States. If you're sitting on some big-time appreciated property, check out the following three strategies for minimizing your tax bill

Yes, the new 15 percent top rate on capital gains is good news for real estate investors. But if you sell investment property, your actual tax bill can be much higher than 15 percent of your gains, due to earlier depreciation deductions. (Gains from prior depreciation write-offs are taxed at a 25 percent maximum federal rate.)

After you retire and the paychecks stop, you'll probably need to depend on your investments for cash flow. If you have a mix of investments, inside and outside a tax-deferred retirement plan, know which to tap into first.

If you're an owner/executive of a C corporation, it's time to sit down with your tax adviser to see if your compensation passes IRS muster.

Section 529 plans are the best way to save for college. Withdrawals are totally free from federal income taxes. But if you've been dragging your feet about launching a Section 529 plan, you have new incentive to act quickly

President Bush is once again pushing Congress to radically reshape America's savings plan system, creating three new tax-preferred investment accounts.

Q: I invested in a variable annuity when I was 39. Now that I'm 52, I want to begin withdrawals to help pay my daughter's college expenses. Will I have to pay an early withdrawal penalty? D.T., Raleigh, N.C.

Q: Our small company does not have a retirement plan. Can the company contribute to a Roth IRA on my behalf if I'm one of the company principals? P.H., Columbia, Md.

While debate on the current same-sex marriage controversy centers on "Is it legal/moral?," your business faces a different question: How do gay couples fit into workplace policies involving everything from family leave to medical benefits?

Just because an older employee is preparing to retire, it doesn't give your organization the right to push him out the door.

Do you plan to raid your retirement plan early? If you use the money for medical payments, you can avoid the usual 10 percent penalty tax on early withdrawals.

Many people thought their estate-tax worries were over once President Bush signed estate-tax relief in 2001. The law gradually increases the amount of your estate that's exempt from federal estate taxes, then eliminates the tax in 2010, before the tax comes roaring back to life in 2011 (unless Congress extends the relief law).

Q: I operate a small relocation company with 10 full-time employees and a few part-timers. We don't have a retirement plan. I remember reading something recently about a tax break for setting up a plan. Is there such a break? E.R.M., Chicago, Ill.

Q: I'm 56, my wife is 55 and both of our kids graduated from college. I maxed out my 403(b) plan at work last year, but I still want to increase my retirement savings. If we're over the income limit for Roth IRAs, can we both contribute to nondeductible IRAs? T.R., Logan, Utah

Lower rates. The 27, 30, 35 and 38.6 percent individual federal rates that applied for 2002 are reduced to 25, 28, 33 and 35 percent, respectively, for 2003. The 10 and 15 percent federal rates are unchanged.

Q: My husband and I collectively earn $85,000 a year. Neither of us participates in any retirement plans. Can we both make deductible IRA contributions for 2003? I.M., Thomasville, N.C.

The March 15 deadline for filing a 2003 corporation tax return is approaching quickly. (See tax calendar, page 5.) Rather than slapping together your tax paperwork at the last minute, punt. You can earn a six-month extension by filing Form 7004, Application for Automatic Extension of Time To File Corporate Income Tax Return, and paying what you estimate you owe.

Instead of grabbing your maximum first-year depreciation write-off (as described above), you can choose another route: Mix and match depreciation methods to claim a smaller first-year depreciation write-off and thereby fine-tune your business's 2003 taxable income level.

Have you heard about the new, "creative" way to shift assets from your business to a Roth IRA to skirt the IRA contribution limits? Well, forget that advice and heed this:

The IRS came out swinging last month, issuing formal notice that such transactions would be listed as "abusive tax shelters" and trigger stiff penalties. (IRS Notice 2004-8)

You've probably heard that hiring your children is a great tax-saving move. Their income is taxed in their low tax bracket, and as long as you handle things correctly, your company can deduct the compensation.

It will soon be springtime in Washington, and for the past three years, that has meant tax breaks spilling forth across the land. But not this year.

Sometime between now and April 15, you'll probably sit down with your tax adviser to pour over receipts, write-offs and changes to your personal tax situation. You can save on your tax bill—and your tax-preparation fees—by avoiding these common errors

If your business pays nonemployees for services, you're responsible for providing that information to the IRS each year.
The timing is critical, and the clock is running down.

The 2003 tax law spawned dozens of great tax strategies, plus a couple of duds.

One lame concept gaining traction these days: Reduced individual income tax rates make your tax-deferred retirement plan an inferior retirement savings vehicle. Instead, the story goes, you should stash your retirement money in a taxable account at your friendly brokerage firm.

Check your stockpile of Series EE Savings Bonds. Time is running short on a great tax-deferral strategy.

Tax-free is always better than tax deferred. So if you stashed your retirement funds in a Roth IRA account, you can collect tax-free cash while enjoying your retirement.

... older Americans

Q: In a recent Mail Call, you correctly answered a reader by saying that a tax refund would not be reduced by a Roth IRA contribution. (8/11/03 issue) But in stating that Roth IRA contributions don't affect current tax liability, aren't you omitting the use of the retirement tax credit? M.A.C., Union Beach, N.J.

If your company offers a retirement plan, the federal government says you must retain a "fiduciary responsibility" over those employee accounts.

Treasury Department honchos have revived an idea that seemed dead just six months ago: consolidating many tax-preferred savings plans under two basic savings vehicles, lifetime savings accounts and retirement savings accounts.

Next year's estate-tax exemption increase—from $1 million to $1.5 million—will prompt many people to tweak their estate plans. (See article above.) If you're meeting with your tax adviser about those topics, you should also review aspects of your estate plan that don't involve taxes.

If you plan to pack up and move after retirement, you'll probably weigh various factors when eyeing a landing spot, including climate, crime rate and recreational opportunities.

But here's another to put on the list: the state's tax structure.

Q: My neighbor went to a retirement planning seminar and talks about a new concept called "split annuities." Are split annuities tax-deferred like regular annuities? J.Z., Mayo, Fla.