Information Technology Services

Information Technology Services

631.923-1595
G.R. Reid Consulting Services, LLC
 

 

 

Take Every Precaution Prior To A Storm:
Secure Your Computer Equipment

The following are some precautionary measures that you may want to consider to safeguard your computer equipment.

The most damaging two things that can happen in a major storm are electrical damage and water damage.

Even though we all do our best to put protections in place, such as Uninterruptible Power Supplies and data backup routines, there is always the chance – especially in a major storm – that those protections can be circumvented or overrun.

In preparation for extended power outages and\or interruptions, you may want to consider the following steps:

1) Make sure to take your backup tape or hard drive with you when you leave the office. If you are using an off-site backup service, such as Mozy or Carbonite, double check to make sure it has run successfully.

2) Power down or turn off all computers, servers and electronic equipment such as routers, cable modems, printers and network switches.  Start with the workstations, then the server, and finally all other equipment.  The most damage to data occurs when a computer shuts off unexpectedly which can cause data loss or corruption.  An Uninterruptible Power Supply (such as an APC UPS) is designed to protect against power surges and spikes and short term power loss.  However, if the outage lasts longer than a few minutes, the battery will be exhausted and the equipment will still shut off, increasing the risk of data loss.

3) To protect from lightning and\or major power spikes, such as from trees falling on power lines, you may want to take the added precaution of physically disconnecting all wires from the back of your equipment.  Even though you may have surge protectors, if the spike is large enough, it can still find its way through the wires.  For example, if there is an unprotected wire connected to the internet or phone system, the power spike can actually travel through ANY connected wire, such as a network cable, and damage the internal components of the system.
4) If you are in a location that is prone to flooding, after you have physically disconnected your computer or server, move it off the floor and onto a higher location or take it off the premises.

The level of precaution you decide to take will surely depend on the storm severity in your area and your own business continuity needs, but we want to communicate the options so that everyone is prepared.

Even with a good data backup, waiting for replacement parts and equipment can cause days or weeks of lost business productivity.  We have found that a few hours of precautionary system downtime can save time piecing things back together afterwards.

Should you decide to shut everything down, when you power everything back up do so in the reverse order that you powered it down.  Start with the miscellaneous equipment (internet devices, printers, etc), then the server, then the workstations.

We strongly advise that if you are not using G.R. Reid for I/T services that you contact your own I/T support company for their approval and recommendations before following these steps.

If you have any questions or concerns, please contact us.

Health Benefit Services

: : Julie Seiden, Managing Director,
Health Benefits Services | 

631.923.1595 ext. 310

G.R. Reid Consulting Services, LLC




Have You Considered Full-Replacement CDHP?


The Corporate Executive Board, an advisory and research company, and HighRoads, a compliance and health care costs services provider, assembled 2011 data from almost 11,000 medical plan design and the medical plan rates of over 30 million Americans. The data showed that an average of $187 dollars per year in out-of-pocket expenses was saved when an employee used a high-deductible consumer-driven health plan, or CDHP. The savings for families averaged $204. However, when compared to health maintenance organization (HMO) plans and traditional preferred provider organization (PPO) plans, CDHP premium and out-of-pocket savings might be too little, as well as the deductible being too high, to spur employees to make the change. Even with substantial communications related to high-deductible CDHPs, PPOs are still the most widely offered and popular plans, representing 39% of employer plans. HMOs represented 27% of U.S. employer plans and CDHPs linked to health savings accounts (HSAs) represented 17%. Other data included:
• Traditional, non-high-deductible plan premiums averaged $132.11, exclusive provider organization (EPO) plans averaged almost $112, HMO premiums averaged almost $133, and PPO premiums averaged almost $150 (employee-only/per month).
• At an average premium of almost $63 (employee-only/per month,) CDHPs were significantly lower than other plans.
• When compared to PPOs, CDHP plans were accompanied by lower yearly out-of-pocket costs.
• For CDHPs, the average yearly out-of-pocket cost was $2,128 for individuals and $5,656 for families. For PPOs, the average yearly out-of-pocket cost was $2,315 for individuals and $5,860 for families.
• The average in-network co-pays with non-CDHP plans were $103 per emergency room visit, $31 per specialist visit, and $19 per primary care provider visit.
By effectively educating employees about potential cost savings from CDHPs, employers can offer employees more control and flexibility related to health care decisions and help them decrease their out-of-pocket yearly expenses.

Implementation Tips For Shifting to Full-Replacement CDHP
Some businesses are offering one or more CDHPs since just encouraging employee enrollment might not be sufficient to create the enrollment numbers necessary for significant cost reduction. Towers Watson/National Business Group on Health found that eight percent of employers are currently offering full-replacement CDHPs to some portion of their workforce. Most experts recommend employers consider several factors before making such a commitment. For example, employers should consider their low-income workers - do they have families and will they need an employer contribution to a HRA or HSA to ensure they're protected from exorbitant out-of-pocket costs? Employers should also assess and weigh the challenges that will come from full-replacement CDHP against the costs of crafting a plan to drive voluntary participation rates.

Should a full-replacement CDHP be the best option, here are a few suggestions:
• Use focus groups to test full-replacement CDHP. Listen to the employees. Find out what they might need to utilize the plan. Such feedback can be helpful as communications are drafted.
• Don't forget the big picture. Employers need to clearly and effectively explain how the change is connected to the business's overall benefits strategy. For example, is there a wellness factor that could be interlinked to the full-replacement CDHP? Employees also need to see how the change plays into their personal big picture, such as from being shown the strong connection between health care decisions and retirement decisions and the benefit of health care expense saving with a tax-advantaged HSA.
• Address the change head-on and keep stakeholders involved in the process. If rumors get started before an announcement is made to employees, it can create confusion and be detrimental to employee support. A news release, whether it be from a media relations firm or internally through HR, should be sent to explain the what and why of the change. Be sure to keep managers; supervisors; and, if applicable, union officials in the loop.
• Make any choice among CDHPs meaningful. Also, be sure that the options are differentiated thoroughly so that employees can clearly determine which option is best for their needs and be confident in the their final decision.
• Use a combination of print and news media to reach all the workforce generations. Keep in mind that Twitter, Facebook, blogs, and other online portals are freshly-streamed, inexpensive media portals to engage employees.
• Communicate early and frequently, and don't forget to actually listen and respond. Don't be surprised by an array of employee reactions. Some employees might be open to CDHP, while others might be fearful or angry. Anticipate all the reactions. Give employees a portal, such a call center line, to vent, but also give them sufficient information and time to eventually embrace the change. Communication should begin at least three months before annual enrollment and include CDHP tip sheets and user guides.
• Relating is key. Young, single workers aren't going to plan the same way a middle-age parent or older individual plans. Testimonials within communications can help employers reach their multi-demographic workforce.
• Whether using print or other media to communicate employee benefits, ensure it's done year-round to keep the stream of information fresh and up-to-date.

Personal Insurance Services

: : Neal B. Patel, Managing Director,
Personal Insurance Services | G.R. Reid Agency, LLC
631.923.1595 ext. 303

 

 

Hurricane Preparedness:
Have a Plan in Place

In the United States, hurricane season officially begins June 1 and runs until November 30th  each year.  It is important to have a thorough storm emergency plan in place if you live in an area prone to hurricanes.  It is also imperative that you know your local evacuation routes prior to the issuing of a "Hurricane Watch" or a "Hurricane Warning." Radio and television networks will keep you updated with the latest information for your area. There are different meanings to the terms "Hurricane Watch" and "Hurricane Warning."  If a "Hurricane Watch" is issued for your area, weather conditions are favorable to produce a hurricane within 36 hours.  When a "Hurricane Watch" has been announced preparations that require extra time, such as securing a boat or evacuating an island, should be initiated. A "Hurricane Warning" is a more serious notification.  If a "Hurricane Warning" has been issued, sustained winds of at least 74 mph are expected within 24 hours.  You should now be in the process of completing protective actions and deciding where you will be safest during the storm.  

If you live in an area that is prone to flooding, do not plan on riding the storm out at home.

Other Items to Consider Before a Hurricane

• Purchase materials to board up windows.
• Store any outdoor objects that could blow away.
• Find a safe place for your pet.  Your veterinarian or local humane society can provide you with information on preparing your pets for an emergency.
• Stock up on supplies and prepare a survival kit for your home and car.  Items to include are:  a first-aid kit; canned food and bottled water, enough for at least 3 to 7 days per person; toiletries; blankets and pillows; a battery-operated radio and flashlight; some protective clothing and any special items for infants or elderly. 
• Store important documents in waterproof containers or bags.
• Withdraw some cash. Banks and businesses can be closed for a period of time following a hurricane.
• Fill up your car's fuel tank.

Be Safe As the Hurricane Approaches

• It is safer to stay indoors and away from windows, as strong winds will blow items around.
• If you live in a mobile home, seek temporary refuge in a shelter.
• If your home is in a flood prone or low-lying area, move to higher ground or go to a shelter.
• If a mandatory evacuation has been issued, leave immediately.

After The Hurricane

• Exercise caution when checking for injured or trapped people.
• Beware of flooding which is typical after a hurricane, and do not attempt to drive into floodwaters.
• Avoid standing water.  It may be electrically charged from underground or downed power lines.
• Do not drink tap water until it has been cleared to do so. 

While hurricanes are potentially dangerous and life threatening, preparedness is crucial to weathering the storm safely.

Financial Services News

G.R. Reid Consulting Services, LLC
 

How Can I Benefit from Tax-Advantaged Investments?

For many people, tax-advantaged investing is an excellent way to reduce their taxes. And while many of the traditional tax-advantaged strategies have been eliminated, there are still alternatives left that can help you reduce your taxes. Some are described below.

Real Estate Partnerships
Two of the most common types of real estate partnerships are low-income housing and historic rehabilitation. The federal government grants tax credits to those who construct or rehabilitate low-income housing or who invest in the rehabilitation or preservation of historic structures.

Participating in a real estate partnership has many advantages. These partnerships may provide opportunities for tax-advantaged income and long-term capital appreciation. The tax credits generated by these partnerships can be used to offset your income tax liability on a dollar-for-dollar basis. This can make them much more valuable than tax deductions, which help reduce your taxable income, not the tax you pay. These credits are subject to certain limitations, and the rehabilitation tax credit begins to phase out for taxpayers with adjusted gross income (AGI) greater than $200,000 ($100,000 if married filing separately) and is completely phased out when AGI reaches $250,000 ($125,000 if married filing separately).

Oil and Gas Partnerships
Energy partnerships can provide shelter through tax deductions taken at the partnership level. These include deductions for intangible drilling costs, depreciation, and depletion.

The deductions may be limited; check with a tax advisor to see whether you could benefit from oil and gas partnerships.

Suitability
There are risks associated with investing in partnerships. Key among these is that they are long-term investments with an indefinite holding period with no, or very limited, liquidity. There is typically no current market for the units/shares, and a future market may or may not be available. If a market becomes available, it may result in a deep discount from the original price. At redemption, the investor may receive back less than the original investment. The investment sponsor is responsible for carrying out the business plan, and thus the success or failure of the venture is dependent on the investment sponsor. There are no assurances that the stated investment objectives will be reached. This type of investment is considered speculative. You want to ensure that the investment is not disproportionate in relation to your overall portfolio and that it is consistent with your investment objectives and overall financial situation. In order to invest, you will need to meet specific income and net worth suitability standards, which vary by state.

These standards, along with the risks and other information concerning the partnership, are set forth in the prospectus which can be obtained from your financial professional. Please consider the investment objectives, risks, charges, and expenses carefully before investing. Be sure to read the prospectus carefully before deciding whether to invest.
  
The alternative minimum tax is another concern. Make sure to consult a tax advisor to evaluate your exposure to the AMT. As long as they are suitable for your situation, these tax-advantaged investing strategies can be one way to help reduce your income tax liability. A financial professional can help you determine whether such investments would be an appropriate strategy for you.


The information in this article is not intended to be tax or legal advice, and it may not be relied on for the purpose of avoiding any federal income tax penalty. You are encouraged to seek tax or legal advice from an independent professional advisor.

The above information was supplied by Emerald Connect, Inc. All rights reserved © 2011.  This material may not be reproduced without permission.

Personal Insurance Services

: : Neal B. Patel, Managing Director,
Personal Insurance Services | G.R. Reid Agency, LLC
631.923.1595 ext. 303

Until You Know It's Protected, Keep Your Boat on Dry Land

Americans love the sense of freedom and adventure that comes from boating. But boating can have a dark side, too. According to the U.S. Coast Guard, there were 4,730 boating accidents that involved 736 deaths in 2009. The price tag of these recreational boating accidents is high: about $36 million dollars per year.  And these figures are probably only the tip of the iceberg since the Coast Guard believes that more than 80 percent of all boating accidents go unreported.

Given this level of risk for accidents, it would make sense that boat owners would look for a way to protect themselves, but that doesn't seem to be the case. A study conducted by Progressive Insurance revealed that nearly one third of U.S. boat owners don't own a separate watercraft policy. That's probably because boat owners assume that their craft is covered by their personal auto policy or their homeowner's policy. This is a mistake that can cost them big time.

The standard auto policy covers the boat trailer for liability with the option to add coverage for physical damage. The boat itself, however, is not covered for liability or damage.

Some homeowner's policies offer coverage for physical damage for boats, but only for smaller vessels. The typical homeowner's policy contains a special property limit of $1,500 on watercraft, which doesn't begin to equal the dollar value of most boats. In addition, the covered perils specific to the boat are also greatly restricted. There is also liability coverage available for boats under the majority of homeowner's policies, but once again, it is only applicable to smaller watercraft. The only exception is a boat with an outboard motor. That means that any type of boat you own that is powered by an inboard or inboard-outboard motor is excluded from liability coverage under the homeowner's policy.

Because most boat owners are unaware how large a property and liability loss they expose themselves to without proper insurance, the Institutional Risk Management Institute (IRMI) has created a list of loss scenarios that demonstrate the need for specialized boat owners coverage:

• Your cruiser collides with a speedboat whose operator fails to yield the right of way, causing extensive damage to your boat. The owner of the speedboat does not have any insurance coverage.
• An expensive fishing boat you just purchased is stolen from your home.
• Your 27-foot-long sailboat is damaged by a hailstorm and high winds while docked at the marina.
• Your sport fishing boat is struck by lightning, incapacitating its electrical system.
• Your daughter's friend is water skiing behind your boat and  falls into the lake, injuring herself, due to the excessive speed of the boat.
• You negligently cause another boat to overturn to avoid a collision.
• Your outboard motor explodes, seriously injuring your next-door neighbor.

These scenarios illustrate the need to factor insurance costs into the equation when buying a boat.  If you fail to insure your boat properly, your boat loan may become the smallest of your financial worries.

Human Resource Services News

:: Deidre Siegel
Director, Human Resource Services
G. R. Reid Consulting Services, LLC
Read about G.R. Reid Human Resource Management Tools  

Poster Display Regulations

As Human Resources professionals, we all know that each office is required to have posters hung in conspicuous areas displaying information regarding certain laws, but we do not always know which to display and where. The most common posters that should be hung include: 
 
 
 
•  “Employee Rights Under the Fair Labor Standards Act” Revised July 2009 describing FLSA and minimum wage
•    “Job Safety and Health: It’s the Law” Revised 2006 describing OSHA Regulations
•     “Equal Employment Opportunity: It’s the Law” August 2008 version describing EEO compliance
•    “Employee Rights and Responsibilities Under the Family and Medical Leave Act” January 16, 2009 Version
 
Available to employers on the Department of Labor website is a questionnaire that determines the required postings. Some postings may be available in “all-in-one” versions that can limit the amount of postings that are hung. While some posters are available to employers online, such as the OSHA required posting, it is important to read the requirements that are necessary to hang the poster. For example, some posters that are printable must be done on certain size paper, must be done in color, or must be laminated. In addition, there may be requirements as to where they must be hung.
 
In addition, it is important to remember that laws and regulations may change often so it is necessary to keep up with websites regarding the posters to determine if a new one needs to be hung. Some requirements may also change over time, such as the need to hang posters in dual languages over time, or poster may simply be outdated. The Department of Labor website also indicates which version can be hung and what the most recent version is.
 
For a questionnaire on what posters your worksite should hang, or about compliance assistance material, please contact us.

Health Benefit Services News

: : Julie Seiden, Managing Director,
Health Benefits Services | 

631.923.1595 ext. 310

G.R. Reid Consulting Services, LLC

When the Economy Improves, Will Your Best Employees Still Be with You?
Employee job dissatisfaction is running high these days, meaning that, as the economy recovers, they are more likely to seek new employment opportunities. This finding, from a MetLife survey, indicates employers would be well-advised to work now on strategies geared toward improving employee loyalty and retention down the road.

The MetLife survey, its 9th Annual Study of Employee Benefit Trends, reports that upwards of one in three employees hopes to be working elsewhere in the next 12 months. The specific percentage varies from 34% to 38%, depending on company size. Given this inclination to bolt from their current employers, it's not surprising to see that the percentage of employees who express a very strong sense of loyalty to their current employer has dipped below 50% (now 47%, compared with 59% in 2008). The percentage of employees who feel their company has a very strong sense of loyalty to them has dropped to 33% (from 41% in 2008). Employers, understandably focused on recession-related business issues, remain unaware of this change in employee perception. From 2008 to 2010, a consistent 57% say they have a very strong sense of loyalty to their employees, and half consistently say their employees have a very strong sense of loyalty to them.

Employers need to be aware of changing employee sentiment, and act now to avoid having to face significant retention issues when the economy improves. As the economy rebounds and business picks up, companies can least afford to lose staff, particularly top performers. Consider a few of the following steps that companies can be taking today to address this:

• Identify top performers and other employees who, for various reasons, you would hate to lose.
• Make whatever tweaks you can afford to the compensation packages of these employees.
• Employee loyalty isn't created by money alone. Nurture an "all for one and one for all" attitude, by providing access to owners and executives, fostering teamwork, and making corporate strategies and mission a shared vision to the extent possible.
• Look for non-monetary ways to compensate employees, like offering more flexible schedules where possible.
• Show employees that their company appreciates them, through individual and group recognition.
•  Make the workplace a place where employees want to be, by cultivating a positive, mutually supportive corporate culture.
• Invest in employee training, giving workers the opportunity to advance and your company better and more productive performers.

As the MetLife survey states, "A loyal and satisfied workforce is part of the foundation of business growth. Widening cracks in this foundation may force employers to pay a price in reduced retention and productivity when the job market improves." Avoid this potentially expensive price tag for your company tomorrow, by attending to issues of employee loyalty, satisfaction and morale today.