SFS: Small. Fast. Smart.

Understanding your Homeowners Policy

Guy Hatfield, CPCU is the President of Hatfield Insurance Agency in Fairfield, CT.

The homeowners (HO) policy is probably the most ubiquitous insurance contract around. Yet, few understand what is provided-or not provided in the document.  The homeowners policy is a "packaged" contract that insures your home, contents, detached buildings on your property such as garages and barns, and expenses necessary if you have to live elsewhere because of a loss.  The perils insured against include the most likely losses such as fire, wind, smoke, explosion, water damage from busting pipes, theft, as well as others.  The policy does not insure against flood.  The latter policy can be purchased through the government.  In addition, the HO policy insures against injuries and property damage due to your negligence such as when someone slips on that doorstep you didn't get around to shoveling or when your semi vicious dog bites the mailman.

Health Care Reform Update: New Small Business Tax Credit

Valerie Koch is the Vice President & Chief Operating Officer of The Ganim Group in Bridgeport, CT.  

One of the first provisions to become effective with the New Health Care Reform Legislation is the Small Business Tax Credit. Congress created the tax credit when it approved Section 1421 of the new Patient Protection and Affordable Care Act, which added Section 45R to the Internal Revenue Code. For tax years 2010 through 2013, small employers will receive a tax credit of up to 35 percent of the employer's contribution toward their employee's health insurance premium if the employer contributes at least 50 percent of the total premium cost, or 50 percent of a benchmark premium. The full credit will be available to employers with 10 or fewer employees with average annual wages of less than $25,000.

Starting in 2014, the maximum Section 45R tax credit will be 50% of the cost of coverage, IRS officials write in IRS Revenue Ruling 2010-13.

For purposes of this tax credit, a Small Employer is defined as an employer with no more than 25 full time equivalent (FTE) employees. A FTE employee is determined by dividing the total number of hours of service for which wages were paid by the employer during the taxable year by 2,080, rounded to the next lowest whole number. If an employee works in excess of 2,080 hours of service during any taxable year, the excess is not taken into account. Seasonal workers are excluded unless they work more than 120 days per year. Owners and family members are also excluded.

Hiring Bargains ! -- Courtesy of the IRS

Margaret Sheahan is the President of Mitchell and Sheahan, P.C of Stratford, CT.  

We all pray that the economy is recovering from recent, disastrous blows. Some Spring 2010 federal legislation is designed to encourage action that might help make those hopes reality.  The Hiring Incentives to Restore Employment (“HIRE”) Act is the clever name of the legislation signed by President Obama earlier this year to initiate these incentives. 

A pair of HIRE tax breaks can make adding to workforce in 2010 a little more palatable to the wary employer.  One reprieves the employer’s share of the Social Security payroll tax for the lion’s share of the year for a qualifying hire, a savings of 6.2% of wages.  This credit can apply to wages paid on or after March 19 through December 31, 2010.  The other is a credit on the employer’s income taxes for 6.2% of a year’s wages (up to $1,000) paid to such a new hire who remains employed for at least 52 weeks without significant  wage reduction in the second six months. 

Qualified employers are non-domestic and non-governmental employers and governmental educational institutions.   Conditions also apply to judge whether the hire itself is qualified and if the new hire is a qualified employee. 

The Law May Provide A Lifeline for Borrowers

David A. Slossberg is a partner at Hurwitz, Sagarin, Slossberg & Knuff, LLC in Milford, CT.

Did I sign my life away?  That is a question voiced all too frequently by businesses in their dealings with banks and lenders.  The answer may surprise you.  In many cases, no matter how dire the circumstances and ironclad the loan documents, the law may provide a solid lifeline. 

The current economic downturn has placed tremendous pressure on financing relationships; the values of commercial properties have decreased and the ability of businesses to generate revenues to service debt has declined. 

Loan documents are generally unforgiving.  They usually contain decisive default provisions and significant consequences flowing from any default.  Penalties are often harsh.  They may include foreclosure on property, actions to recover unpaid sums, execution on collateral and appointment of a receiver.  Very often the penalties overtake the underlying debt. 

In distress situations, lenders will insist that borrowers sign forbearance agreements before even agreeing to discuss possible workouts, which include broad general releases of potential claims, and add yet another layer of legal protection for banks.

How to Comply with the Recently Enacted Data Protection Laws

Mark W. Klein is an associate with Brody Wilkinson PC in Southport, CT.

 In recent years, an alarming number of businesses have victimized by the theft of their customers’ and/or employees’ personal data. Many of these thefts occurred because the businesses did not have adequate safeguards in place. In response, new laws have been enacted requiring businesses to implement data protection policies and imposing stiff penalties for non-compliance. It is important for your business to comply with each applicable law.

Connecticut’s Law. Connecticut General Statutes §42-471, requires all businesses collecting personal information, including Social Security numbers, driver’s license, state ID card, alien registration and health insurance numbers, credit, debit card or account numbers to "safeguard the data, computer files and documents containing the information from misuse by third parties" and "destroy, erase or make unreadable such data, computer files and documents prior to disposal." It also requires businesses collecting Social Security numbers to create, and publicly display (including on its website) a privacy protection policy that: (1) protects the confidentiality of Social Security numbers; (2) prohibits their unlawful disclosure; and (3) limits access to them.