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Michigan Association of CPAsBusiness Edge
January 26, 2007
Volume 4, No. 1
 
In this issue...
 -  Just Walk Away
 -  Checking Up on Your Estate Plan
 -  Incentive Compensation: The Mother of All Rabbit Holes
 -  Worrying About Retirement? A 412(i) Plan May Be the Answer
 -  The Hidden Dangers of Classifying Workers as Independent Contractors
 -  A Sound Investigation Procedure Protects Against Sexual Harassment Liability
Words from the Wise

“Destiny is not a matter of chance, but of choice. Not something to wish for, but to attain.”

- William Jennings Bryan

Just Walk Away

You have a great opportunity to grow your organization through an acquisition. In your enthusiasm to close the deal you may be missing the tell-tale signs of when a deal may go bad. While most professionals do not want to be seen as a deal killer, they remain silent; and regrettably so. How can you balance your desires against being pragmatic? Use another set of eyes to review the whole transaction and look for red flags that will indicate when you should pull up your stakes and move on.
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Checking Up on Your Estate Plan

Alas, tax time has swooped in again. Since your tax return can tell a number of stories, there is no better time to assess your estate plan. Changes in your life are constant: marriage, separation, divorce, births, deaths and relocations will all impact your estate planning needs. Take the time to consider such things as beneficiaries, business succession plans, legacy instructions and retaining and updating your important legal documents. You can never be too prepared.
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Incentive Compensation: The Mother of All Rabbit Holes

Incentive compensation has been increasingly highlighted the last several years, and not in the most positive light. It could be that the public has been fixated on the preposterously huge packages some executives have been granted. However, if you consider the philosophy of incentive compensation as part of corporate culture; that if it is employed properly, then maybe it will reclaim its reputation as a tool for organizational success.
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Worrying About Retirement? A 412(i) Plan May Be the Answer

If you have not given much thought to accumulating assets for your retirement — a concern that was on the long-term horizon — there is a new vehicle, 412(i), that you should consider. Small business owners are key beneficiaries of this retirement plan since it enables assets to build up at a faster pace than other vehicles, while at the same time providing the necessary protection. So if you are too busy to give thought to your personal wealth, take a closer look at a
412(i) plan.
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The Hidden Dangers of Classifying Workers as Independent Contractors

Organizations who hire outside consultants for a variety of reasons must clearly define their status. There are certain characteristics that workers for hire have that may classify them as employees of the organization with all the associated tax and federal and state employment rules. As an employer, you need to be familiar with the rules, because violating them will result in significant penalties.
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A Sound Investigation Procedure Protects Against Sexual Harassment Liability

If a sexual harassment complaint is filed against your organization, a careful investigation should be conducted. First, if an accusation made is considered plausible, the appropriate steps must be implemented to rectify the situation. Most important, once a claim is made, investigated and properly addressed, a comprehensive sexual harassment policy and complaint procedure should be created and used effectively.
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