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Your health insurance comes in the form of a high-deductible medical plan. This provides traditional coverage, but only after a deductible of at least $1,000 for singles, or $2,000 for a family policy. The policy protects you against the costs of major medical problems.
You are responsible for expenses up to the deductible amount. That’s where the tax advantages come in. You pay for those expenses from your HSA. This is an account rather like an IRA which you set up with a bank or insurance company. Contributions into the account are tax-deductible, up to certain limits. Your employer can also choose to make contributions on your behalf.
You have great flexibility with an HSA. You can use the account to pay for a wide range of medical expenses, including some nonprescription drugs. More important, you have choice over when and how you spend the money. Anything you don’t spend in one year can stay in the account and continue earning tax-free dollars. If you move to another job, the account can move with you.
A final point: Because the insurance policy has a high deductible, premiums are usually lower. Those savings, plus the tax advantages, can make HSAs a win-win proposition for companies and individuals.
Please contact Prangley Marks if you would like to learn more about the tax implications of HSAs.
2. Focus on Fraud: Detection of Fraud in Different Organizations
Privately Held Companies
In privately held companies, the most common method of detection was by accident, which was a very disappointing discovery. Over one-third of all frauds in these companies were detected accidentally, suggesting that privately held organizations are missing an opportunity to reduce costs by proactively seeking out occupational fraud.
Not-for-Profit Organizations
Occupational frauds in not-for-profit organizations were much less likely to be detected by internal audits than was the case in other types of organizations. This was partially due to the fact that only 41% of not-for-profit organizations had internal audit departments, although even among this group only 17% detected their frauds through internal audit, which was still lower than the rate among all cases.
Source: 2004 Report to the Nation on Occupational Fraud and abuse, ACFE
3. Tech Tip Weekly: Delay Send/Receive in MS Outlook Express
If you haven't changed the out-of-the-box settings, MS Outlook Express checks for incoming mail every 30 minutes, whether you want it to or not. By default, MS Outlook Express is set up to send messages the moment you finish composing and click the Send button. This could pose a problem if you suddenly realize that you're sending to the wrong person just as you hit the Send button.
It's much better (and infinitely safer) to force MS Outlook Express to wait until you click the Send/Receive button before either receiving or sending any mail. Here's how to disable the automatic send and receive feature:
1.
Choose Tools,
Options, General.
2. Uncheck the
Send and Receive
Messages at
Startup box and
uncheck the Check
for New Messages
Every...Minutes
box.
3. Click the Send
tab.
4. Uncheck the
Send Messages
Immediately box.
5. If you use a
dial-up Internet
connection, click
the Connection
tab.
6. Checkmark the
Hang Up after
Sending and
Receiving box.
Your changes take
effect
immediately.
4. Compliance Calendar
June 8
-Employers deposit
Social Security,
Medicare and
withheld income
tax for payments
June 1, 2, and 3.
June 10
-Employers deposit
Social Security,
Medicare and
withheld income
tax for payments
June 4, 5, 6, and
7.
June 15
-Employers deposit
Social security,
Medicare and
withheld income
tax for payments
June 8, 9, and 10.
-Monthly depositors deposit payroll taxes for May.
-U.S. citizens or resident aliens living and working, or on military duty, outside of the U.S. and Puerto Rico, file Form 1040 and pay any tax, interest and penalties due. Individuals in a combat zone may be able to further extend the deadline.