West Hartford Wealth Management Group, LLC

Vision & Values

There are usually only a handful of employees who truly embrace the “Vision and Values” of the Company. Our job is to help you evaluate your employees’ benefit plan.  A plan that treats all employees equally is an expense and a plan that rewards employees who share the “Vision and Values” of the Company is a benefit.  That’s our job…..turning an expense into a benefit!

What we need to get started

  • Name and permission to talk to your administrator.
  • Vision & Values Employee Census and Survey.
  • Copy of employee hand-book
  • Copies of Group Benefits Contracts
  • Copies of all itemized billing statements
  • Qualified Plans, 401(k), Profit Sharing Plans, Administrator Reports, Year-end benefit statements and investment reports
  • Corporate sponsored Life, Disability, Long Term Care Insurance and Deferred Compensation
  • Plan descriptions for voluntary benefits that are offered
  • ESOP Plan summary and annual administrative reports

 

Expensed Executive Benefits (Background)

Employer-sponsored employee benefit plans are generally tax-deductible as a business expense.  By following IRS guidelines, these expenses, in many cases, are not reportable as income to the employee.  This leveraging of dollars for the benefit of key-employees—who would otherwise have to spend after-tax dollars to secure benefits for themselves and their families—can be an effective alternative to taxable compensation.

Concerns

There are usually only a handful of employees who truly embrace the “Vision and Values” of your Company.  Generally speaking, however, most plan benefits and cost are allocated across the entire employee spectrum.  This “Global” approach to benefits hurts the business owner’s chances of singling out key contributors for meaningful rewards and forfeits tax-leveraging opportunities for key long-service employees.  Hence, the employer typically views benefit plans as an expense because of this “Global” approach.

Opportunities

The ideal executive plan would include all of the following features:

  • The Company chooses whom to favor and offers incentives for continued productive service.
  • The plan would provide meaningful additional benefits for key long-service employees.
  • The cost of the plan would be tax-deductible to the company as a business expense.
  • Plan cost and benefits would not be considered taxable compensation to the key employee.

Solutions

Plans can be implemented that encompass, if not all of the ideal features, at least some of them. That’s our job, turning a recurring expense into a meaningful benefit for key contributors who share the “Vision and Values” of your Company.

The process

The process starts by identifying those employees the company wants to retain and those employees who are transient and are often replaced.  A standard census data, Name, Date of Birth, Date of Hire, Compensation is modified with the employer identifying those who share the “Vision and Values” of the Company. 

Develop a Strategic Plan

  • Gather plan documents on each employer sponsored plan
  • Review plans based on what they do for those employees who share the “Vision and Values” of the Company
  • Draw conclusions on the effectiveness of each plan
  • Present options
  • Create time line to review and implement strategies

How the Strategic Blueprint for Evaluating Benefits is constructed.

Every employer plan is reviewed, first by restating what the plan currently provides. Plans usually fall into one of two categories, Global i.e. treating all employees equally or Executive i.e. favoring employees who share the “Vision and Values” of the Company.

Concerns about gaps and shortfalls are then expressed and discussed.

Specific opportunities for adjustments and changes are presented.

At the end of the process priorities are established and an implementation time line is agreed upon.