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Issue 02/15 February 2015
Tuesday, May 5, 2015
12:00 ‐ 1:00pm Eastern. On‐boarding: More Than Just Orienta‐
on
3:00‐4:00pm Eastern. What is the Right Value for Your Firm
Wednesday, May 6, 2015
12:00 ‐ 1:00pm Eastern. Composing a Winning Applica on for Profes‐sional Liability Insurance
3:00‐4:00pm Eastern. RFQs/RFPs ‐ Preparing a Winning Response
Thursday, May 7, 2015
12:00 ‐ 1:00pm Eastern. Effec ve Financial Management of Design Firms
3:00‐4:00pm Eastern. Farewell to Death by PowerPoint
EDConnect 2015 This Issue:
EDConnect 2015 Schedule at a Glance
401(k) NonDiscrimina on Tests
How to Watch Super Bowl™ Commercials
Chapter in the Spotlight: Sea le
Time Management
Employee Assistance Programs
The A List—Business People Who Make
Their A/E/C Firms Work: Sandy Beckel
Firm Profile: DJG Inc.
M J D F M
Join us for SDA’s first ever four‐day virtual educa on conference and advance your career.
Learn the latest trends in the A/E/C industry to help cul vate your staff’s leadership and management skills while helping your firm stay a step ahead of the compe on.
Look for the launch on March 2.
Schedule at a Glance
Monday, May 4, 2015
12:00 ‐ 1:30pm Eastern. Strategic Planning‐Design Business Strategy into Ac on and Results
3:00‐4:30pm Eastern. Why Design Professionals Should Embrace Inte‐grated Delivery
Friday, May 8, 2015
3:00‐4:30pm Eastern . SDA 2015 Annual Business Mee ng
SDA Members Only
SDA Today | February 2015 Issue 02/15 Page 2
President’s Message Sarah Wallace, CDFA,
LEED Green Associate
EDConnect — SDA Joins the Vir-tual Revolu on!
Registra on for EDConnectopens on Monday, March 2!
Educa on is one of the main tenants of our organiza on and EDConnect allows SDA to demonstrate the qual‐ity of our educa onal resources with some of the best speakers pre‐sen ng on industry related topics to a larger audience. Leading industry experts will present programs in each of the following areas: Finance, Human Resources, Marke ng, Office Administra on, and Project Manage‐ment.
EDConnect is an excellent way for firms to help cul vate the en re staff’s knowledge and your future firm leader’s management skills while helping the firm stay a step ahead of the compe on. Here is just a sample of EDConnect pro‐gramming content:
Finance: Basic financial man‐
agement terms and firm man‐agement terminology, such as efficiency rate, billing rate, etc., and what they mean, and how to calculate them as part of a strategy to reach a profitability goal.
HR: The onboarding program
elements that research shows result in new managers becom‐ing more emo onally and ra‐
onally commi ed to their new
8190‐A Beechmont Ave., #276
Cincinna , OH 45255‐6117
Toll Free: 800.711.8199
Phone: 513.268.5302 Fax: 513.448.1921
admin@sdana onal.org
www.sdana onal.org
Publisher:
SDA (Society for Design Administra on)
Editor: Associate Editor:
Deborah A. Gill Judy A. Beebe
[email protected] [email protected]
Contributors:
Chapter Spotlight: Brooke Simcik
Firm Spotlight: Anne McNeely
Published monthly (12 issues/year) as an SDA membership benefit.
job more quickly
Project Management: An
understanding of how integrat‐ed delivery eliminates waste to shorten design/construc on
me and lower project costs
Marke ng: “Benefits‐based
wri ng” — a way to ensure that selec on commi ee mem‐bers (technical and non‐technical individuals) — recog‐nize and understand the bene‐fits your team brings.
Every year at EDSymposium mem‐bers say, “I wish my firm Principal had been in this session,” or “Our project managers could really have benefited from this program.” We heard you loud and clear — EDCon‐nect allows each of our members to make sure they have every op‐portunity to share SDA programs with everyone from the top down and the bo om up. EDConnect similarly provides addi onal educa‐
onal opportuni es for our largest growing cons tuency, our mem‐bers‐at‐large, as well as for those members who are unable to travel.
Earn Con nuing Educa on Credits! EDConnect will provide up to 9 hours of AIA approved Con nuing Educa on Credits throughout ED‐Connect. These credits will help members achieve 50% of the re‐quired annual CEUs to maintain Cer fied Design Firm Administra‐
on (CDFA) creden al, as well as provide opportuni es for technical staff to earn CEUs for their various professional associa ons (AIA, IDP, etc.).
Take advantage of the early bird rate through March 31 and register for just $250! EDCon‐nect will provide up to 9 hours of AIA approved CEUs for all
a endees – that is less than $28 per CEU. Increase your return on your investment; reserve the con‐ference room and invite your en re firm to par cipate.
So...
Leave your suitcases in the closet, and don’t worry about missing me at work or with your families.
Advance your skills and knowledge, improve your firm’s efficiency, and facilitate your firms future leaders growth.
Promote the value of SDA through this new virtual pla orm.
Register today for EDConnect!
Sarah
401(k) Nondiscrimination Tests — A Review
SDA Today | February 2015 Issue 02/15 Page 3
If you are on a calendar year‐end 401(k) Plan, you’ve recently provided your third party administrator (TPA) employee census data and contribu‐
on data in order for them to perform your nondiscrimina on tests for the 401(k) plan. The Employee Re rement Income Security Act (ERISA) requires several tests each year, to prove 401(k) plans do not discriminate in favor of em‐ployees with higher incomes. Even though nondiscrimina on tes ng is likely performed by a plan’s record‐keeper or third‐party administrator, plan sponsors need to understand the basics of the tests, including the types of contribu ons that are reviewed and the methods that are used, plus the consequences of failing.
First, let’s look at what groups are being tested: Highly compensated employees (HCEs) and non‐highly compensated employees (NHCEs). HCE’s are defined as the following. Everyone else is an NHCE.
Owned more than 5% of the in‐terest in the business at any me during the current year or the preceding year, regardless of how much compensa on that person earned or received, or
For the preceding year, received more than $115,000 compensa‐
on from the business if that year was 2013 or 2014, or $120,000 if the preceding year was 2015; or who also, if the employer so chose, was in the top 20% of em‐ployees when ranked by compen‐sa on.
Family aggrega on rules treat a spouse, child, grandparent or par‐ent of someone who’s a 5% own‐er, as a 5% owner. Each of these individuals is an HCE for the plan year.
untary a er‐tax contribu ons—not pre‐tax or Roth elec ve deferrals —are included.
The ACP looks to see whether the actual usage of the plan is wide‐spread and not merely concentrated among the highly compensated.
Top-heavy tests. To determine whether or not the 401(k) plan is top‐heavy, one test looks at overall bene‐fits accumulated by key employees (see preceding defini on). Generally, if more than 60% of the overall assets in the plan are a ributable to key employees, but not necessarily HCEs, then the plan is top‐heavy and certain minimum benefits may need to be provided to the non‐key employees.
If a plan fails the 410(b) coverage test, the sponsors must bring it into retroac ve compliance by the end of the plan year, either by extending coverage to a broader group of rank‐and‐file employees or by modifying contribu on alloca ons or benefit
(Con nued on page 10)
Nondiscrimina on tes ng falls into three categories: Coverage tests, non‐discriminatory tests, and top‐heavy tests.
Coverage test. This tests looks at the percentage of eligible HCEs and NHCEs benefi ng from the plan. If the ra o obtained by dividing the NHCE average by the HCE average is greater than 70%, the plan passes the cover‐age test.
Non-discrimina on tests
ADP—Actual deferral percentage
ACP — Actual contribu on per‐centage
These methods are actually included in the sidebar below.
The ADP test measures the average salary deferrals for HCEs and NHCEs and applies to pre‐tax as well as Roth elec ve deferrals. The ACP test com‐pares the average employer match and post‐tax employee contribu on percentages for HCEs with those of NHCEs. Matches and employees’ vol‐
A Passing Grade
The actual deferral percentage (ADP) test is met if that deferral percentage for eli‐gible highly compensated employees (HCEs) does not exceed the greater of:
125% of the actual deferral percentage for non‐highly compensated employ‐ees (NHCEs), or
The lesser of: —double the ADP for the NHCEs, or —the NHCEs’ ADP plus 2%.
The actual contribu on percentage (ACP) test is met if that contribu on percent‐age for eligible HCEs does not exceed the greater of:
125% of the actual contribu on percentage for NHCEs, or
The lesser of: —double the ACP for the NHCEs, or —the ACP for the NHCEs plus 2%.
Note: Sponsors may base the ADP and ACP percentages for NHCEs on either the current or prior year’s contribu ons, according to their plan’s document. That elec‐
on may be changed under limited circumstances .
SDA Today | February 2015 Issue 02/15 Page 4
Super Bowl™ Commercials
How to Watch Them and What
you Can Learn (and Use) for
Your Own Marketing
I love to watch Super Bowl™ com‐mercials. (Who doesn’t?) More spe‐cifically, however, I love to watch people watching Super Bowl™ com‐mercials.
Try it yourself this Sunday. You can learn a lot about what works and what doesn’t when it comes to effec ve marke ng–including your own effec ve marke ng–even though you may never run an ad on television, let alone during the Su‐per Bowl™.
First things first. Take charge of the remote control. If your game‐watching group is anything like the ones I’ve been a part of, rarely does anyone try and fast forward through or mute the commercials. In fact, more o en than not, it’s the com‐mercials that get people to look up from the guacamole dip. Just in case, make sure you can turn the volume up if you need to.
Here’s what you’re looking for: In‐trigue and Emo on.
When it comes to intrigue in adver‐sing or marke ng it’s all about
grabbing someone’s a en on, and that’s where predictability becomes your enemy. You may no ce a few Super Bowl™ commercials that are obvious, boas ul or blatant. No‐
ce, too, how many people turn away or even “Boo!” the ad or de‐clare it “Blah.” (That’s what they say when I’m in the room.)
Intrigue is all about the power of the reveal. The best commercials (Big Game or otherwise) make you curi‐ous, make you figure it out a bit, make you wonder, “what is this, what’s going on, who is this?”
Why is that a good thing?
Because that’s how adver sers slip under your an ‐adver sing radar and catch your a en on. The mind is a curious thing, and it demands sa sfac on. They want you involved with the message or story. So watch for how many ads wait un l the very end to reveal who the adver ser is. You may spend the first 25 seconds locked into the story or ac on, won‐dering whose ad it is.
The whole room of fans gathered at my house for Super Bowl ™ XXXIV (2000) were guessing and arguing at full volume over one of my favorite examples of intrigue. They guessed everything from Nike to exo c trav‐el to bicycles. And they were all wrong. Share your guesses by com‐men ng below.
Watch, also, for emo on. Television is a powerful medium, and emo ons are powerful mo vators. In fact, most people make their decisions on emo ons, but jus fy those deci‐sions with the facts. Watch how the commercials use emo on as a vehicle, a way of connec ng to you, the viewer. (Facts are the passen‐gers, or available online.)
NOTE! I’m not talking about com‐mercials that show an emo on, like an exaggeratedly happy, customer pretending to enjoy the product. I’m talking about commercials that make you feel an emo on. The ones that make you wince, choke up, smile, laugh or even guffaw. Facts, logic and a list of reasons to buy are cold and faceless. They process through the le side of the brain. They go in and out in a flash‐too many for any one person to store for long.
Emo ons, however, involve the
right side of the brain, where your memory is also housed. And when you can connect to the emo ons, when you make someone feel something, you’ll have more suc‐cess convincing the logical side to pay a en on.
Clydesdales, li le boys dressed as Darth Vader, and babies talking stocks aside, here are two of my all
me favorite examples of both intrigue and emo on in Super Bowl™ commercials. Yes, you know who the adver ser is from the get‐go. Watch, though, how they use the power of a story to keep you involved and intrigued, sighing and smiling. No “announcer man” voice over, no hype. None needed.
Google (2010)
Tabasco (1998)
Intrigue and emo on. Adver sers on Super Bowl ™ Sunday paid mil‐lions to put them to good use. You can build them into your mar‐ke ng right now, for free.
Source: Adapted from blog dated 1/29/15 by:
Terri Langhans, CSP, COE Cer fied Speaking Professional
Presenta on Skills Training Www.BlahBlahBlah.us
(reprinted with permission)
h p://blahblahblah.us/blahg
Chapter in the Spotlight: Seattle
Notable Achievements Barbara Steinberg has joined HDR in the Pi sburgh office as an Ad‐ministra ve Assistant for the PA Rapid Bridge Replacement Project.
Barbara spent the last 19 years at WTW Architects mostly working with projects from bidding/specs through CA/Closeout.
She has remained an ac ve mem‐ber of SDA since 2002.
If you have a notable achievement you’d like to share, or know another member who has, send the par culars to [email protected]. We should always celebrate our members’ accom-plishments.
Our 2014 Business
Partners
SDA Today | February 2015 Issue 02/15 Page 5
a lot more ac ve on social media (Linked‐in, Twi er, and Facebook). They’ve rebranded the educa onal programs as “Business Prac ce Events” and con nue to adver se them in the Daily Journal of Commerce & the local AIA publica on. They are increasing the formats of learn‐ing opportuni es to include breakfast and dinner mee ngs, roundtables, webi‐nars, tours, and hos ng na onal webi‐nars. To measure the success of each event they are following up with surveys to a endees. No stone has been le unturned in their outreach endeavors. Webinars have been a popular format, and the variety of presenta on topics has been appealing. With these efforts, the membership has increased to 26.
Six months into the 5‐year plan, the re‐sults are promising. It takes bravery to really analyze ac vi es to this level and to eliminate what isn’t working. The Sea le chapter commi ed to work even harder to try new ways of reaching out to poten al/members in offering quality educa on and networking opportuni‐
es, and are pleased with results they’ve achieved so far.
It has been hard, but rewarding work, and is paying off with seeing new faces/names at events and gaining some new members. Plus, it’s even more inter‐es ng for long‐ me members! Be brave; don’t be afraid to change things up. The world is changing, and SDA must also change to remain relevant to our members who will carry us forward.
Contributed by: Brooke Simcik
w/collabora on from Shannon Soady & Stacy Rowland of the Sea le chapter
Note from the Editor:
Check out The Por co, the Sea le chapter’s quarterly newsle er. It has great ar cles. You can find it on the SDA website under Learn\ Chapter Newsle ers\Sea le
Like many chapters, Sea le has been struggling with declining membership. The chapter has a core group of mem‐bers who are sold on the rewards of SDA membership, but they are struggling to a ract new members. Without an infu‐sion of new, enthusias c members, they were in danger of “dying out” as long‐term, loyal members re re or leave the industry. They also struggled with being viewed as old‐fashioned and non‐relevant to the fast‐paced, tech‐savvy younger genera on.
So it was me to shake things up. Led by chapter president Judy Beebe, the Board including Director Gretchen Renz, CDFA, a director living five hours away who joined by Skype;
Director Pakalana Pa erson, CDFA; President‐elect Shannon Soady, CDFA; Vice president Stacy Rowland, CDFA; Treasurer Cathy Comstock, CDFA; and Secretary Carrie Thompson, CDFA met in June to chart the goals and strat‐egies for the new board year with an all‐day planning session. Member Lois Diemert, CDFA, kicked off the strategic planning session with her presenta on “How to Thrive as an Organiza on,” based on the book “The End of Member‐ship as We Know It,” by Sarah L. Sladek.
They explored the SMART method (metrics that are Specific, Measurable, Achievable, Relevant, and have a Timeframe) of developing the chapter’s vision, goals, and strategies, and came up with a 5‐year plan to grow the chap‐ter. They commi ed to doubling mem‐bership from 21 dues‐paying members to 42 within five years, and looked at a number of ways to do that: holding mee ngs at a variety of mes, increas‐ing the number of locally‐produced webinars, enhancing their social media presence, and sending informa on quickly to poten al members – and nev‐er forge ng the “fun” factor.
In order to achieve the new goals, they overhauled the chapter website and got
Time Management
“Do not confuse mo on and pro-gress. A rocking horse keeps moving but does not make any progress.” ~~ Alfred A. Montapert
If you feel that your me is not yours and you find yourself working reac‐
vely, jumping from thing to thing in response to endless requests … stop. Some mes you have to stop doing things in order to figure out if you are really doing anything at all.
This month, recognize that there is a difference between being busy and being produc ve. Stop for a moment and consider what changes you might need to make to be more produc ve.
1. Ensure what done looks like is clear. Part of defining what done looks like involves clearly defining what problem the project is solv‐ing. Once the team is on the same page, they will be er recognize the solu on once they have found it.
2. Create smaller, intermediate goals. Par cularly for large pro‐jects, breaking down the work into smaller goals and deliverables will help the team build momentum and give everyone a sense of pro‐gress as they deliver to intermedi‐ate goals.
SDA Today | February 2015 Issue 02/15 Page 6
If you do any work with the federal government, you may have heard of the Drug Free Workplace Act of 1988 and its requirements, and ins tuted an employee assistance program (EAP) to comply. But many other firms with commercial clients may not know what a great benefit this can be for their employees, too. All firms benefit from an EAP when the problems hap‐pen to adversely impact their employ‐ees’ job performance, health and well‐being.
In addi on to sa sfying the require‐ments of providing drug counselling to employees with a substance abuse problem as part of a disciplinary pro‐gram, an EAP program is also a re‐source that employees can u lize to address life’s challenges, solve person‐al problems, or tackle work‐related issues, generally. It is a program that offers employees confiden al, short‐term access to counselors to solve these problems. Struggles with stress, rela onships, grief/loss, anger man‐agement, depression, domes c vio‐lence, and personal development can be addressed by the counselors.
The programs usually cover all house‐hold members, too, and if the three to five customary visits don’t resolve the issue, a referral within the health in‐surance network can be made.
There are also very inexpensive, addi‐onal riders in many programs that
cover legal, financial counselling, and ID recovery.
With an EAP the human resources de‐partment has a resource to recom‐mend to employees when one of life’s curveballs hits them head‐on. HR can also refer an employee to the EAP pro‐gram as part of a supervisory issue, unacceptable performance, or conduct issues.
Our 2014‐15 Firm
Platinum Sponsors
Gold Sponsors
Employee Assistance Programs (EAP)
The A
List Execu ve Summary
Sandy Beckel
Execu ve Secretary
LKPB Engineers, Inc.
St Paul, Minnesota
L I : I was fortunate enough to a end Nashville last year. It doesn’t ma er where you go, the experience is what it is all about. The people, the networking, the seminars, all combine to recharge your “working” ba eries and renew your faith in all that is good about the career you have chosen.
W I ? Gary and I did a dream come true vaca on to New York City in September. We did all the touristy things. I loved Penn Sta on and the 911 Memorial the most.
M G 2014?
At work—I want to con nue to raise the bar on the quality of work that leaves my area and represents my firm. At home—I have joined the YMCA and I am s ll working out in the workout room that is availa‐ble in my building. I am trying to be healthy. At SDA—I want to con nue suppor ng our Chapter, and I’m doing that by serving as Presi‐dent for the third me in my 19 years with SDA.
M : “When you come to the edge of all the light you’ve known, faith is knowing one of two things will happen, there will be some‐thing solid to stand on or you will be taught how to fly.”
H SDA ?
There is no other organiza on that can raise one’s self‐esteem profes‐sionally like SDA can. It is totally affirming to find out you were doing it right all along and can compete or complement issues toe to toe.
The business people who
make A/E/C firms work
W I I’ : I love to make one of a kind cards on the computer. I have five card programs. I create a card, print it and decorate it with cra pencils, fabric paint, paper and fabric – plus add 3‐D – decora ons. One card can take 3‐4 hours. It has to be just right.
SDA Today | February 2015 Issue 02/15 Page 7
I I ’ ... I would be working with the elderly. I love making their world more comfortable for the me they have le in this world. A er all it is their path before me that allows me be who I am.
W I A/E/C : The people in the A/E industry are wonderful. Even though they are some mes a crea ve mess, I love the diversity and enthusiasm they bring to work each day.
New Ideas to Make your Color Schemes Pop
What’s on Your Bookshelf
A pocket guide to business for engineers and surveyors Authors: H Edmund Bergeron
Publisher: John Wiley & Sons
IBSN: 978‐0‐471‐75849‐5
“We’ve got a great profession to prac ce but a lousy business to be in.”
The author take his own personal experience and years of teaching the graduate course en tled “Issues in Engineering Management and Prac ce” and puts it alto‐gether in this concise reference book on prac ce management. He feels the need to complete the educa onal process where the engineering schools dropped off. Engineers don’t go to school to run a business, but inevitably o en have to. They are excellent technicians who have li le in the way of accoun ng or dealing with people or client problems.
A perusal of the table of contents finds a discussion of these topics
•Leadership •Project Management •Financial Accoun ng
•Ethics •Legal Issues •Professional Liability
•Marke ng •Ownership Transi on
A general business book that deals with the peculiari es of our industry to add to your library.
Q All the color schemes seem to be have been
used everywhere. Is there anywhere I can
get help to create a color scheme for a
presenta on?
A Actually, there is. As Rory Sto points out in the 13 Feb 2015 issue of ArchDaily
Architecture News, “Being an architect is hard. At mes, you’re expected to act as everything from a
graphic designer to a handyman (or woman)” In his ar cle, 22 Websites You Didn’t Know Were Useful to Architects, #1 is: h ps://color.adobe.com, a website that creates color pale es for you.
SDA Today | February 2015 Issue 02/15 Page 8
Another sugges on is: Colors for data scien sts. It allows you to create and refine pale es of op mally dis nct colors. Ever created a map or graph where red and orange look the same color? Indis nguishable? This allows you to create a pale e of visually dis nct colors for graphs and charts. It creates a professional image.
h p://tools.medialab.sciences‐po.fr/iwanthue/
Source: 22 Websites You Didn’t Know Were Useful to Architects. h p://www.cmitsolu ons.com/corporate/blog/10‐ ps‐tricks‐apps‐and‐add‐ins‐supercharge‐microso ‐word
What a difference a day makes! In
less than 24 hours, my yard has gone
from brown to white, covered with 6”
of snow and then this morning, anoth‐
er 2” of beau ful white powder has
been added. And now the forecast is
calling for near record low tempera‐
tures, so now even more changes to
an cipate!
Change is part of our lives. Some mes
we are excited by it—other mes we
despise it. Many mes it’s all about
how we approach the change and
who declares the me to change is
upon us. When the opportunity to
learn a new so ware or system comes
your way, what is your reac on? Is it
“No, I’m already way too busy and I
don’t need that” or “Sure, I’d love the
chance to figure out a new way of
doing things.” For me, it just depends
on my frame of mind and how much I
have going on at the moment the
news is delivered. But sooner or later,
I realize that I need to jump on board
From the Executive Director’s Desk
SDA Today | February 2015 Issue 02/15 Page 9
and embrace the chance or I’m going to
be le behind. And I know that won’t
be good in the long run.
SDA is always in the mode of change.
It’s really part of our fabric. Not change
for change sake, but for improvement.
Improvement in our offerings to our
members, working to stay current with
the programs and technologies neces‐
sary to delivery those services, and
offering ideas and connec ons to
ge ng and keeping our members out in
front to be strong firm leaders. What
worked for us even two years ago may
not be the best solu on for us today.
What we choose today may not be via‐
ble a year from now. Remember 8‐
track tapes (yes, I’m showing my age),
casse e tapes, CDs even? Things are
changing rapidly, and yet as leaders in
our firms, it is up to us to keep current
on the ever‐changing content that our
firms need to succeed and prosper. Our
EDConnect15 is just one example of
how SDA is changing by offering a week
of con nuing educa on to our mem‐
bers and their colleagues in their offic‐
es. I hope you will all plan to join us
for the en re program schedule.
How about you? Are you embracing
the opportuni es that come your
way? Consider looking at them in a
new light so you have no regrets.
Stephanie “I don’t regret the things I’ve done, I regret the things I didn’t do when I had the chance.” –
Firm Focus: DJG, Inc. Engineers • Architects • Planners
Whether it’s a study, small renova‐
on or a brand new building, DJG has the capabili es and
skills to design any project—with equal enthusiasm. Being a full service mul ‐discipline firm, we have all of our services under one roof which means easy coordina on and simple scheduling.
From the beginning in 1978, the firm has operated with one primary phi‐losophy: The client comes first. We believe the firm’s success stems from the belief that we best serve clients by considering ourselves an extension of their staff.
DJG, Inc. is an award‐winning full‐service engineering, architecture and planning firm in located in Williamsburg, VA. We offer services to clients from federal, state and local governments, as well as private companies throughout the Mid‐Atlan c. We have worked in 20 states and four foreign countries.
With 26 employees, we are a Small Business Enterprise and cer fied by the Virginia Department of Mi‐nority Business Enterprise. 30% of our staff are LEED APs which makes it easy to incorporate sustainable design features, wherever prac cal. This helps to reduce long‐term en‐ergy, opera ng costs, and mainte‐nance; as well as the project's im‐pact on our environment.
Pictured: 1899 Northampton County Courthouse Renovation
It's our mission to provide design ser‐vices that exceed our clients’ expecta‐
ons, engage and challenge our staff, and create a be er community. We strive to establish enduring rela on‐ships that extend long beyond the project comple on.
Welcome to Our Newest Members
accruals. According to the IRS, if the plan fails the ADP or the ACP test, the sponsor risks the plan losing its tax‐qualified status.
The most common remedy is to return excess contribu ons to HCEs. It is annoying for HCEs to not know what their eligible contribu on will be for the year when tax planning or to have ineligible contribu ons returned at year‐end. To avoid this, tes ng is o en done mid‐year in order to correct poten al deficiencies.
SIMPLE and safe harbor 401(k) plans — where employers contribute a minimum 3% of compensa on to all NHCEs — are not subject to the ADP or ACP tests because in lieu of tes ng, they deposit mandatory, fully vested contribu ons to all employees.
It is important to make sure a broad spectrum of employ‐ees is par cipa ng and contribu ng adequate amounts if the owners are going to be able to maximize their contribu‐
ons. Periodic employee educa on can aid in this process. Financial planning seminars for younger people aid in this as well as promo ng financial stability which aids in em‐ployee sa sfac on and produc vity.
Resources: IRS 401(k) Plan Fix‐It Guide.
h p://www.irs.gov/Re rement‐Plans/401k‐Plan‐Fix‐It‐Guide‐The‐Plan‐Failed‐The‐401k‐ADP‐and‐ACP‐Nondiscrimina on‐Tests
Contributed by: Deborah A. Gill, CPA, CGMA, CDFA
SDA Today | February 2015 Issue 02/15 Page 10
EAP’s (Cont. from page 6)
EAPs may result in various benefits for employers, in‐cluding lower medical costs, reduced turnover and absenteeism, and higher employee produc vity.
The best part is that many health insurance companies offer the program at no‐cost for insured workers and li le cost for non‐insured (e.g. in the Virginia market, $0 for insured and $.49/mo. for uninsured employees with legal/financial/ID riders at $.12/mo per employ‐ee). It’s an inexpensive benefit that can provide a lot of posi ve support for your personnel.
You may also be able to get a discount on your work‐ers compensa on insurance if you implement one in conjunc on with a substance abuse policy that will more than pay for the premium (e.g. in the Virginia market with Travelers, it was 5%).
A perusal of the internet shows not only health insur‐ance companies (Aetna, Cigna, Op ma, Magellan) offering this service, but also payroll services (Ceridian) and private companies (the EAP.com).*
If you haven’t incorporated an EAP into your HR re‐sources yet, take a look at it, or take another look at it as the per employee cost has been reduced considera‐bly over the last 20 years.
Contributed by: Deborah A Gill
*These companies are strictly the results of a Google search as examples and imply no recommenda on on the part of SDA.
First Name Last Name Chapter First Name Last Name Chapter
Andrea Ingleton Atlanta Patricia McGrade New York
Marc Robert Baton Rouge Shannon Rodriguez New York
Kelsey Cro y Denver Marsha Bas an Orange County
Kris na Vaquera Hampton Roads Kris n Herrera Orange County
Dorinda Bugos Member‐at‐Large Sharon Rivenbark Orlando
Francesca Anthony New York Bobbie Presten Portland
Sarah Benelli New York Karen Stevenson Portland
Teyana Chin New York Randi Winchester‐King San Diego
Kevin Lichten New York Carol Spradlin Sea le
401(k) Testing (Cont. from page 3)
