Most Filipinos do not even have personal financial plan or even a simple retirement plan
, so it is expected that most do not have an comprehensive estate plan.
If this type of simple retirement plan
might work for your company, you have until October 1 to decide on establishing a plan for 2015.
For this edition of a text/CD-ROM package for students in accounting, Bieg (Bucks County Community College) includes a CD-ROM of ADP's PC/payroll tutorial for Windows, plus a CD-ROM of Excel templates for use with the text's payroll project, which has been expanded to include the integration of a SIMPLE retirement plan
. The text has been updated to reflect tax law changes that affect payroll accounting.
To use the Simple Retirement Plan
, an employer must have no more than 100 employees receiving at least $5,000 in compensation.
Consider using a new SIMPLE retirement plan
. SIMPLE plans can be used by employers that do not already maintain another employer-sponsored retirement plan.
There are several advantages to the SIMPLE retirement plan
. The reporting procedures are less burdensome than other retirement plans.
To remedy this situation, Congress created the Savings Incentive Match Plan for Employees, or SIMPLE retirement plan
(also discussed by Stanley Person in this month's Tax Briefs, page 32).
The SIMPLE retirement plan
is designed to encourage greater participation by small businesses by making compliance with the legal provisions easier through fewer and simpler rules.
It also institutes a new simple retirement plan
. Following are a few of the pension provisions in the new law.
SIMPLE retirement plans
were first introduced by Congress for businesses with 100 or fewer employees in the Small Business Job Protection Act of 1996.
The tax credit for qualified retirement plan startup costs is available only to small business owners--employers are eligible if, during the preceding tax year, they employed 100 or fewer employees who received at least $5,000 in annual compensation from the employer (the same definition that generally applies for SIMPLE retirement plans
* Individual savings policies and group savings policies are two kinds of private benefit plans that are available in the country, whose purpose is to provide simple retirement plans
with accumulated investment earnings, vesting and flexible retirement options