Dr. Robert Kent is changing the way health care is delivered

Summer 2012

keeping trackExpiring tax cuts

get to knowDirk Ahlbeck

focus onServe, Share & Give

Healthy results

2 ss&g solutions summer 2012

going for gold

AKRON301 Springside Drive

Akron, OH 44333

CHICAGO225 West Illinois St., Suite 300

Chicago, IL 60654

CINCINNATI11500 Northlake Drive, Suite 210

Cincinnati, OH 45249

CLEVELAND32125 Solon Road

Cleveland, OH 44139

COLUMBUS300 Spruce St., Suite 250

Columbus, OH 43215

DES PLAINES1665 Elk Blvd.

Des Plaines, IL 60016

ERLANGER3940 Olympic Blvd., Suite 340

Erlanger, KY 41018

RALEIGH3737 Glenwood Ave., Suite 100

Raleigh, NC 27612

SS&G HEALTHCARE SERVICES275 Springside Drive

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SS&G WEALTH MANAGEMENT275 Springside Drive

Akron, OH 44333

800-871-0985

PAYTIME INTEGRATED PAYROLL SOLUTIONS

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Cleveland, OH 44139

800-579-9529

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info@SSandG.com

What makes your business distinct?Do you want to grow your customer base? Improve

profitability? Beat out your competition? The way to

do it is simple: Stop selling, and start captivating.

Advertising guru and motivational speaker

Sally Hogshead says companies succeed when they

fascinate. This is defined as the ability to irresistibly

draw one’s attention. But how can you stand out from

the crowd and command interest?

It’s about possessing the power to persuade and

the ability to do it quickly.

Consumers’ attention spans have been rapidly

shrinking because of the fast-paced, on-demand

environment of the Internet. Some reports estimate

the average person’s attention span is as short as

nine seconds … the same as a goldfish. People are so distracted it leaves you little

time to make an impression and hold one’s interest.

If you’ve gotten to this sentence, your attention is twice as strong as a fish. Stick

with me.

Think of your brand. What about you or your company is different? And what about

that difference is attractive? Average should never be good enough. And mediocrity

must be unacceptable. You can’t be like everyone else.

Think of it like falling in love. You have to reveal, share, and continually

demonstrate what makes you different from the next guy or gal.

Just as a great relationship doesn’t require you to be the best looking, success in

business isn’t about having the fanciest product. Oftentimes, you don’t even need to

be the best.

Great brands are built on the attraction they provide their clients. Customers

typically don’t rely on a simple, rational reason — like price — for sticking with a

company. Something about the relationship generates loyalty, and that leads to

their advocacy.

Identify what it is that you say or do that people care about. What makes you

distinctive, original, or even quirky? Own it. Amplify it. And use it to provide your

customers something that evokes a strong reaction.

The world — and your business — will not be changed by the people who sort of

care, so make the most of your time and uniqueness.

Mark Goldfarb, CPA

Managing Director

IRS Treasury Regulations require us to inform you that any tax advice contained in the body of this communication was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.

3summer 2012 ss&g solutions

first person

Dirk AhlbeckTitle: Managing Director, Des Plaines, Ill.

Education: Bachelor’s degree in accounting from Michigan State University

Hometown: Park Ridge, Ill.

Year I joined SS&G: 2010 (when Ahlbeck & Co. merged with SS&G)

The word that best describes me: Efficient

I am a member of: the corporate board of Avenues to Independence, a nonprofit organization serving developmentally disabled adults; the finance committee of my church; and the membership committee of the Illinois Restaurant Association.

I’ve been recognized for: our work with our nonprofit clients.

The best part about my job: is being a trusted adviser to my clients.

The best piece of advice I’ve received: My father often says that when dealing with difficult people, “You can’t be responsible for other people’s behavior.”

Book of note on my shelf: “Power Questions: Build Relationships, Win New Business, and Influence Others” by Andrew Sobel and Jerold Panas

The biggest challenge I’ve overcome: Being impatient with others

If I could change anything in my career: I would have done more traveling after college before starting work in my profession.

If I could give one piece of advice to executives: A.J. Pasant, founder of Jackson National Life Insurance Co., talked to a group of us during college and said the six most important words are: “Nothing happens until something is sold.” I did not know what that meant then, but I certainly know what it means now.

A great leader is: a person who can get someone to do something without them knowing it.

The business leader I admire most: Dale Carnegie. What was written in his 1936 book, “How to Win Friends and Influence People,” is still applicable today.

My business philosophy: When there is a problem, come up with a solution to solve it rather than complain about it.

The greatest invention of the last 10 years: is the iPad, by far. The U.S. Air Force just purchased 20,000 for military use.

If I weren’t doing this, I would: be like Burt Lancaster’s character in the movie “Airport.” I would be in charge of Chicago O’Hare International Airport and deal with all of its issues. It never ceases to amaze me that there is so much going on from 4 a.m. until midnight every day of the year. I also like that I am only 15 minutes away from hopping on a plane to go anywhere in the world.

I’m most proud of: my children, Emma and Brendan. They put a smile on my face no matter what kind of day I have had.

I hope I never: die young.

A little-known fact about me: I have not been on a road trip lasting longer than six hours in the past 26 years. I’d rather fly.

My next goal is to: integrate the efforts of the downtown Chicago and Des Plaines offices.

My favorite place in the world is: Seven Mile Beach on Grand Cayman Island, British West Indies.

When I get discouraged, I: turn to Tracy, my spouse. She always has the right answer.

My attitude toward change is: to embrace it. Things are always changing — often for the better in the long run.

I’m inspired by: people who have to overcome a physical challenge.

Success is: having a happy and healthy family, including my new dog, Nellie. j

4 ss&g solutions summer 2012

The U.S. economy appears to be gaining some

momentum. And yet, Americans should

collectively plan for a little more economic

uncertainty as they prepare for the upcoming tax

season. In 2013, the country is set to face an across-the-

board tax rate increase for the first time in 20 years, says

David McClain, a manager in tax at SS&G.

“It affects everybody from middle-income families

up through high-net-worth individuals, small business

owners and everybody in between,” McClain says.

“Pretty much any individual who pays income tax is

going to end up paying more if nothing happens.”

Although the 2010 Tax Relief Act renewed the Bush-era

tax cuts and other tax provisions through 2012, Congress

has yet to agree on a larger tax bill that would extend

them through 2013 or beyond. The probability doesn’t

look good that such a bill will pass by the end of the year.

“With it being an election year, the political climate

being what it is, and the budget issues that are currently

facing Congress, a lot of what we’ve heard is, ‘Don’t

expect to see an across-the-board extension of these

expiring provisions,’” McClain says.

As of now, it’s likely the cuts will be phased out

as planned Dec. 31. So it’s time for businesses and

individuals to start planning for the potential effects.

Everybody hurtsIf the Bush-era tax cuts expire in 2013, the subsequent

hike in personal income taxes will affect individuals at

all places in the tax spectrum.

First, the highest income tax rate will jump from 35

industry

A tax to grindWhat expiring Bush-era tax cuts mean for 2013 tax planning

to 39.6 percent, and the lowest bracket, 10 percent,

will disappear completely — making the new lowest

bracket 15 percent. The government will also replace

the middle brackets — 25, 28, and 33 percent — with 28,

31, and 36 percent brackets, respectively.

Americans in the middle will lose the benefit of

the graduated tax system, meaning they’ll pay more

as well, says Steve Magovac, associate director in tax

for SS&G. Because the alternative minimum tax is not

indexed for inflation, more middle-income individuals

could also be subject to alternative minimum tax

starting in 2013. Currently, taxpayers pay the greater of

regular tax or AMT, where the AMT rate is 28 cents on

a dollar. The AMT tax allows no deduction for personal

exemptions or for the standard deduction.

In addition, the 40 percent of taxpayers benefiting

from the marriage penalty relief provision will see this

measure expire in 2013, with limitations on itemized

deductions and personal exemptions resuming Jan. 1.

Their standard deduction — currently 200 percent

the amount of unmarried filers — would return to

approximately 167 percent.

More money, more problemsAll of these potential changes make it difficult for

taxpayers to determine their tax liability going

into 2013. But high-income individuals will get hit

particularly hard by the expiration of the tax cuts.

“Pretty much any individual that pays income tax is going to end up paying more if nothing happens.”

— David McClain

Logically, if individual tax rates rise, a higher-income

person would be taxed at a higher rate. But high-net-

worth individuals also tend to invest money in areas

that pay dividends and buying and selling stocks that

generate capital gains.

Currently, both capital gains and qualified dividends

are taxed at 15 percent. But if Bush-era cuts expire, taxes

on capital gains will jump to 20 cents on the dollar, and

qualified dividends will coincide with a person’s income

tax rate.

“Now, all of a sudden, your capital gains rate could go

from 15 to 20 percent and your dividend income tax rate

can go from 15 all the way up to 39.6 percent if you’re in

the highest tax bracket,” McClain says.

Furthermore, some wealthy individuals would be

subject to other taxes that wouldn’t affect the typical

taxpayer. In 2013, the lifetime estate tax exemption will

fall from $5.12 million to $1 million. Also, a 3.8 percent

Medicare tax on all net investment income kicks in Jan. 1

as part of Patient Protection and Affordable Care Act. The

tax applies to interest, dividends, royalty income, rents,

and capital gains for individuals with income exceeding

$200,000, or $250,000 for married couples.

So if you’re a high-net-worth individual who is

married and has $300,000 in qualified dividend income,

your 2013 tax rate would be 39.6 percent, plus a 3.8

percent Medicare surtax.

These higher rates could not only significantly affect

wealthy individuals but also businesses. If stockholders

pay significantly more on dividends in 2013, it could

damage certain investor groups funding the economic

turnaround, says Floyd Trouten, director in tax at SS&G.

“Now the group that probably takes the greater risk

has to think twice because along the way, they have to

pay a much higher rate as they get paid on their return

on investments,” Trouten says.

In 2013, businesses are seeing the loss of accelerated

depreciation deductions, which enable them to expense

many assets immediately that would otherwise be

capitalized and depreciated over five, seven or 15 years.

Section 168(k) bonus depreciation allowed taxpayers

to immediately expense 100 percent of certain new

property in 2011. This benefit was cut to 50 percent

in 2012 and will be gone completely in 2013. Section

179 expensing has also allowed companies to expense

certain property up to $500,000 as long as they didn’t

buy more than $2 million worth. In 2012, the Section 179

expensing will also drop to a maximum of $25,000.

“Those are two big provisions that have really spurred

businesses to go out and invest in new equipment and

put money back in the economy,” McClain says.

5summer 2012 j ss&g solutions

“If you’re a very wealthy family, either you use it or you lose it.”

— Floyd Trouten

Navigating the ‘what ifs’Taxpayers may have to wait for the outcome of November

elections to gain more certainty about their financial

future. But that doesn’t mean they should wait to talk

with their certified public accountants or tax advisers to

discuss potential strategies for the end of the year.

“You need to plan for the worst-case scenario, which

is everything expires and nothing gets patched,” McClain

says. “You need to plan for what you realistically think

may happen, and then you want to run a couple of

different scenarios of ‘what ifs’ in between those.”

Businesses should take a hard look at current cash

flow and projected purchasing for 2013 to determine what

makes sense. They may decide to accelerate revenue

or take advantage of the low capital gains rate in 2012.

Business owners can also look for incentive programs to

help fund future investment in growth and expansion.

As for high net worth individuals, those sitting on a

lot of unrealized capital gains should think about selling

their stocks before Jan. 1 to lock in a 15 percent rate.

Similarly, wealthy individuals with large estates should

consider transferring assets now to benefit from the $5

million estate tax exemption.

“If you’re a very wealthy family, either you use it or

you lose it,” Trouten says.

Like businesses, individual taxpayers can start by

examining their cash flow and projected investments

to identify areas for prospective savings. To avoid

paying AMT next year, certain individuals may want

to accelerate income into 2012. Or, by postponing

deductions they’d normally take at the end of the year,

such as charitable or real estate taxes, they could make

more money off the same dollar deduction in 2013.

The critical piece is to make these decisions with all of

your facts.

“You certainly don’t want to have the tax tail wag

the dog,” McClain says. “You don’t want to liquidate a

portfolio and then sit there and not earn any income on

that either. That’s why it’s important to start early and

look at all of the different scenarios.” j

case study

Dr. Robert Kent, president and CEO, Western Reserve Hospital Partners

ss&g solutions j summer 20126

7summer 2012 ss&g solutions

D r. Robert Kent believes health care can be delivered in much better ways than

traditionally provided by most hospitals. And he’s not the only doctor who thinks so.

Not only does he believe hospitals can improve patient care services, but he also is

certain they can streamline the way they run their facilities. All it takes is some different thinking.

Kent says most hospitals focus strictly on sick patients and increasing revenue, are slow to

implement necessary changes, and don’t provide a consistent experience. This prompted Kent

to travel the country, exploring the opportunities and benefits of physician-owned hospitals.

“I spent nearly two years learning what things physician hospitals did well, the things they

did poorly and which ones were successful,” Kent says.

With his newfound knowledge, he returned to the area and engaged physicians with

a similar mindset, forming Western Reserve Hospital Partners, a group of 215 physician

investors who are majority owners of Summa Western Reserve Hospital. Kent serves as the

group’s president and CEO.

The hospital, a partnership with the Summa Health System and the only physician-

owned, for-profit, full-service hospital in Northeast Ohio, is patient-centered and nurtures an

environment where doctors have greater input to create a lean organization.

“The prime focus is making sure we are not acting like a traditional hospital,” Kent says.

“If we start acting like a traditional hospital, we are in trouble.”

This attitude has made Western Reserve Hospital one of the region’s most dynamic

organizations and is changing how physicians think about health care delivery.

Don’t think like a hospitalKent created Western Reserve Hospital Partners and garnered support from hundreds of other

physicians because they believed they could run a hospital better than many in operation today.

Kent’s biggest challenge now is to maintain everyone’s focus on innovation.

“We’re a physician organization that happens to manage and operate a hospital,” Kent says.

“It’s not a hospital trying to figure out how to manage doctors.”

One who shares Kent’s attitude toward health care delivery is Dr. Eric Espinal, chairman of

the department of surgery at WRH.

“Our vision is that our hospital, but more importantly the system that revolves around the

hospital, is very focused on providing very high-quality care to patients in a very special way,” Phot

o: Je

ff D

owni

e

HEALTHY

How a new way of thinking at a local hospital is changing the way health care is delivered

RESULTS

8 ss&g solutions summer 2012

Espinal says. “As we subscribed to other physicians and

got others to join us, that was always what everyone

wanted to focus on. There are many great hospitals in

Northeastern Ohio, but we thought we could change in a

positive fashion the way care was delivered.”

Kent strives to make sure physicians, rather than

committees, make decisions and do what’s right for patients.

“At a big organization, the message and vision can

get lost, and the organization can’t move at the speed

it needs,” Kent says. “We are in a very dynamic market

here in Northeast Ohio with a strong institution like the

Cleveland Clinic. We need to think faster and smarter

than an organization like that. We can’t outspend

them, nor can we outbid them, so it’s important we are

centered on the patient and all of our decisions for the

patient are physician-driven.”

To make this work, the physicians constantly

communicate with one question in mind — what is best

for patients?

“It’s very easy to fall back into your old ways of

thinking,” says Dr. Charles Fuenning, chief medical

officer at WRH. “You have to be so cognizant of that. It’s

really trying to change some of the paradigms. Instead

of the old tried-and-true methods, we’re trying to focus

on issues from a slightly different perspective, moving

much quicker and faster.”

As health care continues to change, hospitals cost

the most in the health care equation. Hospitals must

get away from the approach of strictly taking care of

sick people and, instead, make sure the care is more

encompassing, Kent says.

“With hospitals, sometimes the failure is in the care,”

Kent says. “It’s not just a revenue situation. The change

in mindset is how we make people healthier and not just

keep them out of the hospital but take care of them via a

process of continuing care. In a hospital, you think about

revenue and how that is tied to more sick people. ‘How

do you get more sick people here?’ is often the question.

How do you get more procedures, more widgets, so to

speak? We’re trying to change the mindset that this is

not about revenue and widgets. This is about how we can

literally make sure the care is done before the patient

gets here, eliminating — if possible — the need for the

person to come to the hospital. That’s just not how

traditional hospitals usually think.”

Surround yourself with great peopleAs in any type of business, the success of an

organization starts and ends with the people. Kent made

sure physicians who invested in and were coming to

practice at the hospital were the right fit.

“We were extremely selective on making sure the

people who are part of our organization have the same

way of thinking from the get-go. We wanted people who

shared the same vision of how we wanted to deliver

care. That led to the creation of a set of credentials and

standards for people to practice here that are among the

highest in the region.”

At WRH, the medical staff must participate in an

annual patient satisfaction training program, and

individual patient satisfaction scores are monitored and

considered in determining whether a physician is given

a reappointment to the staff. Medical staff must either

be board certified at the time of appointment or obtain

certification within five years.

Practitioners also must sign a code of conduct and

abide by it, a practice that accrediting bodies such as The

Joint Commission have just recently recommended.

Not every physician was interested in such a selective

process, but it helped create a staff that believes in the goals.

“It was probably one of our biggest hurdles but also

one of our biggest successes because our medical

staff now is so completely engaged in our vision. Most

hospitals can’t say that.”

Not only does WRH boast a top-notch staff of

physicians, but being physician-owned allows the

hospital to make quick, smart decisions without the

usual influences most hospitals have to deal with.

“As physicians, we understand the needs of patients

as well as what is a legitimate need in equipment

purchasing decisions,” Kent says. “Our experience as

health care providers also gives us insight into launching

new initiatives or programs and determining which

programs are efficient and work well. Having that driven

by physicians, there’s no rhetoric about in-between steps

or talk about hiring consultants because this is what we

do every day.”

By involving physicians in the process of operating

the hospital, the group knows what is necessary to be

efficient and what patients are asking for, Espinal says.

“I think the key to success is being able to respond to

the needs of our patients. That can’t always be done in

a large hospital system that has lots of committees that

Dr. Eric Espinal (L), chairman of the department of surgery, with Dr. Charles Fuenning, chief medical officer at Western Reserve Hospital.

Phot

o: K

en L

ove

9summer 2012 ss&g solutions

have to approve changes. If we see a need, we can move

very quickly toward finding a solution.”

WRH’s leaders are still practicing physicians and

understand when certain changes are needed.

“At our hospital, when a problem arises, you know

the physicians who are leaders understand that this

really is a problem,” Espinal says. “If you see something

happening with a patient experience and you can talk

to a doctor who can effect a change, it matters. There

isn’t a need for a meeting. You don’t have to spend time

convincing someone that something needs done. You can

just show the situation, and the physicians in leadership

roles understand.”

Deliver a great experienceWhile WRH is changing many aspects of health care

delivery for the better, some negative perception remains

toward physician-owned hospitals because most are

specialty-based institutions.

“About 95 percent of physician-owned hospitals across

the country are specialty-based,” Kent says. “Most are

not full-service hospitals. They do not have emergency

departments or intensive care units but instead focus on

one or two specialties, such as cardiology or orthopedic-

related care. We had to fight a lot of myths that tie

physician ownership to specialty-only hospitals. I try

to reiterate that this is not a specialty hospital. This is

a full-service, community-based hospital that happens

to be owned by physicians. Right now, in our market,

we have the highest satisfaction rating of any hospital.

That’s not by happenstance. That’s by making sure the

patient is first.”

The patient satisfaction survey conducted earlier this

year by the Hospital Consumer Assessment of Health

Providers and Systems showed WRH was ahead of the

competition in overall patient satisfaction, with 65

percent rating WRH a 9 or 10. Its nearest competitors,

Robinson Memorial, Wadsworth Rittman, Barberton

Hospital and Akron City Hospital, had 50 percent or

fewer respondents rating them a 9 or 10.

WRH puts its patients first in every decision it makes

and has placed an emphasis on wellness and the patient

experience. For example, the hospital has launched

initiatives such as the Lung Health Program for early

detection of lung cancer.

“We still have a lot of potential opportunity to cure

more patients by finding the disease at an earlier stage,”

Espinal says. “This sounds like common sense, but many,

many hospital systems have been challenged at how to do

this. One of the challenges is insurance wouldn’t pay for it.

That was really a holdup, but we said, ‘This is something

the community needs, and we’re just going to do it.’”

The typical approach to medicine is to wait for a

patient to get sick and then focus on getting him or

her better. Many hospitals focus on the number of

pneumonias or heart attacks that need taking care of.

WRH is looking at what can be done to keep patients

healthy and out of the hospital.

“Treating the sick is always going to be part of what

we do, but I believe medicine in general and what

patients appear to want is more of a focus on wellness,”

Espinal says.

“People find it hard to believe we’re looking at

those factors,” Kent says. “As health care continues to

change, there will be an increased focus on remaining

cost-effective. We want to be ahead of the curve by

getting the community healthier rather than worrying

about treating illness. That is where health care is going

and where it should be.”

While this mentality got many doctors involved with

the partnership, it has been the overall patient-care

experience WRH delivers that made the difference for

other physicians.

“Before Western Reserve was formed, a loved one of

mine underwent a surgery at a local hospital,” Fuenning

says. “I knew the hospital, surgeon, and anesthesiologist.

The surgery went well, and my loved one had a great

patient experience.

“Not too long after that, a very good friend needed

the same surgery, so I recommended the same hospital,

surgeon, and anesthesiologist. Though the surgery was

again successful, my friend had a completely different

experience and level of patient satisfaction. The question

for me was; why? In addition to excellent health care,

everybody should have that same good experience. I

knew that if I ever had the opportunity to make sure that

could happen — that I could positively influence a great

experience for every patient — I would. So when the

opportunity with Western Reserve came up, I knew this

was what I needed to do.” j

How to ReacH: Summa western Reserve Hospital,

330-971-7000 or www.westernreservehospital.org

www.westernreservehospital.org

“We’re trying to change the mindset that this is not about revenue and widgets.”

— Dr. Kent, President and CEO, Western Reserve Hospital Partners

focus on

A companywide community service program boosts

morale, fosters teamwork and — best of all —

helps those in need.

The employees of SS&G, Inc. understand this as the

firm recently structured a community service initiative.

SS&G’s employee-led Personnel Committee Advisory

Board created the Serve, Share & Give (SS&G) program,

which provides designated outings for employees

to donate time to a specific organization. While the

company had participated in community service in

the past, it did not have a formal, organized means for

doing so.

“Our professionals wanted to have an organized way

to volunteer together,” says Rebecca Osborne, director of

human resources. “Right now, we’re focused on helping

our nonprofit clients in our individual markets.”

The Cleveland program kicked off June 1 with 17

employees spending four hours working in the kitchen of

the Cleveland Foodbank, making lunches, dinners, and

snacks for the many area agencies that utilize its services.

SS&G also hosted two other trips to the organization and

ran a food drive in its office.

“Many of our partners went out with junior members

of the staff and worked side by side,” Osborne says.

“From an HR perspective, the program develops team

building and camaraderie.”

Teresa Schaffer, director of assurance services and

nonprofit group lead at SS&G, agrees, saying the program

has given employees new perspectives.

“We understand

the numbers of

an organization,

but many of us —

particularly our

younger staff — may

not have experienced

what it’s like on the

inside,” she says. “This program has allowed us a great

opportunity to sort of walk a mile in our clients’ shoes,

helping us better understand their missions and improve

our service to these valuable nonprofits.”

Fresh from starting its own community service program,

SS&G has tips for others interested in starting one:

Pilot your program. SS&G started the program at

one location with a limited number of employees before

expanding it to the larger organization. Doing this allowed

the company to work out problems on a small scale before

going companywide.

Offer an incentive. SS&G sent out an announcement

to employees outlining the program details. The

volunteer work was done during work hours, so

employees were paid for their time. They were also

allowed to wear jeans for the day, even when they came

back to the office.

Work with your chosen organization. SS&G has a

large number of employees, so it asked how many the

Cleveland Foodbank could accommodate at one time. This

led to SS&G breaking the project up into three separate

days to avoid showing up with a large group of people

only to find there weren’t enough jobs available for them.

Involve your employees. The idea for SS&G’s program

came from its employees, who were instrumental in

getting it up and running. Employee involvement ramps

up excitement as they feel they have played a critical role

in the project.

Offer several opportunities. SS&G offered three

separate days for involvement and made sure they were

outside peak deadlines. This allowed employees to choose

which day worked best for them.

Choose an organization that aligns with your company. SS&G partnered with clients. Discover where

your strengths lie and offer those to an organization.

As a business consulting firm, for example, you can

offer to help a company with its internal controls on a

volunteer basis.

Be organized. SS&G used Microsoft SharePoint for its

employees to sign up for the program so it knew how

many it needed and who was going. j

10 ss&g solutions j summer 2012

Giving backThe benefits of a community service program — and how your company can create one

11summer 2012 ss&g solutions

the last wordwith Gary Shamis

M ajor increases in federal taxes are right around

the corner. Jan. 1 will be here before we know

it. Of course, things can change quickly, but

in a presidential election year, the chances to change

course are significantly reduced.

What lies ahead is a perfect storm of tax law changes

— now in effect — that are set to expire. Included are the

Bush-era tax tables, the temporary estate and gift tax rules,

and many tax strategies used to weather the recession.

If the Bush tax tables expire, individuals will revert back

to prior tax levels. The highest tax bracket moves from 35

percent to 39.6 percent — about a 15 percent increase.

The change in the estate and gift tax is far more

profound. The amount a married couple may gift goes

from $10.2 million to $2 million, an 80 percent decrease.

And estate taxes go from 35 percent to 55 percent, an

approximate 70 percent increase.

The tax strategies that are disappearing relate to

the expiration of credits, reduction in accelerated

depreciation, and reinstituting full Social Security rates

on earned income.

In addition, effects of health care reform add

additional taxes to unearned income.

This really adds up. I am not talking about a few

percentage points. I am talking about major tax increases.

Tax ArmageddonIt is coming — beware!

“What lies ahead is a perfect storm of tax law changes.”

We all need to take note and plan accordingly. We

must carefully consider growth plans for our businesses

and be sure to consider the risks we are taking related to

the increased tax burden.

Planning is essential. This must include both business

and individual planning to optimize tax strategies.

And perhaps most important is to carefully consider

gifting and estate options as the window closes on this

unprecedented opportunity to pass along wealth.

The professionals at SS&G are here to help you plan

for these significant changes. j

Additional ResourcesRead more on page 4 about potential tax changes, or visit SSandG.com/resources for helpful tools, including tax calculators, planning guides, and tax tips.

Looking for answers to your specific tax questions?Contact SS&G’s tax professionals at 800-869-1834 or info@SSandG.com.

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