Common Errors to Avoid in Employee-Benefit Plans

Get our email updates

Stay up-to-date on the companies, people and issues that impact businesses in Syracuse, Central New York and beyond.

Already an Subcriber? Log in

Get Instant Access to This Article

Become a Central New York Business Journal subscriber and get immediate access to all of our subscriber-only content and much more.

Learn More and Become a Subscriber

Retirement plans are a valuable benefit for a company’s employees and a great way to enhance a total employee-compensation package. However, correctly maintaining a retirement plan comes with specific responsibilities and certain administrative duties to ensure compliance with all the laws and regulations that govern employee-benefit plans. The size of the plan does not matter. In each case, there are complex procedures and rules that must be observed or risk facing potential penalties. Below are three common examples of errors found within plans that can be easily mitigated with proper knowledge and strong internal controls within the plan structure.

Definition of compensation: Eligible compensation should be clearly defined in the plan documents. In addition, this definition should cover all types of contributions to the plan, including employee elective deferrals, and any employer contribution such as matching or profit sharing. There are many occasions when plans will have different definitions of compensation for each type of contribution. For example, compensation for salary deferrals may include all compensation, while the calculation for employer profit sharing may exclude certain compensation such as overtime, bonuses, or commissions. A good recommendation for plan sponsors is to understand the definition of compensation as noted in the plan documents, review the plans calculation of eligible wages, and periodically spot check the calculation to ensure the proper amount of wages is being used.

Plan minutes: With the complexities of benefit plans and the recent focus on fiduciary responsibility in overseeing these plans, it’s important that the plan trustees adequately document the due diligence they exercise over the operations of the plan. The trustees should meet at least annually to review such items as investment returns, determining investment strategies, monitoring tax and qualification compliance, review of third-party services, and approval of any plan amendments. In addition, if your plan has any discretionary contribution feature, such as employer matching or profit sharing, it’s highly recommended that these amounts are documented on an annual basis and retained within the plan records.

Hardship distributions: Many plans offer a hardship-withdrawal feature to their plan participants for times when it is necessary to satisfy an immediate and heavy financial need. In order for a hardship to be approved, the plan administrator is required to review and obtain documentation to verify the participant’s financial need. This approval and documentation must be retained within the plan records. In addition, plans typically require participants to stop making contributions for the next six months after receiving a hardship distribution. This can be easily missed if there are not strong controls in place and proper communication between the plan administration and the payroll function.

Early detection is critical

It’s prudent that if you uncover an error within your plan, you act quickly. The earlier an error is detected, the easier and less expensive it will be to fix. As soon as an error is discovered, contact your third-party administrator and your legal counsel to determine the appropriate correction.ν

Todd Klaben, CPA is a partner with The Bonadio Group, in the accounting firm’s Syracuse office and its Small Business Advisory division. Contact him at tklaben@bonadio.com

CNY ATD announces 2019 leadership team

Subscriber Only

SYRACUSE — CNY ATD has announced its 2019 leadership team. They are as follows: President, Steven DeHart, Progressive Insurance; President-Elect, Amy Wood, Raymond Corporation; Past-President, Amy Bartolotta, The Hartford; VP CNY BEST, Beth King, O.C. Tanner; VP Programs, Brent Danega, AXA; VP Employee Learning Awareness, Melissa McLean, Oneida Nation Enterprises; Membership Chair, Cynthia Doss, SUNY

Already an Subcriber? Log in

Get Instant Access to This Article

Become a Central New York Business Journal subscriber and get immediate access to all of our subscriber-only content and much more.

Learn More and Become a Subscriber

Oneida County hotel occupancy rate rises more than 3 percent in November

Subscriber Only

UTICA — Hotels in Oneida County were fuller in November compared to a year ago, according to a recent report. The hotel occupancy rate (rooms sold as a percentage of rooms available) in the county increased 3.6 percent to 49 percent in November from 47.2 percent in the year-ago month, according to STR, a Tennessee–based

Already an Subcriber? Log in

Get Instant Access to This Article

Become a Central New York Business Journal subscriber and get immediate access to all of our subscriber-only content and much more.

Learn More and Become a Subscriber

Binghamton’s Link Foundation appoints Morton as special advisor

Subscriber Only

BINGHAMTON — The board of trustees of the Link Foundation announced it has appointed James Edmond (Ed) Morton, IV as a special advisor to the foundation’s board of directors. Morton is senior VP, wealth management group regional executive, and Broome Tioga market executive with Chemung Canal Trust Company, a community banking company headquartered in Elmira.

Already an Subcriber? Log in

Get Instant Access to This Article

Become a Central New York Business Journal subscriber and get immediate access to all of our subscriber-only content and much more.

Learn More and Become a Subscriber

Air Force funds Syracuse professor’s research in preventing bleeding deaths

Subscriber Only

SYRACUSE — The U.S. Air Force has awarded a Syracuse University professor more than $427,000 for her work in developing a method for preventing bleeding deaths. Mary Beth Browning Monroe, a professor in the College of Engineering and Computer Science, is developing a first-aid, biocompatible foam that results in rapid blood clotting in large wounds.

Already an Subcriber? Log in

Get Instant Access to This Article

Become a Central New York Business Journal subscriber and get immediate access to all of our subscriber-only content and much more.

Learn More and Become a Subscriber

SYRACUSE — The U.S. Air Force has awarded a Syracuse University professor more than $427,000 for her work in developing a method for preventing bleeding deaths.

Mary Beth Browning Monroe, a professor in the College of Engineering and Computer Science, is developing a first-aid, biocompatible foam that results in rapid blood clotting in large wounds.

The Air Force Defense Research Sciences Program provided the project funding.

Despite advances in medical technology, millions of people around the world still bleed to death after a gunshot wound or “other traumatic injuries,” Syracuse said in a news release. Many of those deaths occur before the victims ever reach a hospital.

“Professor Duncan Maitland first developed this technology at Texas A&M 20 years ago as an aneurysm treatment,” Monroe said in the release. “While working in his lab, my job was to think of new applications for the foam. I was shocked by the number of people who still die from bleeding, so my focus became customizing the foam to treat large wounds, such as [those resulting from] gun shots.”

Monroe’s foam is a shape memory polymer, meaning it can take different shapes when heated, cooled or “manipulated.” Similar in appearance to the sponge in your kitchen sink, Monroe’s foam can be compressed and inserted into “deep, tunneling” wounds. Once implanted, it heats up to body temperature and expands to fill the injury. Its combination of chemistry and porous structure results in rapid clotting and stops the bleeding, Syracuse said.

“I dream that this will become a part of the average first-aid kit — inexpensive, easy-to-use and widely available,” said Monroe. “It could be made available to everyone, no matter where you are or who you are, and prevent a lot of deaths.”

Alternatives similar to Monroe’s solution are available, but “they tend to rely on applying pressure in the wound,” Syracuse said. Her foam not only patches the injury, but also “promotes healing as soon as it is inserted.”

Monroe is also working on adding other functions for the foam such as a honey-based antimicrobial component to ward off infections and making the foam biodegradable so that it never needs to be removed.

“My goal now is to get the basic formulation out there as quickly as possible,” Monroe said. “I’m gathering the data I need to show that it is safe and effective, including FDA (U.S. Food and Drug Administration) approval. From there, I’ll continue to work on additional capabilities in future generations of the technology.”

Once approved for use, the technology would have “clear” military and commercial applications, Syracuse contends.

Dumac Business Systems acquires Louisiana–based firm

Subscriber Only

DeWITT — DeWitt–based Dumac Business Systems, Inc. has acquired Total Retail Solutions (TRS) of Louisiana, a provider of point-of-sale (POS) and loss-prevention products to independent grocers. Point-of-sale products are more commonly known as cash registers, whether scanning systems for supermarkets or touch screens for restaurants, says Phil McCarthy, VP of Dumac, who spoke with CNYBJ

Already an Subcriber? Log in

Get Instant Access to This Article

Become a Central New York Business Journal subscriber and get immediate access to all of our subscriber-only content and much more.

Learn More and Become a Subscriber

DeWITT — DeWitt–based Dumac Business Systems, Inc. has acquired Total Retail Solutions (TRS) of Louisiana, a provider of point-of-sale (POS) and loss-prevention products to independent grocers.

Point-of-sale products are more commonly known as cash registers, whether scanning systems for supermarkets or touch screens for restaurants, says Phil McCarthy, VP of Dumac, who spoke with CNYBJ on Jan. 7.

West Monroe, Louisiana–based TRS supports about 400 supermarkets in Louisiana, Arkansas, Mississippi, and Tennessee, Dumac said in a news release.

The acquisition closed Dec. 1. Dumac is headquartered at 19 Corporate Circle in DeWitt.

McCarthy declined to disclose the acquisition price but indicated that Dumac financed the deal using company assets and a loan from KeyBank.

McCarthy also noted that he is one of seven people who own Dumac, a family-operated business. Dumac had 285 employees before the acquisition and added all of TRS’s 28 employees in the deal.

“We’ll ultimately grow that group,” says McCarthy, noting that all TRS workers will remain at their respective job sites.

The local firm also added all TRS customers. TRS has two facilities in Louisiana and one each in Arkansas, Mississippi, and Tennessee that will operate under the Dumac name, per the release.

Headquartered in DeWitt since 1952, Dumac also has operations in Texas, Oklahoma, and Indiana, according to its website.

More than a thousand independently owned supermarkets across the U.S. use Dumac products. Dumac also sells POS hardware to the hospitality and restaurant markets.

The firm’s customers include Dublin, Ohio–based Wendy’s, a fast-food restaurant chain, and CoreLife Eatery, McCarthy told CNYBJ. CoreLife Eatery describes itself as an “active lifestyle restaurant” operating several locations in New York and 10 additional states.

How the deal happened

TRS had been for sale since after the owner, Lane Osbon, died in late 2017, according to McCarthy. Osbon’s widow wanted to make sure the company’s employees would still have jobs in the acquisition deal.

“They reached out to a group of potential buyers, looking not just for someone to buy it but also for a cultural fit,” says McCarthy, noting that Dumac was familiar with TRS before the acquisition discussions.

Aaron Davidson, who most recently served as president of TRS, will continue in a leadership role with Dumac as a branch manager. “His day-to-day role has not changed a whole lot,” says McCarthy.

“We’re excited about this combination with Dumac and the opportunities it presents to continuously provide better experiences, opportunities, and outcomes for our customers and employees,” Davidson said in the Dumac release. “In many ways, it’s business as usual with the added benefit of offering customers greater expertise and solutions to help them achieve greater results.”

Companies Want Innovation But Are Built for Efficiency

Business Mentors, Subscriber Only

Already an Subcriber? Log in

Get Instant Access to This Article

Become a Central New York Business Journal subscriber and get immediate access to all of our subscriber-only content and much more.

Learn More and Become a Subscriber

Many people tout the need to change mindsets around how our organizations are run. The argument is that leaders and managers need to think differently about people, work, and power. For at least 10 years now, I’ve been seeing, reading, and listening (and honestly contributing some myself) to all the hyperbole, and yet so little has changed — especially in large organizations. Here’s the real problem and it’s not just certain people, it’s that our organizational systems and structures continue to pull people back to status quo. We think in the 21st century but work in the 20th, and well, we are what we do.

The fact is that the primary goal of any company is to make a profit; that won’t ever change of course but blindly chasing that goal can lead to a reduction in attention to what actually matters more in the modern economy — people. There is probably no better example of this than from a recent article on how the architecture of hospitals affects health outcomes. Among many examples of structural impact on people was the perfect example of how systems drive behaviors and behaviors form beliefs… with some of the behaviors making modifications to the structure itself. Here’s the gist of it:

We like to think the goal of a hospital is to cure people and that’s true for some who operate in a hospital, but not all. For doctors it’s to make patients healthy, but for administrators it’s more financial. The article uses the example of how often hospital patients’ beds face the door of the room and not the window, even though seeing nature and the outdoors can elevate moods, inspire, and increase motivation and hope in patients — with each leading to greater health. By facing the door, however, the medical staff can more quickly gauge the status of the patient. Although doctors desire healthy patients, the demands of the business side may call for them to see more patients more quickly; having everything front and center as they enter the room helps them to do just that. One could see here that the system of efficiency is driving the behaviors to alter the structure and therefore creating a belief around how a hospital should be run.

Systems -> Behaviors -> Beliefs

How similar is your workplace? Are the hearts and minds reaching for something new but the structure, supported by the systems, (organizational design) are pulling people back to center? Don’t kid yourself, the 20th century desire for efficiency still defines the structure of the organization around how we manage people, reward behaviors, hire, learn, and make decisions and all are the way they are for ease of measurement. We manage performance annually, we reward only outputs, we hire for roles, we focus on attendance and completions as learning, and power is held by a few. But what if innovation and not efficiency was truly most desirable? We would need to:

• Measure performance more frequently,

• Reward inputs and outcomes,

• Hire for fit not only function,

• Focus on sharing and collaboration, and

• Create more openness and transparency.

An emphasis on innovation is fuzzy and more immeasurable and would certainly reduce efficiencies and conveniences. But our companies are like the patient who gets to face the window; they would gain greater health and longevity if we shifted the goal and altered the systems to achieve it.

Mark Britz is a workforce-performance strategist who has launched ThruWork (ThruWork.com), a talent-development consultancy for small to mid-sized businesses. The company specializes in solving organizational performance problems and focuses on non-training approaches to scale employee performance. Contact Britz at (315) 552-0538 or email: mark@thruwork.com

SUNY Poly opens new robotics lab at Marcy campus

Subscriber Only

MARCY — SUNY Polytechnic Institute (SUNY Poly) has a new robotics lab at its Marcy campus that the school is using for research, development, and educational opportunities based on robotics and automation capabilities. The Hage Family Robotics Lab is named in honor of the Hage family “in recognition of decades of significant support” for SUNY

Already an Subcriber? Log in

Get Instant Access to This Article

Become a Central New York Business Journal subscriber and get immediate access to all of our subscriber-only content and much more.

Learn More and Become a Subscriber

The Hage Family Robotics Lab is named in honor of the Hage family “in recognition of decades of significant support” for SUNY Poly “over nearly a quarter century.”

“On behalf of the SUNY Poly Foundation, I am grateful for the generous contributions of the Hage family, who have been steadfast supporters of the hands-on educational opportunities that SUNY Poly students have always received,” Andrea LaGatta, executive director of the SUNY Poly Foundation, said in a news release. “We are thrilled to be able to name this state-of-the-art robotics lab after a family whose impact is helping support SUNY Poly students as they gain highly relevant skills that will help them succeed while strengthening our local, regional, and New York State workforce.”

The Hage Family Robotics Lab is located in Donovan Hall on the Marcy campus. It is part of SUNY Poly’s new Center for Global Advanced Manufacturing (CGAM).

The lab has robotics technologies that “enable unique experiential learning opportunities and collaboration,” SUNY Poly contends.

For example, Baxter, a “smart, collaborative” robot is housed in the lab, aiming to redefine the use of industrial automation in manufacturing environments. Baxter is also currently being used in the research of Yu Zhou, professor of mechanical engineering at SUNY Poly.

“Hage & Hage is a longtime leader in technology innovation, and this recognition is a continuation of that tradition,” J.K. Hage, III, an attorney with Utica law firm Hage & Hage, said in the school’s release. “SUNY Poly represents the future of technology in Central New York, and we, as rural New Yorkers, are committed to full participation in the 21st century economy.”

The Hage Family Robotics Lab is accessible to any SUNY Poly student who is “inspired to pursue a robotics project of his or her own upon completion of a baseline safety test.”

In addition, the lab supports the institution’s Fabrication Club. It also supports FIRST Robotics Team #5030, The Second Mouse, an award-winning FIRST robotics team that has earned a berth to the FIRST robotics world championship in three of the last five years, per the SUNY Poly release.

The team is comprised of area high-school students mentored by SUNY Poly engineering and computer-science mentors.

Wayne County manufacturer, Dynalec, is expanding

Subscriber Only

Firm commits to creating at least 8 new jobs after more than $1 million projectSODUS — Dynalec Corporation, a communications-equipment manufacturer in Wayne County, is expanding its operations in Sodus with a project that costs a little more than $1 million. The company has also committed to creating at least eight new jobs, according to

Already an Subcriber? Log in

Get Instant Access to This Article

Become a Central New York Business Journal subscriber and get immediate access to all of our subscriber-only content and much more.

Learn More and Become a Subscriber

Lockheed recruiting to fill 200 jobs at Salina, Owego plants

Subscriber Only

Lockheed Martin Corp. (NYSE:LMT) is recruiting to fill more than 200 technical positions currently open at its Salina and Owego sites. About “100 of them [are at the] Syracuse facility and 100 of them at the Owego facility,” Matthew Wilkowski, systems engineering manager with Lockheed Martin in Salina, tells CNYBJ. The openings include positions in

Already an Subcriber? Log in

Get Instant Access to This Article

Become a Central New York Business Journal subscriber and get immediate access to all of our subscriber-only content and much more.

Learn More and Become a Subscriber

Lockheed Martin Corp. (NYSE:LMT) is recruiting to fill more than 200 technical positions currently open at its Salina and Owego sites.

About “100 of them [are at the] Syracuse facility and 100 of them at the Owego facility,” Matthew Wilkowski, systems engineering manager with Lockheed Martin in Salina, tells CNYBJ.

The openings include positions in systems engineering, product electrical engineering, hardware engineering, software engineering, integration and testing, and manufacturing operations.

Some of the positions are entry level, and others require more experience, says Wilkowski.

The company is encouraging those who want to apply for specific jobs to do so online at www.lockheedmartinjobs.com.

The Bethesda, Maryland–based defense contractor was scheduled to host a recruitment event on Jan. 10 at Destiny USA’s Canyon area.

For those who couldn’t attend the Jan. 10 recruitment event, Wilkowski encourages those candidates to include a cover letter when they apply online. The recruitment event included a chance for candidates for have discussions with company representatives to explain their background and reasons for pursuing employment with Lockheed Martin.

“It’s another good opportunity for them to better describe what they might be looking for,” says Wilkowski.

The defense contractor is working to fill jobs that will focus on projects servicing the company’s international customers and U.S. military contracts as well, according to Wilkowski. The openings also address Lockheed Martin retirements, he adds.

The company seeks to pair younger hires with mentors once they start working. The mentor can help teach them the company’s various processes, the way Lockheed Martin handles its business, and the technical work that it performs. Younger employees will also work with “subject-matter experts” who can teach them the “technical layer” of radar engineering, says Wilkowski.

“We have a lot of training sessions that we’re conducting right now where experts are holding weekly or biweekly training classes to learn the basics of radar,” he notes.

Lockheed Martin currently employs about 1,600 people at the Salina plant and 2,600 in Owego, Rae Fulkerson, a company spokesperson, said in an email response to a CNYBJ inquiry. The firm employs about 100,000 people worldwide.

Get our email updates

Stay up-to-date on the companies, people and issues that impact businesses in Syracuse, Central New York and beyond.

Get our email updates

What's New

Upcoming Events

2026 CenterState CEO Economic Forecast Breakfast

Coffee Talk at the Tompkins Chamber: Tourism, Hospitality, & Agriculture

CenterState CEO Speed Networking

CNYBJ Job Board

Get Instant Access to This Article

Get Instant Access to This Article

Get Instant Access to This Article

Get Instant Access to This Article

Get Instant Access to This Article

Get Instant Access to This Article

Get Instant Access to This Article

Get Instant Access to This Article

Get Instant Access to This Article

Get Instant Access to This Article

Get our email updates