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Chemung Chamber offers May 26 webinar on disability inclusion
ELMIRA, N.Y. — The Chemung County Chamber of Commerce will present a panel-discussion webinar educational series at 10 a.m. on Thursday May 26 on how
Wheels are in motion for Binghamton entrepreneur
BINGHAMTON, N.Y. — The owner of Chenango Point Cycles in Binghamton has taken his love for bicycling and purchased a business that focuses on that activity. His efforts also earned him recognition as the 2022 Small Business Person of the Year Award from the Upstate New York District of the U.S. Small Business Administration (SBA).
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BINGHAMTON, N.Y. — The owner of Chenango Point Cycles in Binghamton has taken his love for bicycling and purchased a business that focuses on that activity.
His efforts also earned him recognition as the 2022 Small Business Person of the Year Award from the Upstate New York District of the U.S. Small Business Administration (SBA).
“I bought Chenango Point in 2019 with the goal of being a hub for cyclists new and old to come together — for families and for people who have never seen a bike before in their life. I wanted to help them find the love I knew from riding my bike,” Anthony Folk said. “Taking my passion of having wheels underneath my feet and being able to share that with my community is one of the most rewarding experiences I can imagine.”
Chenango Point Cycles is located in the old Gotham Shoe factory at 125 Park Ave. in Binghamton. SBA Atlantic Regional Administrator Marlene Cintron and SBA Upstate New York District Director Bernard J. Paprocki visited Folk at his store to present the award as part of National Small Business Week.
They were joined by U.S. Representative Claudia Tenney, New York State Senator Fred Akshar, and Sonya Smith, state director of the New York Small Business Development Center (SBDC), the SBA said.
Paprocki noted that the SBA Upstate New York District selected Folk for the honor not only for his success “creatively growing” his business to become a “premier” regional bike shop, but also for his “commitment to community service and building a network of support” for cycling enthusiasts across the Southern Tier.
Road to ownership
As the SBA explains it, before becoming an entrepreneur, Folk was “always motivated to engage and encourage” other cyclists. He saw an opportunity to expand that mission in 2018 when the owner of Chenango Point Cycles — a “Southern Tier institution” — was contemplating retirement. Folk wanted to purchase and expand the business, with the goal of turning it into a top retail destination for cyclists and a center for community engagement for the region.
Before moving forward with the business acquisition, Folk turned to the Binghamton University SBDC, a member of the SBA-funded Resource Partner network, for help. He worked with then-business advisor Robert Griffin, now regional director of the Onondaga SBDC, on updating his business plan, developing cash-flow projections and securing financing.
Because Folk was a first-time business owner, lenders would have a “certain level of risk” in financing the acquisition, the SBA noted. Folk and Griffin worked with SBA lending partner KeyBank to consider Chenango Point Cycles’ options. Folk was eventually approved for an SBA Express Loan to purchase the business, inventory, and equipment through the lender, the agency said.
After successfully purchasing Chenango Point Cycles, Folk “immediately faced new obstacles,” the SBA said. They included a workforce shortage at a time when customers old and new started increasing their outdoor activity during the pandemic, directly leading to increased demand for bicycles, cycle parts, and repairs.
Coupled with addressing supply-chain issues, Folk relied on the SBDC to continue coaching him on human resources, management, accounting, and purchasing to help navigate the challenges.
Throughout the pandemic, Folk hired four new employees and added an online business, which led to a 15 percent year-over-year increase in inquiries. Folk foresaw and planned for future supply chain disruptions, expanding from two to four bike manufacturers and from one to almost a dozen accessory and parts suppliers.
During the three years after Folk bought Chenango Point Cycles, the business has tripled its sales and become the “biggest bike retailer in the region,” expanding from the Binghamton area to a regional market extending from Western New York to Maryland, the SBA said.
Ask Rusty: About the Earnings Test & Taxation of Social Security Benefits
Dear Rusty: I’m 63, married, and we file a joint tax return. If I claim Social Security (SS) now and keep working and earn $7,000 more per year than the annual limit of $19,560, I know I’d have benefits withheld at the rate of $1 for every $2 over the limit ($3,500). But if I
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Dear Rusty: I’m 63, married, and we file a joint tax return. If I claim Social Security (SS) now and keep working and earn $7,000 more per year than the annual limit of $19,560, I know I’d have benefits withheld at the rate of $1 for every $2 over the limit ($3,500). But if I were to contribute $7,000 to a conventional (not Roth) IRA and take the deduction, would this reduce my earned income and eliminate the SS benefit withholding? And will such an IRA deduction help avoid taxation of my SS benefits if I am above the $32,000 taxation threshold for married — filing jointly? I’m trying to figure how much I can afford to earn while collecting Social Security benefits.
Signed: Searching for Ways
Dear Searching: Contributions to an IRA will not reduce the income-tax liability on your Social Security benefits. Taxation of SS benefits is determined using something known as modified adjusted gross income (MAGI), which is your normal adjusted gross income (AGI) on your tax return, plus 50 percent of the SS benefits you received during the tax year, plus any other non-taxable income you had (which would include contributions to your IRA). As you know, MAGI over $32,000 will cause 50 percent of your SS benefits received during the tax year to become taxable, but MAGI over $44,000 will up that percentage to as much as 85 percent of SS benefits received during the tax year (taxed at your normal IRS tax rate).
For the Social Security earnings limit, which applies to anyone collecting early benefits, your gross income from working is what counts so contributing to an IRA won’t reduce the amount you exceed the limit by — the Social Security Administration (SSA) will use your gross W2 amount, not the AGI from your tax return.
FYI, the 2022 annual earnings limit is $19,560 and if that is exceeded, you’ll pay the penalty ($1 for every $2 over). But claiming mid-year you’ll also be subject to a 2022 monthly limit of $1,630 and, if that is exceeded, you aren’t entitled to SS benefits for that month (the monthly limit will only apply for the remaining months of 2022). What will happen is the SSA will compute the penalty both ways and see which is greater — the penalty for exceeding the annual limit or the one for exceeding the monthly limit — and it will assess whichever penalty is smaller. As you may know, the earnings limit goes up by about 2.5 times during the year you reach your full retirement age (FRA) and goes away entirely starting in the month you attain FRA.
But there is also something to be aware of: If you have benefits withheld because you exceeded the earnings limit, when you reach your full retirement age you will be given time credit for the months benefits were withheld, meaning that the SSA will increase your FRA benefit amount according to the number of months you didn’t get benefits before that. So, at least theoretically, you can eventually recover the benefits withheld for exceeding the earnings limit by getting a higher benefit payment starting at your full retirement age. But income tax on SS benefits is different — there is no age cap for assessing federal income tax on your Social Security benefits.
Russell Gloor is a national Social Security advisor at the AMAC Foundation, the nonprofit arm of the Association of Mature American Citizens (AMAC). The 2.4 million member AMAC says it is a senior advocacy organization. Send your questions to: ssadvisor@amacfoundation.org.
Author’s note: This article is intended for information purposes only and does not represent legal or financial guidance. It presents the opinions and interpretations of the AMAC Foundation’s staff, trained and accredited by the National Social Security Association (NSSA). The NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity.
NONPROFIT MANAGEMENT: Is Your Employee Retirement Plan Compliant?
We are approaching the time of year where we dust off our employee retirement plans and auditors show up to ask us all sorts of questions about the plan and test a sample of contributions. Once that audit is complete, we can shelve our plan and not dust it off again until the next year. Of
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We are approaching the time of year where we dust off our employee retirement plans and auditors show up to ask us all sorts of questions about the plan and test a sample of contributions. Once that audit is complete, we can shelve our plan and not dust it off again until the next year. Of course, I am being facetious. However, it sometimes feels this way as nonprofits spend a significant amount of time with governance of the agency, but often not as much attention is paid to governance of the retirement plan even with the significant risks that exist. Sponsoring a qualified employee retirement plan comes with a good deal of responsibility.
With the increased oversight of employee retirement plans, and recent law changes, agencies want to guarantee their plan is compliant. Ensuring compliance starts with the governance procedures an agency has in place. Plan governance is the oversight that is needed to keep the plan compliant. Good governance will give you the framework to help mitigate the risks in these plans. There is nothing scarier than having the Department of Labor show up on your doorstep. Here are some things that nonprofits can do to prepare for such a visit.
1. Establish a retirement plan committee.
Under the Employee Retirement Income Security Act of 1974 (ERISA), plans have a duty to monitor, disclose their activities, diversify investments, and act in accordance with the retirement-plan document. A key component to complying with these ERISA requirements is having a retirement plan committee. The committee used to be considered a best practice, but with the number of lawsuits against sponsors of retirement plans over the last five to 10 years, it has become a must. A retirement plan committee is an effective way to provide the oversight needed to ensure compliance. Members of the committee should have a diverse set of skills and experience and must include representatives from finance and human resources. The committee should meet with the custodians of the plan and legal counsel as necessary. It should also ensure minutes of those meetings are maintained.
The review of investment options and fees is a significant responsibility for the retirement plan committee. Under ERISA, fiduciaries must engage in a prudent process to select and monitor investment options. Additionally, investment fees must be reasonable for the services being provided. Several lawsuits over the last few years have revolved around fees and hidden fees in investments.
2. Create an investment-policy statement.
While having an investment-policy statement is not required, it is a way to provide appropriate guidance over the retirement plan investment portfolio. An investment-policy statement addresses the process for selecting and monitoring investments. Having and following an investment policy statement can significantly reduce fiduciary risk. An investment-policy statement provides a process for selecting and monitoring investment options.
A part of the investment policy should be the establishment of a qualified default investment alternative (QDIA). A QDIA protects plan fiduciaries and can reduce plan fiduciary liability due to participants’ investment losses if QDIA requirements are met, such as notice requirements.
3. Review and understand the plan’s governing documents.
The governing documents provide the terms to be followed and overall direction for operating the employee retirement plan. The plan document contains the provisions of the plan and sets forth key components. The adoption agreement contains the options that the sponsor completes, including the vesting schedules and definition of compensation.
4. Create a governance calendar.
Establishing and following an annual governance calendar ensures the annual items are not missed. Examples of items that should be included in the calendar are a review of vendor fees and services, review of the SOC reports for the vendors, and review of the annual audit and Form 5500 filing.
5. Training.
Providing training to all employees about the various components of the retirement plan, including the investment risks and opportunities, provides participants with the knowledge they need to make informed decisions. This training should be provided annually and be performed by experts hired by the sponsors.
With all the responsibilities on plan sponsors, there has been some relief with the SECURE Act that was passed in 2021. The SECURE Act allows unrelated employers to come together in a Pooled Employer Plan (PEP) that is managed by a pooled plan provider. The pooled plan provider is the fiduciary of the PEP and thus has the administrative burden and risks. The pooled plan provider is responsible for selecting and monitoring vendors, recordkeepers and, best of all, there is only one audit and 5500 filing for the PEP itself. There are plenty of good reasons to consider a PEP for your not-for-profit organization, including lower costs, less risk and responsibilities for the agency, and improved retirement outcomes. Streamlining and delegating retirement-plan administration to experts allows agencies to focus on their core business.
Additional legislation has been proposed, and passed the U.S. House of Representatives, that would require employers to automatically enroll all newly eligible employees at a 3 percent deduction level that ticks up by 1 percent annually until it reaches 10 percent. Employees have the choice to opt out, if they prefer, and existing plans wouldn’t have to change.
With so many changes occurring in the retirement-plan arena, it can be difficult to stay on top of everything. Good governance processes and procedures reduce risks to the sponsor and the likelihood of a plan straying off course.
Bettina Lipphardt is a partner and the team leader in The Bonadio Group’s Healthcare/Tax-Exempt Syracuse/Utica Division. She provides consulting and auditing services for a variety of tax-exempt clients. Contact her at blipphardt@bonadio.com
OPINION: N.Y.’s Climate Goals Could Produce Reliability Crisis
New York Democrats have a longstanding habit of taking an issue like environmental policy and addressing it with the most extreme, unrealistic solutions conceivable. The Climate Leadership and Community Protection Act (CLCPA) passed in 2019 is one such example of that type of overreaction, and [as of press time] several Assembly committees were set to
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New York Democrats have a longstanding habit of taking an issue like environmental policy and addressing it with the most extreme, unrealistic solutions conceivable. The Climate Leadership and Community Protection Act (CLCPA) passed in 2019 is one such example of that type of overreaction, and [as of press time] several Assembly committees were set to be meeting to discuss one of the proposals born of the law: all-electric buildings.
The hearing was to examine the feasibility of requiring all new construction to eliminate fuel combustion and move to an all-electric energy system. There are enormous concerns with this type of dramatic shift in energy policy. One such concern, as enumerated by the Empire Center for Public Policy, is a lack of power during the coldest, darkest months of the year. The policy analysts there estimate that energy deficits could lead to a supply shortage of as much as 10 percent by 2040. An energy shortage or blackout during a severe winter storm could be fatal under these conditions.
For example, last year a polar vortex enveloped Texas and the state’s energy grid was unable to keep up with demand. All told, as many as 750 people died and property damage approached $200 billion. We simply cannot have a situation where there is not enough power to go around, and the CLCPA is setting us up for that very scenario.
Broadly speaking, the CLCPA is, essentially, a list of emissions goals. Outside of the obvious risks to the energy grid, the goals are financially unworkable. Estimates of the annual cost to implementing the recommendations in the legislation are in the billions of dollars. Taxes and utility costs are expected to rise dramatically to cover expenses like retrofitting the state’s energy system. The motivation for the law is dubious as well, as New York only contributes about 0.5 percent of global carbon emissions and only 3 percent of emissions here in the U.S. In other words, New York is “green” by any reasonable standard, especially Upstate.
The Assembly Republican Conference has always stood for creating a cleaner, healthier New York, and I believe there are responsible ways to leverage the benefits of renewable energy. But Democrats are forcing through climate policy and a massive overhaul of the utility sector without even the courtesy of telling the average New York household what it’s going to cost.
Unfortunately, the current path we are on is dangerous and unsustainable. I urge the [state legislature] to consider closely the impact this law will have on the individuals asked to pay for and live though its standards; they are the ones most at risk.
William (Will) A. Barclay, 53, Republican, is the New York Assembly minority leader and represents the 120th New York Assembly District, which encompasses most of Oswego County, including the cities of Oswego and Fulton, as well as the town of Lysander in Onondaga County and town of Ellisburg in Jefferson County.
OPINION: Bipartisanship Isn’t Dead, But It’s Not In Good Health, Either
Having just watched a U.S. Supreme Court nominee supported by a comfortable majority of Americans draw just three Republican votes in the Senate, you could be forgiven for thinking bipartisanship in Congress is a thing of the past. And in the case of Supreme Court nominees, you’d be right: The last time a nominee received more
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Having just watched a U.S. Supreme Court nominee supported by a comfortable majority of Americans draw just three Republican votes in the Senate, you could be forgiven for thinking bipartisanship in Congress is a thing of the past. And in the case of Supreme Court nominees, you’d be right: The last time a nominee received more than half the votes of the opposition party was in 2005, and you have to go back nearly three decades — to Ruth Bader Ginsburg in 1993 — to find one who drew votes from almost all senators.
But if you look carefully, there are plenty of signs that bipartisanship is still possible in Washington, D.C. President Joe Biden recently signed into law a bill reforming the Postal Service, which drew strong support from both parties in Congress. The same happened with a measure that keeps companies and universities from shielding themselves against lawsuits for sexual harassment. And both houses have passed a package aimed at boosting American competitiveness, again with support in both parties.
There are other examples, as well, but you’ll notice something about them — they’re not focused on hot-button issues like voting rights or gun control or immigration. This is in no small part because in the Senate, a measure effectively needs 60 votes to pass — which means neither party can get bills approved without members of the other party.
This is often intensely frustrating to partisans of whichever party is in power. Yet I’d argue it’s not a bad thing. In fact, the need for bipartisanship is pretty much baked into our system.
We live in a time when political life is intensely polarized and many Americans live in what amount to partisan bubbles of like-minded neighbors. For many people, this is just fine — they’re okay with avoiding contact with people who have different views. And ambitious politicians, always looking for an edge, have figured out how to navigate division: They use polarization to raise money from one group of potential supporters by attacking another group, and then goose election turnout by riling up their base.
There are some state legislatures where party-line lawmaking can produce actual laws, but at the national level, intense polarization yields legislative deadlock. And at both the federal and state levels, it produces laws with dubious futures.
The reason for this is that by requiring lawmakers to compromise and work with their political adversaries, bipartisanship often produces better, longer-lasting legislation. It helps ensure that a proposed law will take into account a broad range of views, produces wider acceptance both within a legislative body and in the public at large, and perhaps most importantly, means that the legislation has a chance of surviving the next change in power. That, inevitably in our system, will occur.
Politicians recognize this, of course. It’s not just that most Americans prefer to see bipartisanship. The reason you see politicians talking about finding bipartisan support and, less frequently but still often enough, working hard to secure it, is that they know that getting support from members of the other party is usually necessary not only to get something passed, but also to have it be implemented effectively.
To put it simply, if you’re just interested in scoring points with the base, then bipartisanship doesn’t matter. If you want to have a beneficial and lasting impact on American life, it matters a great deal.
It may be tempting these days to throw up one’s hands in despair at the displays of highly partisan behavior in Washington, D.C., and all around us at home in our states. But as a voter, there is something you can do about it. Notice all the instances in which lawmakers work across the aisle to secure some piece of legislation. Pay attention to who does the heavy lifting to make it possible, and who stands in the way. Then support the people who recognize that bipartisanship is the route to effective legislating.
Lee Hamilton, 91, is a senior advisor for the Indiana University (IU) Center on Representative Government, distinguished scholar at IU Hamilton Lugar School of Global and International Studies, and professor of practice at the IU O’Neill School of Public and Environmental Affairs. Hamilton, a Democrat, was a member of the U.S. House of Representatives for 34 years (1965-1999), representing a district in south-central Indiana.
Dermody, Burke & Brown, CPAs, LLC recently hired SUZANNE STEWART as a controller in its Syracuse office. She has more than 20 years of administrative experience, including human-resources management, payroll, and executive administration. Stewart received a bachelor’s degree in communication applications from SUNY Brockport.
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Dermody, Burke & Brown, CPAs, LLC recently hired SUZANNE STEWART as a controller in its Syracuse office. She has more than 20 years of administrative experience, including human-resources management, payroll, and executive administration. Stewart received a bachelor’s degree in communication applications from SUNY Brockport.
Pinckney Hugo Group, a full-service marketing-communications firm, has hired KEVIN EARLEY, of Syracuse, as a web developer. Prior to joining Pinckney Hugo Group, Earley worked as a web developer at QMP Enterprises Inc. in Phoenix, New York. He also gained experience as a web developer and senior implementation specialist at Dupli Envelope & Graphics. Earley
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Pinckney Hugo Group, a full-service marketing-communications firm, has hired KEVIN EARLEY, of Syracuse, as a web developer. Prior to joining Pinckney Hugo Group, Earley worked as a web developer at QMP Enterprises Inc. in Phoenix, New York. He also gained experience as a web developer and senior implementation specialist at Dupli Envelope & Graphics. Earley has an associate degree in graphic design from Onondaga Community College.
Tompkins Community Bank has promoted DEBORAH HOOVER to small business lending manager. Hoover has worked in the financial industry for 25 years, beginning her career as a teller and holding various positions in customer service and branch management. Most recently, she managed the company’s main office branch in downtown Ithaca. In her new role, Hoover
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Tompkins Community Bank has promoted DEBORAH HOOVER to small business lending manager. Hoover has worked in the financial industry for 25 years, beginning her career as a teller and holding various positions in customer service and branch management. Most recently, she managed the company’s main office branch in downtown Ithaca. In her new role, Hoover is responsible for the management of all aspects of small-business administration, overseeing and growing the small-business loan portfolio for Central New York, underwriting and approving small-business loans within the established lending limits, and developing programs designed to increase deposit and loan volumes. Hoover is a graduate of Dryden Central Schools and holds a degree in business administration with a concentration in management from Tompkins Cortland Community College (TC3). Founded in 1836, Tompkins Community Bank serves the Central, Western, and Hudson Valley regions of New York and the Southeastern region of Pennsylvania.
JOSEPH MCMANUS has been named first VP, chief technology officer at Pathfinder Bank. He will oversee all bank-wide technology investments, assure technology is used productively, securely, and within policy, and supervise computer-systems analysts and computer-support technicians. Prior to joining Pathfinder Bank in 2008 as computer operations manager, McManus worked at Oswego County National Bank as
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JOSEPH MCMANUS has been named first VP, chief technology officer at Pathfinder Bank. He will oversee all bank-wide technology investments, assure technology is used productively, securely, and within policy, and supervise computer-systems analysts and computer-support technicians. Prior to joining Pathfinder Bank in 2008 as computer operations manager, McManus worked at Oswego County National Bank as senior network technician, along with PCC Information Services as senior information systems architect. McManus holds a bachelor’s in information and computer science from SUNY Oswego.
TIFFANY BARRETT has been promoted to assistant VP, technology project manager at Pathfinder Bank. In her new role, Barrett will manage Pathfinder Bank’s technology project portfolio, define project responsibilities and roles, monitor progress and develop and maintain analysis routines to support the management of technology channels and resources. Prior to joining Pathfinder Bank in 2018 as technology business analyst, Barrett worked at Little Lukes as an accountant. She was data coordinator for Coordinated Care Services, Inc., manager of management information for Travelers Insurance Agency and business analyst for Public Consulting Group. Barrett holds a master’s degree in organizational psychology and a bachelor’s in business administration from Northeastern University.
Stay up-to-date on the companies, people and issues that impact businesses in Syracuse, Central New York and beyond.