Delaware Business - March/April 2013 by Delaware State Chamber of Commerce

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Changing of the Guard Joan J oan V Verplanck, erplanck, Hinton Lucas Assume Chamber Leadership

A Publication of the Delaware State Chamber of Commerce

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2/26/13 11:59 AM

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Dick DiSabatino Award recipient John Taylor and wife Maria pose at the 176th Annual Dinner. Photo by Dick Dubroff/Final Focus

Departments Chairman’s Message............................... 2 Hinton Lucas addresses the DSCC membership as its new chairman.

In this Issue Features Superstars in Education.................................................................................... 26

Legislative Priority................................... 3 Just as in President Lincoln’s time, infrastructure, education and sound finance are key in economic recovery. Member News and Notes....................... 5 Jewish Family Services, Bernardon Haber Holloway make aging in place a breeze, and the tax experts at Siegfried Advisory clue us in to FICA taxes.

Mark your calendars for the 2013 Superstars in Education Recognition Dinner.

Q&A: Delaware State Chamber of Commerce President Joan Verplanck

Construction and Real Estate ........................................................................ 29

Nonprofit Spotlight: Highmark Blue Cross Blue Shield

Hercules Plaza, an iconic structure of steel and glass, has been a part of Wilmington’s skyline for 30 years. McConnell Johnson Real Estate is tasked with bringing the building into the 21st century. By Larry Nagengast

Taxes....................................................................................................................... 35 Since 1923, Belfint, Lyons & Shuman has been making sure the numbers add up for its clients. Learn the ins and outs of the respected accounting firm, and heed their tax advice for the self-employed. By Eileen Smith Dallabrida

Health Insurance................................................................................................. 41 The Patient Protection and Affordable Care Act could leave employers exposed to the legal wrath of disgruntled employees. Learn how to protect yourself from the experts at Marshall Dennehey Warner Coleman & Goggin. By Richard R. Wier, Jr., Esq. and Shannon Larner Brainard, Esq.

Nonprofit Spotlight: March of Dimes Delaware Welcome New Members....................... 16 Chamber Scene...................................... 18 Newsbites................................................ 44 Calendar.................................................. 49 Chamber Committees........................... 50 Chamber Member Benefits.................. 51 For Assistance, Contact the Chamber........................................... 52

On The Cover

New Delaware State Chamber of Commerce President Joan Verplanck, and its new Chairman, Hinton Lucas. Photo by Dick Dubroff/Final Focus

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Volume 18, Number 2 / Delaware Business (USPS 012098) (ISSN 153253542) is published bi-monthly by the DSCC Center for Business Management. Subscription price is $18 a year (included in membership dues). Known office of publication is 1201 N. Orange St., Suite 200, Wilmington, DE 19801. Periodicals postage paid Wilmington, DE 19850. Postmaster: Send address changes to Delaware Business, c/o DSCC Center for Business Management, P.O. Box 671, Wilmington, DE 19899-0671. Telephone (302) 655-7221. 1

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Message from the Chairman

Hinton Lucas

Onstage, behind a podium at the Chase Center on the Riverfront, I was welcomed as the new chairman of the Delaware State Chamber of Commerce in front of a cheering crowd of 900. What a moment. Today, as I was that night, I’m honored and truly looking forward to being the Delaware State

Chamber’s new Chair. The things that make the chamber such an indelible part of the business fabric will not change under my watch. An outstanding roadmap has been forged by chairmen of the past, and we’d be remiss to stray too far. As always, we will help our members to grow and gain visibility through our great networking events and opportunities. And with our strong legislative ties, we will continue to address our members’ top issues of concern with our friends in Dover. We will continue to devote ourselves to improving Delaware’s public schools. The Chamber is, and has always been, deeply tied to public education. Flip to page 26 and mark your calendars for the Superstars in Education Dinner, May 6 at the Chase Center in Wilmington. We will continue addressing issues in areas like health care and the environment, and to help shape public policy as best we can. We will also look to grow and evolve as an organization, utilizing the latest innovations and technology to provide our members with modern and upwardly mobile services that will help them keep pace in today’s world. And as we move forward as an organization—how lucky we are to have Joan Verplanck guiding the ship. As a manager, Joan has found success everywhere she’s been. I’m confident that her ideas and her spirit will energize and inspire you. I will make it my duty to amplify her leadership, and to help the hardworking crew at the Chamber office to reach their goals, and yours. Thanks for reading. I look forward to working with you. Hinton J. Lucas Chairman

DELAWARE

Business Editorial Staff Hinton J. Lucas Chairman

Joan Verplanck President

Matt Amis Managing Editor

Executive Committee Thomas J. Cooper Cooper Realty

Mark A. Turner WSFS Bank

Immediate Past Chairman:

Ernest J. Dianastasis CAI

Richelle Vible Catholic Charities, Inc.

William R. Allan William Allan & Associates LLC

Donald T. Fulton George J. Weiner Associates

Katie Wilkinson Fulton Bank, N.A.

Chairman-elect

Alan B. Levin Delaware Economic Development Office

Chairman

Hinton J. Lucas DuPont

Mark S. Stellini Assurance Media Treasurer

Barry A. Crozier Belfint, Lyons & Shuman, P.A. Sylvia Banks DuPont

William E. Manning Saul Ewing LLP Salvatore J. “Chip” Rossi Bank of America Dennis M. Salter Summit Realty Advisors, Inc.

Board of directors Linda Ammons Widener University School of Law

Tyrone Jones AstraZeneca Pharmaceuticals LP

Theodore J. Prushinski Citizens Bank, NA

Julian H. “Pete” Booker Delmarva Broadcasting Company

Christopher L. Kenny ShopRites of Delaware

Michael N. Ratchford W.L. Gore & Associates, Inc.

Kevin C. Broadhurst Comcast

Bernhard M. Koch AAA Mid-Atlantic

Richard D. Rowland Rowland, Johnson & Co., PA

David B. Brown, Esq. Potter Anderson & Corroon LLP

Richard H. LaPenta Insurance & Financial Services Ltd.

Fred C. Sears, II Delaware Community Foundation

Tim Constantine Highmark

Robert J. Laskowski, M.D., MBA W. Laird Stabler, III, Esq. Christiana Care Health System Laird Stabler & Associates, LLC

Charlie Copeland Associates International, Inc.

Renee Lewandowski Agilent Technologies

Gary R. Stockbridge Delmarva Power

Brian DiSabatino EDiS Company

Andy Lubin University of Delaware

Michael S. Uffner AutoTeam Delaware

Dr. Orlando J. George, Jr. DE Tech. & Community College

Michael S. MacFarland TD Bank

Clinton Walker Barclaycard US

Martha S. Gilman Gilman Development Company

Scott Malfitano William S. Wallace CSC – Corporation Service Company JPMorgan Chase – Card Services

Robert V.A. Harra, Jr. Wilmington Trust Co./M&T Bank

Nicholas Marsini PNC Bank, Delaware

Kristine M. Wellman Capital One Financial Corporation

John (Jack) E. Healy, III Healy Long & Jevin, Inc.

John McCarthy AstraZeneca Pharmaceuticals LP

Robert W. Whetzel Richards, Layton & Finger

Rita P. Hollingsworth Bank of America

Paul McConnell McConnell Development, Inc.

Harry L. Williams Delaware State University

Michael Houghton, Esq. Morris, Nichols, Arsht & Tunnell, LLP

Bonnie Metz Verizon Delaware

Joan Verplanck DE State Chamber of Commerce

Chad Moore The Bellmoor

staff Joan Verplanck President Marianne K. Antonini Senior Vice President A. Richard Heffron Senior Vice President, Government Affairs Janine G. Sorbello Senior Vice President & Executive Director, The Partnership

John H. Taylor, Jr. Senior Vice President & Executive Director, DPPI Matt Amis Communications Manager Cheryl Corn Executive Assistant to the President Senior Vice President Communications Linda D. Eriksen Accounting Associate Greg Gross Director of Government Relations

Chuck James Account Executive Arlene Simon Account Executive Bill Stephano Director of Membership Patrina Wallace Information Administrator Kelly Wetzel Events Manager

ADVERTISING SALES / Miller Publishing, Inc.

Fred Miller President

Delaware State Chamber of Commerce 1201 North Orange Street, P.O. Box 671 • Wilmington, DE 19899-0671 (302) 655-7221 • (800) 292-9507 • www.dscc.com

The mission of the Delaware State Chamber of Commerce is to promote an economic climate that strengthens the competitiveness of Delaware businesses and benefits citizens of the state. The Chamber will provide services members want; it will serve and be recognized as the primary resource on matters affecting companies of all sizes; and it will be the leading advocate for business with government in Delaware.

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Marc h / Ap r i l 2 0 1 3 | Delaware Business

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Legislative Priority

Lessons of Lincoln: Infrastructure, Education and Sound Finances

Photo by Dick Dubroff/Final Focus

By Rich Heffron

One of the more popular movies this year is “Lincoln,” Steven Spielberg’s story about the passage of the 13th amendment, which outlawed slavery in the United States. Most people know that Abraham Lincoln led the country through the Civil War and that he ended slavery. Not as well known is his economic development policies that produced the vibrant economy of the late 19th and early 20th centuries. Lincoln knew that economic growth would be difficult but essential for the recovery of his still-young country, especially one that was still suffering from the horrendous damage accrued from four years of war. He also understood that growth required change, and change was not always popular. Lincoln made three decisions that firmly established the economic future of the United States: the completion of the transcontinental railroad, the establishment of land grant colleges, and the institution of a common national currency. Simply, he understood that improved infrastructure, a superior public educational system and an orderly financial system were fundamental to a healthy national economy. The necessity and challenges of economic growth were things Lincoln appreciated, and they hold as true today as they did in the mid 19th century. In Delaware, the economic development picture faces several important questions. Do we have the financial means to provide the infrastructure required to attract new businesses while encouraging existing businesses to expand? Are the state’s citizens and public officials willing to meet the challenges and accept the changes required by a transformational global economic system? Are we prepared to implement policies necessary for job creation that can only come with economic growth? These questions will need to be answered in the affirmative if we want to see Delaware once again thrive as a community to live and work. We are beginning to answer some of those questions, and some encouraging signs are pointing toward progress. Among them are: The effort of the Diamond State Port Corporation to find a private sector partner willing to finance crucial infrastructure improvements and provide for an expansion of the Port of Wilmington. This type of partnership can provide the level of investment that is vital for the port to remain competitive in a rapidly changing world shipping industry. Calpine’s construction of a natural gas-fueled generating plant in Dover, the upgrading of the Indian River energy plant by NRG, and the transformation of the Delaware City Refinery are positive responses to changes brought about by the rejuvenation of our domestic energy industry. The new first-class engineering building at the University of Delaware Business | Ma rch/ Ap ri l 2 0 1 3

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Delaware, along with its new health sciences campus; Delaware Technical and Community College’s continuing efforts to meet the changing needs of the states construction and manufacturing sectors, spearheaded by their three-year-old industrial training facility; Delaware State University’s new optics research facility; and the introduction of new programs at Delaware’s private colleges such as Wilmington University’s graphic and computer arts program. These projects signify that the leaders of Delaware’s institutions of higher education are aware of an evolving economic landscape. The leaders of our state public education system accepting the challenge offered by federal “The Race to the Top” program, along with a focus on early childhood learning, and the implementation of the STEM program indicate an understanding of the importance of a first-class K-12 educational system for success in the global economic competition. The collaboration of the University of Delaware, Christiana Care, Nemours and Jefferson University highlight a focus on the nation’s expanding health care education and research needs. This is in combination with the formation of the Delaware Health Information Network—the first statewide system for the transfer of medical records—and the expansion of the state’s hospital facilities, which indicate recognition of the nation’s growing health care needs. These few examples are just a portion of the positive signs that Delaware’s educational, governmental and business communities are responding to economic development challenges. What is not yet clear is if these programs, plans and policies are broad enough, and are they being implemented quickly enough to expand job opportunities to the level required for the generation of wealth necessary to compete in an ever changing global marketplace? A positive answer to this question can only come with a willingness to recognize and accept change and the vision to take advantage of it. I would like to think Honest Abe would agree. 3

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Marc h / Ap r i l 2 0 1 3 | Delaware Business

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Member

news&Notes Brandywine Village Network allows members to age in place with help from volunteers and preferred service providers.

“When dad went home, he had all the support he needed to be safe, and we didn’t worry when we returned to our home out-of-state.”

It Takes a Village

Jewish Family Services of Delaware Offers Innovative Network for Aging Adults By Sarah Eller

It’s not easy getting old. Sometimes assistance is needed to complete day-to-day tasks like cleaning out rain gutters, getting a ride to a doctor’s office or carrying heavy groceries. The Brandywine Village Network, a program initiated by the Jewish Family Services of Delaware, enables aging people, 50 years and older, to preserve this sense of freedom. With its aging-in-place mission, the Network allows older adults from around northern New Castle County to remain independent and active without having to leave the security of their home.

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Volunteers provide members with transportation, bill-paying, light housework, and a preferred directory of providers can be accessed for services ranging from roofing to plumbing to computer repair. Professional care management services are available, too, aiding in managing health changes, taking advantage of community resources, ensuring member support, and more. Brandywine offers growth, education and mental fitness programs (GEM) and events to its members. Spanish class, yoga and Scrabble games are among the many options one may find on the social calendar.

Says one member’s daughter: “I don’t know what we would have done when dad was discharged from the hospital if we didn’t have BVN. Our care manager came to the discharge planning meeting and asked all the questions we wouldn’t have known to ask. When dad went home, he had all the support he needed to be safe, and we didn’t worry when we returned to our home out-of-state.” Brandywine Village Network celebrated its one-year anniversary in February. Its success is evident, with more than 80 members in the network and more than 90 volunteers ranging in age from 11 to 98. Sarah Lafave, volunteer coordinator and care manager at BVN, is thrilled with all the support the program has seen. “We’re finding the community connection is enormous,” she says. “The community is wrapping their arms around the village and embracing the concept.” The program has the flexibility to meet the unique needs of older adults choosing to remain healthy and safely at home. With all the program offers, we can expect to see BVN celebrating many more anniversaries to come. Visit www.brandywinevillagenetwork. org for more info.

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Member

news&Notes Bernardon Haber Holloway Designs Eco-Conscious Cottages

Easy-open windows, extra-wide garages, gently sloping walkways—just a few of the design quirks dreamt by Bernardon Haber Holloway Architects for the 48 new cottages in their Kendal-Crosslands Community, designed specifically for older adults. “When you walk into these houses you see large windows giving ample daylight, rooms with high ceilings and a flow that feels natural,” says David G. Jones, project director with The Kendal Corporation. “But a lot of the details addressing needs residents may have over time are more subtle, like lever door handles rather than knobs, bathrooms wide enough to maneuver in with a walker or wheelchair, and blocking in the bathroom walls so that grab bars can be installed if needed.” Design choices were made with the environment in mind. Carpets, paints and flooring materials that emit low quantities of noxious gases were selected. Stormwater is collected to recharge aquifers, and heating and cooling sys-

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tems are powered geothermically. The cottages are registered with the U.S. Green Building Council with the goals of Gold and Silver certifications under USGBC’s LEED (Leadership in Energy and Environmental Design) program. “Environmental sustainability is a fundamental value of our organizations,” Jones says. The cottages, located in Kennett Square, Pa., are sited in the rolling terrain so that each one has natural vistas rather than views of adjacent houses, while their overall arrangement has the

comfortable feel of a neighborhood. Five different floor plans range from 1,250 square feet to 3,775 square feet for those with walk-out basements. All have a three-season room, an openplan kitchen, nine and ten-foot ceilings, and a garage. Additional features include high efficiency appliances, lighting, windows and water heating, and plumbing fixtures that achieve 25 to 30 percent water savings beyond U.S. Environmental Protection Agency (EPA) requirements. For more, visit www.bernardon.com.

Marc h / Ap r i l 2 0 1 3 | Delaware Business

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Delaware Contractors Association Elects 2013 Officers In January, the Delaware Contractors Association (DCA) announced its officers, Executive Committee and Board of Directors for 2013. Among the names are many members of the Delaware State Chamber of Commerce. The DCA, a trade association representing the construction industry, includes construction managers and general and sub-contractors along with the companies that provide goods and services to the construction industry.

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The DCA’s Officers and Executive Committee members are: President Gregory Sawka Bancroft Construction Co. Senior Vice President Steve Schmeusser Active Crane Rentals, Inc. Second Vice President Michael Berardi Wohlsen Construction Co. Third Vice President Gladys King J&G Building Group Fourth Vice President Anthony Rizzo Joseph Rizzo & Sons Construction Co. Fifth Vice President Joseph J. Corrado, Jr. Corrado Construction Co. Sixth Vice President James Fitzsimmons Superior Electric Service Co.

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Treasurer H. Adam Wahl QH&A, Inc. Secretary Michael Treml I.D. Griffith, Inc. AGC Division President Richard J. Julian Eastern States Construction Service, Inc. Allied Division President Daniel Hahn, Sr. Furness Electric Co., Inc. Merit Shop Division President Brian DiSabatino EDiS Company Associate Member Council Directors Edward Seglias, Esq. Cohen Seglias Pallas Greenhall & Furman PC Robert Elder Santora CPA Group Immediate Past President David McGuigan George & Lynch, Inc. The Association’s Board of Directors for 2013 includes: Barry J. Baker A-Del Construction Co. Keith Baker Tri-Supply & Equipment B. Gene Battaglia Battaglia Electric, Inc. Nash M. Childs Bancroft Construction, Inc. Steven A. Chubbs Fire Protection Industries

Michael Davis Diamond Materials LLC Steven Dignan Nickle Electrical Companies James Edwards Fortress Steel Service, Inc. Peter Erony Mumford & Miller Concrete, Inc. John Everhart Brandywine Construction Co., Inc. Robert Field Eastern Highway Specialists, Inc. Sean Healy Healy, Long & Jevin, Inc. Lyle Frederick Skanska USA, Inc. Stephen Lehm Vandemark & Lynch, Inc. Thomas Nason, II Nason Construction, Inc. Michael Peet Modern Controls, Inc. H. Wesley Schwandt BPGS Construction, LLC Charles Showell CNS Construction Corp. Robert C. Suppe R.C. Fabricators, Inc.

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Member

news&Notes

Guest Column: Siegfried Advisory, LLC

FICA Taxes: What You Need to Know By Fred Scheing, CPA, MT and Jeffrey W. Mitchell, Jr. CPA, MT When the economy began its downturn, many local businesses were faced with the unfortunate need to lay off employees, many of whom received severance payments. Generally, such payments have been subject to the imposition of Federal Insurance Contributions Act (FICA) tax, paid by both employer and employee, generally at a rate of 6.2 percent each. Thanks to recent court rulings, the question of whether severance payments are actually subject to FICA tax has been raised but not resolved. The resulting uncertainty gives employers the opportunity to recover any FICA taxes they have paid as a result of such severance payments.

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Uncertain Outcomes. The courts have yet to settle the question of whether such payments are subject to FICA -tax. Since federal courts in at least two circuits have

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issued conflicting rulings, it is possible that the Supreme Court may be required to settle the issue, and that process may take months or even years to complete. Unfortunately, given the applicable statutes which limit the time during which both employers and the recipient of such payments may make their claims for such payments of FICA tax, they may wish to preserve their ability to make such claims. To do that, a protective claim should be filed. A protective claim would become effective in the event of a favorable court ruling. If payers of FICA tax wait until the issue is resolved in the courts, they may miss the opportunity to claim refunds of prior payments, due to the passage of time and resulting expiration of statute of limitations. This situation creates urgency for the prompt filing of such protective claims, especially with regard to FICA payments made within the past

three years. Not filing a protective claim promptly could prevent the recovery of any refunds the courts may rule appropriate in the coming months or years. Filing a protective claim for refund of FICA taxes typically involves the preparation of three documents to be submitted to the IRS. The process involves the following steps: Prepare Form 941-X. Form 941-X provides details supporting the claim for refund of any FICA tax. This form would normally specify the amount of FICA tax paid, and whether the claim is made for both employer and employees. This filing should also indicate that the claim being made is protective in nature, is reliant upon a specific court ruling (U.S. vs. Quality Stores, 2010 US District Court) and will be perfected in the future. Prepare Form 8275. Form 8275 declares that the employer discloses that it is taking a position contrary to current IRS guidance, which indicates that severance payments are subject to FICA tax. A favorable court ruling would invalidate this guidance. Include cover letter. The cover letter should indicate the basis for the claim (ie, the Quality Stores case ruling) and specifics as to the dates and amounts of severance payments made, and the payment of FICA taxes paid as a consequence.

Act Now An employer may make a claim for refund for most payments of FICA tax continued on 11

Marc h / Ap r i l 2 0 1 3 | Delaware Business

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Delaware Business | Ma rch/ Ap ri l 2 0 1 3

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Member

news&Notes Prez Says:

Verplanck brings to Delaware more than 30 years of Chamber of Commerce experience. photo by Dick

Q&A with Joan Verplanck, president

Dubroff/Final Focus Photography

of the Delaware State Chamber of Commerce

By Matt Amis

On the afternoon of its 176th Annual Dinner, the Delaware State Chamber of Commerce and its Board of Directors officially paved the way for Joan Verplanck as its new president and CEO. Verplanck brings with her a wide breadth of experience—she led the New Jersey Chamber of Commerce for 15 years after guiding the Morris County Chamber of Commerce and the Greater Woonsocket Chamber of Commerce in Rhode Island. Herein, the new prez sits down to talk about her goals with the DSCC, acclimating to the First State, and the importance of office hijinks.

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go. I’ve been to this rodeo many times. The cows change, but the rodeo is still the rodeo.

How would you describe your management style?

My first day included the Business Roundtable, and the second introduced me to the University & Whist Club, so I think I’ve been acclimated pretty quickly.

I would call it open and inclusive. My history is one of “my door is always open.” I like to take chances, try new things. My favorite phrase is luckily we’re not brain surgeons—nobody dies when we make a mistake. If you become too immobilized by fear and never take advantage of opportunities, you fade away. Today, people communicate with everybody so quickly, that opportunities can be lost in a heartbeat. The old ways of doing business, outside of a few very traditional industries, is rapidly becoming obsolete.

What makes you a good fit to take over as president of the DSCC?

What were some of your first impressions of the DSCC?

I think it’s experience. Every community likes to believe they’re unique. But the underlayment of any business community is pretty much the same everywhere you

I like the intimacy of this place. Everybody knows everybody. I moved to New Jersey from Rhode Island, so I’m very accustomed to that sort of atmo-

Officially: Welcome. How has the transition been so far?

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sphere. I don’t know that I could waltz into Governor Markell’s office, as I was able to do in Rhode Island, but it’s much easier here than in a larger state.

The Chamber has been around for 176 years. But do you see untapped potential here? Opportunities for new programming, or new value for members? I do. There are a number of things being discussed. For example, I think the Retail Council really needs to be ramped up. Retailers have a lot on the line. Their margins are smaller than ever. They could find value in a reinvigorated council. The other thing I would like to address is the tax council. Federal, state, municipal and county governments are all operating with tighter and tighter budgets. The path of least resistance for increased revenue always seems to be business.

Any other new initiatives that people can look forward to? Well we’re two years into Delaware Day in

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DC, and we’re looking at ways to involve more Delawareans, and not just the Washington crowd. So I would say stay tuned for that.

What were some of your proudest accomplishments at the New Jersey Chamber of Commerce? Probably building a foundation that dealt largely with educational outcomes in the State of New Jersey. In some ways that was hard to do, especially because we started out in Morris County, which is one of the most affluent counties in the state where they have good schools. For raising money to improve education, that was a weird place to step off from. But the seeds that were sewn there were brought to the State Chamber, where they could be spread to struggling inner-city schools. And it was extremely productive. Teacher training, a lot of good, basic quantifiable improvements to programming.

Are you looking forward to diving into the educational scene here in Delaware? I think we’re pretty well along with Superstars in Education and initiatives of that kind. I think we can do more, though. We’re going to try to beef up that website (www.superstarsineducation.org) and make it possible to link to other data sites so that parents can make more informed decisions about their children’s educations.

You’ve been managing chambers of commerce large and small for the better part of 30 years. What is it that you like about this type of organization? I’ve done it all. I started off with a very small tourism chamber, and I went from there to an aging industrial chamber. And I went from that sort of poverty-stricken area to Morristown, N.J., which had 15 percent of the Fortune 500 headquartered

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there, so it was very corporate. From there to a 15-year stint with the State Chamber.

The part I like the best is public policy. And I think that’s this chamber’s strong suit. It’s interesting how chambers can mean different things to different communities. My first chamber had the information booth out on Rt. 1 during the summer— something you might see in the southern part of Delaware. In the second one it was all about jobs and the industrial park. It’s interesting: Mark Steven-CVS is still headquartered in that industrial park.

You mentioned earlier the smallness and intimacy of Delaware. Do you feel like you’re on the clock now to meet everybody and learn the so-called “Delaware Way?” Well I am kind of on the clock! I reached out to all the members of the board and asked for a list of all the people they think I should meet, and asked them to keep it to 25 names. So far that limit is not working. [Laughs] I’d like to, in my first 90 days, meet as many of them as I can. Just to introduce myself, find out what they think about the chamber—where are we doing a great job, or where are we coming up short.

Tell us something about yourself that people might not expect to hear. I really like to have fun. I find that people enjoy their work more that way. At the New Jersey Chamber, I had a picture over my mantle of Washington crossing the Delaware. My staff had a running joke where headshots of well-known people were occasionally taped over the heads of the people in the boat. There were often harmless pranks—sometimes very clever and elaborate—floating around the office.

Guest Column continued from 10 related to severance payments made within the preceding three years. Since payroll taxes like FICA are reported and remitted on a quarterly basis, the earliest period for which claims can usually be made would be for the quarter three years prior to the current payroll tax reporting period. For example, since the current period would be the first quarter 2013, an employer could most likely make claims for refunds dating back to the second quarter 2010, but not for any earlier periods. When it comes to paying FICA taxes on severance payments going forward, the employer must continue to withhold FICA taxes on severance payments and file for refunds until the law is changed. Again, it should be stressed that any such claim would be protective, ie, the claim is contingent upon an eventual ruling upholding the ruling in U.S. vs. Quality Stores. A decision in favor of these refunds is not a certainty. Most likely, the IRS will continue to litigate its position, and there is always the chance that a legislative resolution (ie, a new law) may emerge, negating the need for court action. However, significant time could elapse before a resolution occurs, and for organizations making significant severance payments in the past few years, the filing of protective claims may well preserve their opportunity to collect overpayment of FICA taxes. Consult your legal and accounting advisors to determine whether this approach may benefit your organization. Siegfried Advisory, LLC is an affiliate of The Siegfried Group, LLP that provides financial, leadership and tax advisory services to successful businesses and individuals.

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Member

news&Notes

Photo courtesy of Blair Caldwell, Koncordia Group

Live LIFE St. Francis offers inclusiveness to seniors By Sarah Eller Wilmington’s Saint Francis Hospital unveiled this winter its new LIFE Program—Living Independently for Elders. LIFE allows seniors to remain in the safety and comfort of their home with the assistance of health care professionals. LIFE, which was coordinated in conjunction with the Delaware Department of Health and Social Services, enables seniors to live independently by providing complete health, medical, and social services to adults 55 years and

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older, in a centralized location. Members are welcome to social work services, medical care, adult day health services including meals, medical equipment and supplies, among many other treatments and amenities. Its state-of-the-art facility, located in the Wilmington Riverfront’s Shipyard Center, includes clinics, treatment rooms, exercise and administrative space, and a chapel. “The team comprises of physical

therapists, occupational therapists, nurses and physicians. What’s great and different about LIFE is they are all in one place and they are able to treat the patient collectively. It is a different way of delivering care—it’s comprehensive,” says CEO Julie Hester. The new center, which can serve at least 200 senior citizens at a time, is going to “change the way elderly people live out their lives,” Hester says. For more information, visit www. stfrancishealthcare.org/life.

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Member

news&Notes Highmark Blue Cross Blue Shield of Delaware nonprofit Spotlight

By April Hall

thanks to the Affordable Care Act, par- erage will be a “massive, massive chalThe health insurance industry is in a state of flux, thanks to ticularly the major changes coming in lenge,” Constantine says. Plugging into the implementation of the Affordable January 2014. the Highmark system in preparation will Care Act. But for the company To “hit the ground running” prior to be a tremendous asset. Delawareans have known as Blue the January mandate of individual cov“We’re also working on improving the Cross Blue Shield of Delaware value of care provided to our for so long, there are even more members,” Constantine says. changes afoot. “All of us agree we need to Now affiliated with Pittsburghreduce the cost in health care, based Highmark, Inc., BCBS while improving the quality,” rebranded and relaunched as something he says health care — Timothy Constantine Highmark Blue Cross Blue reform – which is focused on Shield Delaware (Highmark health care access – doesn’t The name may have changed, Delaware) in July. Timothy wholly address at this point. but Highmark Blue Cross Constantine, president of Constantine says Highmark Blue Shield Delaware is still Highmark Delaware, says Delaware is also still focused serving the local community. while the name has changed, on giving back to the comPhoto by nick wallace Highmark Delaware is still servmunity, having contributed to 140 state organizations in ing Delaware customers and is Delaware last year, including as much a member of the First $1 million for the Delaware State community as ever. Health Information Network “Not a whole lot has changed,” and $500,000 in Workforce Constantine says. “We are still a Development grants. The Delaware-based company and company also gave $3 million our overall relationships have not to the Delaware Community changed.” He says the company Foundation. may have a new CEO, but he is “The fund is focused on still president and most of the addressing health care issues,” leadership team is intact. he says. “We are really looking The benefits of the affiliation, at and addressing the needs Constantine says, are important. of the uninsured and the Highmark Delaware will be able underinsured. That includes to plug in to a number of stateearly childhood education and of-the-art systems, from state health initiatives, and realizing health networks to managethat going forward, we’ll need ment programs. And the more more caregivers. As more peostreamlined the technology is, the more prepared Highmark ple get access to the health Delaware is to implement all care, we will need a health of the changes on the horizon, care workforce.”

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“Not a whole lot has changed. We are still a Delaware-based company and our overall relationships have not changed.”

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Marc h / Ap r i l 2 0 1 3 | Delaware Business

3/11/13 10:03 AM

“People walk for a variety of reasons, but all for goal of healthy babies and healthy pregnancies.”

Education and support are at the core of March of Dimes Delaware’s values. Photo by nick wallace

nonprofit Spotlight

March of Dimes Delaware Each April people lace up their sneakers to walk for babies. Two miles in Rehoboth. Two and a half in Dover. A whopping five miles in Newark. A walk will also be held in Cecil County, Md., in May. Some walk in honor of a baby in their family. Others team up with coworkers. But all of them have a single hope. “People walk for a variety of reasons, but all for goal of healthy babies and healthy pregnancies,” says Aleks Casper, state director for the Delaware Chapter of the March of Dimes. More than 2,000 people join the walks each year to raise funds for the March of Dimes, and the money helps cover a vari-

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Delaware Business | Ma rch/ Ap ri l 2 0 1 3

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By April Hall

ety of expenses, mainly research and services. The event, which spans local walks throughout the country, is the largest fundraiser of the year for the organization. The mission of the March of Dimes is to provide programs and education for families to prevent premature birth and birth defects. When that can’t be avoided, the Delaware chapter of the group provides support for families. For example, the March of Dimes has a family support staff member stationed at the Neonatal Intensive Care Unit at Christiana Hospital. Through that person, a parent can get further explanation of their child’s condition through education hours throughout the month, or a way

to meet other parents going through the same challenges. Sometimes the March of Dimes staffer is simply a willing listener. The March of Dimes also works with education and at-risk mothers elsewhere in the state, including the Tiny Steps program at St. Francis Hospital and at LaRed Health Center in Georgetown. Research focuses on eliminating birth defects and preterm births. “The important thing for us to realize is that 500,000 babies are born preterm every year,” Casper says. Delaware will have about 1,500 of those births. “Half of those, we can’t pinpoint reason. There is important work around the research to determine what the answers are.” To fund both the research, education programs and family support, the March of Dimes also holds the wildly popular “The Farmer and The Chef” events later in the year. Now expanded downstate, The Farmer and The Chef South will be held in Millsboro in August. The Farmer and The Chef Wilmington is slated for September. For more details, visit thefarmerandthechef.com. The organization, founded by President Franklin D. Roosevelt, celebrates its 75th anniversary this year. For more information about the organization or to get involved, visit marchofdimes.com/delaware/.

3/11/13 10:03 AM

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electrical and telecommunication services available. Delaware Business | Ma rch/ Ap ri l 2 0 1 3

DSCC_MarApr13.indd 17

3/11/13 10:03 AM

1. The Microsoft Store held a special workshop prior to the 176th Annual Dinner, January 14th at the Chase Center on the Riverfront. Photo by Brian Mulligan.

State Chamber Scene 2. Bill Allan passed the ceremonial oversized aspirin onto

incoming chairman, Hinton Lucas at the Board of Directors meeting on January 14th at the Chase Center on the Riverfront. Photo by Brian Mulligan.

DSCC_MarApr13.indd 18

Marc h / Ap r i l 2 0 1 3 | Delaware Business

3/11/13 10:03 AM

3. The Reverend Sam Lathem, president of the Delaware AFLCIO, kicked off the 176th Annual Dinner with a memorable rendition of “Lean on Me.” Photo by Dick Dubroff/Final Focus.

4. The evening also served as an introduction to new DSCC President, Joan Verplanck, pictured with Jason Danner, Rich Heffron and Bill Allan. Photo by Dick Dubroff/Final Focus.

Delaware Business | Ma rch/ Ap ri l 2 0 1 3

DSCC_MarApr13.indd 19

3/11/13 10:03 AM

State Chamber Scene 5.

5. Gov. Jack Markell introduced the evening’s keynote speaker. Photo by Dick Dubroff/Final Focus.

6. The Taylor Family waited eagerly in the lobby of the Chase Center for a special presentation. Photo by Brian Mulligan.

DSCC_MarApr13.indd 20

Marc h / Ap r i l 2 0 1 3 | Delaware Business

3/11/13 10:03 AM

7. Dr. Bill Winkenwerder, CEO of

Highmark, Inc., served as keynote speaker, touching on health care topics of national importance. Photo by Dick Dubroff/Final Focus.

8. Rick Deadwyler (right) of Dupont Co. poses in the Chase Center foyer. Photo by Dick Dubroff/Final Focus.

Delaware Business | Ma rch/ Ap ri l 2 0 1 3

DSCC_MarApr13.indd 21

3/11/13 10:03 AM

State Chamber Scene 9.

9. Carol Arnot Robbins of M&T Bank, Coleen Toy and Janet Dougherty of Fulton Bank. Photo by Dick Dubroff/ Final Focus.

10. The Honorable Mike Castle, State Auditor Tom Wagner, and Reverend Sam Lathem. Photo by Dick Dubroff/Final Focus.

10.

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Marc h / Ap r i l 2 0 1 3 | Delaware Business

3/11/13 10:03 AM

11. The Honorable Mike

11.

Castle presented the Dick DiSabatino Award to DPPI Director John Taylor. Photo by Dick Dubroff/Final Focus.

12. John Taylor and wife Maria took the stage to accept the Dick DiSabatino Award. Photo by Dick Dubroff/Final Focus.

12.

Delaware Business | Ma rch/ Ap ri l 2 0 1 3

DSCC_MarApr13.indd 23

3/11/13 10:03 AM

State Chamber Scene 13.

13. Jack Porter is greeted by family members upon winning the prestigious Josiah Marvel Cup. Photo by Dick Dubroff/Final Focus.

14. The Porter family poses with the well-deserved hardware. Photo by Dick Dubroff/Final Focus.

14.

DSCC_MarApr13.indd 24

Marc h / Ap r i l 2 0 1 3 | Delaware Business

3/11/13 10:03 AM

15. Bill Allan, Hinton Lucas, Jack

15.

Porter, Pierre “Pete” Hayward, and Rich Heffron pose with the Marvel Cup. Photo by Dick Dubroff/Final Focus.

16. DSCC account executive Arlene Simon officially welcomes Dr. G’s Weight Loss to the community, and the Delaware State Chamber of Commerce during a ribbon-cutting ceremony on January 31.

16.

Delaware Business | Ma rch/ Ap ri l 2 0 1 3

DSCC_MarApr13.indd 25

3/11/13 10:03 AM

The 2012 Recognition Dinner was held at the Chase Center on the Riverfront

SEE Delaware’s students in action through an exciting video presentation. LEARN about the newest innovative approaches to improving student achievement. NETWORK with business and education leaders. CELEBRATE the success of the award-winning Superstars programs and the outstanding educators who dedicate their lives to Delaware’s children. 26

DSCC_MarApr13.indd 26

Save the Date

Superstars in Education Recognition Dinner May 6, 2013 Chase Center on the Riverfront 4:45 p.m. – 8:30 p.m. For more than 20 years, the Delaware State Chamber of Commerce has been committed to supporting education in Delaware through its Superstars in Education program. Superstars in Education has honored Delaware educators who have implemented and sustained a creative, unique program, or a teaching practice that shows measurable results and raises student achievement. On May 6, 2013, the Delaware State Chamber of Commerce will honor this year’s winners. Don’t miss this opportunity to network with your colleagues and celebrate excellence in education. Marc h / Ap r i l 2 0 1 3 | Delaware Business

3/11/13 10:03 AM

Governor Jack Markell made the rounds during the 2012 Superstars in Education Recognition Dinner.

2013 Superstars in Education Sponsors Leadership

Agilent Technologies, Inc. Delaware Department of Education Delmarva Power JPMorgan Chase & Co. The Rodel Charitable Foundation of Delaware At the core of Superstars are the students of Delaware public schools themselves, who benefit from innovative programming.

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Marc h / Ap r i l 2 0 1 3 | Delaware Business

3/11/13 10:03 AM

Guide to Real Estate

Photo by Terry Roberts

Herculean Effort

McConnell Development spearheads a major facelift of one of Wilmington’s iconic office buildings By Larry Nagengast

Constructed 30 years ago to give an iconic Delaware company a home it could truly call its own, a premier steel and glass high-rise in downtown Wilmington is getting a fresh look as it completes a transformation from a corporate headquarters to a multi-user high-rise whose tenants align closely with the state’s 21st-century business profile. Hercules Inc. is gone, bought out by Ashland Inc. in 2008, but its name remains on the building, redubbed Hercules Plaza, a reminder of the company’s century of prowess as a chemical and munitions manufacturer. Conde Nast, publisher of 18 consumer magazines and four business-to-business publications, has business offices on the top three floors at 1313 North Market Street. Potter Anderson & Corroon, one of Delaware’s most prominent law firms, has added to its space. It now has the entire sixth and seventh floors and is creating a new conference center on half of the seventh floor. Delaware Business | Ma rch/ Ap ri l 2 0 1 3

DSCC_MarApr13.indd 29

But the major buzz is on the street level, where a major $2 million remodeling has removed the old Hercules reception desk and the massive escalators that dominated the building’s core. In its place, McConnell Johnson Real Estate, the building’s owner and manager, has opened up the atrium, developing a wide-open gallery featuring an array of businesses and services that will not only make the building more attractive to current tenants, but also make it a destination for denizens of other downtown Wilmington office spaces. A sophisticated restaurant, ideal for business lunches and elegant dinners, will anchor the gallery area. The restaurant’s features will include a tree-shaded outdoor plaza with its own bar and water feature, as well as two private dining rooms available for meetings. (Negotiations with the restaurant’s prospective manager had not been completed at press time.) 29

3/11/13 10:03 AM

Guide to Real Estate

The northwest corner of the ground floor will house the McConnell Johnson Innovation Center, a business incubator designed to attract startups in the banking, finance and technology centers, said Paul McConnell, one of the McConnell Johnson partners. The Hub, the Philadelphia-based meeting and conference organizer, is leasing about 10,000 feet on the north side of the ground floor and lower level for a meeting center that will include an auditorium that seats more than 100, and a series of smaller conference rooms, partner Scott Johnson said. The gallery will also include a health and fitness center and a food court with three vendors. Bain’s Deli, which already has one location on Market Street, will be among the food vendors, Johnson said. The center of the gallery will be a Wi-Fi hot spot, filled with tables, chairs and benches — an ideal before-work and break-time venue for employees, food court patrons and meeting-goers at The Hub. And, with the escalators gone, plenty of sunlight will beam down into the gallery through the 12-story high-rise’s signature exterior glass. There will be plenty to catch the eye throughout the building, Johnson promises. The wall of the west elevator bank will be filled with a photo of the luxury liner, the Queen Mary, courtesy of Conde Nast. And images from Conde Nast’s photography portfolio will fill the auditorium wall just inside the north entrance. “We’re creating reasons for it to be a destination, not just an office 30

DSCC_MarApr13.indd 30

An open gallery replaces the bulky Hercules reception desk and escalators in the building’s first-floor atrium. building,” Johnson said. McConnell takes that vision a step or two further, aiming to lure one of the country’s top 100 companies as a future tenant. “We really envision going to the top — recruiting that Capital One, Google or Microsoft,” he says. “With our large footprint, our great location, opportunities with the conference center, links to our universities, with everybody on board, we have the ingredients to attract a company that will propel Delaware.” It will take a while for everything to come together, and some of the dynamics of the gallery may change over time, McConnell and Johnson said. But many of the new features — the restaurant, The Hub, the food court and the WiFi area will be ready, if not in March, at some point during the spring. “You’ll see all the pieces fall into place by the end of the year,” Johnson said. Donald J. Wolfe Jr., a partner and chairman of the executive committee at Potter Anderson & Corroon, is eager to see the finished product. “There’s a momentum, a trajectory to this thing. You add things like that, the tenants are happier to be here, the commercial folks are happy to come in, and it all feeds on itself,” he says. At the heart of McConnell’s vision is the innovation center, where entreMay / Jun e 2012 | Delaware Business

3/11/13 10:03 AM

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Guide to Real Estate preneurs may rent space and receive administrative support and access to technology essential for their businesses. Worldwide, a new business incubator is opening every day, McConnell says. “Everybody is trying to figure this out.” Ultimately, McConnell anticipates a synergistic interaction between the startups, which he hopes will focus on technology and services to support the financial and legal sectors, and the established companies housed in the building and in other downtown offices. In Wilmington, “we have had a lot of success built around mobile banking, technology, and forward thinking on legal and finance issues,” McConnell says. “Let’s build an incubator, a business innovation center that will allow younger people and companies to come here, take advantage of Delaware laws, of our contacts and all the connections that these great [established] companies have.” Some of the initial incubator tenants have begun to establish track records. Continuity Dynamics, based in Basking Ridge, N.J., is a consulting firm that assists businesses with disaster recovery. The nonprofit Film Delaware, headed by film industry veteran T.J. Healy, works to attract and assist motion picture, television, documentary and video game producers who want to use Delaware as a site for their ventures. Johnson is also enthusiastic about having The Hub as the building’s conference facilitator. Since its founding in 2002, the company has expanded to three locations in Philadelphia and this will be its first venture into Delaware. “They will provide flexible meeting options for our tenants and for other downtown businesses,” Johnson said. On the seventh floor, Potter Anderson & Corroon is creating its own conference center in newly leased space. With about 100 attorneys now, the law firm has been steadily expanding in the last five years and needed more room, Wolfe said. The biggest growth, he said, has been in the firm’s “Delaware advantage” practices, corporate transactions and litigation, representing out-of-state businesses incorporated in Delaware. When these clients are involved in deals or court cases here, they often send teams of attorneys to work with their legal counsel at Potter Anderson. Setting up the “war room” within the firm’s office is not only more convenient, but also spares the expense of renting conference space in downtown hotels, as out-of-town attorneys often do when they have trials in Delaware courts, Wolfe said.

From familiar names like Conde Nast, Potter Anderson, Visa, Wilmington Insurance and Pepper Hamilton on the upper levels to the lesser-known Innovation Center startups literally on the ground floor, McConnell sees these businesses as much more than tenants. “You have to build a community out of the companies that are here,” he says. “That’s what we’re trying to do.” n

Long Way From Home Finding its headquarters wasn’t easy for Hercules Hercules Inc., founded in 1882 as the Hercules Powder Company, a subsidiary of the DuPont Co., went a full century in Wilmington without having its name on its headquarters building. For most of the 20th century, Hercules had its headquarters in the Delaware Trust Building, at the corner of Ninth and Market streets. Then, in the late 1970s, Hercules chairman and CEO Alexander Giacco became one of the leading critics of Delaware’s high personal income tax rates (19.8 percent at the time), claiming they were a barrier to well-compensated CEOs moving their companies to Delaware. By 1979, the top rate had been cut to 13.5 percent, but not until Giacco had issued a veiled threat to move Hercules out of state. As it turned out, Hercules was considering a shorter move — to its suburban research campus off Lancaster Pike. Such a move would have been disastrous to the city, which could ill afford the lost wage tax revenue from 1,500 Hercules employees, not to mention the impact on other downtown businesses. The administration of Gov. Pete du Pont worked with Wilmington Mayor Bill McLaughlin and his top aides to find Hercules a new home in Wilmington. They settled on the site of the old Fletcher Brown Vocational High School, and made the new Hercules Building the northern anchor of an ambitious redevelopment plan stretching from the Brandywine to the Christina River. Ultimately a $16 million Urban Development Action Grant awarded by the U.S. Department of Housing and Urban Development made construction possible. The history of the Potter Anderson & Corroon law firm is also closely intertwined with Hercules. Not only did Potter Anderson serve as Hercules’ legal counsel but, like Hercules, Potter Anderson also had its offices in the Delaware Trust Building. Then, in April 1997, an arsonist set fire to the 77-year-old tower, leaving the law firm, and many other businesses, homeless. Hercules, however, had open space in its new headquarters and made it available to Potter Anderson. “We moved in over the weekend [after the fire],” said Donald J. Wolfe Jr., chairman of the firm’s executive committee. A while later, the firm explored other sites, he said, “but we quickly came to the conclusion that we were in the best place we could have hoped for.”

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Marc h / Ap r i l 2 0 1 3 | Delaware Business

3/11/13 10:03 AM

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Photo by Tom Nutter

Guide to Taxes

company profile: Belfint,

Lyons & Shuman

History, technology, know-how and coffee aplenty keep tax experts buzzing By Eileen Smith Dallabrida

Count on Them

Since 1923, Belfint, Lyons & Shuman of Wilmington

has been making sure the numbers add up for clients. That’s plenty of time for certified public accountants, business owners and individuals to get to know one another, often over several generations. The oldest accounting firm based in Delaware, BLS is focused on longterm relationships. That translates to asking lots of questions—and listening intently to what clients have to say. “We are very tuned in to our clients; what their objectives are; what their personalities are; what they want to achieve for their families,” says Barry Crozier, managing director. BLS serves businesses in diverse sectors, from construction companies to law firms to medical practices. The firm also has carved out a deep niche in nonprofit organizations. Nephrology Associates is a robust statewide practice focusing on kidney and hypertensive disease, with 25 board-certified doctors and 11 nurse practitioners. Gina Johnston, the CPA who is the group’s controller, says the practice Delaware Business | Ma rch/ Ap ri l 2 0 1 3

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has relied on BLS to crunch the numbers for more than 20 years. “They do more than just our corporate books and records,” she says. “They also handle tax returns and tax planning for many of our physicians. And whenever there is a new tax pronouncement, they send us a detailed letter keeping us informed on the change.” Many BLS clients are entrepreneurs who are interested in buying or selling small businesses, as well as transferring wealth to the next generation. Coming up with strategies to achieve those goals is the accounting equivalent of adrenaline rush. “These are life-changing events and it’s fun when you go through a process that can improve someone’s financial life,” Crozier says. Sometimes, the learning curve is a moving target. Witness the so-called fiscal cliff, which resulted in a congressional donnybrook over federal tax laws that were about to expire. BLS kept clients updated with regular reports throughout December and early January. Crozier is not entirely pleased by the American Tax Relief Act of 2012, 35

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Guide to Taxes the compromise hammered out in Washington, in which President Obama’s proposed tax hike on households earning more than $250,000 was bumped up to $450,000. Affluent taxpayers also will pay 20 percent on capital gains, a boost from the former cap of 15 percent. He is concerned the changes will have a negative impact on owners of small businesses, who form the backbone of the nation’s economy. “Sure, $450,000 is better than $250,000—but it’s not as good as $1 million would be,” he says. Demystifying changes in the law is an important part of BLS’s mission. Kristine Santomauro, vice president for administration and finance at Goldey-Beacom College, recalls when the government enacted new rules for retirement plans for employees of nonprofit groups several years ago. “Belfint’s staff was so knowledgeable on what we needed to do to get our reporting done in a timely manner,” she says. “They were in constant communication, anticipating how they could help.” Santomauro also is impressed by the technology that enables BLS to conduct paperless audits, in addition to such conveniences as a secure portal where clients can file confidential information electronically. She has attended several seminars the firm has sponsored for clients on such topics as audits of employee health benefits. BLS keeps clients informed through multiple channels. You can “like” BLS on Facebook. Newsletters go out quarterly. The firm offers QuickBook tips through its recently revamped user-friendly website, as well as a 2012-2013 Web Tax Guide outlining updates and strategies for

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“These are life-changing events and it’s fun when you go through a process that can improve someone’s financial life.” savings. Belfint also set up for Google alerts for all clients, which enables the firm to reach out and acknowledge noteworthy events and awards. There’s a blog on audits and employee benefits. Jonathan Moll inaugurated the company blog for nonprofits. In his 30s, he is part of the next generation of leaders at BLS, which has consciously nurtured a diverse staff that blends the unique insights of both mature and youthful accountants. “The blog demonstrates our nonprofit expertise and also enables us to provide additional education for our clients,” he says. To educate CPAs on the art of marketing, Belfint has rolled out a personal development program in which accountants meet with a coach to hone soft skills and discuss ways to grow business through networking at events, targeting referral sources and keeping track of leads.

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Additionally, colleagues look for ways to serve clients beyond the ledger. When Crozier learned the American Institute of CPAs was looking for a woman minority business owner to participate on a panel in Washington, he recognized the opportunity to spotlight a client on a national stage. Kathy Schultz, director of tax and small business, suggested the owner of a jewelry company, who proved to be an ideal fit. In addition to the personal touch, BLS has invested heavily in technology. A state-of-the-art IT system enables colleagues to work remotely, which benefits both clients and employees. Recently, Moll worked from home so that he could care for a sick child. “Our technology and flexibility are unmatched,” he says. Moll signed on at Belfint 12 years ago, fresh out of the University of Delaware. Courted by several firms, he based his decision on a gut reaction to the firm’s supportive culture. He was named director in the firm’s accounting and auditing department in December 2012. “I was excited and impressed with the level of challenges I was permitted to take on,” he says. “And I enjoy being surrounded by brilliant people.” As he sees it, BLS is positioned in the sweet spot. With 62 employees, it’s at the top size-wise in the state. That enables the firm to provide expertise in advisory services, assurance, auditing, tax planning and compliance, small business, litigation support, employee benefit plan audits, succession planning, business and management consulting and corporate services for investment holding companies. BLS offers worldwide consulting through PrimeGlobal, an association of more than 350 independent accounting firms in 90 countries.

Yet the firm remains small enough to offer highly individualized service. “We talk with clients about the things that are on their minds,” Crozier says. “What is the latest change in the gift tax? Should they buy equipment in December or wait until January?” An inclusive management style is part of BSL’s culture. A committee meets regularly to discuss staff concerns, serving as a liaison between management. “We get that buy-in from everyone,” Moll says. Last year, the company unfurled a new branding initiative that emphasizes BLS’s commitment to personalized service and client education. All 62 employees voted on the new logo, which includes the firm’s name, “BLS” in contemporary script and three words that sum up the business: Certified Public Accountants. “We are in this together, so everyone should get to decide,” Crozier says. Because accounting workloads swell during tax season and compliance events, Belfint offers flexible work schedules, enabling staff to take advantage of rare lulls in activity. “We are very aware of the work-life balance,” Moll says. Now in his 44th tax season, Crozier says accountants can expect to put in days of 10 hours or more, six days a week. In addition to working with clients, colleagues devote time to seminars on new software and other updates. The staff blows off steam at the in-house putt-putt golf course. And after April 15, there’s a company-wide celebration. “We aren’t as stodgy as you might think we are,” Crozer says. “We actually have fun here.” n

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Guide to Taxes

Tax Issues for the Self-Employed Expert Advice from BL&S By Mary E. Weeks, CPA, CFP, Belfint, Lyons & Shuman Have you ever dreamed about starting your own business? Being your own boss? Do you know what the first step is in making your dreams a reality? While there are many things to consider when

ject to limits), and Medicare premiums. The deduction is limited to the net income of the business. Employ Your Child: A business owner can employ their child who

starting your own business, this article will focus on various issues

is under the age of 18 and not pay FICA or FUTA tax on their wages.

that will impact the formation and operation of your business.

The child must be performing legitimate services and the business

Let’s start with choice of entity. Choice of entity impacts the

must pay them a fair wage. Aside from the social security tax sav-

extent of protection from liability of business obligations as well as

ings to the business, there is also the opportunity for the child to save

the income and self-employment taxes that you will pay.

income taxes or to contribute to a ROTH IRA. For example, if you paid

If you choose to operate as a sole proprietor, you are personally

your child $6,100 for 2013, the business would deduct this as a busi-

liable for all obligations of your business. If you choose to operate

ness expense and the child would report it as taxable income. Since

as a limited liability company (LLC), you are generally not person-

the standard deduction for 2013 is $6,100, this is tax-free income to

ally liable for business debts and liabilities of your business. Under

the child. Since the child has earnings, he or she can take the monies

both of these entity types, you will pay income and self-employ-

and contribute up to $5,500 to a ROTH IRA for 2013.

ment tax on your net income. Another option is to operate as a corporation which provides you

Automobile Expenses: If you use your car for both business and personal purposes, the business use is deductible. There are two

with limited liability protection from the debts of your business. Taxation

methods available to determine your deductible expenses: the stan-

of the net earnings will depend on whether you are a C-Corporation or

dard mileage rate method or the actual car expense method. When

an S-Corporation. C-Corporations pay tax on net earnings at the cor-

using the standard mileage rate, simply multiply your annual busi-

porate level and any dividends paid to the shareholders are taxed again

ness mileage by the IRS mileage rate to determine your deductible

at the individual level. However, a Subchapter S-Corporation does not

expense. The actual expense method requires more record keeping

pay tax. Instead, the net earnings are “passed-through” to the share-

but allows you to deduct the business-use portion of depreciation,

holder and taxed at the individual tax rates. Any distributions made by

lease payments, license and registration fees, gas, oil, repairs, insur-

the S-Corporation are not taxed again.

ance, and tires. You should figure your deduction using both methods

The following is a list of some common expenses to consider deducting on your tax return: Business Use of the Home: A business owner that works from

to determine which gives you the larger deduction. In addition, you can deduct parking fees and tolls under both methods. Retirement Plans: There are many types of retirement plans

home can deduct the business use of the home. You will need

available to business owners. For instance, you could establish

to determine that portion of the home that is used regularly and

a Simplified Employee Pension (SEP) plan which would allow

exclusively for your business. The rent, mortgage interest, real

you to contribute up to 20 percent of your net self-employment

estate taxes, homeowner’s insurance, repairs and maintenance,

income (net of 50 percent of your self-employment tax). If your

utilities, and depreciation that relate to that business portion of the

goal is to establish a plan that allows you to save the maximum

home would be a deductible expense. Entity type will determine its

amount allowed for retirement, you should consider establishing

deductibility: a sole proprietor will deduct the expense on Schedule

a solo 401(k) plan. Similar to a SEP, you can contribute up to 20

C of his Form 1040 and the deduction is limited to the net income

percent of your net self-employment income (net of 50 percent of

of the business; if the partnership agreement allows, the partnership

your self-employment tax). In addition, you can make an employee

will deduct the expense on Schedule E of his Form 1040, limited to

contribution of up to $17,500 for 2013 (and an additional $5,500

the net income from the partnership; an employee of a corporation

if you are at least 50 years old). Under both plans, total contribu-

that uses the employee’s home to conduct business can record the

tions cannot exceed $51,000 for 2013. You will also be required to

business use of the home as an “unreimbursed employee business

make contributions to the plan on behalf of your employees.

expense” and deduct the expenses on Schedule A of the Form

The above items ONLY address some of the liability exposure of

1040, limited to 2 percent of the adjusted gross income, or, the

various business formations, the taxation of the business profits,

employee could charge the corporation rent.

and unique deductions available to business owners. As a busi-

Health Insurance: Another deduction that a business owner

ness owner, your goal should be to operate effectively, efficiently,

can deduct is health insurance. The owner can deduct the health

and economically. To achieve these goals, you as the business

insurance for himself, his spouse, and his dependents, including

owner should capitalize on your unique skills in operating your

any child under the age of 26. For this purpose, health insurance

business and employ professionals to utilize their technical skills in

includes dental insurance, qualified long-term care insurance (sub-

helping to measure and achieve your success.

DSCC_MarApr13.indd 38

Marc h / Ap r i l 2 0 1 3 | Delaware Business

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Peter “Bill” Sunday knowS why BeeBe haS Been recognized: the BeeBe team Saved hiS life. Bill arrived at the Beebe Emergency Department suffering a life-threatening ruptured aneurysm in the largest artery in his body (Abdominal Aortic Aneurysm). The Beebe team diagnosed the problem and quickly sent him to the operating room where a vascular surgical team repaired the aneurysm, saving his life. A clinical team of doctors, nurses and others cared for him until he was discharged 10 days later. Beebe Medical Center is rated #1 in Delaware for Vascular Surgery in 2013. Beebe medical center is the recipient of the healthgrades® distinguished hospital award for clinical excellence 2013™, ranking the hospital among the top 5% of more than 4,500 hospitals nationwide. Visit Beebe’s website to learn more about our Healthgrades awards. beebemed.org

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Lewes, DE beebemed.org

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Marc h / Ap r i l 2 0 1 3 | Delaware Business

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Guide to Health Care and Insurance

Affordable Care Act Creates New Issues for Employers By Richard R. Wier, Jr., Esq. and Shannon Larner Brainard, Esq.

Under the Patient Protection and Affordable Care Act (PPACA), certain employers may be exposed to litigation by disgruntled employees resulting from inter alia, employment practices such as hiring and firing due to the individual’s economic status, gender or overall health. These issues arise because the PPACA places an economic burden on “large” employers to provide affordable health benefits to their employees. “Large” employers are defined as those employers with 50 or more full-time equivalent employees, and any reference to “employer” in this article refers to those large employers with 50 or more full-time equivalent employees. The formulas for determining the number of full-time equivalent employees and the affordability of health coverage are beyond the scope of this article. Beginning January 1, 2014, if an employer fails to offer any health benefits, the employer must pay a penalty which is assessed on a monthly basis. The penalty is calculated by taking the total number of full-time employees minus 30 and multiplied by $2,000. For example, if the employer has 100 full-time employees, minus 30, and multiplied by $2,000, then its yearly penalty is $140,000, which is assessed on a monthly basis of approximately $11,666.67 per month. Even if an employer chooses to offer health benefits to its employees, the benefits must be affordable in order for the Delaware Business | Ma rch/ Ap ri l 2 0 1 3

DSCC_MarApr13.indd 41

employer to avoid paying a penalty. If the benefits are not affordable, then the penalty is based on the number of full-time employees who receive a premium reduction (for example, a tax credit on insurance purchased through an Exchange), multiplied by $3,000 per employee. This penalty is assessed on a monthly basis but cannot exceed the amount assessed if the employer offered no coverage at all, as described above. For example, if the employer has 100 full-time employees, 20 of whom receive a tax credit through an Exchange, then the penalty is $3,000 multiplied by 20, for a total of $60,000, which is assessed at $5,000 per month. In an effort to avoid the costly penalties of the PPACA, employers may refuse to hire or fire certain individuals, including low-income individuals, for example. Low-income individuals who are eligible for a tax credit through an insurance Exchange are more costly to employ than others because employers must pay increased penalties for those employees as described above. (The individual’s eligibility for a tax credit through the exchange depends upon their individual or family income). As a result, there is a disincentive for employers to hire low-income individuals or keep them employed because the penalties could be quite costly. However, employers should be aware that the PPACA creates a new protected class, the “poor,” and provides that taking an adverse employment action against 41

3/11/13 10:03 AM

Guide to Health Care

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a prospective or current employee because of their economic status constitutes unlawful discrimination. Employers should monitor their employment practices and ensure consistency in decision-making with regard to all employees, prospective and current, so as to avoid these types of discrimination lawsuits. Another concern for employers involves lawsuits which allege gender discrimination or a violation of the PPACA. For example, the PPACA affords protection for nursing mothers at their place of employment by requiring employers to provide: “(1) a reasonable break time for an employee to express breast milk for her nursing child for one year after the child’s birth each time that employee has a need to express the milk”; and “(2) a place, other than a bathroom, that is shielded from view and free from intrusion from coworkers and the public, which may be used by an employee to express breast milk.” (Employers, however, are not required to compensate employees for the time spent expressing breast milk). This provision could discourage employers from hiring or maintaining female employees because providing breaks may decrease productivity in the workplace and providing a private space for nursing mothers could prove costly. Again, however, employers must be wary of the potential for litigation and should avoid making hiring and firing decisions based on these concerns. If an employee alleges a violation of the PPACA as described above, the U.S. Department of Labor will initially invescontinued on 49

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Newsbites

SSD Technology Partners Helps Goodwill Turn Trash into Cash for Education Over the past four years, SSD Technology Partners—a Wilmingtonbased provider of business technology solutions and support services—has partnered with Goodwill of Delaware and Delaware County to help businesses offload their unwanted electronics in an environmentally-friendly way. Recognizing that businesses were storing end-of-life electronics in closets because they just didn’t know what to do with them, SSD Technology Partners and Goodwill worked together to invite all local businesses to donate these items semi-annually free of charge. This served two purposes—to keep these unwanted items from ending up in a landfill and enabling Goodwill to sell computers,

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monitors and keyboards that were still working in their retail stores to support its mission to the community. Those nonworking items were also recycled into their component parts (plastics, metals) in an environmentally-friendly manner and were able to generate additional revenue to support Goodwill’s mission. In the fall of 2012, after participating in Goodwill’s Annual Golf Outing—an event that raises funds to support the Ted Van Name/Goodwill Scholarship Fund which funds the educational aspirations of those whose lives are touched by Goodwill--SSD Technology Partners determined they wanted to do something more. The technology group was especially interested in helping Goodwill

of Delaware achieve their $1.5 million scholarship funding goal. “We wanted to give back to the business community for helping to keep our landfills free of harmful electronics, and to Goodwill for serving its mission to the community,” said Lisa Detwiler, COO of SSD Technology Partners. “We decided that for 2013, SSD Technology Partners would donate 25 cents for every pound of unwanted electronics that would be collected.” Detwiler said the initiative got off to a great start at the end of the year. During National Recycle Day in November, SSD Technology Partners collected over 10,000 pounds of end-of-life electronics, which were brought in by local businesses. She said many of those donating arrived with full pickup trucks or car trunks jammed with old monitors and printers.

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As a result, Detwiler recently presented a check for $2,525 designated for the Ted Van Name/Goodwill Scholarship Fund to Colleen Morrone, president & CEO for Goodwill of Delaware and Delaware County. She also noted that the six electronic recycling events held by SSD Technology Partners and Goodwill has resulted in diverting over 42,000 pounds of unwanted electronics from landfill disposal. For over 90 years, Goodwill of Delaware and Delaware County’s mis-

sion has been to improve the quality of life for people with barriers to selfsufficiency through the “Power of Work” and has been supported by proceeds from retail sales and donations. In 2011, Goodwill of Delaware and Delaware County provided over 19,000 services to individuals throughout the region. SSD Technology Partners has been on the leading edge of Information Technology since 1983, providing a full range of IT services to the private and public sectors in Delaware,

Noramco Focuses on Mentoring Recent reports indicate that while unemployment continues to be a challenge, young people have been especially hard hit in finding opportunities to get started in the working world. For approximately 30 Newark High School students, Bridge to Employment may be just the program that gives them an advantage as they prepare to join the job market. Employees of Noramco, the Wilmington-based pharmaceutical company affiliated with Johnson and Johnson, mentor and tutor Newark High students in their sophomore through senior years. Beyond academics, “we focus on subtle aspects important in the working world,” explains Leo Dohan, Noramco’s program coordinator and this year’s recipient of the Exemplary Business Partner Award from Connecting Generations, Delaware’s resource for mentoring and other intergenerational programs. “We talk about reliability, consistency, commitment and other factors that are so influential but that teenagers may have limited exposure to,” Dohan says. ”I often think how great it would have been if I had exposure to a program like this.” Located near the Southbridge neighborhood of Wilmington’s east side, Noramco employs approximately 160 people. “When we started several years ago, we wanted to understand our community better, to know what’s going on and determine ways we could give back,” Dohan says. Financial support from Noramco and Johnson and Johnson over three years provides the support and Dohan began recruiting volunteers. “We experienced mentor training with Connecting Generations to understand how to be effective mentors, things to look for and ways to respond to young people and the results have been very positive.” Dohan points out that the high school graduation rate for Wilmington teens from the Southbridge area is very low but for participants in Bridge to Employment, “our rate is more like 75 percent. With that success, the program is continuing.” “Our students really look forward to the time spent with their mentors,” says Jennifer Blair, Connecting Generations’ mentor coordinator at Newark High School. ”They do school work together and typically talk about career planning.” For more information on mentoring, contact Connecting Generations at (302) 656-2122.

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Pennsylvania, New Jersey, and Maryland. Headquartered in Wilmington, Delaware, SSD was named Superstars in Business for 2004 and 2010 by the DE State Chamber of Commerce, 2008 Better Business Bureau Torch Award for Ethics in Business, and named by MSP Mentor as one of 2011’s fastest growing Managed Services Providers in North America. SSD’s technology professionals implement IT projects and services that provide above average returns on investment, significantly enhance productivity, and lower technology ownership costs. For information call 800-652-3360 x204 or visit www.ssdel.com.

University of Delaware Retains CAA Blood Challenge Title The University of Delaware, partnered with the Blood Bank of Delmarva, captured the win in the 11th Annual Colonial Athletic Association (CAA) Blood Challenge for the second year in a row and sixth time overall. Delaware had a school record with 1,488 registered donors and 1,232 donors who actually donated in one day, which is the highest yearly single school total in the history of the event. “I am very proud of our staff, the students, administration, faculty and alumni of the University of Delaware,” said Roy Roper, president and CEO of the Blood Bank of Delmarva. “This is an outstanding achievement and we are very happy to keep the CAA Blood Challenge trophy in Newark. Winning a competition is exciting, but we all realize that the true winners are the patients who have been helped by the selfless donations of blood.” After working hard to regain the CAA Blood Challenge title last year, the University of Delaware and the Blood Bank of Delmarva worked together

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Newsbites corporate and alternative entity control disputes, advancement/indemnification, breach of contract, antitrust, securities, patent infringement, copyright infringement, and trademark matters. Steve also counsels clients concerning the General Corporation Law of the State of Delaware and Delaware’s alternative entity statutes. In 2012, Delaware Super Lawyers recognized Steve as a Rising Star in intellectual property litigation. Steve is admitted to practice in the state and federal courts of Delaware and New Jersey. He currently serves the legal community as vice-chair of the Limited Liability Companies, Partnerships, and Alternative Entities Subcommittee of the Business Law Section of the American Bar Association; membership chair of the Intellectual Property Committee of the Bayard Welcomes Brauerman, Business Law Section of the American Bar Association; and, secretary of Finizio as Directors the Delaware Chapter of the Federal Bar Association. Steve Bayard, P.A., a Meritas graduated with honors from member law firm based in the John Hopkins University Wilmington, has announced and earned a J.D., cum laude, that Stephen B. Brauerman from the American University, and GianClaudio Finizio have Washington College of Law. been elected as Directors of While in law school, Steve the firm effective January 1, worked for the Honorable 2013. Gerald Bruce Lee of the United “We are proud to announce Stephen B. States District Court for the the election of two excepBrauerman Eastern District of Virginia. tional attorneys as directors Steve also served as Editor-inof Bayard,” said Bayard chairChief of the American University man Neil B. Glassman. “They Law Review (Volume 55). are attorneys who have disGianClaudio Finizio concentinguished themselves in their respective practice areas and trates his practice in the areas who will undoubtedly continue of bankruptcy and insolvency to serve Bayard and its clients in law, insurance law and mergtheir proven dedicated fashion.” ers and acquisitions, including Stephen B. Brauerman general corporate and business GianClaudio concentrates his practice in law matters. GianClaudio reguFinizio the areas of corporate, comlarly represents debtors, official committees of unsecured creditors or mercial and intellectual property litigaequity holders, financial institutions, and tion. He has litigated a wide array of publicly and privately held businesses cases involving fiduciary duty claims, again this year as well as partnering with New York Blood Center to provide four on-campus locations for the blood drive. This year’s challenge was a huge success once again as 4,613 productive units of blood were collected from 4,381 donors on 10 CAA campuses. Over the 11-year history of the event, the CAA Blood Challenge has resulted in 36,719 productive units of blood. George Mason University placed second in the Blood Challenge for the third year in a row with a school-record 1,114 donors, which is also the second-highest yearly total in the history of the event. It’s the second year in a row that two different schools had more than 1,000 donors participate. Drexel University finished third with 578 donors.

DSCC_MarApr13.indd 46

in bankruptcy cases. He also focuses on insurance matters including advising insurance companies regarding compliance with state regulations and changes in ownership or control. During 2008, GianClaudio performed the duties of Deputy Insurance Commissioner for then Insurance Commissioner of Delaware (now Lieutenant Governor) Matt Denn. GianClaudio is admitted to practice in the state and federal courts of Delaware. Prior to practicing law, he served as a business analyst in Basell USA Inc.’s Health, Safety and Environment Department, supporting North American manufacturing, research and development facilities in the areas of product regulatory activities, environmental, toxicological, health, safety, and industrial hygiene. GianClaudio earned a B.A. in Biology and Italian from the University of Delaware in 1994, and a J.D., magna cum laude (co-valedictorian), from the Widener University School of Law in 2002. While in law school, GianClaudio served as a Judicial Extern for the Honorable Jane R. Roth in the United States Court of Appeals for the Third Circuit. He is fluent in Italian.

Trellist Marketing and Technology Acquires Forthright Consulting Trellist Marketing and Technology has successfully acquired Forthright Consulting in order to expand its ability to deliver marketing and technology professional services through flexible outsourced and agency staffing models. Just 15 months after acquiring the firm, Trellist has reported a 275-percent increase in combined sales for Trellist’s Resource Management Division and Forthright Consulting. While more than 60 percent of acquisitions fail, the integration of Forthright Consulting has been a success for

Marc h / Ap r i l 2 0 1 3 | Delaware Business

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everyone involved—beyond the substantial increase in sales, the combined Resource Management Division has introduced new professional service offerings to Forthright’s clients and additional resource management services to Trellist’s clients. Todd Metzger, principle at Forthright Consulting, was appointed the leader of the combined division and has recently become Partner at Trellist. “The integration was successful due to the cultural fit and shared vision of both firms,” says Metzger. “And Trellist’s entrepreneurial environment and matrix based operations allow for the effective integration of like-minded, small and mid-sized firms.” Acquisition of specialty firms, not too far from the firm’s core competency, expands Trellist’s service offerings. “This is not an easy undertaking in today’s failing M&A environment, but when done correctly, acquisitions are an excellent way to build wealth for a company,” explains David Atadan, Trellist CEO and Founding Partner. “When considering an acquisition, both firms must have a similar culture and approach to business. This allows growth without sacrificing either company in the integration process. It’s a win for all.”

Goeins-Williams Associates Recognized by Sam’s Club and SCORE Foundation Devona Williams, president and CEO of Goeins-Williams Associates, Inc. in Clayton, recently participated in an intensive professional development conference, “Working On Your Business not In Your Business,” January 23-24 in Dallas, Texas. The conference was sponsored by Sam’s Club and the SCORE foundation. Williams, representing Delaware, was one of 102 Small Business National Winners of Sam’s Club Holiday Giving Award, which rec-

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ognized two businesses from each state. The award was presented in recognition of Williams’ achievement as a successful small business that has benefited from SCORE mentors.

Established in 1986, Goeins-Williams Associates improves performance and productivity of corporations, non-profit organizations and government agencies with services that include: organizational

Foxfire Printing New Home to One of World’s Largest Printing Presses Delaware is now home to one of the largest printing presses in the world, the Roland 900 XXL. Owned and operated by Foxfire Printing in Newark, the buildingsize press turns out 10,000-plus 52 x 73 inch sheets in conventional (or UV) ink every hour, ensuring Foxfire’s position as the region’s leading commercial printer. Designed and built for speed and quality, the German-built press gives Foxfire the added capacity of three conventional printing presses. Highly sophisticated software systems ensure maximum productivity, while precision engineering ensures minimal make ready and wash up time. All of this translates to time and cost savings for clients requiring high-quality, sheet-fed printing A Delaware State Chamber of Commerce member since 2004, Foxfire employs about 150 Delawareans. The company is gearing up to leverage the new press in an effort to expand its business in the area and across the nation. This growth was acknowledged recently when Inc. Magazine recognized Foxfire as Delaware’s 2012 #1 “HirePower” company for its role in adding new jobs to the state’s economy. Foxfire CEO John Ferretti says the new printing press positions Foxfire to compete for a broad range of products over its national footprint, from its home in Delaware. “Foxfire delivers end-to-end printing solutions for customers nationwide. With the new Roland press, and with an investment in people and training—supported in part by the State of Delaware—Foxfire is positioned to compete effectively for years to come,” Ferretti says.

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Newsbites assessment and development, strategic planning, meeting facilitation, career workshops and quality learning materials. Williams earned a doctorate in urban affairs and public policy from the University of Delaware and is a keynote speaker on business leadership, motivation and success. For more information about Goeins-Williams Associates, Inc. visit: www.goeinswilliams.com.

Delaware Art Museum Receives $12,000 Contribution from AT&T

P.O. Box 232 Wilmington, DE 19899 Phone 302.655.7718 Fax 302.655.7918 rdubroff@finalfocus.com

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see it all at www.ﬁnalfocus.com

DICKDUBROFFFINALFOCUS

Delaware First Lady Carla Markell joined officials from AT&T, the Delaware Art Museum, Warner Elementary School students, representatives from the Delaware Division of the Arts (DDOA), and other elected and government officials to highlight the importance of arts in education and to announce a $12,000 contribution from AT&T to the Museum. The contribution is targeted to the Museum’s “ART is Element-ary!” program that develops the critical- and creative-thinking skills of underserved elementary school students through hands-on activities. Sponsored in part by the DDOA, this is the second year the program has been in operation. “The Delaware Art Museum offers a wide variety of programs that allow young students to strengthen their academic skills through the arts,” said J. Michael Schweder, president, AT&T Mid Atlantic. “We’re thrilled to join with the Museum and First Lady Markell to showcase how the arts are integral to a child’s future success in school and throughout their lives.” “The arts are a critical and essential part of every child’s education,” said Markell. “AT&T’s support of the ART is Element-ary! program will help keep our students engaged in learning through creative processes and experiences.” With the support from AT&T, the Museum’s ART is Element-ary! program will teach second grade students from a local elementary school how to think critically about art. The students will then participate in field trips to the Delaware Art Museum, where they will use their new “learning to look” skills to understand and interpret art. “Developing looking, learning, and thinking skills are the cornerstone to any education,” said Delaware Art Museum Executive Director Danielle Rice. “Using art is a great way to teach these important abilities.” For more information about the Delaware Art Museum, visit delart.org.

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Calendar of Events March 5, 2013

March 21, 2013

Networking Breakfast at Sunday Breakfast Mission

Evening Mixer at Jos. A. Bank

7:30 a.m. – 9 a.m.

Location: 4001 Kennett Pike, #108,

For more information, contact Kelly Wetzel

Greenville, DE 19807

at (302) 576-6586 or kwetzel@dscc.com

For more information, contact Kelly Wetzel

5:30 p.m. – 7:30 p.m.

at (302) 576-6586 or kwetzel@dscc.com

March 6, 2013

Legislative Forum with Management & Budget Director Ann Visalli

March 26, 2013

8:00 a.m. – 9:30 a.m. (Presentation begins

SBA Workshop with Valerie Cole & Dante LaPenta, ab+c

at 8:30 a.m.)

7:30 am registration – 9:30 am

Location: DSCC Board Room (1st Floor)

Location: DSCC Board Room

For more information, contact Kelly Wetzel

For more information, please contact

at (302) 576-6586 or kwetzel@dscc.com

Kelly Wetzel at (302) 576-6586 or kwetzel@dscc.com

March 12, 2013

Young Executives Present: Put Your Compensation to Work!

March 27, 2013

8:00 a.m. – 9:30 a.m.

9:00 am – 10:00 am

Location: Ameriprise Financial, 1011

Location: DSCC Board Room

Centre Road, Suite 100, Wilmington

For more information, please contact Bill

For more information, please contact

Stephano at (302) 576-6574 or bstepha-

Kelly Wetzel at (302) 576-6586 or

no@dscc.com

Benefits & Services Committee meeting

kwetzel@dscc.com

March 28, 2013 March, 14, 2013

Education & Development Committee meeting

Christiana Care’s Wilmington Hospital Expansion 7:30 am – 9:15 am

9:00 am – 10:00 am

Location: University and Whist

Location: DSCC Chairman’s Room

For more information, contact Kelly Wetzel

For more information, please contact

at (302) 576-6586 or kwetzel@dscc.com

Kelly Wetzel at (302) 576-6586 or kwetzel@dscc.com

April 4, 2013

March 15, 2013

Networking Breakfast with the Blue Rocks

Environmental Committee Meeting

7:30 am – 9:00 am

12:00 p.m. – 2:00 p.m.

Location: Frawley Stadium, 801 Shipyard

Location: TBD

Dr., Wilmington, DE 19801

For more information, contact Greg Gross

For more information, please contact

at (302) 576-6568 or ggross@dscc.com

Kelly Wetzel at (302) 576-6586 or kwetzel@dscc.com

March 20, 2013

2013 Spring Manufacturing Conference & Legislative Brunch

April 10, 2013

9:00 am registration – 12:30 p.m.

SBA and Employee Relations Forum with the EEOC

Location: Dover Sheraton Hotel

8:00 a.m. – 9:30 a.m.

For more information, please contact

Location: DSCC Board Room

Cheryl Corn at (302) 576-6572 or

For more information, contact Kelly Wetzel

ccorn@dscc.com

at (302) 576-6586 or kwetzel@dscc.com

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Health Care continued from 42 tigate the claim and may then seek an injunction in federal court to ensure employers provide the necessary break times and space for nursing mothers. An additional risk of litigation for employers (which was present even before the PPACA was enacted), involves hiring and firing decisions based on an employee’s overall health and/ or disability. There is a financial incentive for employers to hire and maintain employees who are generally healthy because this limits the number of health care claims by employees, in turn, reducing the costs of premiums, and allows for consistent productivity within the company. For example, an employer may consider terminating an employee with a disability because that individual is frequently ill and out of the office for days at a time. However, while employee health and wellness are important, employers should not make hiring, firing or other employment-related decisions based on these considerations alone because this could result in a lawsuit against the company by an employee who believes he was discriminated against based on his disability. Moreover, employers should refrain from providing incentives or awards to those employees who are able to participate in company wellness plans. Those other individuals who are unable to participate in such programs because of their disability could allege discrimination against the employer as a result. The full impact of the PPACA and litigation against employers is yet to be seen. Nonetheless, it is important for employers to evaluate the risks and exposure for litigation, ensure consistency in employment practices such as hiring and firing, and consult legal counsel to implement the appropriate policies and procedures. Richard R. Wier, Jr., Esq. and Shannon Larner Brainard, Esq. of Marshall Dennehey Warner Coleman & Goggin, focus their practice on Labor and Employment and Health law. Both are members of the Delaware State Chamber of Commerce Healthcare Committee and provide this article to the membership of the Delaware State Chamber of Commerce as a service to the Chamber. This is not intended to be, nor should it be construed as, legal advice; nor is it intended to establish an attorneyclient relationship. Rather, it is information that you should consider when confronting or anticipating practice and professional issues. Consultation with counsel of your choice is recommended. n 49

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Chamber

Committees & Forums State Chamber members play a visible, active role in the business community by serving on committees. If you would like to get involved, contact the committee’s Chamber representative or register online at www.dscc.com.

Ambassador Committee: The Ambassador Committee is a specially chosen group of volunteers that assists in increasing membership and retention, and acts as a liaison between the State Chamber staff and the membership at large. Contact: Chuck James at (302) 576-6562 or cjames@dscc.com. Benefits & Services Committee: This committee identifies group-oriented benefits, such as health care coverage, dental and vision care, discounted office supplies, phone service, direct mail, radio advertising and much more to help Chamber members be healthy and competitive. Contact: Kelly Wetzel at (302) 576-6586 or kwetzel@dscc.com. Education & Development Committee: This committee provides practical, valuable and affordable education and development programs to help existing members and potential members be more successful. Contact: Kelly Wetzel at (302) 5766586 or kwetzel@dscc.com. The Employee Relations Committee: This committee meets each month and brings in knowledgeable experts to discuss ever-changing labor and employment laws and regulations that impact all Delaware businesses. The interaction between speakers and committee members provides a cost-effective and efficient way to obtain up-to-date information that helps employers create or modify personnel policies and procedures before legal problems arise. Contact: Greg Gross at (302) 576-6568 or ggross@dscc.com. Environmental Committee: Working closely with the Department of Natural Resources and Environmental Control (DNREC), members are involved in the review and shaping of environmental legislation and regulation. Contact: Greg Gross at (302) 576-6568 or ggross@dscc.com. Health Care Committee: Members discuss key health care issues facing Delaware businesses and provide feedback to the Chamber legislative team to assist in formulating policy. Contact: Matt Amis at (302) 576-6566 or mamis@dscc.com.

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Holding Company Committee: Provides a forum to discuss issues affecting Delaware holding companies on the state and national levels. Contact: Matt Amis at (302) 576-6566 or mamis@dscc.com. Legislative Forum: Members, lobbyists and legislative representatives work together to address legislative issues of interest to Chamber members. Monthly lunchtime meetings feature guest speakers who cover current topics of interest to the business community. Contact: Greg Gross at (302) 576-6568 or ggross@dscc.com. Tax Committee: This committee reviews tax legislation and lobbies for the reduction of personal and business taxes in Delaware. Contact: Greg Gross at (302) 576-6568 or ggross@ dscc.com. Transportation Committee: The transportation committee creates a unified voice when making recommendations to the Delaware Department of Transportation. Contact: Greg Gross at (302) 576-6568 or ggross@dscc.com. Women in Business Forum: The Women in Business Forum was formed to forge relationships, break boundaries and build a better business environment for women in our community. Former guest speakers include First Lady Carla Markell, Gov. Ruth Ann Minner, Family Court Chief Judge Chandlee Kuhn, State Reps. and Sens., and business leaders. Contact: Kelly Wetzel at (302) 576-6586 or kwetzel@dscc.com. Young Executives Committee: The Delaware State Chamber of Commerce’s newest committee was formed to encourage young executives in Delaware to be involved in the Chamber, network with other young professionals and further their business growth. The Young Executives Committee, for professionals between the ages of 21 and 40, aims to develop Delaware’s young workforce through professional business networking and personal growth. Contact: Kelly Wetzel at (302) 576-6586 or kwetzel@dscc.com.

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Delaware State Chamber of Commerce

Small State. Big Benefits. The State Chamber Health Plan The cost of employee health care is a top concern among Delaware business owners. DSCC has devised an affordable, quality health care plan for its members. Blue Cross Blue Shield of Delaware announced new reduced rates and added an additional lower-cost plan choice. Visit www.dscc.com/healthplan. htm today or call (302) 576-6580 for more details.

bers). Call (302) 655-7221 for more information.

Prescription Drug Discount Card The Delaware Drug Card will provide savings of up to 75-percent on prescription drugs at more than 50,000 pharmacy locations across the country. The Delaware Drug Card has no restrictions to membership, income or age, and you are not required to fill out an application. This program helps all residents of Delaware afford their prescription medications. For more information, go to www.dscc.com/rxdiscount.htm.

DSCC Affinity Credit Card with WorldPoints Rewards The DSCC affinity card by Bank of America is a business credit card offered exclusively to State Chamber members that also offers a rewards program for discounted airline tickets, free hotel nights and car rentals and more. The Chamber affinity card with WorldPoints® lets members combine points from personal and business cards to get rewards even faster. Call (800) 5988791 to apply, mention priority code FABLHRAQ.

Discounted Cell Phone products and Service State Chamber members can get a 10-percent discount from T-Mobile on qualifying monthly recurring charges and other special offers. Email Melissa Williams at melissa.williams2@tmobile.com to learn more about this benefit.

Dental and Vision Plan Dominion Dental Services provides dental and vision benefits on a group and individual basis with competitive, member-exclusive rates. Dental care coverage for most diagnostic and preventive services is 100 percent with up to 80 percent coverage for restorative care including fillings, root canals, crown and bridge work, periodontal treatment, oral surgery and more. Go to www. dscc.com/chamber/dental_plan.aspx or call (888) 518-5338 for more information. No application fee for DSCC members.

Notary Service Did you know that Notary Public services are free for Chamber members? Call (302) 655-7221 to make an appointment to stop in for a notary seal on your documents.

Delmarva Broadcasting Company Fifteen-percent in bonus airtime on commercial orders placed by new advertisers on any Delmarva Broadcasting radio station. Contact Mike Reath at mreath@dbcmedia.com or call (302) 4782700 for more information.

Constant Contact Email Marketing Service State Chamber members are eligible to receive discounts on their Constant Contact account subscriptions. Members can save 20-percent if they prepay for 6 months and 25-percent if they prepay for 12 months. That is a 10-percent deeper discount than what is available to other customers. To sign up, visit the Constant Member-to-Member Contact link on the State Chamber’s Discount Directory members-only page or call (866) 876-8464 to activate your member discount. State Chamber members offer substantial savings on products Access full details on these benefits of and services to fellow members. membership in the members-only section To see the full list of discounts of the DSCC website. For more informaonline, visit www.dscc.com and click on Member2Member tion about obtaining your company’s Discounts. members-only login credentials, please email webmaster@dscc.com.

W.B. Mason Office Supplies W.B. Mason offers Chamber members exclusive deep discounts off their most commonly used items. Discounts are up to 90 percent. Contact Doreen Miller for more information at doreen. miller@wbmason.com or (888) 926-2766, ext. 8358. Blood Bank Membership Member companies with five employees or less are offered unlimited group coverage in the Blood Bank of Delmarva. Call (302) 655-7221 for more information. Certificate of Origin Documents Certificate of Origin documents are $20 for Chamber members ($100 for non-mem-

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For Assistance,

Call the chamber The State Chamber of Commerce staff works for you, serving nearly 2,800 member companies and organizations statewide. This State Chamber staff directory lists phone numbers and Email addresses, as well as individual areas of responsibility. If you need business assistance or information, please don’t hesitate to call. Joan Verplanck 576-6560 President and CEO jverplanck@dscc.com A. Richard Heffron 576-6563 Sr. Vice President Government Affairs/ rheffron@dscc.com Marianne K. Antonini 576-6567 Sr. Vice President Finance & CFO mantonini@dscc.com Janine G. Sorbello 576-6575 Sr. Vice President Education & jsorbello@dscc.com Exec. Director, The Partnership Business Mentoring Alliance Principal for a Day Superstars in Education John H. Taylor, Jr. 576-6590 Sr. Vice President & jtaylor@dscc.com Exec. Director, Delaware Public Policy Institute Matt Amis 576-6566 Communications Manager mamis@dscc.com Delaware Business Production Website Health Care Committee Holding Company Committee Cheryl Corn Sr. Vice President Communications Executive Assistant to the President Linda D. Eriksen Accounting Associate

576-6572 ccorn@dscc.com 576-6569 leriksen@dscc.com

Gregory L. Gross 576-6568 Director of Government Affairs ggross@dscc.com Employee Relations Committee Environmental Committee Legislative Forum Tax Committee Transportation Committee Chuck James 576-6562 Account Executive cjames@dscc.com Ambassador Committee Arlene M. Simon 576-6576 Account Executive asimon@dscc.com Bill Stephano 576-6574 Director of Membership bstephano@dscc.com Patrina Wallace 655-7221 Information Secretary pwallace@dscc.com Kelly Wetzel 576-6586 Events Manager kwetzel@dscc.com Women in Business Young Executives Committee Benefits & Services Committee Education & Development Committee Miller Publishing, Inc. Fred Miller 576-6579 President, Miller Publishing, Inc. fmiller2@dscc.com Advertising Sales Delaware State Chamber of Commerce 1201 N. Orange Street, P.O. Box 671 Wilmington, DE 19899-0671 (302) 655-7221 / Fax (302) 654-0691 (800) 292-9507 Kent & Sussex counties www.dscc.com Blog: dscc.wordpress.com facebook.com/delawarestatechamber flickr: flickr.com/dscc twitter: @Destatechamber

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Success is not a solo act. Partnership and a common goal make all the difference. For more than a century, it has been our privilege to work with, and support, individuals and organizations throughout Delaware who are committed to creating opportunities for businesses, large and small, in our communities. As a part of the M&T Bank corporate family, we can proudly say that our commitment to sustaining the health of the business community remains steadfast.

Nicholas Adams

Tony Lunger

Institutional Client Services 302.636.6103

Wealth Advisory 302.636.6103

ÂŠ 2012 Wilmington Trust Corporation.

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