IBAW December 2012 newsletter

DECEMBER 2012

OBAMACARE

IS

COMING...

What does it mean for you.... your business... and your employees?

T

H INS IS I IS DE S U E :

Get answers at the December 21st meeting.

KEATING: TAX HIKES & SMALL BUSINESS

SCHMITT: NEW TAX CREDIT FOR WI MFG.

VANDERSANDEN: BE BOLD 2 WORK INITIATIVE

no business is small At AT&T a storefront is as important as a skyscraper.

Small businesses are the backbone of our economy.

They are the engines of new opportunity and growth. Having access to innovative technologies drives success. And we’re here to make sure you’re connected. Always.

AT&T is proud to support the Independent Business Association of Wisconsin.

© 2012 AT&T Intellectual Property. All rights reserved.

IBA MEDIA LINK Executive Director Steve Kohlmann Heritage Printing / Cultivate Communications

Governor Walker discusses preview of 2013 budget.

Click here to listen.

President Ann Barry Hanneman Jackson & Lewis Law Offices President Elect 2013 Steve Van Lieshout K & S Technologies VP. State & National Programs Jeff Hoffman Judson & Assoc.

Secretary John Weber Hypneumat Treasurer Casey Malek Kolb & Co.

The global impact of American entrepreneurship In this roundtable discussion, host Ray Suarez talks with Karen Kerrigan, president and CEO of the Small Business and Entrepreneurship Council and Chair of the Center for International Private Enterprise, and Rutgers University business professor Jeffrey Robinson, about American entrepreneurship, how it can be strengthened, and what the U.S. can learn from other countries. Click here.

Membership / Sponsorship Heather Baylor Park Bank

Directors Larry Elton Advantage Leasing Richard Blomquist Blomquist Benefits Bart Adams Kolb & Co. Jason Kuwayama Godfrey & Kahn Tom Boelkow BSI Design, Build, Furnish Dave Drumel Staff Electric Nancy Major Safe Babies Healthy Families

You Are Here*

*Even when you’re not.

In Business - For Business

Political Advocacy • Education • Networking www.ibaw.com / 262 844-0333 / IBAWOffice@gmail.com

960 Timber Pass • Brookfield, WI 53045 • Phone: 262-844-0333

Business Presentation Series

“What ObamaCare Means To Your Business” Friday, December 21st 7:00am– 9:00am The Wisconsin Club, 900 West Wisconsin Ave, Milwaukee, WI IBA Member - $30 • Future Members - $40 • To register click here.

Robert Simandl, Managing Partner, Jackson Lewis Law Offices.

Mr, Simandl is the Managing Partner of the Milwaukee, Wisconsin office of Jackson Lewis LLP. He has over 25 years of experience advising clients on a wide range of employee benefit, labor and employment law issues and advises clients on HR law issues taking into consideration all areas of opportunity and vulnerability, including litigation of HR law based claims. He has extensive experience in advising employers in employee benefit plan design, issues associated with ill and injured workers, labor negotiations and maintaining union-free status, and multi-employer health and welfare and pension plan vulnerability and compliance.

Mr. Simandl served as an advisor to several legislators in drafting the federal Family and Medical Leave Act. He has also advised legislators from several states in the drafting and amendment of state Family and Medical Leave laws.

Peter Frittitta, MBA-Benefits Resource, R&R Insurance Services, Inc. Mr Frittitta is responsible for overall direction and success of the employee benefits strategic business unit. This includes employer-sponsored plans (all funding types), voluntary benefits, individual medical/disability/life and estate planning services. Responsible for recruitment and development of talent; provide coaching and mentoring to consultants; build client relationships and manage carrier/vendor relationships. Personal benefits practice strengths include risk analysis/management, strategy analysis/development, change management, compliance resolution, management/labor relations, employee relations/education and wellness initiatives.

SAVE THE DATE! January 18th Monthly Meeting - Wisconsin Club Be Bold 2 Focusing on competitive jobs in Wisconsin

February 7th Power Breakfast - WCTC Becoming An Innovative Leader Christine McMahon

Scott VanderSanden - President of ATT

February 13th: Business Day in Madison. See ad in this magazine for details!

2 Things to Take Away from 2012 Elections Jeff Hoffman, IBAW Board Member, VP of State Programing

#1: The Negative

Without question a very disappointing result for the Free Market Vision of America. The simple math of our nations demographics are tipping towards BIG Government collectivism. It is imperative for us as free market champions to get involved and stay involved in teaching the virtues of Free Enterprise to society at large. You may tell yourself that the past four years have drained you, you may tell yourself that you are ready to just move on, you may tell yourself that just want to get back to a normal life, and you may tell yourself that you are too busy running your business, however your life experiences as a successful business person are needed by the American People now more than ever.

Rest assured that if we as the business community do not step up to the challenges at hand, the Government and Media will not make the case for us. The concept of the American Dream that you have experienced will continue to deteriorate as the traditional value of merit based on hard work is replaced by the expectations of entitlement.

#2 The Positive

The State of Wisconsin is once again in complete control of a very Pro-Growth Assembly, Senate, and Governor.

They have made tremendous strides in improving our business climate in the past 2 years and now it is our turn to step up to the plate and make sure that we provide them with results over the next 2 years. It is up to us as the leaders of our communities to make this happen. Hire a new employee, buy a piece of machinery, put an addition on your plant, get involved with a skills training program to better your employee pool, teach a course at a technical college, get involved in a school board, get involved with Junior Achievement, volunteer at your food pantry, whatever it might be, strive to teach others about the values of the Free Market System by being a role model in your business and more importantly in your community.

2012 has shown us that the temptations of the Collectivist society are reaching a tipping point and these forces are alive and well in the State of Wisconsin. Given our State Level Leadership, we still have a remarkable opportunity in front of us to show the American People that a Free Market System is the best path to prosperity despite what happens on the national level. You must rise to the occasion and do your part. You may not want this responsibility; however the alternative is something that we know is not acceptable for a growing, prosperous nation.

A Republic...if you can keep it………..

For The Gipper Steve Kohlmann, IBAW Executive Director

Like many of you, to say I was a little disappointed with the results of the presidential election is a bit of a understatement. For many of us there was growing optimism in the final days of the election that Republicans would take the White House and get the nation back on a more business friendly path. To quote a line from one of my favorite movies, “It was a bridge too far.”

But while the battle for the White House is over (for now) the war for less regulation & policies that are pro business rages on. Now more than ever it’s time to belong and support a group like the IBAW. “Shameless plug”, you say?

business crowd won’t have much sympathy for business owners and professionals.

Coexist bumper stickers aside.

IBAW is already back in the fight forming our State Position Papers and our Federal Position Papers will be out shortly.

In February we’ll be attending Business Day in Madison hosted by our friends at the WMC (IBAW is a featured partner at this event), a great day of national speakers on business and economic issues. Afterwards IBAW as a group will make our way up to the Capitol to have one on ones with our elected officials.

“You bet”, I say.

But deep down I’m sure you’ll Click HERE to agree that unless you, as business owners and professionals, stick together and push back, big government will roll over you like Wisconsin vs.

Nebraska in football.

I’ve talked to many of you since the election. Some of you have a feeling of doom & gloom, some of you aren’t quite at that stage. I’ve talked to several people that have told me “We’ll still be successful, we’ll just have to work harder at it and muscle through it.”

Regardless of how close to the ledge you are, I’m sure you’ll agree that most business owners and professionals simply can’t sit by and let big government have its way with them. It simply isn’t in our DNA. Thankfully we have a pro business governor, state legislature and senator in Ron Johnson, but they can’t do it alone. So it’s up to you where you want to go with this. Are you going to retreat into the bunker for the next four years and hope for the best or are you going to stand up and keep the fight going. It’s a sure bet the anti

We’re also in the middle of planning our Washington DC trip which will probably watch video. take place in April (exact date still pending). Our Washington trip is a great opportunity for YOU to come with us as a group and meet with your elected officials on their turf and let your voice be heard. You pay your own way and can take in as much or as little as you like.

In closing let me ask you: What would Ronald Reagan do? He’d probably tell you to join IBAW and get back in the fight and tell you to ‘give it all you got and win one for the Gipper’.

So there you have it. Sit idly by and let the political river current take you where ever it wants or get back back in the game and give it all you got.

We can use more players & supporters on our team.

Give it all you have - for the Gipper.

BUSINESS BEHIND THE SCENES: MITCHELL INTERNATIONAL AIRPORT Last month IBAW members were treated to a behind the scenes tour of Mitchell International Airport. Special security needed to be obtained for our tour and we were able to see things not open to the public. Don’t miss the next tour coming in the first quarter of 2013 Watch this eMagazine for more info!

2

1 1: A sheriff briefs the group on the constant training & routine a detection dog goes through.

2: A demonstration package with a trace amount of explosives was quickly identified by the dog. Explosive dogs are trained to SIT near a suspicious package since movement may cause a hair trigger to detonate.

3: Head of TSA Security gives the group an overview of how all bags are scanned and time stamped. A passenger goes through 19 levels of security before they board an aircraft most of time without even knowing it.

4: A Delta Airline official shows how bag ID tags route destinations & transfers of luggage. While some bags can miss a transfer, 99.4% of all bags reach their intended destination. Bags are rarely ‘lost’.

3

4

IBAW POWER BREAKFAST! Innovation … because growth matters!

SAVE THE DATE! FEBRUARY 7TH 7:00 AM - 9:00 AM WAUKESHA COUNTY TECHNICAL COLLEGE REGISTRATION INFO COMING SOON!

No organization can allow necessity to be the mother of invention. Existing size and profitability do not guarantee future success.

Claudio Feser, author Serial Innovators states that “history is full of organizations that were once admired global leaders but no longer exist.”

Statistics show that roughly half of the companies that exist today will not be in business a decade from now.

Leaders today cannot leave their future to fate - innovation must be integrated into the business strategy. Leaders must nurture a culture where outdated habits are replaced with the encouragement of new ideas, diversity of viewpoint and constructive dissent.

In this session, you will learn the necessary elements that create a culture of innovation where ideas, big and small, are transmuted into measurable action plans.

Christine McMahon is a Business Strategist and principle of CMA, LLC. Prior to launching her business 17 years ago, she worked with Procter & Gamble, Slim-Fast Foods and Nabisco as a sales leader developing top performing sales teams.

Her expertise is creating the business strategy that supports innovation and generates profitable sales growth.

MacIver Institute Interviews Employers on Obama Care.

The full implementation of ObamaCare is just over one year away, and businesses across Wisconsin are starting to plan for the fall-out. In fact, a recent study by HCTrends found that about 25 percent of Milwaukeearea small businesses plan to terminate their employee health plans as a result of the president's signature achievement.

Recently, veteran investigative reporter Olga Halaburda went on assignment for the MacIver Institute and sat down with four Wisconsin small business owners to learn more about the impact ObamaCare will have on their businesses. The topics covered by Olga--like cost and the effect of the law on workers--have too often been ignored by some in the mainstream media.

Olga has more than 20 years of experience as a TV news reporter. In 2005, she won the Edward R. Murrow Award for her work as an investigative reporter.

To view video, click HERE.

11th Annual

Business Day in Madison

DATE! E H T E V SA n or matio f n i n o i t Registra soon! coming

February 13, 2013

Monona Terrace Community & Convention Center, Madison

In November, America decided our elected officials should stay the course. But what does that mean for your business, your employees, your families and our nation? Will our leaders be dedicated to economic growth and opportunity? Please join us as we present some of the brightest minds in the nation to discuss the future.

Registration Rates Early bird - $125 per person; Regular rate - $155 per person Early bird - $900 per table of 8; Regular rate - $1,140 per table of 8 (after January 11, 2013) Tuesday - February 12th 5:00-7:00 p.m.

ELECTIONS

ECONOMY

GEOPOLITICS

Welcome Reception

Wednesday - February 13th 7:30-9:00 a.m.

VIP Breakfast (sponsors only)

9:00-10:00 a.m.

Dr. Barry Asmus

10:00-10:30 a .m.

Break

10:30-11:30 a.m.

Stephen Hayes

11:30 a.m.-1:00 p.m. Luncheon and Keynote General Michael Hayden 1:30-2:30 p.m.

Governor Scott Walker

2:30 p.m.

Adjourn OR Legislative Visits

2:30-4:30 p.m.

Dr. Barry ASMUS Economist; Best-selling Author

Stephen HAYES Analyst, Media Personality, Author

General Michael HAYDEN Former Director of the Central Intelligence Agency Former Director of the National Security Agency

Creating a Favorable Climate for Business

America’s Political Landscape: 2013 and Beyond

Hot Spots at Home and Around the World

GUEST SPEAKER

PROGRAM EMCEE

Governor Scott WALKER

Charlie SYKES Talk Show Host WTMJ Radio

Please be our guest at the Welcome Reception on February 12th, 2013 at The Madison Club.

No charge for program registrants. Fee: $30/person if not registered to attend Business Day in Madison.

State Agency Secretaries and Wisconsin State Legislators will be invited.

A program presented in partnership with the WMC Foundation, Inc.

The President’s Proposed Tax Hikes and Small Business Raymond J. Keating, Small Business Entrepreneurship Council, Washington D.C.

After Barack Obama won a second term, it probably comes as little surprise to entrepreneurs and investors that the President still has them in his sights for a tax increase.

Of course, upper income earners – including business owners and investors – already face higher personal income, capital gains and dividends tax rates under ObamaCare. The President is looking to add to those tax increases.

Much was made during the campaign as to the percent of small businesses that would be affected by raising the two top marginal income tax rates, as the President proposes.

Those justifying the tax increases, such as the Obama campaign, the Treasury Department and the White House, like to point out that the tax increase would “only” affect three percent of small businesses.

Of course, that begs the question: Why raise taxes on any business, especially during a bad economy?

But let’s take a look at the breakdown by adjusted gross income from the Treasury’s own August 2011 analysis according to various definitions of business owners, as opposed to only the Treasury’s narrow, rather contrived and selective definition.

Based on adjusted gross income, under the broadest definition of small businesses, 8 percent, or 2.9 million, of small business owners would face higher tax rates under the President’s plan. That’s certainly troubling.

Among business owners with employees, 28 percent, or 1.2 million, of these would face potential tax hikes.

And even those deemed to be small business employers, 24 percent, or 923,000, of those employers would face higher tax rates.

Interestingly, the Treasury report pointed out: “Overall, owners of small business employers and the income from those businesses are more concentrated in the upper income ranges than is true for small businesses in general.”

Therefore, the Obama tax increases are going to hit small businesses with employees hardest.

If one wants to get the economy moving again, and more jobs created, why does it make any sense to raise income tax rates so that millions of entrepreneurs, including current employers, would have fewer resources available to run and build their businesses? And that does not even take into account the higher tax rates on investment income, which, by definition, means fewer resources available from investors for investment in business.

Unfortunately, after the election, this misguided story has not changed. Raising taxes on upper income earners is bad for entrepreneurship, investment and the economy in general. _______ Raymond J. Keating is chief economist for the Small Business & Entrepreneurship Council, Washington DC.

ker Spea d e r Featu r januar y Fo

Be Bold 2 Creates Visionary Blueprint for Meeting Wisconsin’s Workforce Needs Scott VanderSanden, President ATT Wisconsin

Wisconsin has always been justifiably proud of its hardworking workforce. But the state is now facing a serious skills gap and workforce shortage that is preventing employers from meeting the manufacturing, technological and business needs of tomorrow. For Wisconsin to compete globally, it must meet growing workforce needs, close the skills gap and create a comprehensive statewide workforce development strategy.

When it comes to the workforce shortage and skills gap, the numbers speak for themselves. Next Generation Wisconsin Manufacturing reports that only 17.5 percent of small companies and 31 percent of large companies have the worldclass innovation talent they require. Sixty-six percent report that they lack the essential talent to meet global demands into the next decade. ManpowerGroup reports significant skill shortages in such critical areas as accounting and finance; mechanical engineering; and metal manufacturing. Add to that a rapidly aging workforce with too few skilled workers on the horizon and Wisconsin is facing a significant workforce development dilemma.

But here in Wisconsin, we’re always ready to face challenges head on. Competitive Wisconsin, Inc. (CWI) — a nonpartisan, public policy organization consisting of business, labor, education and agriculture leaders in Wisconsin — is engaged in developing a modern, strategic vision for Wisconsin’s economic prosperity. In 2010, CWI introduced BE BOLD: The Wisconsin Prosperity Strategy, a series of meaningful recommendations that addressed economic development issues. BE BOLD: The Wisconsin Prosperity Strategy played a significant role in the creation and implementation of the Wisconsin Economic Development Corporation (WEDC) and other statewide enterprises. The following year the BE BOLD initiative continued with the examination of clusters and entrepreneurism with BE BOLD: Capital’s Role in the Building and Maintenance of Wisconsin’s Entrepreneurial Economy. Now, CWI is moving forward with BE BOLD 2.

BE BOLD 2 examines Wisconsin’s workforce realities, projects its future needs and is creating strategic recommendations to create a world-class, innovative workforce. To accomplish this, BE BOLD 2 brought together hundreds of leaders from business, education, organizations and government and engaged in a year-long examination of the state’s job skills challenges and opportunities. Throughout the summer, briefing sessions were held at a dozen campuses around the state where hundreds of stakeholders shared comments and insights about workforce development. Simultaneously, a statewide study of workforce realities and future needs was underway. The recently released BE BOLD 2: Growing Wisconsin’s Talent Pool is a comprehensive workforce study produced in partnership with the globally renowned talent development and acquisition strategist, ManpowerGroup. The study validates the need for immediate action, identifies several strategic issues and introduces a series of innovative recommendations.

As its name implies, BE BOLD 2 is a bold effort that examines how to modernize and empower Wisconsin’s workforce and offers strategic recommendations that will help establish Wisconsin as a global leader. The study identifies three key areas needing immediate action: • Energizing the links between economic development and workforce/talent development; • Revolutionizing and leveraging the collection of, and access to, real-time information about jobs, skill requirements, career pathways and economic outcomes; and • Mobilizing talent development and acquisition abilities in support of Wisconsin employers and promoting our successes to attract talent and job creators to the state.

BE BOLD 2: Growing Wisconsin’s Talent Pool contains eight operational recommendations targeted at achieving these strategic goals: 1. Focus strategic management by replacing the Governor’s Council on Workforce Investment and the Governor’s Council on Workforce and College Readiness with a new Governor’s Talent Development and Acquisition Council (Talent Council).

2. Provide the Talent Council oversight of a $100-million Talent Development Fund to enhance the ability of Wisconsin workers, employers, educators, trainers, economic development professionals and communities to respond to supply and demand changes in critical skill clusters.

3. Develop a comprehensive talent supply and demand projection for Wisconsin that examines the skills required

by Wisconsin’s employer groups.

4. Develop the most comprehensive real-time workforce/talent data warehouse in the nation.

5. Develop a mobile application that provides job and career information on demand to everyone.

6. Leverage real-time data, innovation and educational and training best practices to maximize citizen benefit from Wisconsin’s world-class education and training systems, empowering citizens to engage in lifelong learning that enhances employability and employment security.

7. Support internships and experiential learning in targeted skill sets by enabling youth to enter the world of work by encouraging employers to align internships, apprenticeships and applied learning programs with the skill clusters roadmap.

8. Alert employers and workers to Wisconsin’s ability to supply job creators in the United States and worldwide with the best, rightly-skilled talent in the world.

BE BOLD 2: Growing Wisconsin’s Talent complements and enriches work done by Tim Sullivan and other agencies in the state. The full study can be found online at the following link: http://www.competitivewi.com/wp-content/ uploads/2012/10/BeBold2_Study_October2012.pdf CWI and the Wisconsin Higher Education Business Roundtable are now convening a series of statewide economic summits to carefully consider and solicit comments from stakeholders on the BE BOLD 2 recommendations. The 2012 Wisconsin Economic Summit Series is providing awareness and understanding of the underlying workforce challenges; encouraging meaningful discussion of the issues and recommendations; and facilitating the development of policy consensus around options for addressing the challenges and opportunities related to the issue. The first summit, held in Waukesha on November 15, brought together approximately 150 interested parties for a meaningful discussion of how to align economic and talent development. The second summit examines how to unleash the power of information and technology. The final summit will consider marketing awareness and strategies. Strategic recommendations will then be shared with the Governor and Legislature early next year. To learn more about the 2012 Economic Summit Series, contact Kristin Dollhopf at kdollhopf@wcgpr.com.

BE BOLD 2 will provide a strategic blueprint for closing the skills and generational workforce gap; creating vital synergies and collaborations; and ensuring the advancement of workforce development to meet Wisconsin’s current and future needs. To learn more about CWI’s BE BOLD 2 initiative and get involved in its ongoing efforts on behalf of business growth and economic prosperity, go to http://www.competitivewi.com/. Together we can help ensure Wisconsin stays a global leader.

New Credit Available for Wisconsin Manufacturers Jerry Schmit, CPA Tax Senior Manager, Kolb + Co.

The Wisconsin Manufacturing and Agriculture Credit (MAC) was created and passed into law in 2011 and will be available to taxpayers beginning in 2013. This new credit will significantly reduce a manufacturer's Wisconsin state tax liability and improve cash flow.

When the credit is fully phased in by 2016, nearly 100 percent of the state tax liability of a Wisconsin manufacturer will be offset by the credit.

The Basics.

The Wisconsin MAC is available for income from manufacturing and agricultural activities conducted in Wisconsin.

The amount of the credit allowed is calculated by multiplying a taxpayer's eligible qualified production activities income by a statutory percentage (credit percentage). The credit percentage increases gradually for the years 2013 through 2016 as follows: Tax Years Beginning in 2013: 1.875% Tax Years Beginning in 2014: 3.750% Tax Years Beginning in 2015: 5.526% Tax Years Beginning in 2016: 7.500%

Qualifying Income.

Income eligible for the credit is derived from the lease, rental, license, sale, exchange or other disposition of tangible personal property manufactured in whole or in part by manufacturing property in Wisconsin. A taxpayer will need to determine gross receipts from these activities as well as the cost of goods sold directly related to the eligible gross receipts. If a taxpayer has receipts which qualify for the credit and receipts which do not qualify for the credit, they will need to separately track the cost of goods sold related to each type of receipt. Since this separate tracking may be difficult for many taxpayers to perform after the year has ended, it is suggested that taxpayers implement a process to separately track eligible receipts and cost of goods sold prior to the start of 2013. Further, indirect costs are allocated to qualified and non-qualified receipts based on a ratio of qualified receipts to total receipts.

Assessment of Property as Manufacturing.

To claim the credit, a manufacturer must generate taxable income using property that is assessed as manufacturing property which is owned or rented in the State of Wisconsin. For this reason, taxpayers should ensure they are properly classifying manufacturing property as such when completing their annual personal property tax returns.

The classification has been important in the past for property tax purposes, but it will now be essential for purposes of claiming this new Wisconsin credit. For taxpayers with property located both inside and outside of Wisconsin, the manufacturing credit will use a ratio of Wisconsin manufacturing property compared to total manufacturing property in all states. To maximize this ratio (and thus boost the manufacturing credit), taxpayers should ensure that any outof-state manufacturing property they no longer own is treated as disposed and removed from the taxpayer's records.

Giving Credit Where Credit is Due. The MAC is available for Wisconsin manufacturers regardless of how their business operation is taxed. The above credit is allowed for regular C Corporations. The MAC is also permitted for pass-through entities such as partnerships, LLCs, and S Corporations, and it is calculated by the entity through which the credit will pass to the owners. The amount of credit that can be used is limited to the tax generated by the activity creating the credit. Any unused credit can be carried forward for 15 years to offset future Wisconsin tax liabilities. The amount of credit claimed must be reported as income in the taxable year immediately following the year in which the credit is calculated.

Perhaps a brief example would be helpful.

Robin owns and operates XYZ, a manufacturing company located in Wisconsin, and the company is taxed as an S Corporation. XYZ operates and generates all of its business and income in the State of Wisconsin, and its manufacturing facilities are assessed as manufacturing property. The company earns $500,000 of income, all of which is attributed to its manufacturing operations located in Wisconsin. Assuming Robin is in the top Wisconsin tax rate of 7.75 percent, the net Wisconsin income tax paid by Robin on the $500,000 of income generated by XYZ in 2013 (when the credit begins) and in 2016 (when it is fully implemented), is as follows: "

"

"

"

"

"

"

"

2013

2016

Gross Wisconsin Tax $ 38,750 $ 38,750 Less: Wisconsin Mfg. Credit (MAC)

< 9,375> <37,500>

Net Wisconsin Tax $ 29,375 $ 1,250 As you can see, the new Wisconsin Manufacturing and Agriculture Credit is a powerful credit that will provide tax relief to manufacturers. For assistance with the analysis of the potential benefit of the Wisconsin MAC in your situation, please contact Jerry Schmit or Brian Kelley, Kolb+Co.’s state and local tax specialist.

Please refer to the following link for a fact sheet prepared by the Wisconsin Department of Revenue (WDR) on the new Wisconsin MAC: http://www.revenue.wi.gov/taxpro/fact/manufandagr.pdf

Proud sponsor of the IBAW

Welcome New IBAW Member!

Paul Kraemer The Starr Group

You Can Make a Difference In Wisconsin!

Spread the word of IBA to your business associates pass on the IBA brochure!

Download it in PDF format or pass the link on.

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Join Wisconsin’s premier business association!

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THANK YOU TO OUR SPONSORS...

ATT Altria Industrial Towel & Uniform Blomquist Benefits Associated Bank Kolb & Co. Godfrey & Kahn Park Bank Lauber CFO’s von Briesen Vrakas / Blum

Advantage Leasing Grace Matthews Jackson / Lewis Law Offices BSI - Design, Build, Furnish K & S Technologies Judson Commercial Real Estate Hypneumat Wells Fargo Bank Media Partner: Cultivate Communications Heritage Printing

What Does a Mature / Maturing Business Insurance Relationship Look Like?

Tim Starr, The Starr Group

It was not long ago the relationship between a business and their insurance agent/agency was well, just insurance .

Fast forward to 2012 and things have clearly changed. Today, an agent needs to have earned additional “stripes” in several areas. To be taken seriously, meaning to deserve the right to work with any formidable business, an agent needs to be well versed in contract and have a back room, meaning his or her agency, that has a multitude of skill sets.

The responsibility of an insurance agent is to provide their customer with an insurance product that meets their needs. This speaks not to the reduction of risk and therein lies the change from the traditional insurance agent role and the agent today that truly servers as their customer’s on-boarded Certified Risk Officer (CRO).

The “bar of expectation and excellence” has been raised as the controlling of risk goes well beyond simply providing a customer with a risk transfer vehicle such as an insurance policy. I often say, it would be best today if insurance agents that play in a true risk reduction role have an education in Law as well. The contracts customers enter into with each other invariably include obligations made that require the agent possess the skill set to discuss if and when the insurance contracts in place might be triggered regarding coverage pursuant to an allegation of wrongdoing.

80% of all risk comes from people versus say a windstorm etc. The ideal is to stand 1000 feet over the business and evaluate, via discovery, how that risk is defined within each entity. Once and only when this is accomplished, can an appropriate plan be put into place. This necessitates multiple resources an agent either must possess or have available to make this happen. Clearly, one person cannot accomplish all of this. When you factor in HR, Contractual wherewithal Safety, D.O.T compliance issues (for those that have vehicles) other skilled persons are needed to suggest a true reduction solution.

The idea is of course to minimize the size of a company’s “bulls eye” if you will. There are so many areas within each company to look at and now one has to consider the exposure created in utilizing internet technologies. Cyber liabilities, as they are termed, represent a real exposure for companies. The data you control and manipulate is in many cases an asset of others you have the responsibility to protect. Additionally, the unintentional infringement of others intellectual assets is a real exposure.

At the end of the day I would suggest any business ask themselves a question being what type of relationship am I in now with my insurance agent? Is it an insurance relationship or a true risk management relationship. A risk management relationship provides you with information gained as a result of thorough risk discovery in the areas where risk comes from- people. Are you receiving feedback in your HR, Safety, D.O.T ( where applicable) that you can improve in the compliance of and reduction of risk in those areas. I do not mean a software program available to you rather an individual providing discovery results indigenous to your business.

As we so often share with customers and prospects: you have the right to refuse but you also have the right to know.

Your total risk wellness is at stake.

IBAW 960 Timber Pass Brookfield, WI 53045

Office: 262-­‐844-­‐0333 WWW.IBAW.COM

Membership Application

Name____________________________________________________________________________________ Company_________________________________________________________________________________ Type of Business___________________________________________________________________________ Address__________________________________________________________________________________ City, State, Zip_____________________________________________________________________________ Phone____________________________________Fax_____________________________________________ Email______________________________________Website________________________________________

PLEASE CHOOSE THE APPROPRATE CATEGORY FOR YOUR INVESTMENT IN THE GROWTH AND STABILITY OF SMALL BUSINESS

AMOUNT

NUMBER OF EMPLOYEES IN COMPANY ANNUAL DUES

1 ʹ 5 $215

6 ʹ 15 $275

16 ʹ 25 $375

26 ʹ 49 $470

50 or more $600

Sustaining Member $700

Special! ʹ Pre pay breakfast meetings ʹ 12 for the price of 10 $300

ENCLOSED AMOUNT:

PAYING BY CHECK ? Make checks payable to IBA ʹ and mail to: IBA 960 Timber Pass Brookfield, WI 53045

WANT TO PAY ONLINE? You can also pay by Mastercard / Visa at the IBA Membership page. www.ibaw.com

________________________________________________________________________

The Independent Business Association of Wisconsin is a not-­for-­profit entity filed with the IRS under 501(c)(6) of the Internal Revenue Code. As a not-­for-­profit association, the members of The Independent Business Association, Inc. are allowed to deduct a percentage of dues that are not used for lobbying purposes. For the year 2012 based on the total income of the association and the lobbying expenses as reported on the Wisconsin State Ethics Board Lobbying reports for 2011 the percent of dues that were used for lobbing purposes is 15%. Therefore, the percent of dues that would be tax deductible is 85%.