stephen.miller

New Medicare taxes on high earners, imposed under the Patient Protection and Affordable Care Act (PPACA), mean big changes in wage withholding, executive compensation and personal financial planning for these employees.

Additional Wage Withholding Required in 2013

Merit-based salary raises are by far the most frequently used incentive pay program. Unfortunately, they do a poor job of motivating performance, explained John A. Rubino, president of Pound Ridge, N.Y.-based Rubino Consulting Services, during his June 25 session on “Performance Pay Programs that Really Work,” conducted at the Society for Human Resource Management's 2012 Annual Conference and Exposition held here June 24-27.

While the vast majority of companies involved in mergers and acquisitions (M&As) use retention agreements to retain key talent, a survey by consultancy Towers Watson shows that companies that are most successful at retention begin the process early—identifying highly valued people and using financial and nonfinancial rewards to keep them onboard.

"Workplace flexibility is not a benefit and it's not a right; it's a business strategy," explained Teresa Hopke, a principal at the consultancy Life Meets Work, during her May 1 presentation at the Society for Human Resource Management's 2012 Talent Management Conference, held near Washington, D.C.

“Workplace flex is not like pizza Fridays. It’s an incredibly powerful, strategic business tool,” she added, quoting flexibility advocate G. Brint Ryan, CEO of Ryan LLC.

Shaken by the realities of the Great Recession, American workers have adjusted their visions of retirement, according to the 13th Annual Transamerica Retirement Survey released in May 2012 by the nonprofit Transamerica Center for Retirement Studies. And most said they would switch jobs for a better retirement plan.

Some U.S. companies are offering additional paid time off for special circumstances, which might help employees maintain their work/life balance, according to Compdata Surveys' Benefits USA 2011/2012 report.

On March 12, 2012, the U.S. Department of Health and Human Services (HHS) published a final rule outlining a framework for state-run health care exchanges under the Patient Protection and Affordable Care Act (PPACA). The exchanges are intended to offer private health insurance options that meet government standards and to coordinate the eligibility of low-income individuals for premium tax credits and other assistance.

Most U.S. companies plan to increase the dollar value of the incentives they offer employees to participate in health improvement programs in 2012, according to an employer survey conducted by Fidelity Investments and the not-for-profit National Business Group on Health.

A steady cutback in nonperformance-based pay components