Daily Archives: February 23, 2012

FDIC Offers Banking Tips for Small Businesses

The Federal Deposit Insurance Corporation has issued the Winter 2011/2012 edition of its newsletter FDIC Consumer News, which, among other items, features practical tips and information in a collection of articles entitled “Minding Your Own Business: Banking Tips for Small Companies.” The issue also includes articles on protecting senior citizens from financial fraud and theft, and guidance for consumers turned down for a checking account because of mismanagement. Here’s an overview:

Banking tips for small businesses: The FDIC newsletter includes information on:

  • Finding loans to start and grow a small business, typically for purposes such as buying equipment and paying suppliers and employees;
  • Paying for everyday expenses, noting that some consumer protections with credit cards and debit cards do not apply to businesses;
  • Payment methods to accept other than cash;
  • Avoiding common frauds that target small businesses;
  • Depositing money in FDIC-insured accounts, including those that qualify for unlimited federal insurance coverage through 2012;
  • Some common questions to the FDIC from small businesses on topics such as getting or renewing a loan; and
  • Useful resources for small businesses from the U.S. Small Business Administration, the FDIC, other federal agencies, and elsewhere.

Frauds targeting the elderly: Each year millions of senior citizens become victims of financial fraud or theft. Often, an adult child or other relative is responsible, while other situations may involve trusted individuals such as caregivers, legal guardians, investment advisors or new “friends.” The FDIC newsletter offers tips in areas such as choosing an advisor, protecting personal financial information and avoiding scams.

Guidance for consumers turned down for a checking account: Consumers who frequently write bad checks or otherwise overdraw their account may find that their bank or credit union decides to close their account. They also may have trouble opening a new checking account elsewhere. The newsletter discusses how to re-establish or maintain an account, especially the importance of using a checking account responsibly.

Direct deposit replacing federal benefit checks: People who receive federal benefit payments such as Social Security or other government pensions — or plan to soon — need to know that the U.S. Department of the Treasury is phasing out paper checks for federal benefits in favor of all-electronic delivery via direct deposit by March 1, 2013. The changes already apply to new recipients. The FDIC newsletter also says that electronic delivery of federal benefits is another reason for people who don’t have a low-cost or no-cost checking or savings account to look into getting one.

The goal of FDIC Consumer News is to deliver timely, reliable and innovative tips and information about financial matters, free of charge. The Winter 2011/2012 edition can be read or printed atwww.fdic.gov/consumers/consumer/news/cnwin1112.

 

IRS Offers Tips on Retirement Savings Tax Credits

The Internal Revenue Service has released six tips on receiving income tax credits for contributions to retirement savings plans.

If you make eligible contributions to an employer-sponsored retirement plan or to an individual retirement arrangement, you may be eligible for a tax credit, depending on your age and income.

Here are six things the IRS wants you to know about the Savers Credit:

1. Income limits The Savers Credit, formally known as the Retirement Savings Contributions Credit, applies to individuals with a filing status and 2011 income of:

  • Single, married filing separately, or qualifying widow(er), with  income up to $28,250
  • Head of Household with income up to $42,375
  • Married Filing Jointly, with incomes up to $56,500

2. Eligibility requirements To be eligible for the credit you must be at least 18 years of age, you cannot have been a full-time student during the calendar year and cannot be claimed as a dependent on another person’s return.

3. Credit amount If you make eligible contributions to a qualified IRA, 401(k) and certain other retirement plans, you may be able to take a credit of up to $1,000 ($2,000 if filing jointly). The credit is a percentage of the qualifying contribution amount, with the highest rate for taxpayers with the least income.

4. Distributions When figuring this credit, you generally must subtract distributions you received from your retirement plans from the contributions you made. This rule applies to distributions received in the two years before the year the credit is claimed, the year the credit is claimed, and the period after the end of the credit year but before the due date – including extensions – for filing the return for the credit year.

5. Other tax benefits The Retirement Savings Contributions Credit is in addition to other tax benefits you may receive for retirement contributions. For example, most workers at these income levels may deduct all or part of their contributions to a traditional IRA. Contributions to a regular 401(k) plan are not subject to income tax until withdrawn from the plan.

6. Forms to use To claim the credit use Form 8880, Credit for Qualified Retirement Savings Contributions.

For more information, review IRS Publication 590, Individual Retirement Arrangements (IRAs), Publication 4703, Retirement Savings Contributions Credit, and Form 8880. Publications and forms can be downloaded at www.irs.gov or ordered by calling 800-TAX-FORM (800-829-3676).
Links:

  • Form 8880, Credit for Qualified Retirement Savings Contributions (PDF 46K)
  • Form 1040, U.S. Individual Income Tax Return (PDF 176K)
  • Form 1040A, U.S. Individual Income Tax Return (PDF 136K)
  • Publication 590, Individual Retirement Arrangements (IRAs) (PDF 449K)
  • Tax Topic 610

U.S. Initial Jobless Claims Hold at 351,000 in the Week Ended Feb. 18, 2012

The U.S. Department of Labor has reported that initial claims for unemployment insurance remained unchanged at 351,000 in the week ended Feb. 18, 2012.  The previous week’s figure was revised higher to 351,000 from the original estimate of 348,000. The 4-week moving average was 359,000, a decrease of 7,000 from the previous week’s revised average of 366,000.

The full DOL press release follows:

UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT

SEASONALLY ADJUSTED DATA

In the week ending February 18, the advance figure for seasonally adjusted initial claims was 351,000, unchanged from the previous week’s revised figure of 351,000. The 4-week moving average was 359,000, a decrease of 7,000 from the previous week’s revised average of 366,000.

The advance seasonally adjusted insured unemployment rate was 2.7 percent for the week ending February 11, unchanged from the prior week’s unrevised rate.

The advance number for seasonally adjusted insured unemployment during the week ending February 11, was 3,392,000, a decrease of 52,000 from the preceding week’s revised level of 3,444,000. The 4-week moving average was 3,453,250, a decrease of 43,750 from the preceding week’s revised average of 3,497,000.

UNADJUSTED DATA

The advance number of actual initial claims under state programs, unadjusted, totaled 345,216 in the week ending February 18, a decrease of 19,888 from the previous week. There were 380,985 initial claims in the comparable week in 2011.

The advance unadjusted insured unemployment rate was 3.2 percent during the week ending February 11, an increase of 0.1 percentage point from the prior week’s unrevised rate. The advance unadjusted number for persons claiming UI benefits in state programs totaled 3,996,051, an increase of 11,166 from the preceding week. A year earlier, the rate was 3.7 percent and the volume was 4,587,740.

The total number of people claiming benefits in all programs for the week ending February 4 was 7,502,791, a decrease of 178,619 from the previous week.

 

Extended benefits were available in Alabama, Alaska, California, Colorado, Connecticut, Delaware, the District of Columbia, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Missouri, Nevada, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Washington, West Virginia, and Wisconsin during the week ending February 4.

Initial claims for UI benefits by former Federal civilian employees totaled 1,383 in the week ending February 11, a decrease of 195 from the prior week. There were 2,520 initial claims by newly discharged veterans, a decrease of 373 from the preceding week.

There were 28,804 former Federal civilian employees claiming UI benefits for the week ending February 4, a decrease of 1,506 from the previous week. Newly discharged veterans claiming benefits totaled 42,021, a decrease of 829 from the prior week.

States reported 2,919,330 persons claiming EUC (Emergency Unemployment Compensation) benefits for the week ending February 4, a decrease of 83,145 from the prior week. There were 3,685,361 claimants in the comparable week in 2011. EUC weekly claims include first, second, third, and fourth tier activity.

The highest insured unemployment rates in the week ending February 4 were in Alaska (6.8), Idaho (4.6), Montana (4.6), Oregon (4.6), Wisconsin (4.6), Pennsylvania ( 4.5), Rhode Island (4.5), New Jersey (4.3), Puerto Rico (4.3), Connecticut (4.1), and Michigan (4.1).

The largest increases in initial claims for the week ending February 11 were in Massachusetts (+853), Puerto Rico (+352), Nebraska ( +345), Hawaii (+ 85), and Rhode Island (+69), while the largest decreases were in California (-8,462), Pennsylvania (-3,789), New York (-2,429), North Carolina
(-2,199), and South Carolina (-1,538).

 


UNEMPLOYMENT INSURANCE DATA FOR REGULAR STATE PROGRAMS


WEEK ENDING Advance Feb. 18 Feb. 11 Change Feb. 4 Prior Year1

Initial Claims (SA) 351,000 351,000 0 361,000 384,000
Initial Claims (NSA) 345,216 365,104 -19,888 401,365 380,985
4-Wk Moving Average (SA) 359,000 366,000 -7,000 367,000 404,750
 
WEEK ENDING Advance Feb. 11 Feb. 4 Change Jan. 28 Prior Year1

Ins. Unemployment (SA) 3,392,000 3,444,000 -52,000 3,526,000 3,852,000
Ins. Unemployment (NSA) 3,996,051 3,984,885 +11,166 4,097,007 4,587,740
4-Wk Moving Average (SA) 3,453,250 3,497,000 -43,750 3,500,750 3,935,750

Ins. Unemployment Rate (SA)2 2.7% 2.7% 0.0 2.8% 3.1%
Ins. Unemployment Rate (NSA)2
3.2% 3.1% +0.1 3.2% 3.7%

INITIAL CLAIMS FILED IN FEDERAL PROGRAMS (UNADJUSTED)


WEEK ENDING
Feb. 11
Feb. 4
Change
Prior Year1
Federal Employees 1,383 1,578 -195 1,971
Newly Discharged Veterans 2,520 2,893 -373 2,352

PERSONS CLAIMING UI BENEFITS IN ALL PROGRAMS (UNADJUSTED)


WEEK ENDING
Feb. 4
Jan. 28
Change
Prior Year1
Regular State 3,974,003 4,087,142 -113,139 4,559,945
Federal Employees (UCFE) 28,804 30,310 -1,506 45,589
Newly Discharged Veterans (UCX) 42,021 42,850 -829 40,498
EUC 20083 2,919,330 3,002,475 -83,145 3,685,361
Extended Benefits4 489,487 475,308 +14,179 761,683
State Additional Benefits 5 4,574 4,524 +50 7,898
STC / Workshare 6 44,572 38,801 +5,771 60,701
TOTAL 7,502,791 7,681,410 -178,619 9,161,675

FOOTNOTES
SA – Seasonally Adjusted Data, NSA – Not Seasonally Adjusted Data
1 – Prior year is comparable to most recent data.
2 – Most recent week used covered employment of 126,579,970 as denominator.
3 – EUC weekly claims include first, second, third, and fourth tier activity. Tier-specific EUC data can be found here: http://ows.doleta.gov/unemploy/docs/persons.xls
4 – Information on the EB program can be found here: http://www.ows.doleta.gov/unemploy/extenben.asp
5 – Some states maintain additional benefit programs for those claimants who exhaust regular, extended and emergency benefits. Information on states that participate,
and the extent of benefits paid, can be found starting on page 4-5 of this link: http://ows.doleta.gov/unemploy/pdf/uilawcompar/2010/special.pdf
6 – Information on STC/Worksharing can be found starting on page 4-9 of the following link: http://ows.doleta.gov/unemploy/pdf/uilawcompar/2010/special.pdf

 

UNADJUSTED INITIAL CLAIMS FOR WEEK ENDED 02/11/2012


STATES WITH A DECREASE OF MORE THAN 1,000


State Change State Supplied Comment
CA -8,462 Fewer layoffs in the service and retail industries.
PA -3,789 Fewer layoffs in the construction, retail, professional, scientific and technology services, entertainment, and service industries.
NY -2,429 Fewer layoffs in the food service, construction, and retail industries .
NC -2,199 Fewer layoffs in the construction, food and kindred products, electronic, leather, and furniture and fixtures industries.
SC -1,538 Fewer layoffs in the manufacturing industry.
IL -1,312 No comment.
OH -1,280 No comment.
TX -1,253 No comment.
MI -1,245 No comment.
GA -1,137 Fewer layoffs in the construction, trade, administrative and support service industries.
KY -1,066 No comment.

STATES WITH AN INCREASE OF MORE THAN 1,000


State Change State Supplied Comment
None

State Detail Prior Week
UI Claims Series 1967 to current