This edition of BIZGrowth Strategies features the following articles: Cybersecurity: Why Your Business Needs Prevention & Protection Measures; Expanding Your Wealth: The Basics; Stop Calling Health Plan Administrators Health Insurers; Reinventing Your HR: The 21st Century HR Professional; and Avoid Surprises: Plan Ahead When Tax Planning.

1. ISSUE 64 • SUMMER 2015
BIZGROWTHS T R A T E G I E S
I D E A S T O H E L P G R O W Y O U R B U S I N E S S
our business
is growing yours
Why Your Business
Needs Prevention
& Protection
Measures
CYBERSECURITY:
Expanding Your Wealth:
THE BASICS
The 21st Century
HR Professional
Avoid Surprises:
Plan Ahead When Tax Planning
Stop Calling Health
Plan Administrators
Health Insurers
REINVENTING YOUR HR:

2. In This Issue…
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Management &.......................2
Performance
Cybersecurity: Why Your
Business Needs Prevention &
Protection Measures
Personal Wealth....................... 4
Expanding Your Wealth: The Basics
Employee Benefits................... 5
Stop Calling Health Plan
Administrators Health Insurers
Human Resources.................... 6
Reinventing Your HR: The 21st
Century HR Professional
Tax Strategies......................... 7
Avoid Surprises: Plan Ahead
When Tax Planning
CBIZ in the News
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MainStreet
When your maternity leave ends:
how to strike a healthy balance
between work life and motherhood
May 8, 2015
The Wall Street Journal
U.S. stocks rebound
May 7, 2015
MarketWatch
5 things not to buy with
your tax refund
April 20, 2015
2 | BIZGROWTH STRATEGIES – SUMMER 2015 CBIZ, INC.
BY CHRIS ROACH
I
nformation security is the safeguarding of your organization’s
information and information systems from unauthorized access,
use, disclosure, disruption, modification or destruction to ensure its
availability, confidentiality and integrity. Loss of one or more of these
attributes can threaten the continued existence of even the largest
organization.
Any business provider that uses technology to conduct business
and manage client information needs to know what’s at stake. Loss
of confidential information and data breach liability are huge risks for
businesses, especially when they don’t have proper cyber prevention
and protection measures in place.
When cybersecurity is not part of your business process, it leaves a
company vulnerable to a range of security issues. Last year, the average
cost of data breaches reached over $3.5 million – a 15 percent increase
from 2013!
Management & Performance
Why Your Business
Needs Prevention &
Protection Measures
CYBERSECURITY:

3. CHRIS ROACH
CBIZ Risk & Advisory Services • Houston, TX
281.844.4239 • croach@cbiz.com
DISCLAIMER: This publication is distributed with the understanding that CBIZ is not rendering legal, accounting or other professional
advice. This information is general in nature and may be affected by changes in law or in the interpretation of such laws. The reader
is advised to contact a professional prior to taking any action based upon this information. CBIZ assumes no liability whatsoever in
connection with the use of this information and assumes no obligation to inform the reader of any changes in laws or other factors
that could affect the information contained herein.
CBIZ, INC. BIZGROWTH STRATEGIES – SUMMER 2015 | 3
The following are three key reasons why cyber
prevention and protection are vital in 2015:
1. Hackers don’t discriminate. In 2013:
a. 61 percent of all targeted attacks were against
small and medium size businesses.
b. There was a 91 percent increase in attacks
against businesses.
c. There was a 62 percent increase in the number
of breaches.
d. More than 552 million identities were exposed
via breaches.
2. Advances in technology have made businesses
more susceptible to breaches, making safeguarding
one’s business more important than ever. In fact,
small business cyber attacks nearly doubled from
2011 to 2013 from 18 percent to 31 percent.
3. Cyber breaches extend beyond a company’s
firewalls; outside contractors also are included
within the realm of risk.
When it comes to cybersecurity there are four
key things every business needs to know or do:
First, understand what’s at risk. Know what assets
are most valuable to the business, where they are
supposed to reside, where they actually reside, who
touches them and how access to them is managed.
Second, identify the holes in the organization’s
defenses. For instance, at least once a year conduct
a cyber vulnerability or penetration test to see whether
any unintended parties can access critical assets.
Third, conduct security awareness training for
employees. Studies have shown that up to 30 percent
of data breaches are related to the operation of
negligent employees’ or contractors’ (human factor)
accidental release of private data.
Finally, be proactive to protect the business by:
n accepting that security will be compromised;
n considering ‘cyber’ in all activities;
n focusing on critical information assets;
n being prepared to respond; and
n getting the basics right.
Being proactive and taking preventive steps
to identify your sensitive information and the
vulnerabilities that put that information at risk are
critical to protecting your business.

4. Expanding Your Wealth:
THE BASICS
4 | BIZGROWTH STRATEGIES – SUMMER 2015 CBIZ, INC.
BY ANTHONY PARRELLI
M
ost financially secure people ponder the
question “why should we expand our personal
wealth if it already is adequately secure?” The
simple reality is that life is always unpredictable and
so is the economy.
Some feel that their net worth defines their status
in society or places them at a higher level than their
peers. For others, the idea of personal wealth gives
them a sense of security. Wealth has a stigma that it
is only for the upper class. However, everyone wants
to make plans for purchasing a home, vacations,
retirement plans and many other life events. The truth
of the matter is that we live in a fast-paced society
where money is the necessary tool to make most of
our dreams become reality.
The road to expanding your personal wealth may
sound impossible; however, the simplest way to begin
is based on a principle that can be implemented
from early on: saving a percentage of your monthly
income. You don’t have to take a large portion out,
but you must never touch it. This takes discipline, but
after several months you will see the benefits and
look forward to reaping the rewards in the future. The
underlying fact is that you need to start somewhere.
Expanding personal wealth is a gradual process
that requires much dedication. The majority of wealthy
people see the fruits of their labor in middle age or later.
There will always be ups and downs, but you
must remain positive, believe in your plan and steer
the course. Always keep track of your money and
never spend it on anything that is not truly necessary.
Always be aware of where your money is and what you
are doing with it so that you remain in control of your
hard-earned cash. Save your money wisely, but also
invest it wisely.
One of the key components of investing is the risk
involved. There will be times when your investments
result in huge success; other times… failure. Without
risk, there is no reward. Some have pure luck; they
are in the right place at the right time. Others are
more business savvy than others and take advantage
of a good opportunity when they see one. Regardless,
Personal Wealth
there is risk involved. Some of the most successful
people had to take a fall before reaching their
maximum potential.
All would be well advised to seek the guidance of a
seasoned wealth planning professional.
For most of us, it takes many years, even
decades, of hard work and dedication to see our
savings and investments pan out. Continue to be
determined. If you start small and aim big, the
opportunities are endless.
ANTHONY PARRELLI
CBIZ MHM, LLC • New York, NY
212.790.5738 • aparrelli@cbiz.com
@CBIZNewYork

5. CBIZ, INC. BIZGROWTH STRATEGIES – SUMMER 2015 | 5
BY ZACK PACE
D
id you know that your employee health benefits
probably don’t involve a health insurer? Per the
2014 Kaiser Family Foundation and HRET
Employer Health Benefits Annual Survey:
n 61 percent of all covered workers are covered
by a self-funded plan.1
n 81 percent of covered workers employed by a
firm with 200 or more workers are covered by a
self-funded plan.2
These days, outside of small group policies, it’s
increasingly rare for employers to purchase group
health insurance for their employees. Many employers
of size, instead, “self-fund” their health benefits. This
means, in short, they hire:
n an administrator to process claims;
n a network to secure discounts from physicians,
hospitals and other providers; and
n an insurer to provide coverage for catastrophic
claims (e.g., individual claims over $150,000
or so).
The popularity of self-funding will continue to
grow as the Affordable Care Act’s (ACA) Fair Health
Insurance Premium Rules fully implement in 2016 and
the new ACA Premium Taxes (aka Annual Fee - Health
Insurers) rise through 2018.
Meanwhile, most of us still commonly call the
administrator of our health plan the “health insurer”
and think about our health plan benefits as an
arrangement similar to car insurance: premiums in;
claims out. Why is that?
1. Many health insurers in the individual and small
group market (e.g., Aetna, Anthem, CIGNA,
UnitedHealthcare) also offer claims administration
and network services to self-funded medical plans.
We tend to associate these brands and their logos
with health insurance companies.
2. Policymakers, the media, employers and benefit
consultants often don’t distinguish between an
insured health plan and a self-funded plan in their
communications.
3. For most of us, our consumer experience using an
insured health plan and a self-funded plan is the
same.
Why does any of this matter to an average worker?
n Cash Wages + Benefits = Total Compensation
n If the total compensation budget is fixed, dollars
invested in benefits reduce cash wages.
n The largest benefit cost increase usually comes
from the health plan.
Per page 2 of the 2014 Kaiser Family Foundation
and HRET Employer Health Benefits Annual Survey’s
Chartpack, since 1999:
n health plan costs have increased 191 percent;
and
n cash earnings have increased 54 percent.
If it turns out that most of this 191 percent
increase went directly toward paying the non-
catastrophic claims of your employer’s health plan and
not to a health insurer, would that knowledge change
your point of view?
For example, would you be:
n more supportive of the wellness initiatives your
employer is investing in?
n more likely to speak with a nurse calling from
the health plan’s care management service?
n more willing to provide your employer with ideas
on how to improve workplace health?
If you’re an employer sponsoring a self-funded
plan, do you use the term “health insurer” or “health
insurance company”? If so, have you considered:
n communicating to your employees that the plan
Stop Calling Health Plan Administrators Health Insurers
(Continued on page 7)
Employee Benefits

6. 6 | BIZGROWTH STRATEGIES – SUMMER 2015 CBIZ, INC.
BY CLAIRE BISSOT
H
uman Resources is a function that is changing
rapidly in companies of all sizes. Gone are the
days of HR being viewed as the “paper pusher”
with piles of paperwork to be processed and filed, the
“picnic planner” in charge of all the activities and food,
or the “gossip department” where employees only go
to complain.
Technology
Regardless of size, organizations are re-evaluating
their HR spend and structure by exploring technology
solutions. Once thought to be possible for large
companies only, technology has become a critical
component in small businesses’ success and has
become a low cost option to reduce overhead and
improve efficiencies. Through the growth of cloud
computing and SaaS solutions, small businesses have
access to robust applicant tracking, benefit enrollment,
self-service and performance management tools for
the same cost as hiring an additional HR administrator
“paper pusher.”
Engagement Culture
Large public companies like Google have
encouraged the world to re-evaluate employee
responsibilities and human capital management.
HR professionals are now challenged to create
Human Resources
new and exciting ways to engage their personnel,
encourage their involvement in the organization, create
opportunities for natural team building and show
employees the more personable side of the business.
They must be aware of generational differences and
the company culture to do so successfully.
Human Capital Management
Many CEOs and business owners are waking up to
the strategic value of HR or more aptly named Human
Capital Management. The difference is that in today’s
version of HR, the development of associates, the
growth of new leadership, and the construction and
maintenance of quality teams are critical to creating
business bandwidth and capacity. Historically, HR
leaders would be responsible for resolving conflict; now
they are teaching employees to have conflict but in
constructive ways.
As the profession develops, the requirements to
be a leader in the HR space look more like those of a
CIO, CFO or even CEO. So leave the picnic planning to
a committee and use Human Resources as a strategic
weapon, wielded for the growth and prosperity of the
business.
Reinventing Your HR:
The 21st Century HR Professional
CLAIRE BISSOT
CBIZ Human Capital Services • Roanoke, VA
540.853.8007 • cbissot@cbiz.com
@cbiz_hcs

7. CBIZ, INC. BIZGROWTH STRATEGIES – SUMMER 2015 | 7
(Continued on page 8)
BY CHRISTOPHER PHELAN
I
t is all too common that businesses and
individuals must deal with unforeseen, adverse tax
consequences as a result of transactions that were
executed without performing an adequate level of due
diligence and without dedicating the necessary amount
of time and resources to planning. Unfortunately, in
some situations these negative tax consequences are
permanent and can have a lasting effect.
While tax consequences should certainly not
be the only factor considered when contemplating
a transaction, it is critical to understand the tax
implications early in the process to ensure that it is
structured in the most tax-efficient manner. This will
also help ensure that any compliance obligations
resulting from the deal are completed and filed
within the required timeframe (i.e., elections,
statements, etc.).
In many cases, investing the proper amount of
time and resources upfront into tax planning can
yield a net cash-flow benefit in the form of income tax
savings. When reviewing the structure of contemplated
transactions, the slightest nuances can yield vastly
different tax consequences to the parties involved. A
simple example is the direct acquisition of a business,
as there are generally two methods for doing so:
Tax Strategies
1. The buyer can purchase the underlying assets of the
business from the seller.
2. The buyer can purchase the stock/equity of the
business from the seller.
1. The Kaiser Family Foundation and Health Research Educational Trust Employer Health Benefits – 2014 Annual Survey, page 206.
2. Ibid.
is self-funded?
n developing an incentive plan that rewards
employees if the plan’s performance runs
better than expected? (Ask an ERISA Attorney
and Benefits Consultant about the permitted
incentives.)
It’s not a new idea that self-funded health plan costs
are better controlled via strong employer/employee part-
nerships. Many employers have successfully used this
partnership strategy to control costs and bring balance to
the aforementioned total compensation equation.
Yet, this strategy is not yet commonplace.
However, as more and more employers cancel their
group insurance contracts and move to self-funding
this year and beyond, we believe that this idea will
come of age. The first step is to stop calling health
plan administrators health insurers!
ZACK PACE
CBIZ, Inc. • Columbia, MD
443.259.3240 • zpace@cbiz.com
@zpace_benefits
Employee Benefits (Continued from page 5)
Avoid Surprises:
Plan Ahead When
Tax Planning

8. CHRISTOPHER PHELAN
CBIZ MHM, LLC • New York, NY
212.790.5734 • cphelan@cbiz.com
@CBIZNewYork
our business
is growing yours
©Copyright2015.CBIZ,Inc.NYSEListed:CBZ.Allrightsreserved.•CBIZ-020,Rev.64
8 | BIZGROWTH STRATEGIES – SUMMER 2015 CBIZ, INC.
Tax Strategies (Continued from page 7)
From a tax perspective, the two scenarios would
have vastly different consequences to both the buyer
and seller. Under the first scenario, known as an
“asset” acquisition, the buyer receives tax basis in
the acquired assets equal to the total purchase price
paid (e.g., purchase price plus assumed liabilities),
therefore stepping up the tax basis of the acquired
assets to Fair Market Value (FMV). The total purchase
price is allocated amongst the acquired assets
with the excess being allocated to intangibles and
goodwill, which become amortizable over 15 years.
This effectively provides the buyer the ability to recover
its purchase price and realize a cash tax benefit via
the tax deductions. From the seller’s perspective, the
treatment varies between corporations and individuals,
depending on the tax profiles as tax rates differ with
individuals receiving a preferential capital gains rate,
while a corporation might have tax attributes available
to shield or reduce its tax liability. Other factors
to be considered in asset acquisitions include the
transferability of the assets (i.e., any legal restrictions),
as well as transfer taxes, which can be a surprise to
some as state rules vary widely.
Under the second scenario, known as a “stock”
acquisition, the buyer does not receive a stepped-up
tax basis in underlying assets to FMV but rather a
carryover basis in the assets. Further, if the acquired
business has tax attributes, their utilization could
become subject to limitation. From the seller’s
perspective, the sale should result in capital gains
treatment, and, as discussed above, the tax profiles
impact the consequences.
To further complicate things, there are certain
elections available, each with their own specific
requirements that would treat stock acquisitions as
asset acquisitions, which is beyond the scope of this
article.
The proper upfront tax planning can help facilitate
a transaction that makes sense for all parties involved.
The U.S. has one of the most complex tax regimes
in the world, and the slightest change in facts or
circumstances can yield a completely different tax
result. Until Congress can find a way to streamline the
tax rules, it is important to be proactive in reviewing
the tax implications of a deal structure to avoid
surprises.