Elena Lourie and Rami Kafarov never would have met let alone married in Oslo this summer were Chabad-Lubavitch no more than a bunch of affiliated synagogues and rabbis doing what they do, without the Shluchim's trademark passion for a greater vision.
Bringing Elena and Rami togethertookthree Chabad rabbis, one business school with a Chabad-run Jewish studies program, and Chabad's European Jewish Student Center.
Their story amazes me, because it was five Chabad representatives each doing his job in his corner of the world that brought this couple together, said Rabbi Shaul Wilhelm of Chabad of Oslo.
THE MATCH
Here's how a nice Jewish girl from Siberia came to meet a nice Russian-Israeli boy in Brussels.
Elena Lourie's parents were worried. Frantic that their brilliant daughter, a physics student, had little hope of meeting let alone marrying a Jewish man while studying in Norway. They confided their worries to Rabbi Zalman Deutch, their Chabad representative in their home in Perm, a frosty outpost on the Siberian steppes.
So Rabbi Deutch called his colleague who had just move to Oslo in June of 2004, Rabbi Shaul Wilhelm.
Oslo is not known for it's Jewish singles scene, said Rabbi Wilhelm. But he called to offer a Jewish home away from home to Lourie instead, just as he does to all Jewish students and Oslo's Jewish community at large.
Over the next two years, Lourie became part of the Wilhelms' family sharing holiday meals, playing with the children. Still her parents' initial request lurked in Rabbi Wilhelm's mind.
That was when Rabbi Yossi Waks, then the executive director of the European Center for Jewish Students, a Chabad-run program with branches from Austria to Malta, from Switzerland and France to Germany and Ireland, contacted Rabbi Wilhelm. ECJS was hosting its first major event a New Year's weekend retreat that was to bring Jewish university students together in Brussels. After much cajoling, and with a scholarship from ECJS, Lourie boarded a plane to spend Shabbat in Brussels.
Also finding his way to the ECJS Shabbat was Rami Karfarov. Several years before the 2006 New Years Weekend was to be held, in The Hague, Rabbi Shmuel Katzman had gotten to know Kafarov, a Russian-Israeli student at a local university. Concerned that Kafarov's Jewish identity would flag and fade during his university years, Rabbi Katzman recommended a transfer to Lauder Business School in Vienna, where Chabad representatives manage the school's Jewish studies component. Kafarov did so, and flourished.
Rabbi Shaya Boas, director of Jewish student life at Lauder, brought Kafarov's talents with a digital camera to Rabbi Waks's attention, and got Kafarov hired to capture the first-ever ECJS retreat as the event photographer. On break from shooting the ECJS post-Shabbat social, Kafarov sat down at a table where Lourie was taking a breather from all the socializing.
When Kafarov met Lourie, the two were delighted to find they could converse in Russian, and one thing led to another, which led to a five-course wedding feast prepared by Chabad of Oslo's Esther Wilhelm.
THE NETWORK--A UNIQUE MODEL
Stories like the Kafarov and Lourie match are the new reality of the worldwide Chabad community.
Chabad centers have multiplied representatives growing from the hundreds to 4000 in two decades. Unlike a corporation that's gone global, Chabad has become more ubiquitous but not bigger. Each Chabad center is an independent entity, with all fundraising done locally, with one Chabad couple devoting their lives to its success.
They share a sense of brotherhood, a sense of shared mission as spelled out by the Lubavitcher Rebbe, Rabbi Menachem Mendel Schneerson, of righteous memory, that sees Jewish welfare not as a sweeping whole, but as a constellation of individuals. Their commitment to this idea has them dropping everything to help when a fellow Chabad representative calls.
Calling another Chabad shliach is the most natural thing that I do, said Rabbi Wilhelm, and out of the blue offers of help are not unusual. When a Norwegian now living in Rabbi Zalman Grossbaum's community in Livingston, NJ, discovered Rabbi Wilhelm's website, Rabbi Grossbaum emailed Rabbi Wilhelm to offer assistance.
It's not surprising to get a message like Rabbi Grossbaum's, says Rabbi Wilhelm. It comes from the basic understanding that we are all where we are for the same purpose.
Where once a Chabad representative could offer up sweat equity and compassion, Chabad now has a network of programs that offer solutions to an ever-widening array of challenges.
A Chabad representative who has worried parents of a college student in his community can do more than offer counsel. He can call the Chabad on campus representative at that college to check on the student, offer him a kosher dinner, a healthy place to hang out.
There are Chabad representatives serving in communities near major medical centers like Mayo Clinic who will visit, host family members, and bring home cooked meals. Jews and others battling addiction at Caron in Pennsylvania have a place for Shabbat dinner with the local Chabad rabbi. Families unable to care for their children in Argentina can receive home help and full day care for their children through Chabad's IELADEINU program. Whether it is eye problems in Kiev or a hungry family in Sydney, Chabad has a rabbi, a program, a Shabbat dinner, or professional services that can help.
And if the local Chabad rabbi doesn't know the answer, he knows where to find it. Rabbi Zalman Heber, director of Chabad of Tacoma, WA, checks in with Shluchim Achdus, an email network exclusively for Chabad representatives, about once a day. He scans the messages to see if there's something he can help with. He's emailed a speech for a brit milah ceremony to a fellow Shliach in another state, and received help with delicate real estate negotiations for his new center from around the world.
It's heartwarming to know you are not alone, said Rabbi Heber. Even in the dead of night. Chabad's worldwide spread means that when a rabbi is puzzling over a community matter at midnight, it's mid-morning in Australia and there's someone up who can offer advice and answers.
Recently, one of Rabbi Heber's community members was fretting over the emotional state of his son training on an army base in Fort Knox, TN. Rabbi Heber phoned Chabad representative closest to Fort Knox. The rabbi jumped into the car and drove 60 miles to meet a stranger because a fellow Chabad rabbi left a voicemail.
We are all working toward the same goal. So my issue is your issue. Your problem is my problem. It is my responsibility to help, Rabbi Heber said. It's a worldwide family.
Original article can be found in:
Find out more in:
-------------------------------
Monday, July 30, 2012
Saturday, July 28, 2012
The Reasons Why Greece Should Leave The Eurozone And Return To The Drachma
I argue that Greece should ditch the euro and return to the drachma, the country's currency until it switched over to the euro in early 2002.
The benefits of Greece regaining control of its currency, such as increased competitiveness, would outweigh the costs of leaving the eurozone and defaulting on its debt. A euro exit will be hard but watching the slow disorderly implosion of the Greek economy and society will be much worse.
The austerity measures that are being forced upon the country in exchange for more bailout money from the European financial authorities are setting it up for decades of pain. Greece will have 25-50 years of austerity and poverty, all this to remain in the eurozone where they hopelessly cannot compete. If they can't compete why would they stay in the eurozone? It is all about Greek leadership and its connection to bureaucrats, bankers and others that demand their inclusion into European and World government.
The Greek bailout and debt deal agreed by European Finance Ministers is a farce, a program designed to pay Greece's international creditors and buy time.
The reasoning is simple: the financial sector is trying to keep alive the illusion that Greece isn't bankrupt, cleverly manipulating the fear that a Greek bankruptcy would trigger a fatal chain reaction in order to get paid. If a default was declared, the resulting payouts would start a chain reaction that would cause widespread worldwide bank failures, making the Lehman collapse look small by comparison.
Greece is indeed broke, and the reason why all the bailout money being thrown into the pot isn't being used to foster competitiveness and help the country get back on its feet is because this bailout isn't actually going to fix Greece: rather, it's all about preserving the dream of a pan European nation state and outside financial interests.
By bailing out Greece and the foreign bank holders of sovereign debt, the pan European political dream remains intact. Current and future actions, therefore, are designed to simply buy more time to preserve the political dream of a future United States of Europe and all the benefits this entails.
The Greek bailout keeps the money flowing into the European financial system. Money is lent from European institutions - ultimately tax payer's money - and then flows into the coffers of European banks. It is a bank bailout on a gigantic scale.
But the good news for the banks doesn't end there. By forcing Greece to speed up its privatisation programme, all sorts of goodies - from airports, ports and motorways to water and sewerage systems - will come up for sale to be snatched up by the financiers of the countries imposing the policies.
The bailouts, the severe public spending cuts, the onslaught on public ownership - all reflect the experience of the developing world in the 1980s and 1990s. The result was two lost decades of development.
Up until this point it was unusual for countries to go backwards in terms of their income levels. But during the 1990s 54 countries went backwards in terms of per capita income and the level of extreme poverty increased by 100 million - not because of war or natural disaster but debt and structural adjustment.
Human welfare was sacrificed to the diktats of the financial system. The increased rates of murder, suicide and HIV in Greece today paint a similar picture.
There are alternatives which Europe could learn from such as what happened in Latin America. The economic policies pushed on Latin America in the early 1980s were an excellent way of helping U.S. banks out of crisis, but an appalling way of resolving Latin America's debt crisis, instead creating two decades of more debt, poverty and inequality.
Of course, this was the precise purpose of these policies - to shift the burden of financial crisis from the financial system and onto developing nations.
The International Monetary Fund (IMF) and World Bank lent money to dozens of countries which would otherwise have defaulted, in order to keep the debt repayments flowing back to the banks of the rich world that had created the crisis by their own reckless strategies.
Then, those countries, which didn't benefit at all from these bailout funds, were told to implement structural adjustment policies which saw industry privatised, money freed from government control and markets ripped open to competition with well-subsidised companies from the U.S. and Europe. Poverty boomed, inequality soared and finance was proclaimed king.
The same logic lies barely concealed behind the Greek bailout agreed by European finance ministers. There is not even a pretence that Greece's people will benefit from these funds.
Make no mistake the austerity measures being forced upon the people of Greece by the IMF and European Central Bank (ECB) are for the benefit of the banks, financial institutions and corporate elite.
The slashing of pensions and the minimum wage, the large reduction in public sector spending and job losses, can only make the depression longer and deeper. Even the Credit Ratings Agencies have recognised the futility of forcing countries into ongoing stagnation.
Greece is stuck in a vicious cycle of insolvency, low competitiveness and ever-deepening depression. Exacerbated by a draconian fiscal austerity, its public debt is heading towards 200 per cent of gross domestic product. To escape, Greece must now begin an orderly default, voluntarily exit the eurozone and return to the drachma.
The exit from the eurozone should be in the long-term interests of working people, not big business or banks. Contrary to what is often asserted, Greece would not collapse if it quit the euro. After all, monetary unions have a limited shelf life, and Europe's is a particularly badly structured one. Exit is the most sensible way for Greece to restore competitiveness and start to recover. The alternative is to continue with austerity packages that do not work and will lead to long-term decline.
The irony of the whole situation is that the austerity measures imposed by the EU-ECB-IMF troika are the main contributing factor to pushing Greece into a deep depression.
If Greece defaults, the country gets immediate relief from the crushing interest payments on its debt, leaving it with a relatively modest primary deficit which excludes the big interest payments Greece is faced with now.
In such a scenario, the pressure for austerity would therefore diminish. This would allow Greece to choose policies that encourage growth, rather than ones that shrink the deficit but retard growth by imposing higher taxes.
By abandoning the euro and adopting a properly valued currency, Greece can restore its international competitiveness. This means greater employment demand from both domestic and foreign sources. A new drachma would boost Greece's competitiveness almost overnight.
The potential negative of default is that Greece will likely lose access, for a while, to international credit markets (although it will be a much safer investment after default than it is now). Another significant problem would be capital losses for core eurozone financial institutions. Overnight, the foreign euro liabilities of Greece's government, banks and businesses would surge. Yet these problems can be overcome. Argentina did so in 2001, when it 'pesified' its dollar debts.
It seems the main issue for Greece is just how long it's going to have to suffer. The harsh austerity measures demanded by the EU and IMF make an economic recovery in this debt-crippled nation a near impossibility over the next two decades.
A country like Greece even with a 70% debt write off, and staying in the euro, will live in poverty for the next 25 to 50 years. A full default and exit from the euro would leave them with a 5 to 10 year depression. At first the latter will be disastrous but then austere normality will occur.
Greece should stop trying to save the euro and work on preserving democracy, regaining its independence, and reforming its own welfare state - all arguably more important than a currency union. Use a new drachma to transform the economy and create true gains to GDP.
If Greece continues to be engaged in what looks like a never-ending game of 'extend and pretend' then the long-term forecast is very bleak indeed.
It doesn't concern powerful elite that the debt of Greece is unpayable, as they are not paying for the bill anyway, you are. Money often flows between global interests, high above the heads of the citizens who most often end up having to pay it back.
When debt cannot be paid we need to stop punishing the people least responsible and start looking at changing the rules governing those who are responsible. This includes the small group of elected and non-elected leaders, composed of ruling Greek families and elites, making decisions for their own personal political and financial gain. The Venizelos elite have shown itself to be without ethics or remorse in many ways already (i.e. the Venizelos government secretly removed 70% of major hospital, utility and university account funds to pay foreign bondholders).
If only Greece had a leader like Rafael Correa of Ecuador, the country would then stand up to the ECB and the IMF because he knows they are nothing more than loan sharks on a huge scale. He would overturn the neoliberal policies currently being implemented in Greece with policies more sensitive to social justice, saving the people from having to pay for a loan that didn't benefit them.
The engagement of Greek people in the issues outlined above is fundamental - not only to help resolve the financial crisis but also in the fight against corruption. Corruption is seriously undermining the integrity of the Greek state and at the highest level can lead to very costly mistakes.
Nothing highlights this more than how Goldman Sachs helped Greece set up a secret loan swap deal in 2001 that helped the country hide its debt levels in order to meet requirements to join the European Union.
The deal is a story of two sinners because of the intentions of the two parties involved - Greece was trying to cover up its high debt levels and Goldman Sachs was trying to make a profit.
And what a profit Goldman Sachs made - on the day the 2001 deal was struck the Greek government already owed the bank about 600 million Euros more than the 2.8 billion Euros it borrowed. By 2005, the price of the transaction, a derivative that disguised the loan and that Goldman Sachs persuaded Greece not to test with competitors, had almost doubled to 5.1 billion Euros.
Greece is just another example of a poorly governed client that got taken apart by a multinational investment bank. Goldman Sachs is ruthless about ensuring that its interests aren't compromised - it's part of the DNA of that organization.
For the reasons outlined above I urge all Greeks to continue their fight against the policies of the EU-ECB-IMF troika and regain their sovereignty from the whims of an unstable and unethical financial system.
Many people (particularly outsiders) blame all Greece's troubles on its problems with corruption, tax evasion and its oversized state sector. Yet, there is one area of the Greek economy that lies at the heart of the crisis and radically needs reform: military spending.
The fact that Greece, a relatively small and democratic country should spend as much on its military as it does is perplexing. In 2006, as the financial crisis was looming, Greece was the third biggest arms importer after China and India. And over the past 10 years its military budget has stood at an average of 4% of GDP, more than 1000 Euros per person. So why has Greece continued to spend such huge amounts on its army? One major factor is that France and Germany's arms industries have greatly profited from this profligate military spending, leading their governments to put pressure on Greece not to cancel lucrative arms deals.
In the five years up to 2010, Greece purchased more of Germany's arms exports than any other country, buying 15% of its weapons. Over the same period, Greece was the third-largest customer for France's military exports and its top buyer in Europe. Significantly, when the first bailout package was being negotiated in 2010, Greece spent 7.1bn euros on its military, up from 6.24bn euros in 2007. A total of 1bn was spent on French and German weapons, plunging the country even further into debt in the same year that social spending was cut by 1.8bn euros. It has been claimed by some that this was no coincidence, and that the EU bailout was explicitly tied to burgeoning arms deals. In particular, there is alleged to have been concerted pressure from France to buy several stealth frigates. Meanwhile Germany sold 223 howitzers and completed a controversial deal on faulty submarines, leading to an investigation into accusations of bribes being given to Greek officials.
Amid economic stagnation in Europe and the west, military technology remains one of the key areas in which competitive advantage has been maintained over emerging economies. However, while this growth has benefited major arms-exporting countries such as Germany, France and the UK, it has deepened even further the economic divide within Europe. Interestingly, Portugal - another country currently in the news for its economic woes - is Germany's second largest arms buyer after Greece.
If Greece is in need of structural reform, then its oversized military would seem the most logical place to start. In fact, if it had only spent the EU average of 1.7% over the last 20 years, it would have saved a total of 52% of its GDP - meaning instead of being completely bankrupt it would be among the more typical countries struggling with the recession.
And the Greek people, instead of facing austerity measures that have reduced living standards by 30%, might have been able to take a more moderate and sustainable route to reform.
The benefits of Greece regaining control of its currency, such as increased competitiveness, would outweigh the costs of leaving the eurozone and defaulting on its debt. A euro exit will be hard but watching the slow disorderly implosion of the Greek economy and society will be much worse.
The austerity measures that are being forced upon the country in exchange for more bailout money from the European financial authorities are setting it up for decades of pain. Greece will have 25-50 years of austerity and poverty, all this to remain in the eurozone where they hopelessly cannot compete. If they can't compete why would they stay in the eurozone? It is all about Greek leadership and its connection to bureaucrats, bankers and others that demand their inclusion into European and World government.
The Greek bailout and debt deal agreed by European Finance Ministers is a farce, a program designed to pay Greece's international creditors and buy time.
The reasoning is simple: the financial sector is trying to keep alive the illusion that Greece isn't bankrupt, cleverly manipulating the fear that a Greek bankruptcy would trigger a fatal chain reaction in order to get paid. If a default was declared, the resulting payouts would start a chain reaction that would cause widespread worldwide bank failures, making the Lehman collapse look small by comparison.
Greece is indeed broke, and the reason why all the bailout money being thrown into the pot isn't being used to foster competitiveness and help the country get back on its feet is because this bailout isn't actually going to fix Greece: rather, it's all about preserving the dream of a pan European nation state and outside financial interests.
By bailing out Greece and the foreign bank holders of sovereign debt, the pan European political dream remains intact. Current and future actions, therefore, are designed to simply buy more time to preserve the political dream of a future United States of Europe and all the benefits this entails.
The Greek bailout keeps the money flowing into the European financial system. Money is lent from European institutions - ultimately tax payer's money - and then flows into the coffers of European banks. It is a bank bailout on a gigantic scale.
But the good news for the banks doesn't end there. By forcing Greece to speed up its privatisation programme, all sorts of goodies - from airports, ports and motorways to water and sewerage systems - will come up for sale to be snatched up by the financiers of the countries imposing the policies.
The bailouts, the severe public spending cuts, the onslaught on public ownership - all reflect the experience of the developing world in the 1980s and 1990s. The result was two lost decades of development.
Up until this point it was unusual for countries to go backwards in terms of their income levels. But during the 1990s 54 countries went backwards in terms of per capita income and the level of extreme poverty increased by 100 million - not because of war or natural disaster but debt and structural adjustment.
Human welfare was sacrificed to the diktats of the financial system. The increased rates of murder, suicide and HIV in Greece today paint a similar picture.
There are alternatives which Europe could learn from such as what happened in Latin America. The economic policies pushed on Latin America in the early 1980s were an excellent way of helping U.S. banks out of crisis, but an appalling way of resolving Latin America's debt crisis, instead creating two decades of more debt, poverty and inequality.
Of course, this was the precise purpose of these policies - to shift the burden of financial crisis from the financial system and onto developing nations.
The International Monetary Fund (IMF) and World Bank lent money to dozens of countries which would otherwise have defaulted, in order to keep the debt repayments flowing back to the banks of the rich world that had created the crisis by their own reckless strategies.
Then, those countries, which didn't benefit at all from these bailout funds, were told to implement structural adjustment policies which saw industry privatised, money freed from government control and markets ripped open to competition with well-subsidised companies from the U.S. and Europe. Poverty boomed, inequality soared and finance was proclaimed king.
The same logic lies barely concealed behind the Greek bailout agreed by European finance ministers. There is not even a pretence that Greece's people will benefit from these funds.
Make no mistake the austerity measures being forced upon the people of Greece by the IMF and European Central Bank (ECB) are for the benefit of the banks, financial institutions and corporate elite.
The slashing of pensions and the minimum wage, the large reduction in public sector spending and job losses, can only make the depression longer and deeper. Even the Credit Ratings Agencies have recognised the futility of forcing countries into ongoing stagnation.
Greece is stuck in a vicious cycle of insolvency, low competitiveness and ever-deepening depression. Exacerbated by a draconian fiscal austerity, its public debt is heading towards 200 per cent of gross domestic product. To escape, Greece must now begin an orderly default, voluntarily exit the eurozone and return to the drachma.
The exit from the eurozone should be in the long-term interests of working people, not big business or banks. Contrary to what is often asserted, Greece would not collapse if it quit the euro. After all, monetary unions have a limited shelf life, and Europe's is a particularly badly structured one. Exit is the most sensible way for Greece to restore competitiveness and start to recover. The alternative is to continue with austerity packages that do not work and will lead to long-term decline.
The irony of the whole situation is that the austerity measures imposed by the EU-ECB-IMF troika are the main contributing factor to pushing Greece into a deep depression.
If Greece defaults, the country gets immediate relief from the crushing interest payments on its debt, leaving it with a relatively modest primary deficit which excludes the big interest payments Greece is faced with now.
In such a scenario, the pressure for austerity would therefore diminish. This would allow Greece to choose policies that encourage growth, rather than ones that shrink the deficit but retard growth by imposing higher taxes.
By abandoning the euro and adopting a properly valued currency, Greece can restore its international competitiveness. This means greater employment demand from both domestic and foreign sources. A new drachma would boost Greece's competitiveness almost overnight.
The potential negative of default is that Greece will likely lose access, for a while, to international credit markets (although it will be a much safer investment after default than it is now). Another significant problem would be capital losses for core eurozone financial institutions. Overnight, the foreign euro liabilities of Greece's government, banks and businesses would surge. Yet these problems can be overcome. Argentina did so in 2001, when it 'pesified' its dollar debts.
It seems the main issue for Greece is just how long it's going to have to suffer. The harsh austerity measures demanded by the EU and IMF make an economic recovery in this debt-crippled nation a near impossibility over the next two decades.
A country like Greece even with a 70% debt write off, and staying in the euro, will live in poverty for the next 25 to 50 years. A full default and exit from the euro would leave them with a 5 to 10 year depression. At first the latter will be disastrous but then austere normality will occur.
Greece should stop trying to save the euro and work on preserving democracy, regaining its independence, and reforming its own welfare state - all arguably more important than a currency union. Use a new drachma to transform the economy and create true gains to GDP.
If Greece continues to be engaged in what looks like a never-ending game of 'extend and pretend' then the long-term forecast is very bleak indeed.
It doesn't concern powerful elite that the debt of Greece is unpayable, as they are not paying for the bill anyway, you are. Money often flows between global interests, high above the heads of the citizens who most often end up having to pay it back.
When debt cannot be paid we need to stop punishing the people least responsible and start looking at changing the rules governing those who are responsible. This includes the small group of elected and non-elected leaders, composed of ruling Greek families and elites, making decisions for their own personal political and financial gain. The Venizelos elite have shown itself to be without ethics or remorse in many ways already (i.e. the Venizelos government secretly removed 70% of major hospital, utility and university account funds to pay foreign bondholders).
If only Greece had a leader like Rafael Correa of Ecuador, the country would then stand up to the ECB and the IMF because he knows they are nothing more than loan sharks on a huge scale. He would overturn the neoliberal policies currently being implemented in Greece with policies more sensitive to social justice, saving the people from having to pay for a loan that didn't benefit them.
The engagement of Greek people in the issues outlined above is fundamental - not only to help resolve the financial crisis but also in the fight against corruption. Corruption is seriously undermining the integrity of the Greek state and at the highest level can lead to very costly mistakes.
Nothing highlights this more than how Goldman Sachs helped Greece set up a secret loan swap deal in 2001 that helped the country hide its debt levels in order to meet requirements to join the European Union.
The deal is a story of two sinners because of the intentions of the two parties involved - Greece was trying to cover up its high debt levels and Goldman Sachs was trying to make a profit.
And what a profit Goldman Sachs made - on the day the 2001 deal was struck the Greek government already owed the bank about 600 million Euros more than the 2.8 billion Euros it borrowed. By 2005, the price of the transaction, a derivative that disguised the loan and that Goldman Sachs persuaded Greece not to test with competitors, had almost doubled to 5.1 billion Euros.
Greece is just another example of a poorly governed client that got taken apart by a multinational investment bank. Goldman Sachs is ruthless about ensuring that its interests aren't compromised - it's part of the DNA of that organization.
For the reasons outlined above I urge all Greeks to continue their fight against the policies of the EU-ECB-IMF troika and regain their sovereignty from the whims of an unstable and unethical financial system.
Many people (particularly outsiders) blame all Greece's troubles on its problems with corruption, tax evasion and its oversized state sector. Yet, there is one area of the Greek economy that lies at the heart of the crisis and radically needs reform: military spending.
The fact that Greece, a relatively small and democratic country should spend as much on its military as it does is perplexing. In 2006, as the financial crisis was looming, Greece was the third biggest arms importer after China and India. And over the past 10 years its military budget has stood at an average of 4% of GDP, more than 1000 Euros per person. So why has Greece continued to spend such huge amounts on its army? One major factor is that France and Germany's arms industries have greatly profited from this profligate military spending, leading their governments to put pressure on Greece not to cancel lucrative arms deals.
In the five years up to 2010, Greece purchased more of Germany's arms exports than any other country, buying 15% of its weapons. Over the same period, Greece was the third-largest customer for France's military exports and its top buyer in Europe. Significantly, when the first bailout package was being negotiated in 2010, Greece spent 7.1bn euros on its military, up from 6.24bn euros in 2007. A total of 1bn was spent on French and German weapons, plunging the country even further into debt in the same year that social spending was cut by 1.8bn euros. It has been claimed by some that this was no coincidence, and that the EU bailout was explicitly tied to burgeoning arms deals. In particular, there is alleged to have been concerted pressure from France to buy several stealth frigates. Meanwhile Germany sold 223 howitzers and completed a controversial deal on faulty submarines, leading to an investigation into accusations of bribes being given to Greek officials.
Amid economic stagnation in Europe and the west, military technology remains one of the key areas in which competitive advantage has been maintained over emerging economies. However, while this growth has benefited major arms-exporting countries such as Germany, France and the UK, it has deepened even further the economic divide within Europe. Interestingly, Portugal - another country currently in the news for its economic woes - is Germany's second largest arms buyer after Greece.
If Greece is in need of structural reform, then its oversized military would seem the most logical place to start. In fact, if it had only spent the EU average of 1.7% over the last 20 years, it would have saved a total of 52% of its GDP - meaning instead of being completely bankrupt it would be among the more typical countries struggling with the recession.
And the Greek people, instead of facing austerity measures that have reduced living standards by 30%, might have been able to take a more moderate and sustainable route to reform.
Friday, July 27, 2012
Building A Record Label
Record labels continue to consolidate and internal departments continue to merge. However, it is important for future record industry executives to have some idea of the internal mechanisms that exist within a major label. In fact, independent labels have to incorporate many of the same responsibilities within their infrastructure in order to compete in today's marketplace.
Some of the departments may seem obvious to some of the more experienced readers. However, even you can benefit from knowing what tasks need to be tackled and accomplished in order to be a fully functional recording labelindependent or major.
It is important to remember that a record company is defined by foundational concepts:
1. Equity in the copyright of the sound recording
2. An ability to promote
3. An ability to distribute
Keeping these underlying concepts in mind, a label can then be about anything the owners want it to be about. Many people hate to concede to the idea that a record label is ultimately about making money, then hopefully about making great music. Although, the latter has been falling farther and farther behind in today's marketplace.
Suffice it to say, the label's departments must also be working toward the common goal in their own ways. Below is a general list of departments within a record label and the responsibilities of each department. Remember with smaller labels, departments are smaller and therefore, many tasks are accomplished by fewer people.
CEO
1. Crafts strategy and implements agenda of corporate parent company
2. May not be involved in day-to-day operations
3. May be responsible for the business affairs of all affiliated labels under the corporate umbrella
4. Reports to executive at corporate parent company
PRESIDENT
1. Responsible for entire record label
2. Reports to CEO
3. Less removed than CEO and may be involved in day-to-day operations and high profile signings
BUSINESS AFFAIRS
Responsible for all contract negotiations and legal affairs
FINANCE/ACCOUNTING
Responsible for all financial functions, payroll, royalty accounting and financial reporting
LABEL LIAISON
1. One person or a small group of people
2. Serves as liaison between record company's distribution company and the record company
3. Helps decide when to release an album and makes sure it doesn't conflict with any other labels the record company owns
A&R
1. Finds new artists (works with a research team to uncover important market research statistics/numbers)
2. Finding artists' material
3. Liaison between artist and all other departments of the record company
4. Coordinates across departments for projects
5. Product Manager (your manager within the label)
PROMOTIONS
1. Primary function is to service radio stations with product and secure airplay
2. Manages independent promoters and contractors
3. Works closely with radio stations on contests, concerts, giveaways, etc.
4. Works closely with new media and marketing
SALES
1. Primary function is to service retail with product and oversee retail initiatives
2. Services national and independent accounts
3. Instrumental in planning release schedule, initial unit volume, and solicitation strategies
4. Works closely with marketing and promotion to track radio airplay
MARKETING
1. Creates strategic marketing plan for the company as well as, specific artists and their releases
2. Instrumental in seeking strategic alliances for the label (Consumer Products, advertising, radio/tv/film)
PUBLICITY
1. Gets the word out
2. Writes press releases
3. Helps secure personal appearances radio interviews, television exposure, featured articles
4. Works with artist's independent publicist if applicable
NEW MEDIA
1. Responsible for dealing with some of the newer aspects of the music business
2. Creates Online Presence social networks, online reviews and feature, blogs, website, streaming music, etc.
3. Responsible for producing and creating music videos for the artist
MANUFACTURING AND DISTRIBUTION
1. Coordinates
2. Pressing
3. Packaging
4. Shipping
5. Warehousing and Inventory Management
6. Digital Distribution
7. Rack Jobbers, One Stops, Record Clubs
The aforementioned departments and their tasks are for general reference only. Each specific label has their own way of accomplishing tasks, assigning names to departments, and ultimately selling product. However, note the information, use it to perhaps build your labels' infrastructure or to possibly look for a position in the music business, and then build upon it for further success in the music business.
Some of the departments may seem obvious to some of the more experienced readers. However, even you can benefit from knowing what tasks need to be tackled and accomplished in order to be a fully functional recording labelindependent or major.
It is important to remember that a record company is defined by foundational concepts:
1. Equity in the copyright of the sound recording
2. An ability to promote
3. An ability to distribute
Keeping these underlying concepts in mind, a label can then be about anything the owners want it to be about. Many people hate to concede to the idea that a record label is ultimately about making money, then hopefully about making great music. Although, the latter has been falling farther and farther behind in today's marketplace.
Suffice it to say, the label's departments must also be working toward the common goal in their own ways. Below is a general list of departments within a record label and the responsibilities of each department. Remember with smaller labels, departments are smaller and therefore, many tasks are accomplished by fewer people.
CEO
1. Crafts strategy and implements agenda of corporate parent company
2. May not be involved in day-to-day operations
3. May be responsible for the business affairs of all affiliated labels under the corporate umbrella
4. Reports to executive at corporate parent company
PRESIDENT
1. Responsible for entire record label
2. Reports to CEO
3. Less removed than CEO and may be involved in day-to-day operations and high profile signings
BUSINESS AFFAIRS
Responsible for all contract negotiations and legal affairs
FINANCE/ACCOUNTING
Responsible for all financial functions, payroll, royalty accounting and financial reporting
LABEL LIAISON
1. One person or a small group of people
2. Serves as liaison between record company's distribution company and the record company
3. Helps decide when to release an album and makes sure it doesn't conflict with any other labels the record company owns
A&R
1. Finds new artists (works with a research team to uncover important market research statistics/numbers)
2. Finding artists' material
3. Liaison between artist and all other departments of the record company
4. Coordinates across departments for projects
5. Product Manager (your manager within the label)
PROMOTIONS
1. Primary function is to service radio stations with product and secure airplay
2. Manages independent promoters and contractors
3. Works closely with radio stations on contests, concerts, giveaways, etc.
4. Works closely with new media and marketing
SALES
1. Primary function is to service retail with product and oversee retail initiatives
2. Services national and independent accounts
3. Instrumental in planning release schedule, initial unit volume, and solicitation strategies
4. Works closely with marketing and promotion to track radio airplay
MARKETING
1. Creates strategic marketing plan for the company as well as, specific artists and their releases
2. Instrumental in seeking strategic alliances for the label (Consumer Products, advertising, radio/tv/film)
PUBLICITY
1. Gets the word out
2. Writes press releases
3. Helps secure personal appearances radio interviews, television exposure, featured articles
4. Works with artist's independent publicist if applicable
NEW MEDIA
1. Responsible for dealing with some of the newer aspects of the music business
2. Creates Online Presence social networks, online reviews and feature, blogs, website, streaming music, etc.
3. Responsible for producing and creating music videos for the artist
MANUFACTURING AND DISTRIBUTION
1. Coordinates
2. Pressing
3. Packaging
4. Shipping
5. Warehousing and Inventory Management
6. Digital Distribution
7. Rack Jobbers, One Stops, Record Clubs
The aforementioned departments and their tasks are for general reference only. Each specific label has their own way of accomplishing tasks, assigning names to departments, and ultimately selling product. However, note the information, use it to perhaps build your labels' infrastructure or to possibly look for a position in the music business, and then build upon it for further success in the music business.
Wednesday, July 25, 2012
Overlooked Leasing Equipment As A Source Of Business Finance ? Lease Financing Works. Here's Why!
Overlooked? You tell us, but we're never more amazed at why leasing equipment is such an often overlooked source of business financing in Canada.
Here's why we think the ' unconverted' need to reassess this popular method of financing their businesses when it comes to asset acquisition.Hopefully you've got your short term working capital and cash flow needs sorted out. They might include bank lines, receivable finance, working capital facilities, asset based lines of credit, etc.But what about long term capital when it comes to financing your needed asset acquisitions?
It's an entirely different form of financing and you just need to know some solid basics when it comes to eliminating any surprises. Let's cover some basics.In general Canadian business owners and financial managers need to only know there are basically two types of leases - operating and capital. But the difference between the two of them is huge! When you engage an operating lease scenario you essentially have no ownership or acquisition rights - think if it as leasing your landline phone.
A capital lease on the other hand is a non-cacheable commitment to make a series of payments over time for the purchase of the asset; it's as simple as that. The usual (but not always' end result of a capital lease is the transfer of ownership of the asset from the lessor to your company.Strictly speaking, leases are a form of long term debt, but depending on the type of lease you structure, and how it's structured it doesnt necessarily have to show on your balance sheet.Why then do we think that many businesses in Canada overlook some solid advantages in leasing equipment?
And what are those advantages?First of all leasing as a source of business finance frees up working capital that you quite frankly could use in a more productive matter. A quick example is that if your lease rate is, say 7% and you can generate returns on profit in equity of 10%, as an example... well... enough said!.
Other methods of business finance as a source of financing often require hefty down payments - leasing more often than not is 100% financing or pretty close it depending on your firms overall credit quality .Naturally if you utilize a business leasing equipment firm you are therefore not disturbing any other credit facilities you might have in place, such as short term revolving lines of credit.
And again, with decent credit you don't have to pledge other collateral and solid credits can often negotiate a limited or no personal guarantee. Have we made out point? We hope so. Don't overlook lease financing as a valuable source of business funding.
Speak to a trusted, credible and experienced Canadian business financing advisor on solving your asset finance need today.
Here's why we think the ' unconverted' need to reassess this popular method of financing their businesses when it comes to asset acquisition.Hopefully you've got your short term working capital and cash flow needs sorted out. They might include bank lines, receivable finance, working capital facilities, asset based lines of credit, etc.But what about long term capital when it comes to financing your needed asset acquisitions?
It's an entirely different form of financing and you just need to know some solid basics when it comes to eliminating any surprises. Let's cover some basics.In general Canadian business owners and financial managers need to only know there are basically two types of leases - operating and capital. But the difference between the two of them is huge! When you engage an operating lease scenario you essentially have no ownership or acquisition rights - think if it as leasing your landline phone.
A capital lease on the other hand is a non-cacheable commitment to make a series of payments over time for the purchase of the asset; it's as simple as that. The usual (but not always' end result of a capital lease is the transfer of ownership of the asset from the lessor to your company.Strictly speaking, leases are a form of long term debt, but depending on the type of lease you structure, and how it's structured it doesnt necessarily have to show on your balance sheet.Why then do we think that many businesses in Canada overlook some solid advantages in leasing equipment?
And what are those advantages?First of all leasing as a source of business finance frees up working capital that you quite frankly could use in a more productive matter. A quick example is that if your lease rate is, say 7% and you can generate returns on profit in equity of 10%, as an example... well... enough said!.
Other methods of business finance as a source of financing often require hefty down payments - leasing more often than not is 100% financing or pretty close it depending on your firms overall credit quality .Naturally if you utilize a business leasing equipment firm you are therefore not disturbing any other credit facilities you might have in place, such as short term revolving lines of credit.
And again, with decent credit you don't have to pledge other collateral and solid credits can often negotiate a limited or no personal guarantee. Have we made out point? We hope so. Don't overlook lease financing as a valuable source of business funding.
Speak to a trusted, credible and experienced Canadian business financing advisor on solving your asset finance need today.
Tuesday, July 24, 2012
Chase Credit Cards Online
Online credit card applications seem to be the in thing and Chase too offers online credit card application facility. Here, 'Chase dot com credit cards' refers to the chase credit cards that can be applied for online. Just for those who don't know, 'Chase' is a brand that is owned by JPMorgan Chase & Co. (a leading global financial services firm).
By 'Chase dot com credit card offers', I mean the credit card offers that are available at chase dot com. Obviously, 'Chase dot com credit cards' would be regulated by chase. Again, as with any other credit card supplier, 'Chase dot com credit cards' on offer would be changing too.
Anyways; one night, before going to bed, I thought of just checking the chase dot com credit cards section. Here is what I found:
There is a separate Chase dot com credit cards section. As I browsed through the Chase dot com credit cards section (the online application ones), the first one I encountered was called 'Chase Cash Plus' or the 'Chase Cash Plus Rewards'. These promise faster rewards and offer 5% earnings on gas and on purchases made at grocery-stores/drug-stores. For other shopping venues, it offers 1% earnings. These earnings can be in the form of gift certificates or cash.
The next on the Chase dot com credit cards section was the 'Flexible rewards Visa signature card'. Here you earn a point for every purchase of . You can keep collecting these points and then finally redeem them for your choice of things (like cash, travel, gift certificates or some kind of merchandise). The redemption can start at 2500 points (and you get a bonus of 1000 points once you make the first purchase). Moreover, this one doesn't have any annual fee either. So that was the second one in the Chase dot com credit cards section.
Moving on in the Chase dot com credit cards section, I found 'Free Cash Rewards Platinum Visa card'. This one, as the name goes, offers cash rewards. You can get a check or a gift certificate on redemption of 2500 points. Since there is one point earned for every spend, this mean that you effectively get 1% cash back on these cards.
I had started loving browsing through the Chase dot com credit cards section. So I moved on to the next one in the Chase dot com credit cards section. The next one on the Chase dot com credit cards section was 'Chase Perfect Platinum MasterCard' which doesn't limit you to getting rebates only on a particular brand of gasoline; instead, you get rebates everywhere. '
Chase Platinum MasterCard' was the next one in the Chase dot com credit cards section. This one offers online account management i.e. monthly statements, bill payments etc can all be done online (also you don't have any annual fee on this one).
There were few more cards on Chase dot com credit cards section and one especially caught my attention. This one was at the bottom of Chase dot com credit cards section and was called 'Check Gallery Platinum Visa Card'. Here you could choose the design of your card from those available e.g. cowboys, smileys etc.
By now, I was so sleepy that I really had to shut down my computer and go off to sleep.
Note: The information given in this article was correct at the time it was written. However, the author does not guarantee the correctness and completeness of this information at any time.
By 'Chase dot com credit card offers', I mean the credit card offers that are available at chase dot com. Obviously, 'Chase dot com credit cards' would be regulated by chase. Again, as with any other credit card supplier, 'Chase dot com credit cards' on offer would be changing too.
Anyways; one night, before going to bed, I thought of just checking the chase dot com credit cards section. Here is what I found:
There is a separate Chase dot com credit cards section. As I browsed through the Chase dot com credit cards section (the online application ones), the first one I encountered was called 'Chase Cash Plus' or the 'Chase Cash Plus Rewards'. These promise faster rewards and offer 5% earnings on gas and on purchases made at grocery-stores/drug-stores. For other shopping venues, it offers 1% earnings. These earnings can be in the form of gift certificates or cash.
The next on the Chase dot com credit cards section was the 'Flexible rewards Visa signature card'. Here you earn a point for every purchase of . You can keep collecting these points and then finally redeem them for your choice of things (like cash, travel, gift certificates or some kind of merchandise). The redemption can start at 2500 points (and you get a bonus of 1000 points once you make the first purchase). Moreover, this one doesn't have any annual fee either. So that was the second one in the Chase dot com credit cards section.
Moving on in the Chase dot com credit cards section, I found 'Free Cash Rewards Platinum Visa card'. This one, as the name goes, offers cash rewards. You can get a check or a gift certificate on redemption of 2500 points. Since there is one point earned for every spend, this mean that you effectively get 1% cash back on these cards.
I had started loving browsing through the Chase dot com credit cards section. So I moved on to the next one in the Chase dot com credit cards section. The next one on the Chase dot com credit cards section was 'Chase Perfect Platinum MasterCard' which doesn't limit you to getting rebates only on a particular brand of gasoline; instead, you get rebates everywhere. '
Chase Platinum MasterCard' was the next one in the Chase dot com credit cards section. This one offers online account management i.e. monthly statements, bill payments etc can all be done online (also you don't have any annual fee on this one).
There were few more cards on Chase dot com credit cards section and one especially caught my attention. This one was at the bottom of Chase dot com credit cards section and was called 'Check Gallery Platinum Visa Card'. Here you could choose the design of your card from those available e.g. cowboys, smileys etc.
By now, I was so sleepy that I really had to shut down my computer and go off to sleep.
Note: The information given in this article was correct at the time it was written. However, the author does not guarantee the correctness and completeness of this information at any time.
Monday, July 23, 2012
First Bank of Delaware Credit Card Reviews
First Bank of Delaware is a subprime lender. Subprime lending is a term which has come to prominence over the last couple of years, largely due to the financial crisis which we are currently experiencing. It refers to financial institutions lending in ways that do not meet 'prime' standards - i.e. to the riskiest category of consumers. This is usually people with a FICO score below 640.
The term can encompass a range of financial products, such as mortgages and loans - but it is credit cards that we will look at in this article. There are four brands of cards issued by First Bank of Delaware: the Continental Finance Credit Card, the Simply Gold MasterCard, the Imagine Gold MasterCard and the Tribute MasterCard.
The Continental Finance MasterCard is an unsecured card which carries an APR of 19.92%, with a 25 day grace period. New cardholders are given an introductory limit of 0, which can rise to ,000 if you manage your account well. Be aware that this card carries a number of fees and charges, including a one-off set up fee of 0, an annual fee of and a monthly fee of .
The Simply Gold MasterCard gives owners an initial limit of 0, but a one-off set up fee is deducted straight away, leaving the cardholder with left available. There is also a monthly fee of . The limit is assessed every six months, and can eventually rise to ,500.
The Imagine Gold MasterCard works along slightly different lines. Unlike most cards, this one requires the cardholder to set up an automatic payment plan from their bank account. The APR is the prime rate plus 11.5% - with a minimum of 19.5%. There is an annual fee of 0 and a monthly maintenance fee of .50. The limit starts at 0, with increases considered every six months.
The Tribute MasterCard is another unsecured card that is similar in nature to the Continental Finance card. The introductory limit is 0, with a limit of prime rate plus 24.5%. There is an annual fee of 0 and a monthly fee of .95, but no one-off application fee.
All of these could be considered by those who have a poor rating, as approval requirements are lower. They give these people the opportunity to buy products over the Internet and in stores, hire a car, pay bills and generally assist them with everyday life.
There is however several drawbacks. The fees are extremely high - with the Continental Finance MasterCard customers are left with just of their initial 0 credit, after their set-up, annual and monthly fees have been deducted. The APR is also higher than that of many other similar cards.
Anyone with a score over 500 should first look at a secured card. These carry lower fees and will improve your score at a faster rate. Make sure you fully understand the terms and conditions before applying for a First Bank of Delaware card.
The term can encompass a range of financial products, such as mortgages and loans - but it is credit cards that we will look at in this article. There are four brands of cards issued by First Bank of Delaware: the Continental Finance Credit Card, the Simply Gold MasterCard, the Imagine Gold MasterCard and the Tribute MasterCard.
The Continental Finance MasterCard is an unsecured card which carries an APR of 19.92%, with a 25 day grace period. New cardholders are given an introductory limit of 0, which can rise to ,000 if you manage your account well. Be aware that this card carries a number of fees and charges, including a one-off set up fee of 0, an annual fee of and a monthly fee of .
The Simply Gold MasterCard gives owners an initial limit of 0, but a one-off set up fee is deducted straight away, leaving the cardholder with left available. There is also a monthly fee of . The limit is assessed every six months, and can eventually rise to ,500.
The Imagine Gold MasterCard works along slightly different lines. Unlike most cards, this one requires the cardholder to set up an automatic payment plan from their bank account. The APR is the prime rate plus 11.5% - with a minimum of 19.5%. There is an annual fee of 0 and a monthly maintenance fee of .50. The limit starts at 0, with increases considered every six months.
The Tribute MasterCard is another unsecured card that is similar in nature to the Continental Finance card. The introductory limit is 0, with a limit of prime rate plus 24.5%. There is an annual fee of 0 and a monthly fee of .95, but no one-off application fee.
All of these could be considered by those who have a poor rating, as approval requirements are lower. They give these people the opportunity to buy products over the Internet and in stores, hire a car, pay bills and generally assist them with everyday life.
There is however several drawbacks. The fees are extremely high - with the Continental Finance MasterCard customers are left with just of their initial 0 credit, after their set-up, annual and monthly fees have been deducted. The APR is also higher than that of many other similar cards.
Anyone with a score over 500 should first look at a secured card. These carry lower fees and will improve your score at a faster rate. Make sure you fully understand the terms and conditions before applying for a First Bank of Delaware card.
Sunday, July 22, 2012
Payroll Ohio, Unique Aspects of Ohio Payroll Law and Practice
The Ohio State Agency that oversees the collection and reporting of State income taxes deducted from payroll checks is:
Department of Taxation
P.O. Box 2476
Columbus, OH 43266-0076
(614) 433-7887
(888) 405-4039
www.state.oh.us/tax
Ohio requires that you use Ohio form "IT-4, Employee's Withholding Exemption Certificate" instead of a Federal W-4 Form for Ohio State Income Tax Withholding.
Not all states allow salary reductions made under Section 125 cafeteria plans or 401(k) to be treated in the same manner as the IRS code allows. In Ohio cafeteria plans are not taxable for income tax calculation; not taxable for unemployment insurance purposes. 401(k) plan deferrals are not taxable for income taxes; taxable for unemployment purposes.
In Ohio supplemental wages are taxed at a 3.5% flat rate.
You may file your Ohio State W-2s by magnetic media if you choose to.
The Ohio State Unemployment Insurance Agency is:
Ohio Department of Job and Family Services
Unemployment Compensation Division
52 Robinwood Ave.
Columbus, OH 43213
(614) 466-2100
www.state.oh.us/odjfs
The State of Ohio taxable wage base for unemployment purposes is wages up to ,000.00.
Ohio has optional reporting of quarterly wages on magnetic media.
Unemployment records must be retained in Ohio for a minimum period of five years. This information generally includes: name; social security number; dates of hire, rehire and termination; wages by period; payroll pay periods and pay dates; date and circumstances of termination.
The Ohio State Agency charged with enforcing the state wage and hour laws is:
Department of Commerce
Division of Labor and Worker Safety
Wage and Hour Bureau
50 West Broad St.
Columbus, OH 43215
(614) 644-2239
www.state.oh.us/Business/Employer/ProtectingYourBusiness/Wages.htm
The minimum wage in Ohio is .15 per hour (large employers), .35 (medium employers), and .80 (small employers).
The general provision in Ohio concerning paying overtime in a non-FLSA covered employer is one and one half times regular rate after 40-hour week.
Ohio State new hire reporting requirements are that every employer must report every new hire and rehire. The employer must report the federally required elements of:
Employee's name
Employee's address
Employee's date of birth
date of hire
Employee's social security number
Employer's name
Employers address
Employer's Federal Employer Identification Number (EIN)
This information must be reported within 20 days of the hiring or rehiring.
The information can be sent as a W4 or equivalent by mail, fax or electronically.
There is a .00 penalty for a late report and 0 for conspiracy in Ohio.
The Ohio new hire-reporting agency can be reached at 888-872-1490 or 614-221-5330 or on the web at www.oh-newhire.com
Ohio does allow compulsory direct deposit but the employee's choice of financial institution must meet federal Regulation E regarding choice of financial institutions.
Ohio has no State Wage and Hour Law provisions concerning pay stub information.
Ohio requires that employee be paid no less often than semimonthly; monthly if allowed by custom of contract and wages paid by first of next month.
Ohio requires that the lag time between the end of the pay period and the payment of wages earned 1st half of month, pay by 1st of next month; wages earned 2nd half of month, pay by 15th of next month.
Ohio has no general provision on when terminated employees must be paid their final wages.
Deceased employee's wages of , 500 must be paid to the surviving spouse, adult children, or parent (in that order).
Escheat laws in Ohio require that unclaimed wages be paid over to the state after one year.
The employer is further required in Ohio to keep a record of the wages abandoned and turned over to the state for a period of 5 years.
Ohio payroll law mandates no more than .02 (less for small and medium employers) may be used as a tip credit.
In Ohio the payroll laws covering mandatory rest or meal breaks are only that minors under 16 must have 30 minutes rest after five hours of work.
Ohio statute requires that wage and hour records be kept for a period of not less than three years. These records will normally consist of at least the information required under FLSA.
The Ohio agency charged with enforcing Child Support Orders and laws is:
Office of Child Support
Ohio Department of Human Services
State Office Tower
30 E. Broad St., 31st Fl.
Columbus, OH 43266-0423
(614) 752-6561
www.ohio.gov/odhs/Ocs/index.htm
Ohio has the following provisions for child support deductions:
When to start Withholding? 14 working days after the withholding order is mailed to the employer.
When to send Payment? Within 7 days of Payday.
When to send Termination Notice? Within 10 days of termination.
Maximum Administrative Fee? greater of or 1% of payment
Withholding Limits? Federal Rules under CCPA.
Please note that this article is not updated for changes that can and will happen from time to time.
Department of Taxation
P.O. Box 2476
Columbus, OH 43266-0076
(614) 433-7887
(888) 405-4039
www.state.oh.us/tax
Ohio requires that you use Ohio form "IT-4, Employee's Withholding Exemption Certificate" instead of a Federal W-4 Form for Ohio State Income Tax Withholding.
Not all states allow salary reductions made under Section 125 cafeteria plans or 401(k) to be treated in the same manner as the IRS code allows. In Ohio cafeteria plans are not taxable for income tax calculation; not taxable for unemployment insurance purposes. 401(k) plan deferrals are not taxable for income taxes; taxable for unemployment purposes.
In Ohio supplemental wages are taxed at a 3.5% flat rate.
You may file your Ohio State W-2s by magnetic media if you choose to.
The Ohio State Unemployment Insurance Agency is:
Ohio Department of Job and Family Services
Unemployment Compensation Division
52 Robinwood Ave.
Columbus, OH 43213
(614) 466-2100
www.state.oh.us/odjfs
The State of Ohio taxable wage base for unemployment purposes is wages up to ,000.00.
Ohio has optional reporting of quarterly wages on magnetic media.
Unemployment records must be retained in Ohio for a minimum period of five years. This information generally includes: name; social security number; dates of hire, rehire and termination; wages by period; payroll pay periods and pay dates; date and circumstances of termination.
The Ohio State Agency charged with enforcing the state wage and hour laws is:
Department of Commerce
Division of Labor and Worker Safety
Wage and Hour Bureau
50 West Broad St.
Columbus, OH 43215
(614) 644-2239
www.state.oh.us/Business/Employer/ProtectingYourBusiness/Wages.htm
The minimum wage in Ohio is .15 per hour (large employers), .35 (medium employers), and .80 (small employers).
The general provision in Ohio concerning paying overtime in a non-FLSA covered employer is one and one half times regular rate after 40-hour week.
Ohio State new hire reporting requirements are that every employer must report every new hire and rehire. The employer must report the federally required elements of:
Employee's name
Employee's address
Employee's date of birth
date of hire
Employee's social security number
Employer's name
Employers address
Employer's Federal Employer Identification Number (EIN)
This information must be reported within 20 days of the hiring or rehiring.
The information can be sent as a W4 or equivalent by mail, fax or electronically.
There is a .00 penalty for a late report and 0 for conspiracy in Ohio.
The Ohio new hire-reporting agency can be reached at 888-872-1490 or 614-221-5330 or on the web at www.oh-newhire.com
Ohio does allow compulsory direct deposit but the employee's choice of financial institution must meet federal Regulation E regarding choice of financial institutions.
Ohio has no State Wage and Hour Law provisions concerning pay stub information.
Ohio requires that employee be paid no less often than semimonthly; monthly if allowed by custom of contract and wages paid by first of next month.
Ohio requires that the lag time between the end of the pay period and the payment of wages earned 1st half of month, pay by 1st of next month; wages earned 2nd half of month, pay by 15th of next month.
Ohio has no general provision on when terminated employees must be paid their final wages.
Deceased employee's wages of , 500 must be paid to the surviving spouse, adult children, or parent (in that order).
Escheat laws in Ohio require that unclaimed wages be paid over to the state after one year.
The employer is further required in Ohio to keep a record of the wages abandoned and turned over to the state for a period of 5 years.
Ohio payroll law mandates no more than .02 (less for small and medium employers) may be used as a tip credit.
In Ohio the payroll laws covering mandatory rest or meal breaks are only that minors under 16 must have 30 minutes rest after five hours of work.
Ohio statute requires that wage and hour records be kept for a period of not less than three years. These records will normally consist of at least the information required under FLSA.
The Ohio agency charged with enforcing Child Support Orders and laws is:
Office of Child Support
Ohio Department of Human Services
State Office Tower
30 E. Broad St., 31st Fl.
Columbus, OH 43266-0423
(614) 752-6561
www.ohio.gov/odhs/Ocs/index.htm
Ohio has the following provisions for child support deductions:
When to start Withholding? 14 working days after the withholding order is mailed to the employer.
When to send Payment? Within 7 days of Payday.
When to send Termination Notice? Within 10 days of termination.
Maximum Administrative Fee? greater of or 1% of payment
Withholding Limits? Federal Rules under CCPA.
Please note that this article is not updated for changes that can and will happen from time to time.
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