Jan. 2, 2012, 12:05 a.m. EST

Payroll Mate Payroll Software makes it easy for employers, payroll service providers, accountants and payroll staffs to comply with the new IRS payroll withholding changes introduced by the Payroll Tax Cut Continuation Act of 2011.

CHICAGO, Jan. 2, 2012 /PRNewswire via COMTEX/ — Real Business Solutions ( http://www.PayrollMate.com ), a nationwide provider of payroll and 1099 preparation programs, is helping small businesses, accounting professionals and payroll service providers comply with the changes to the payroll tax law made in the Payroll Tax Cut Continuation Act of 2011 signed into law by President Obama on Dec. 23, 2011.

Nearly 160 million workers will benefit from the extension of the reduced payroll tax rate that has been in effect for 2011. The Temporary Payroll Tax Cut Continuation Act of 2011 temporarily extends the two percentage point payroll tax cut for employees, continuing the reduction of their Social Security tax withholding rate from 6.2 percent to 4.2 percent of wages paid through Feb. 29, 2012. This reduced Social Security withholding will have no effect on employees’ future Social Security benefits.

All users of Payroll Mate 2012 will get the new payroll updates for free. The software maker is also advising small businesses that are still doing payroll by hand to start using a payroll software solution, which offers serious benefits, from increased payroll preparation efficiency to tangible cost savings.

Payroll Mate is always one of the first payroll preparation solutions to implement payroll updates and new government regulations. Year after year, thousands of businesses and accounting professionals trust Payroll Mate to do payroll and prepare payroll taxes.

Payroll Mate makes doing payroll easy, smooth, predictable, and of course affordable through a set of powerful and flexible payroll management capabilities that allow small businesses to operate smarter and save money. Below is a short list of what this payroll system can do:

Automatically calculates federal and state payroll tax withholding.

Supports different types of pay periods including weekly, biweekly, semimonthly and monthly.

Supports customizable income, tax and deductions categories.

Exports Payroll checks to Quicken and accounting software like Microsoft Office accounting.

Supports the following payroll forms: 941, 940, 944, W-2, W-3, California DE-6 , California DE-7 , Texas C-3 , Texas C-4, New York NYS-45, Illinois 941 and Illinois UI-3/40.

Can be used as QuickBooks payroll subscription alternative with the ability to export payroll data to QuickBooks software.

Supports income per mile and per piece.

Exports payroll reports to Excel, CSV and PDF.

Prints on Laser and Inkjet checks.

Prints on preprinted scannable W2 forms and W3 forms.

Generates comprehensive reports including payroll journal, tax liability and deposit requirement.

Generates Direct Deposit Files.

Prints MICR checks on blank check stock.

Give the payroll tax calculator from PayrollMate.com a test drive and see for yourself how easy managing payroll can be. Visit payroll tax software page.

SOURCE PayrollMate.com

More than 40 Percent of Americans Do Not Want a Celebrity Neighbor, According to 5th Annual Zillow Celebrity Neighbor Survey

SEATTLE, Dec. 28, 2011 /PRNewswire/ — U.S. adults would most like to be neighbors with Denver Broncos quarterback Tim Tebow in 2012, according to the fifth annual Zillow® Celebrity Neighbor Survey[i]. The cast of the reality TV show “Jersey Shore” was named least desirable neighbors of 2011. Meanwhile, 42 percent of surveyed adults said they did not want to live next to any celebrities, up from 27 percent last year. The annual Zillow poll asks U.S. adults which celebrities they would most like to be their neighbor, and with whom they wouldn’t want to share a fence.

Most Desirable Neighbors for 2012
In the coming year, 11 percent of adults surveyed would like to be neighbors with Tebow. His popularity was significantly higher among males (14 percent) compared to females (7 percent).

Celebrity super couples Angelina Jolie and Brad Pitt, and Jennifer Aniston and Justin Theroux received 10 percent and 9 percent of the vote, respectively. Americans with children, however, preferred to live next to Jolie and Pitt (14 percent) rather than Aniston and Theroux (9 percent).

Worst Neighbors for 2011
For the second year in a row, the “Jersey Shore” cast was voted worst neighbors of the year. More than one in four (28 percent) surveyed Americans found the reality show cast to be the most undesirable neighbors of 2011, a slight increase from 26 percent in the 2010 Zillow Celebrity Neighbor Survey. Twenty-one percent of respondents found Charlie Sheen to be the worst neighbor, ranking second by a large margin compared to competitors Lindsay Lohan (14 percent) and Kim Kardashian (13 percent).

“As a voyeuristic culture that breathlessly tracks every celebrity movement, it’s extremely surprising to see so many Americans saying they wouldn’t like to live next to any celebrity at all. In fact, more people opted out of a celebrity neighbor in 2012 than in any of the past years we’ve run this poll,” said Zillow Chief Marketing Officer Amy Bohutinsky. “We may want to watch, read and talk about celebrities, but when it comes to sharing a back fence, many Americans think it’s just too close for comfort.”

Most Desirable Neighbors for 2012

Worst Neighbors of 2011

Name

Percent

Name

Percent

Tim Tebow

11

Jersey Shore Cast

28

Angelina Jolie & Brad Pitt

10

Charlie Sheen

21

Jennifer Aniston & Justin Theroux

9

Lindsay Lohan

14

Jennifer Lopez

6

Kim Kardashian

13

Beyoncé & Jay-Z

5

Nancy Grace

3

Nancy Grace

4

Angelina Jolie & Brad Pitt

3

Kim Kardashian

4

Anthony Weiner

2

Other

11

Other

2

None of the above

42

None of the above

14

For more celebrity real estate news or celebrity foreclosures, visit the Zillow Blog.

For historical survey results or more information contact press@zillow.com or call 206-757-2701.

About Zillow, Inc.
Zillow is the leading real estate information marketplace, providing vital information about homes, real estate listings and mortgages through its websites and mobile applications, enabling homeowners, buyers, sellers and renters to connect with real estate and mortgage professionals best suited to meet their needs. Nearly 22.5 million unique users visited Zillow’s websites and mobile applications in November 2011. Zillow, Inc. operates Zillow.com®, Zillow Mortgage Marketplace, Zillow Mobile, Postlets® and Diverse Solutions™. The company is headquartered in Seattle.

Zillow.com, Zillow, Zestimate and Postlets are registered trademarks of Zillow, Inc. Diverse Solutions is a trademark of Zillow, Inc.

[i] These are some of the findings of an Ipsos poll conducted Nov. 30 – Dec. 1, 2011. For the survey, a nationally representative sample of 1,007 randomly-selected adults aged 18 and over residing in the United States was interviewed via Ipsos’ U.S. online omnibus. With a sample of this size, the results are considered accurate within +/-3.1 percentage points 19 times out of 20, of what they would have been had the entire population of adults in the United States been polled. The margin of error will be larger within subgroupings of the survey population. These data were weighted to ensure the sample’s regional and age/gender composition reflects that of the actual U.S. population according to data from the U.S. Census Bureau. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error.

[ii] Harris Interactive® fielded the Zillow Celebrity Neighbor study on behalf of Zillow in December 2007, December 2008, and December 2009 interviewing a nationwide sample of more than 2,000 U.S. adults aged 18 years and older via its QuickQuerySM online omnibus service. Historical results are available upon request.

SOURCE Zillow, Inc.

December 27, 2011 02:01 PM Eastern Time

ROCHESTER, N.Y.–(BUSINESS WIRE)–Paychex, Inc., one of the nation’s leading providers of payroll, human resource, and employee benefits solutions for small and medium-sized businesses, today released its top 12 in ’12 list, containing the top 12 potential regulatory changes that America’s small businesses need to know about in 2012. Paychex works closely with the IRS and other government agencies on issues of importance and is constantly monitoring regulatory and compliance-related matters that impact its 564,000 clients.

“As we close the book on 2011 and prepare to ring in the New Year, Paychex is looking out for America’s small businesses by identifying the top 12 issues to follow as 2012 unfolds”

“As we close the book on 2011 and prepare to ring in the New Year, Paychex is looking out for America’s small businesses by identifying the top 12 issues to follow as 2012 unfolds,” said Martin Mucci, Paychex president and CEO. “Some of these issues will lead to changes that are made legislatively, and others may be changed through simple rule modifications. Regardless of the level of attention they receive, changes to each of these issues could require business owners to make significant adjustments to the way they manage their businesses.”

1. Job Creation – President Obama will continue working with Congress in 2012 to jump start hiring. While the President’s Jobs Bill wasn’t passed in the same form it was proposed, legislation was passed in 2011 to provide tax credits for hiring veterans and relief for the long-term unemployed. Additionally, after much debate, the temporary reduction of employee payroll taxes, due to expire on December 31, 2011, was extended for an additional two months and includes a new “recapture” provision, which applies only to those employees who receive more than $18,350 in wages during the two-month period. Pending further negotiations, the tax cut could potentially extend through 2012. Additional provisions that could be considered as part of the job creation effort include elements from the President’s proposal that have not yet been passed, including: earmarking funding for infrastructure projects and measures to help entrepreneurs and small businesses access capital and grow.

2. Worker Classification – The misclassification of workers is an issue that promises to receive more scrutiny in 2012. The IRS recently unveiled an opportunity for eligible employers to voluntarily reclassify workers as employees in exchange for partial tax relief from past federal employment taxes. In late 2011, the U.S. Department of Labor agreed to work with the IRS, as well as several states, to share information and coordinate enforcement to ensure that employees receive protections they are entitled to under federal and state law. Legislation in several states to increase fines for worker misclassification may also impact employers in 2012.

3. Deficit Reduction – Running parallel to the jobs initiatives are a series of proposals that focus on reducing the record-high federal budget deficit through spending reductions and tax increases. Many of the ideas on the table center on personal and business tax reform and the closing of current tax “loopholes.”

4. Immigration – The U.S. Government is strengthening efforts to crack down further on the employment of illegal immigrants through rigorous worksite enforcement and paperwork inspections of companies of all sizes. In 2012, state laws will require more private sector employers to register and utilize the federal E-verify system for employee verification, and most Federal contractors and subcontractors will continue to be required to use E-verify to determine employment eligibility. Congressional immigration reform proposals, which may include further federal employment verification obligations, are also possible in 2012.

5. Employment Law – Employers will need to keep current with federal and state legislative and regulatory developments that are likely to impact human resource practices. Many states now restrict the use of an employee’s credit information in employment-related decisions or are considering doing so. Additionally, the U.S. Department of Labor and many states have enacted or are considering regulations to provide greater transparency to workers. These regulations specifically focus on the amount and calculation of workers’ pay, especially as it relates to minimum wage and overtime requirements.

6. Security and Privacy – In 2012, businesses will continue to be challenged by security considerations. Instances of cybercrime and corporate bank account takeovers against small businesses are becoming more widespread. Employers should take security precautions such as using stand-alone computers for online banking, not clicking on attachments or hyperlinks from unknown sources, and working with their bank to implement fraud detection tools on their accounts. Onerous privacy and security breach regulations enacted in many states make this an even more important consideration for businesses.

7. Dodd-Frank – The sweeping Dodd-Frank financial regulatory legislation is primarily focused on Wall Street reforms and consumer protection. However, the increased burden it places on some industries, especially banks, may result in small businesses experiencing limited availability of, or higher costs for, credit or other financial services.

8. Health Care Reform – The Supreme Court is expected to rule in 2012 on the constitutionality of the individual mandate provision in the Affordable Care Act. The court’s decision, and the potential fallout, could have broad impacts to businesses.

9. Unemployment Insurance Implications – Congress is contemplating the reinstatement of the federal unemployment surtax, which would result in virtually all businesses seeing higher unemployment insurance taxes. Companies in many states will see higher taxes due to the repayment of outstanding federal loans that were taken to allow for continued payment of benefits and to replenish depleted state unemployment trust funds. Many states are also contemplating additional or more extensive employer reporting requirements in an effort to decrease unemployment insurance fraud.

10. 401(k) – In 2012, additional fee disclosures will be required by 401(k) service providers to plan sponsors, and by plan sponsors to participants, with the intention of providing greater transparency around retirement plan fees. The limits for contributions to those plans will increase in 2012. Other regulations that will be enacted in 2012, or are under consideration, include those that would broaden the definition of who would be considered a plan fiduciary, make investment advice more accessible to plan participants, and restrict the number of loans an employee can take from their 401(k).

11. Taxes – 2012 will bring a number of important tax changes, including a higher Social Security wage base and changes to transportation and adoption assistance benefit limits. The accelerated depreciation benefits available to most businesses for certain asset purchases which were in place in 2011 may expire or be scaled back in 2012. All employers will need to keep an eye on what are likely to be additional tax changes as the year progresses.

12. Form W-2 – The IRS further delayed the requirement for smaller employers to report the cost of employer-sponsored health coverage on employee Forms W-2, indefinitely postponing it until further guidance is issued. However, employers filing 250 or more Forms W-2 in 2011 are required to include this cost on the W-2 starting in tax year 2012. The health care amounts reported on the W-2 will be strictly informational and not taxable to the employee.

Second City Communications and Corpedia Release Funny and Engaging Video Called “Company Retreating” Exploring Boundaries and Privacy When Using Social Media At The Office

“Company Retreating” is One of Many Timely, Relevant Videos on Ethics and Compliance Topics Served Up In the Innovative Video Library Called RealBiz Shorts

CHICAGO–(BUSINESS WIRE)–Just because the boss can connect with employees through online social networks, is it a good idea?

“Very often, the do’s and don’ts of company social media policies are aimed at employees – which is important – but there’s also the issue of what happens when the boss connects to his/her staff in social networks”

And if managers do connect to employees online, how best to strike the right balance and not violate important ethics and compliance codes of conduct?

Those questions and others shape the focus of the new video “Company Retreating” in the RealBiz Shorts video library, the high-octane service from Second City Communications and Corpedia for engaging employees on important ethics and compliance topics.

“Very often, the do’s and don’ts of company social media policies are aimed at employees – which is important – but there’s also the issue of what happens when the boss connects to his/her staff in social networks,” said Steve Johnston, President of Second City Communications. “Privacy, discretion, boundaries – all those are important for managers to be conscious of with employees. And for many companies, it’s as simple as: Don’t be Facebook friends with people who report to you,” added Johnston.

Corpedia and Second City Communications innovated the funny and highly effective video library – RealBiz Shorts – to address a wide range of important issues around ethics and compliance — including harassment, fair employment, whistle blowing, privacy, political contributions, and using social media appropriately.

The RealBiz Shorts video, Company Retreating: How to Un-build a Team via Social Media, is one example. It highlights the importance of boundaries when connecting with employees via social media. View that video at: http://vimeo.com/32926939

“Companies are striving for new and innovative ways to reach employees and minimize risk around ethics and compliance,” said Tim Erblich, EVP of Corpedia. “The stakes are high – but you need to engage employees and really connect with them in order to influence behavior and train them. Innovative companies know that – and they’re constantly challenging us to come up with new ways to connect with and engage their people. RealBiz Shorts is one answer to that – especially with younger Millennials who consume so much video and use social media constantly,” added Erblich.

RealBiz Shorts are created with clients to ensure that they’re relevant to real issues. RealBiz Shorts also features videos on topics including code of conduct awareness, corruption & bribery, conflicts of interest, tone at the top leadership, and customer privacy policy – among others.

RealBiz Shorts is designed to add-in to existing education and training initiatives for ethics & compliance. Companies embed RealBiz Shorts in their online newsletters, use them as icebreakers for live trainings, and use them to market online training and certification programs internally.

In all, more than 100 organizations across business and government subscribe to one of the two RealBiz Shorts video libraries – the general ethics and compliance library (www.realbizshorts.com) or the Life Sciences library (www.realbizshorts.com/lifesciences).

RealBiz Shorts has subscribing organizations from across the business world, including: Microsoft, Dow Chemical, MasterCard, Miller-Coors, The Gap, United States Steel Corporation, Best Buy, General Motors, Hershey. Additionally, RealBiz Shorts Life Sciences services numerous clients, including Allergan, Bristol-Myers Squibb, Cardinal Health, Covidien, Johnson & Johnson, Medtronic, and Roche.

More information about RealBiz Shorts is at: http://www.realbizshorts.com

BuildMyBiz.com is Paychex’s latest effort to help new and established business owners succeed

ROCHESTER, N.Y.–(BUSINESS WIRE)–Paychex was founded in 1971 as a small business with a great idea and a commitment to make it work. Fast forward 40 years and Paychex has grown to become a nationally recognized leader in providing payroll, human resource, and employee benefits solutions to small- and medium-sized businesses. In an effort to help entrepreneurs and small-business owners achieve similar success, Paychex is launching a new website, BuildMyBiz.com, that provides tools and resources for starting, growing, and managing a business.

“It is small business that will lead the economic recovery, and one of the best ways we can help them do that is to provide a one-stop shop of information and resources to help them with all aspects of their business. BuildMyBiz does just that.”

With small businesses comprising 99.7 percent of all employer firms in the U.S. and half of all private sector jobs, according to the U.S. Small Business Administration, they play a significant role in the U.S. economy.

“In today’s economic environment, it’s important for entrepreneurs to have access to the information, tools, and resources that will help them succeed,” said Martin Mucci, Paychex president and CEO. “It is small business that will lead the economic recovery, and one of the best ways we can help them do that is to provide a one-stop shop of information and resources to help them with all aspects of their business. BuildMyBiz does just that.”

BuildMyBiz gives business owners access to expert information and resources, including articles, videos, white papers, and interactive tools that are provided by Paychex and through partnerships with other best-in-class service providers such as Biz2Credit, Standard Register, and business planning software leader Palo Alto Software. The site also links to online resources from the U.S. Small Business Administration.

Paychex is introducing BuildMyBiz with a week-long grand opening event that follows the steps it takes to start a business, with each day representing a different step:

* Monday: Getting Started – Creating a Business Plan and Finding Funding
* Tuesday: Business Tax Implications
* Wednesday: Life Cycle of Business Insurance
* Thursday: Develop and Sell Your Products
* Friday: Hiring and Managing Employees

New resources will be made available throughout the week, including: podcasts with industry experts, blueprints on creating a business plan and obtaining business insurance; white papers on improving employee performance and better employee management; and web seminars on what every business should know about 401(k) plans and navigating health insurance options. In addition, visitors to the site can take advantage of limited-time offers from Standard Register for half-off printing and from Biz2Credit for a free consultation with a loan specialist, half off an Equifax credit report, and free access to its BizAnalyzer tool.

While Paychex and its partners strive to provide tools and resources, it will be the interaction with the entrepreneur and small business owner community that proves most beneficial. Whether it’s through the comment function on BuildMyBiz.com or through social media channels such as the BuildMyBiz Facebook page and Twitter account, this dialogue with small business owners will help Paychex provide up-to-date, relevant information.

For more information about the creation of BuildMyBiz.com, check out Paychex CEO Martin Mucci’s welcome message, available on blog.BuildMyBiz.com.

About Paychex

Paychex, Inc. (NASDAQ:PAYX) is a leading provider of payroll, human resource, and benefits outsourcing solutions for small- to medium-sized businesses. The company offers comprehensive payroll services, including payroll processing, payroll tax administration, and employee pay services, including direct deposit, check signing, and Readychex®. Human resource services include 401(k) plan recordkeeping, section 125 plans, a professional employer organization, time and attendance solutions, and other administrative services for business. A variety of business insurance products, including group health and workers’ compensation, are made available through Paychex Insurance Agency, Inc. Paychex was founded in 1971. With headquarters in Rochester, New York, the company has more than 100 offices serving approximately 564,000 payroll clients nationwide as of May 31, 2011. For more information about Paychex and our products, visit www.paychex.com.

About Biz2Credit

Founded in 2007, Biz2Credit is a leading credit marketplace connecting small- and medium-sized businesses with lenders, service providers, and complimentary business tools. The company matches borrowers to financial institutions based on business’ unique profile — completed in less than four minutes — in a safe, efficient, price-transparent environment. Biz2Credit’s network consists of 6 million users, 450+ lenders, credit rating agencies such as D&B and Equifax, and small business service providers including CPAs and lawyers. Having secured more than $500 million in funding throughout the U.S., Biz2Credit is widely recognized as the #1 credit resource for small businesses.

CHICAGO, Dec. 9, 2011 /PRNewswire-USNewswire/ — It’s the season for making a list and checking it twice, but a holiday to-do list isn’t the only one you should be working on before the year ends. Be your own Santa and write up a list of money moves you can make now that will be a gift to yourself come tax time. Take a look at these year-end tax tips from the Illinois CPA Society to see what works best for your financial situation.

Make Charitable Donations – You can deduct donations on your 2011 return if you itemize your tax return. Keep good records. Monetary gifts, the value of materials or food donations, and even the out of pocket expenses you incur while volunteering, such as gas and travel costs, can all be deducted. You can also deduct the fair value of any clothing or household items in good condition that you donate. If you are donating inherited items or furniture, an appraisal may be helpful to determine value. With any donations, make sure to get receipts for documentation.

Consider Energy Saving Home Improvements – If you were planning on replacing that old furnace anyway, you could save up to $150 with a qualified energy efficient unit if you do it by the end of the year. Insulation, new windows and doors, solar heaters and other items are also covered under The Nonbusiness Energy Property Credit and the Residential Energy Efficient Property Credit. Details can be found at www.IRS.gov.

Pay Bills Early – Paying certain bills in 2011 will allow you to write off a deduction earlier. For example, if you pay your January 2012 mortgage bill on or before December 31, you may deduct an extra month of interest in 2011.

Contribute to Your Retirement Plans – A contribution to your 401(k) plan is pre-tax money excluded from your income so it lowers your tax bill. It’s a good idea to contribute as much as possible to reduce the taxes you pay and to stay ahead of any possible tax reforms that may limit future contributions. For 2011, you can contribute up to $16,500 to a 401(k) plan (or $22,000 if you 50 or older).

Look Into Expiring Tax Breaks – There are several tax breaks that expire at the end of 2011 and you want to be sure you’ve made the related expense within the calendar year. These include the classroom expense deduction which allows teachers to deduct up to $250 for books, supplies and other related expenses, and a tuition deduction where up to $4,000 in tuition can be deducted. Amounts paid in 2011 for classes starting in early 2012 can qualify for a deduction on your 2011 tax return. These breaks may be reinstated, but it’s best to act now.

Working with a CPA throughout the year will keep you well-prepared to get the best return on your taxes. If you’re looking for a CPA to help you file your 2011 state and federal tax returns, use the Find a CPA directory which can be found on the Illinois CPA Society site’s homepage, www.icpas.org.

Prepaid Card Will Give New York Taxpayers a Convenient and Secure Refund Alternative to Paper Checks

by New York State Department of Taxation and Finance

ALBANY, NY (12/02/2011)(readMedia)– The New York State Department of Taxation and Finance today announced a new option taxpayers can choose to receive their State income tax refunds. Beginning next year, a prepaid card will be available as an alternative to paper checks.

The cards will be available at no cost to taxpayers, and no bank account or credit check is required to enroll. Taxpayers who choose to receive the cards can use them to conveniently and securely pay bills and make purchases online, by telephone, and at retail locations. In addition, taxpayers – including those without bank accounts – can make in-person cash withdrawals at most banks. The first cash withdrawal at a bank is free and can be used to withdraw the entire balance.

“Expanding our tax refund options to include this new prepaid card empowers New York taxpayers with a more convenient, and secure alternative to paper checks,” said New York State Taxation and Finance Commissioner Thomas H. Mattox. “The new prepaid card may be especially beneficial to taxpayers who don’t have bank accounts.”

The new prepaid card will be ready to use after being activated by the cardholder, providing taxpayers with immediate access to their New York state tax refund. In addition to ATMs, cardholders can get cash back at the point-of-sale (with PIN transactions) at most retail locations. If a card is lost or stolen, it will be replaced at no charge. Cardholders are also protected against any unauthorized or fraudulent charges.

Taxpayers will continue to have the refund options of direct deposit or paper checks.

Nov. 29, 2011, 4:08 p.m. EST
NEW YORK, Nov 29, 2011 (BUSINESS WIRE) — Fitch Ratings assigns an ‘AA-’ rating to the following Suffolk County, NY (the County) refunding serial bonds:

–$73,145,000 2011 series A;

–$17,475,000 2011 series B.

The bonds are expected to sell via negotiated sale on Dec. 7, 2011.

In addition, Fitch affirms the following ratings:

–Outstanding general obligation public improvement bonds at ‘AA-’;

–Outstanding tax anticipation notes at ‘F1+’.

The Rating Outlook is revised to Negative.

SECURITY

The bonds are general obligations of Suffolk County with a pledge of the faith and credit of the county for the payment of debt service. Unless paid from other sources, the bonds are payable from ad valorem taxes that may be levied upon all taxable real property within the county, subject to certain statutory limitations.

KEY RATING DRIVERS

WEAKENING FINANCIAL FLEXIBILITY: The county’s overall financial flexibility and cushion have weakened, reflected in a significantly lower general fund balance and a reduction in the tax stabilization reserve fund (TSRF), increasing the credit risk associated with the county’s high reliance on economically sensitive sales tax revenue.

HIGH RELIANCE ON SALES TAX REVENUES: Historically, the county’s projections of sales tax revenues, the largest general fund revenue component, have been aggressive and Fitch believes the county remains vulnerable to shortfalls in this economically sensitive revenue source.

INCREASING FIXED COSTS: While management has historically demonstrated a willingness and ability to reign in expenditure growth and address long-term budget stability, rising fixed expenditures related to employee benefits will continue to challenge the county’s ability to achieve budgetary balance and restore adequate reserve levels in the near term.

FAVORABLE SOCIOECONOMIC INDICATORS: The county benefits from a diverse and stable economy with strong economic indicators including unemployment rates that remain well below state and national averages, a growing population and high wealth levels. Additionally, economic development and expansion projects have continued at a strong pace despite recessionary pressures.

LOW DEBT BURDEN: Debt ratios are low and should remain so given continued projected growth in the tax base, manageable future capital needs and above-average debt amortization.

WHAT COULD TRIGGER A RATING ACTION

FURTHER DETERIORATION OF RESERVES: The county’s inability to stabilize financial operations and prevent a further decline in reserves beyond current expectations will be vital to maintaining the existing rating level.

INABILITY TO RESTORE STRUCTUAL BALANCE: The county’s inability to restore structural balance through reliable and recurring revenue sources and lower expenditures, including the implementation of the 2012 budget reductions, will have a negative impact on the county’s credit profile and may lead to a rating downgrade.

CREDIT PROFILE

DIVERSE EMPLOYMENT BASE

Encompassing the eastern two-thirds of Long Island, the county benefits from its proximity to New York City, as well as its own broad employment base and positive socioeconomic indicators. As of the 2010 Census, the county’s population totaled 1.5 million, an increase of 5.2% since 2000. The economy is stable and diverse and home to numerous corporate and regional headquarters. Unemployment rates have historically been below state and national levels. In September 2011 the county recorded an unemployment rate of 7.0%, compared to state and national rates of 7.8% and 8.8%, respectively. Despite the recession, economic development has continued at a relatively strong pace, with several major development and expansion projects in various stages of completion.

LARGE STABLE TAX BASE BENEFITS FROM AFFLUENT POPULATION

The county’s tax base has grown significantly since the beginning of the decade and continues to grow, albeit at a slower rate of 2.6% in 2010. The tax base is diverse with the top 10 taxpayers comprising a small 5% of market value. Total property tax collections in 2010 remained strong and in line with prior year collection rates at about 99%. The county is affluent, with median household income and per capita income well above state and national averages.

DETERIORATING FINANCIAL POSITION

In 2010, the county’s financial position continued to deteriorate as the county used reserves to offset lower than budgeted revenues. Despite a 8.2% increase in general fund sales and use tax revenues and continued expenditure reductions, the county’s high and growing fixed costs and reliance on nonrecurring revenue sources have weakened its financial cushion. On a GAAP basis, the unreserved general fund balance totaled a negative $150 million, or negative 6.7% of spending. When the TSRF balance of $89 million is added, results improved to a negative 2.7% of spending. In 2010, the TSRF was drawn by $9.6 million to offset costs associated with a retirement incentive program. The TSRF balance has decreased from $127 million in 2008.

The negative fund balance position is mitigated to some extent by the impact of GASB 48, which requires the county to defer the approximately $206 million in proceeds received in 2008 from its tobacco settlement. If the county had not been obligated to comply with GASB 48, 2010 unreserved fund balance would have been $39 million or 1.7% of spending before consideration of the TSRF.

CONTINUED USE OF TSRF IN 2011

For 2011 the county projects an operating shortfall of $69.5 million as a result of lower property taxes, the postponement of the sale of the county nursing home, the state’s non-approval of additional red light cameras, increased pension costs, and higher social service and snow removal expenses. Additionally, while sales tax revenues are up 2.5% through October versus 2010, the county will need over 4% growth for the rest of the year to make budget.

There are no property tax increases, furlough days, or layoff in the current budget. Rather, the county’s steps to offset the 2011 shortfall include cutting countywide expenses by 10% in February 2011, reducing contracts related to healthcare centers to offset state reductions, delaying hiring the new police class, and continued adherence to a strict hiring policy. In addition, the county budgeted the use of non-recurring revenues including a $39 million transfer from the TSRF.

2012 BUDGET INCLUDES RECURRING REVENUES AND REDUCED EXPENDITURES

The county’s 2012 budget includes recurring revenues from increased taxes and county fees and expenditure savings from the consolidation of healthcare operations and service cuts, charge back of out of county community college tuition to the towns, consolidation of county departments and the elimination of 88 non essential positions. On a non-recurring basis, the county will amortize $45 million of the 2011 pension payment due in February 2012, lowering the payment but increasing future years’ costs. A transfer of $10.6 million from the TSRF to the Retirement Contribution Reserve Fund will be used to pay state retirement costs, something Fitch views as weaker than funding through operations. The TSRF balance is projected to remain stable at $50 million at the end of 2012.

COUNTY EXECUTIVE BUDGET VS. LEGISLATURE BUDGET

The budget adopted by the legislature differs from the county executive’s recommended budget primarily in the areas of the timing of 464 county layoffs and the plans for the county owned John J. Foley Skilled Nursing Facility. The county executive proposed county layoffs and the closing of the nursing home as early as the end of 2011; the legislative budget will extend the timing of these two items by six months.

Since there has not been forward progress in terms of negotiating healthcare concessions with the bargaining units, the additional six months will allow time for the new county executive, elected in November 2011, to negotiate and formalize an agreement to avoid the layoffs. If there are no union concessions within the six month timeframe layoffs will commence.

The county executive projected the nursing facility would be closed by Dec. 31, 2011, with the license expected to sell for $2.5 million and the building and equipment for approximately $30 million. The six month extension will give the legislature time for due diligence and cost analysis of the several RFPs that were recently received and also consider a public/private partnership.

The funding for the six month extension will be provided by recurring revenues of $18 million (increase in taxes of $12.4 million and increase in various county fees) and expenditure cuts of $8.1 million (consolidation of departments and functions and abolishment of 88 non-essential positions). Fitch views these recurring solutions as a credit positive.

The adopted budget also includes additional revenues from the securitization of 25% of the remaining tobacco revenues of which $17.1 million will be used to defease general fund debt service in 2012.

REDUCED FINANCIAL FLEXIBILITY

While Fitch expects the county to continue to reduce expenditures, financial flexibility has been significantly reduced as a result of the use of TSRF reserves. Fitch believes the county will remain vulnerable to volatility in sales tax receipts. Historically, the county has over budgeted sales tax revenues; the 2012 budget includes revenues of $1.2 billion from sales tax, a $46.3 million or almost 4% increase over 2011 estimates. Fitch considers the county’s ability to restore structural balance through recurring revenues and/or expenditure reductions and prevent a further decline in the balance of either the general fund or the TSRF to be essential to maintaining the rating at the current level.

LOW DEBT LEVELS

The county’s overall debt burden is low at 1.9% of market value (although moderate when measured against population at $3,444) and should remain low given the county’s growing tax base, manageable capital needs, and above-average principal amortization. Debt service represents a manageable 5.8% of general fund spending. In December 2011 and January 2012, the county plans to issue an aggregate $400 million in tax anticipation notes (TANs) in anticipation of the receipt of real property taxes levied for fiscal 2012. Short-term borrowing is in line with historical norms. Total TAN borrowing represents a high 29% of total general fund revenues.

In addition, in spring 2012, the county anticipates issuing approximately $33 million of serial bonds for general capital purposes and $17 million in sewer bonds. The three-year capital improvement program (CIP) 2012 – 2014 totals $418 million, down $155 million from the prior CIP. Debt amortization is above average with 64% of principal retired within 10 years.

INCREASING PENSION OBLIGATIONS

The county’s annual required contribution to the state’s retirement system increased significantly in 2010, totaling $136 million or 6.6% of total expenditures, up from $94.4 million, or 4.8% in 2009.

As of Dec. 31, 2010, the unfunded actuarial accrued liability for other post employment benefits (OPEB) was $3.9 billion, or a modest 1.4% of market value. This amount is expected to increase, as the county plans to continue to fund its OPEB liability on a pay-go basis.

CURRENT BOND ISSUE

The series 2011 A and B refunding bonds are being issued to refund all or a portion of outstanding principal on the county’s public improvement bonds 2001 series A, 2002 series A, 2002 series A refunding, 2002 series B, 2003 series A, 2003 series B, and 2004 series A, and will result in a present value of savings to the county of approximately $3 million in 2012.

Additional information is available at ‘ www.fitchratings.com ‘. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

In addition to the sources of information identified in the Tax-Supported Rating Criteria, this action was additionally informed by information from Creditscope, University Financial Associates, S&P/Case-Shiller Home Price Index, IHS Global Insight, Zillow.com and, National Association of Realtors.

Applicable Criteria and Related Research:

–’Tax-Supported Rating Criteria’ (Aug. 15, 2011);

–’U.S. Local Government Tax-Supported Rating Criteria’ (Aug. 15, 2011).

Applicable Criteria and Related Research:

Tax-Supported Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=648898

U.S. Local Government Tax-Supported Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=648842

Affected Taxpayers, Tax Preparers and Relief Workers In 13 Counties Declared Disaster Emergencies Among Those Provided Extra Time To Pay and File Taxes

by New York State Department of Taxation and Finance

ALBANY, NY (10/31/2011)(readMedia)– The New York State Department of Taxation and Finance announced the extension of certain tax filing and payment deadlines for affected taxpayers, tax preparers and relief workers in counties that were declared disaster emergencies by Governor Andrew M. Cuomo.

The deadlines for most filings and certain tax payments that were due on or after October 29, 2011 have been extended to November 16, 2011. The extension includes quarterly Withholding Tax returns, the Metropolitan Commuter Transportation Mobility Tax (MCTMT) returns, and Highway Use Tax returns all of which were due on October 31, 2011. There are no extensions for Withholding Tax payments made using forms NYS-1 or the PrompTax system. There are also no extensions for MCTMT payments made through the PrompTax system.

Eligible counties are as follows: Albany, Columbia, Delaware, Dutchess, Greene, Orange, Putnam, Rensselaer, Richmond, Rockland, Sullivan, Ulster and Westchester.

“I hope this extension will provide some measure of relief to taxpayers experiencing hardship as a consequence of the extreme weather,” said Commissioner Thomas H. Mattox. “We recognize that some taxpayers and business owners may be experiencing power outages or other obstacles that prevent them from timely filing returns.”

For more information, taxpayers and tax preparers should visit <www.tax.ny.gov>. Phone calls may be directed as follows:

Forms and Instructions: 518.457.5431

Withholding Tax: 518.485.6654

Miscellaneous Business Tax: 518.457.5735

Plan Set for $7M Economic Development Aid for Storm-Tossed Businesses

by New York State Public Service Commission

ALBANY, NY (10/19/2011)(readMedia)– The New York State Public Service Commission (Commission) today announced approval of a petition submitted by New York State Electric & Gas Corporation (NYSEG) for three new economic development programs to provide up to $7 million in immediate assistance to qualifying customers in its service territory affected by Hurricane Irene and Tropical Storm Lee.

“Many customers within NYSEG’s service territory are recovering from the effects of Hurricane Irene and Tropical Storm Lee,” said Commission Chairman Garry Brown. “Record flooding has caused severe damage to many communities. In many areas, the electric and gas infrastructure, along with buildings and equipment necessary to operate certain businesses, have been destroyed. These programs will provide timely and meaningful assistance to customers and communities located in designated disaster areas within NYSEG’s service territory.”

The specific programs approved by the Commission are as follows:

* The Emergency Community/Municipality Assistance Program will provide funding to offset costs incurred by communities/municipalities for repair and replacement of customer owned gas and electric infrastructure. Grant awards are limited to one per community, and not to exceed $100,000.

* The Emergency Building Redevelopment/Revitalization Assistance Program will provide funding to offset costs incurred by commercial/industrial/larger farms agri-type businesses including food processing companies and large residential type establishment such as nursing homes, apartment complexes and multi-family units. This includes retail and mixed-use development facilities and educational/medical institutions. Grant awards are not to exceed $200,000.

* The Emergency Agriculture Assistance Program will provide funding to smaller farms and agri-type businesses to offset costs incurred for repair and replacement of customer-owned gas and electric infrastructure. Grant awards are not to exceed $50,000.

These emergency programs are designed to provide customers and communities with quick and immediate access to all available resources for the repairs and rebuilding necessary after the devastating effect of Hurricane Irene and Tropical Storm Lee. With the approval of these programs, communities and commercial businesses are encouraged to formulate their plans for projects to recover from the extraordinary damages caused by these storms as soon as possible.

The Commission order in this matter, when available, can be accessed on the Department’s www.dps.state.ny.us Web site by searching for Case 11-E-0559.