Why go with a company like IPS…?

We provide an answer to the restrictions placed on independent professionals and the companies that use independent professionals by Section 1706 of the Internal Revenue Service tax code. Companies would rather pay us than issue a 1099 to an unknown employee. We offer medical & disability benefits at group rates, two tax-deferred pension programs (Money Purchase and 401(k), a full range of business expense reimbursements, workman's compensation, General Liability insurance ($2,000,000), a corporate overhead, and a very knowledgeable and experienced group of Personal Assistants. We file all corporate/payroll quarterly tax returns. We handle invoicing the client and tracking payments. Our service is by far the most cost efficient and elaborate. We provide an employer/employee relationship for loan or verification of employment.

How is IPS different from IPS competitors…?

We lead and the industry follows. Join the leaders. First and foremost, we understand the independent consultant; we were designed by one: ...In 1986, Michael O'Connor, President of IPS became the originator of the Professional Umbrella  Corporation concept. Being an independent himself, he decided to create a win-win situation in answer to the tax reform act and the tough restrictions it placed on companies. Michael is also the designer of the software tools used to monitor "employee profit centers". Our service provides each employee/consultant with a single point of contact for all services, your Personal Assistant is available Monday-Friday 9AM to 5PM EST. We have provided the same service for over 12 years. All services are handled in house.

Are your services open to all contract workers…?

IPS provides employment to contractors who live within the United States provided that they have a minimum billing rate of $60.00/hour and a current contract.

What is involved in H1-B Visa sponsorship…?

IPS will provide sponsorship to qualified candidates who have at least a Masters degree. Also, you need a contract with a consulting firm or client of at least 3 months.

Who sets my bill rate when I join IPS…?

YOU! The contract professional set the bill rate when you land the assignment with your client. IPS will review your contracts, and assist you in the finalization if necessary.

Who determines how much I get paid…?

You do. The contract professional determines how much you get paid. As the manager of your own business unit, you pay yourself out of your profit center's net receivable. You determine how much you allocate to business expenses, pension programs, and health insurance. We recommend that you pay yourself less when you know you'll be taking vacation or in between contracts so your benefits will always be funded. This approach to managing your profits provides a steady stream of income both while your working as well as between assignments. The only charges by IPS to your profit center is the low service fee and the employer's side of payroll taxes. The rest is yours to do with as you like.

When and how can the consultant/member expect to get paid…?

Generally we do not pay until we have received payment from the Client/consulting company. We transfer payrolls and expense reimbursements via direct deposit every Friday. The direct deposit can be transferred into more than one account. In most cases consultants are able to access the money on the following Monday.

What is a profit center…?

A profit center is an accounting term that describes a business unit held responsible for revenues earned and costs incurred in that unit. A profit center operates as if it were its own business, financially separate from other business units in the same company. You the contract professional are the manager of your own profit center. Revenues to the profit center are gross receipts from the client. Costs arise from four sources: Wages Payroll taxes Benefits Miscellaneous business expenses

Does IPS's fee include the employer's side of payroll taxes…?

Most contract employment agencies charge an overall margin that includes a fixed mark-up for the employer's share of payroll taxes. IPS does not do this. Instead, your profit center pays only the actual amount of payroll taxes based on actual wages paid to you. Reason being: if you have extensive tax-free distributions for health benefits, retirement plans and expense reimbursements then your taxable wages will be low compared to your profit centers total revenues. Your payroll taxes for Unemployment Insurance and Social Security have annual caps above which no tax is owed. The fixed mark-ups charged by some agencies don't allow for these contingencies, so they overcharge you for payroll taxes that are not owed.

What is an acceptable business expense…?

An acceptable business expense is any out of pocket expense incurred while working at a client site that directly relates to your assignment. All expenses are reviewed by your Personal Assistant and must be accompanied by required supporting documentation. A brief listing of some of the reimbursements that you may be eligible for are: Travel (public or private to and from client site, business seminar) Entertainment (business meetings, client relations, new business opportunities) Major Medical Insurance (member/employee plan or cobra coverage) Dental insurance (member/employee plan or cobra coverage) Private Income Disability Insurance Out of pocket Medical and Dental costs not covered by insurance Per Diem (temporary assignments outside of your geographical location) Equipment lease backs Phone & Database connection fees Technical and Business related publications Tuition Technical Seminars General Supplies Child care (maximum of $5,000 with both parents working)

Can a member/employee trade stocks with their Money Purchase or 401(k)...?

Yes, Our pension plans are one of the only plans in the country that allows trading stocks (NYSE, NASDAQ & AMEX). Many of the available mutual funds are no-load, and the monthly statements are clear and concise.

When are the pension plans fully vested…?

Immediately after the member/employee's first payroll. All pension funds are funded on a monthly basis into each account and are available at that time for investment. The members/employees are even able to take a loan against their pension plans. Both principle and interest (a small percentage above prime) are paid back into your account making this a better alternative to financing through a bank.

What happens to the pension plans when the member/employee resigns…?

Since it is their money they have several options: Take a lump sum disbursement (which is reduced by 20% initially for federal income taxes and possibly a 10% early withdrawal penalty depending on the circumstances). Roll the money into another qualified plan. Leave the money in the Pension Fund and continue receiving monthly statements.

How do the Federal Government and the IRS look upon IPS…?

IPS maintains strict compliance with all state governments and Internal Revenue Service rules and regulations. IPS undergoes stringent annual audits by an independent accounting firm to insure our compliance.

What do I stand to gain by joining IPS when I already have my own company…?

Some clients may be concerned with paying 1099's or individual corporations, we negate this issue. IPS provides you with medical and dental benefits at group rates. IPS provides you with two of the most aggressive pension plans available. IPS provides you with free general liability insurance of $2,000,000. In addition to $3,000,000 of umbrella excess liability coverage. IPS reports and pays all payroll/corporate taxes; therefore, you have no need for an accountant or lawyer to set up and administer your business. IPS will invoice your client and follow up on collections if necessary, resulting in quicker payment by your client. IPS administers your entire pension package [money purchase and 401(k)]. One point of contact - your own personal assistant.

Can I take an assignment through a recruiting firm or a broker…?

Absolutely, IPS places no restrictions on how you locate your assignments.

What obligation does a member/consultant have if they decide to leave IPS…?

There are no obligations other than living up to the terms of each contract you negotiate with your clients. However, IPS spends a considerable amount of time and effort setting up each member's benefit programs, pension accounts, wire transfer accounts, and creating each "Profit Center's" infrastructure within the IPS framework. When a member decides to leave IPS, medical programs must transition to COBRA payments (18 months), pension roll-overs processed, and the infrastructure shut down and terminated. In the event a member leaves IPS before the first year membership anniversary, IPS will charge their "Profit Center" a $500 shutdown fee. After a member's first membership anniversary, the shutdown fee is only $150.