WGSF Newswire:  TRENDING: EMPLOYERS WITHOUT WORKERS COMPENSATION INSURANCE By: Michael E. Fiffik, Esquire We’re seeing a rash of employers without workers compensation insurance. Of course, these come to our attention because one of their employees suffered a work injury. Dealing with the cost and expense of a workplace injury can be devastating to both the employer and employee. If you are a new or start up business, or are expanding your current business operation to include employees, it is important to know that by state law you will be required to have workers’ compensation insurance coverage. Coverage ensures medical and wage-loss benefits to employees who are injured during the course of their job. Employers who so provide coverage are protected against lawsuits filed by injured workers. The requirement to insure workers’ compensation liability is mandatory for any employer who: • employs at least one employee who could be injured or develop a work-related disease in this state, or • could be injured outside the state if the employment is principally localized in Pennsylvania, or • could be injured outside the state, while under a contract of hire made in Pennsylvania, if the employment is not principally localized in any state, if the employment is principally localized in a state whose workers’ compensation laws do not apply, or the employment is outside the United States and Canada. UNLESS all employees are excluded from the provisions of Pennsylvania’s workers’ compensation laws. Section 305 of the Pennsylvania Workers’ Compensation Act specifies that an employer’s failure to insure its workers’ compensation liability is a criminal offense for the business owner personally and classifies each day’s violation as a separate offense, either a third-degree misdemeanor or, if intentional, a third-degree felony. Last year alone, employers convicted of non-compliance with the insurance requirement were sentenced to an average of four years’ probation and paid an average restitution to the State of $88,000. Employers are required by law to post, in a prominent and easily accessible place, at its primary place of business and at its sites of employment, a notice containing the name, address and telephone number of the appropriate party to address regarding workers’ compensation claims or to request information. Welch, Gold, Siegel & Fiffik, P.C. has attorneys with many years’ experience assisting employers with employer-related matters, including defense of workers compensation claims. Please contact Michael E. Fiffik, Esquire (mfiffik@wgsf-law.com), Deirdre Burke Moser, Esquire (dmoser@wgsf-law.com) or Matt Bole, Esquire (mbole@wgsf-law.com) via email or call 412.391.1014 to discuss your situation.

WGSF Newswire:   You choose: Questions To Ask When Selecting A Title Services Company By: Michael E. Fiffik, Esquire The Federal Real Estate Settlement Procedures Act (RESPA) allows homebuyers to choose their own title company, yet the title and closing process is bewildering to the average consumer. Even though homebuyers spend 2 to 7 percent of the cost of their home on closing costs, most are not clear about what closing costs include, who they are hiring, how much they are spending, or even why. On a $150,000 home, that’s between $3,000 and $10,500 – big money! Don’t just go with a title company that you don’t know. Real Estate agents often try to help their clients by referring homebuyers to a title company, but consumers are ultimately responsible for selecting a title insurance provider. Keep in mind, also, that there is more to selecting a title insurance provider than price alone. The quality and type of services provided by the title and closing company can make the difference between a smooth transaction and one that never makes it to the closing table. Homebuyers will want to ask the following questions of any title insurance company before agreeing to use their services: 1. Who is your client? The answer you are looking for is “you”. However, the answer usually depends on who referred the title company to you. If it was your lender, the title company will probably tell you that they represent the lender. If the title company was referred to you by your real estate agent, the answer might be the real estate agency – probably because the title company is OWNED by the real estate agency and therefore has a vested interest in closing your purchase because that’s the only way the agency earns a fee. These arrangements are legal if properly structured and disclosed. The consumer, however, is often best protected when there is no conflict of interest or financial incentive for the referral of title business. In our experience, title companies who are owned by real estate agencies are less willing to take tougher stands on certain title or closing issues (such as the real estate agencies fees) because they don’t want to derail the closing. You’re paying a lot of money for the home – you should get clear title and a closing that is to your advantage. Welch, Gold, Siegel & Fiffik, P.C. provides title services and can help you successfully close on any purchase of real estate. 2. Do you conduct thorough title searches and disclose the results to the homebuyer? Will you discuss them with the homebuyer? We can’t over-emphasize the importance of this question. It’s huge. 1 out of 4 transactions has a cloud on title at the time of the commitment. It’s imperative that homebuyers work with title companies who take the necessary steps to identify, disclose, and resolve all issues prior to closing. The American Land Title Association (ALTA), leading industry group, has identified best practices in the industry. They stressed the importance of an accurate search and solid title product (the commitment and policy). And they also spoke harshly about the growing practice by some title companies of providing “garbage exceptions,” overly broad exceptions without reference to the public records that are voiding coverage. The problem is that whether a title search has been done and the specific results of the examination of the results of that title search is not customarily disclosed to homebuyers. Most homebuyers do not understand title issues and therefore do not think to ask about it. They simply assume these are being done and unless they hear something to the contrary, the title must be “ok”. If you were about to purchase a property with a 30-foot easement along one side of your property, would you expect to know about it prior to closing? Some title companies are in fact providing commitments that do not specifically disclose encumbrances like these. As attorneys looking out for our clients’ best interests, we routinely discuss the results of our examination of the title to the property. We DO NOT accept title commitments that simply list “any and all documents of record” and “any and all easements of record” on the exceptions page. Don’t work with a title company that does not meet those best-practice standards. Some title companies exist only to capture the referral fee from the transaction; others hope to sell policies and pocket the premiums from the transaction rather than perform a thorough search and examination of the property. 3. Is my money safe? The way a title company handles its escrow funds is of utmost importance. The news stories you read are true: People do lose money as a result of incompetent, insolvent, or dishonest title and escrow companies. What internal controls, procedures, and segregation of duties do the title companies have in place to safeguard buyers’ and sellers’ funds? What procedures do they use to balance escrows? Do you know enough about this company to wire $150,000 of your own money to this company? A reputable title company will be happy to talk about their controls for protecting clients’ funds—after all, it’s their business. Welch, Gold, Siegel & Fiffik’s escrow funds are governed and protected by the Pennsylvania Lawyers Fund for Client Security. 4. Are your rates approved by the PA Department of Insurance? And, in addition to the premium you quoted me, what are your other fees and charges? Title insurance companies by law are required to file rates with the Department of Insurance and cannot discount or deviate from those rates. Buyers may be inclined to find and follow the lowest rate, but if a title insurance premium is notably lower than the market rate, this should be a red flag to look more closely at whether the company is providing customary core title and closing services. Additionally, cut-rate premiums may indicate a lack of experience, a lack of financial and accounting controls, inferior title searches and examinations, or a substandard source for property data. Shopping for the lowest premium alone can also backfire, since many title companies more than make up the difference by charging additional fees. Electronic delivery fee, overnight courier fees, cashier’s check fees, release tracking fees, wire fees, and other title company charges often add up to more than the difference between the lower premium and the market rate charged by reputable title companies. Our real estate services group consists of Deirdre Burke Moser, Esquire (dmoser@wgsf-law.com) and Michael E. Fiffik, Esquire (mfiffik@wgsf-law.com). Reach them at 412.391.1014.

WGSF Newswire:  Protect Against Employee Litigation By:  Michael E. Fiffik, Esquire Employment-related claims are increasing at a dramatic rate. More than 40,000 employment lawsuits are filed each year and well over half of them are employment discrimination complaints. In addition to these suits, the Equal Employment Opportunity Commissions (EEOC) processes over 82,000 administrative charges of disability, race, national origin, sex and other forms of discrimination annually. Here is some practical advice to protect against employee litigation. DEFINE WORK EXPECTATIONS When an employee is terminated, it should come as no surprise. Your expectations of any employee should be thought out in advance and communicated to the employee, preferably in writing. Employees must know how success will be defined and how they are doing. Spend time at least annually reviewing the employee’s performance and giving feedback. Write down the results of those meetings and have the employee acknowledge receipt of your evaluation of their performance and improvement goals. Although a small-business owner is not legally obligated to take and document progressive disciplinary measures, it is a good practice regardless of company size. In the event of a lawsuit filed by the employee, this documentation will be important evidence to substantiate the reasons for the employee’s termination or lack of promotion. TERMINATE WITH CARE At the moment of termination, an employee can feel either inflamed or treated fairly. To help ensure a less combustible situation, deliver the message face to face but keep it brief. Resist the temptation to get into a detailed discussion of the reasons for the termination. If you do not intend to contest the employee’s claim for unemployment compensation, let them know that at the time of firing. Consider offering terminated employees a severance amount that would “smooth things over” and require them to sign a release of claims to collect it. CONSIDER LIABILITY INSURANCE Premiums and deductibles are not cheap, but neither is defending a lawsuit. Defending even a simple employment claim could cost at least $20,000 and one that is more complex over $100,000. It is also crucial for small-business owners to negotiate with their underwriters for the right to select their lawyer, and for a requirement that the insurance company get the owner’s consent before settling. It is also important to seek a per-claim, not per-claimant, deductible. FOLLOW THE LETTER OF THE LAW You need not do anything wrong to be sued. But when you are facing a lawsuit, it helps to be able to prove you have done everything by the book. This includes posting all labor- and employment-related materials in the workplace that are required by state and federal governments. Employers should draft employee handbooks with assistance from a trusted employment lawyer and make sure employees sign any handbook updates. GET SERIOUS ABOUT TRAINING Even if you have only 10 employees, you should consider sponsoring regular training courses on discrimination and other workplace issues. You’ll learn a lot and hopefully your managers and employees will learn what behavior is to be avoided. The experience of our business lawyers is perhaps most effectively used by clients to avoid or minimize the risk of litigation. Our attorneys can assess risks, help you comply with complex employment laws, develop employment policies and practices and provide training to supervisory personnel. You can find more information about the services that we provide to businesses at www.wgsf-law.com. Mr. Fiffik leads the business practice of Welch, Gold, Siegel & Fiffik, P.C. He can be reached at 412.391.1014 or at mfiffik@wgsf-law.com.

WGSF Newswire:  5 Payroll Tax Mistakes to Avoid If you have at least one employee, you’re responsible for payroll taxes. These include withholding federal (and, where appropriate, state) income taxes and FICA tax from employees’ wages as well as paying the employer share of FICA tax and federal and state unemployment taxes. The responsibility is great and the penalties for missteps make it essential that you do things right. 1. Misclassifying workers Audits by federal and state wage labor regulators have been on the rise in recent years. Perhaps the hottest audit issue today is misclassifying workers. There’s incentive to treat workers as independent contractors rather than employees because payroll taxes and employee benefit costs are high; a company’s only tax responsibility for an independent is issuing a Form 1099-MISC if payments in the year are $600 or more. You don’t have the right to label a worker as an independent contractor; classification depends on whether you have sufficient control over the worker. This essentially means having the right to say when, where, and how the work gets done. Having an independent contractor agreement is helpful in showing that you and the worker do not intend any employer-employee relationships, but the ultimate decision is up to the Department of Labor and IRS. Too many employers place unreasonable reliance on independent contractor agreements. Find information about worker classification from the IRS. When in doubt, consult one of our business attorneys. 2. Not using an accountable plan for employee reimbursements If you normally pay for travel, entertainment, tools or other business costs for employees, you’re wasting employment tax dollars if you don’t use an accountable plan. With this arrangement, you deduct the expenses but avoid all payroll taxes on reimbursements; employees do not have any income from reimbursements. To be an accountable plan, the employer must formalize the arrangement and set reasonable times for action (the following times are reasonable to the IRS but you can adopt shorter time limits for action): • The reimbursable expense must be business related. • Advances cannot be made before 30 days of the expense. • Employees must account for the expenses within 60 days of the expense. • Employees must return excess reimbursements to the employer within 120 days of the expense. 3. Failing to keep payroll records You are required to maintain payroll records and have them available for IRS and Department of Labor inspection. These include time sheets, expense accounts, copies of W-2s and other payroll records. Usually, you should keep information for at least four years. In the event of a tax or wage audit, these records are in valuable asset that you can use to defend yourself. You should also retain copies of Forms I-9 , which shows an employee’s eligibility to work in the U.S. States may also have certain hiring forms that should be retained (e.g., E-verify forms). Details about retaining I-9s can be found at the U.S. Citizenship and Immigration Department. 4. Choosing to pay creditors before the IRS When a business gets into a cash crush, it may be tempting to pay the landlord, vendor, or utility company before the IRS and Department of Revenue; don’t! As a business owner, you are a “responsible person” who remains 100% personally liable for “trust fund” taxes (amounts withheld from employees’ wages). This is so even if your business is incorporated or is a limited liability company. Best strategy: Set aside cash to cover payroll taxes so you won’t use these funds for any other purpose. Find more information about the trust fund recovery penalty from the IRS. 5. Failing to monitor payroll company activities Many small businesses use outside payroll companies to handle the job of figuring withholding as well as transferring funds to the U.S. Treasury and Department of Revenue to cover payroll taxes. However, some of these companies may not do their job, by error or intentionally. As an employer, even if you use an outside payroll company you remain responsible for payroll taxes. Best protection: Monitor your tax account to see that funds are being deposited on time and in the correct amount. If deposits are made electronically using EFTPS.gov, you can easily see activities in your account. Conclusion Stay on top of your employer responsibilities to avoid any penalties or entanglements with the IRS, the Department of Labor, or your state’s agencies.

WGSF Newswire: 10 Steps to Buying a Home These days, buying a home may not be as easy as 1, 2, 3—but it just might be as easy as 1–10. And while a variety of factors can affect the ease and timing of your transaction – distressed properties or special mortgage programs, for instance – a few basic steps are universal for most homebuyers during the initial stages of a purchase. 1. Determine your readiness: If you’re reading this, it’s likely that you’ve already tackled the first step of deciding whether purchasing is a good option for your finances and your family. Obviously, your current financial situation will be a major factor in this decision. Understanding the costs of home buying and homeownership are vital steps in determining whether you’re ready to “take the plunge.” Factors that determine your financial readiness include your current income, savings, fixed expenses, and debts. 2. Become optimal mortgage candidates: With lender requirements stricter than ever, you’ll need to make sure your credit and finances are in excellent condition. Try to pay off or pay down outstanding balances on credit cards, car loans, etc. This will help improve your income-to-debt ratio, which will in turn improve your credit score. A credit score higher than 700 will help you get the best rates. We can help you order a free credit report and challenge questionable listing on your credit report under the Consultation and Letter writing benefits of your membership for no extra charge. 3. Get a pre-approval letter: Getting pre-approved for a mortgage means that a loan officer has reviewed your finances and credit report and believes you qualify for a specific loan amount for one or more mortgage programs. The lender will then offer you a pre-approval letter, which will give you an edge with sellers when you are ready to make an offer on a home. 4. Determine your budget: Your pre-approval letter will tell you how much the bank is willing to lend you based on your credit, income, and other factors, but how much you can really afford is a personal decision. The bank will take your fixed expenses into consideration when determining your pre-approval amount, but you will need to determine what you’re comfortable spending each month. 5. Find a real estate agent: With access to multiple listing services and insight into the market, a real estate agent can help you find the home you’re looking for as well as facilitate the negotiating and closing process. While you don’t have to use an agent to purchase a home, it can make the entire process much easier for first-time homebuyers. 6. Select a property: With your real estate agent (or without), narrow available properties by determining what you really want in a home. Your agent will help arrange home viewings for properties that suit your preferences. Once you’ve selected the right home for you and your family, it’s time to make an offer and close the transaction. 7. Make an offer: This is generally done by presenting the seller with a proposed sales contract, or purchase agreement. This contract will outline the details of the sale, negotiated repairs to be made prior to close, fixtures sold with the house, certain disclosures on the property, etc. This, along with a payment of earnest money, will be held by your attorney or escrow officer, depending on your geographic customs. Time permitting, send us your written offer to be reviewed under the document review benefit of your LegalShield Membership, especially if you’re not working with a real estate agent. 8. Select a closing agent or title company. Real estate agents often try to help their clients by referring homebuyers to a title company, but federal law provides that consumers are ultimately responsible for selecting a title insurance provider of their choosing. Many title companies are now owned by lenders, real estate firms, and builders. These arrangements are legal if properly structured and disclosed. The consumer, however, is often best protected when there is no conflict of interest or financial incentive for the referral of title business. We recommend that you select Welch, Gold, Siegel & Fiffik as your closing agent – we will represent you and only you. 9. Inspect the home: Once your offer is accepted, it’s customary to schedule a buyer’s home inspection. This is when you have the opportunity to get a professional opinion on the condition of the home and determine any red flags (like damage, pests, structural issues, etc.). We recommend that you find a qualified inspector at either www.nahi.org or www.ashi.org. Read the inspector’s report carefully and proposed changes to the sales contract based upon the inspector’s report. 10. Close the transaction: The process of closing on a new home can require several weeks (or longer) and many steps. This is where the quality of your closing agent or title company really pays off. During the escrow period, you will work with your lender to secure your mortgage. This process will involve gathering lots of information, signing a lot of paperwork and a lengthly “to-do” list. When the requirements of your sales contract have been fulfilled and your mortgage has been approved, you will be given a final walk-through of the property to determine that all repairs were made as negotiated. On the closing date, you will sign your mortgage documents and receive the keys to your new home. WGSF can reduce the stress and anxiety that often exists when pulling together the final details of a closing and ensure that you understand everything you’re signing before you sign it.

Letters from our Members: January 27, 2012 Dear Welch, Gold, Siegel & Fiffik P.C., I wanted to send a letter of appreciation for your help in the matter of my dispute with a tax collection bureau over late penalty fees. I worked with Carol L. Rosen, Esq., who was very professional and effective in her communication with the bureau. I want to thank you for a successful resolution to this problem and all your help in settling this matter. You were great to work with, and did a terrific job. I am very proud to be a member of LegalShield. There can be so many situations today in which legal advice and help is needed. It’s very reassuring to me to know that you ar there to help when needed. Sincerely, Member from Pittsburgh, PA #legalshield #tax

Letters from our customers: August 1, 2012 Dear Welch, Gold, Siegel & Fiffik, and LegalShield Services: I phoned in and requested that I speak with Atty. Robin Allaway, who I have found to be one of the best Lawyers in your firm. She is a great listener, professiona, and very knowledgeable. In addition she has gone above and beyond to assist me with my matter, in kindness and with patience. In speaking with her she makes me feel important as a LegalShield member and as a LegalShield Associate, it makes me proud to know that we have an Attorney like Robin Allaway that is representing our members. Thank you, Member from Pittsburgh, PA #legalshield #trust

Letters from our customers: June 11, 2012 Dear Welch, Gold, Siegel & Fiffik: I have been a member for several years and have utilized the letter writing service a few times. In prior efforts to utilize the service, I will be honest, I was not always pleased. The attorneys were resistant to providing a draft of the letter prior to sending it out, and only did so with my insistence. The letters were what they wanted, and were ineffective. Each time I came away feeling I had not been treated as a valued member. I had a very different experience recently working with Atty. Lenora Randall of Welch, Gold, Siegel & Fiffik, PC. She listened attentively and was very supportive. Ms. Randall made it clea that her goal was to get the facts straight and express my thoughts about the issue within the bounds of the prevailing legal parameters. She did not hesitate to review a draft of her letter with me and to make adjustments as neccesary. Her letter was direct on the issues, concise and expressed my concerns and the outcome that I was seeking. Atty. Randall provided the type of service I had hoped to recieve in my prior encounters. I came away feeling grateful to her. Now I am hopefull, because she represents what good customer service should be, and I have reconsidered maintaining Sincerely, Member from Pittsburgh, PA #customerservice #legalshield

Letters from our customers: January 3, 2012 Dear Welch, Gold, Siegel & Fiffik, PC, Many times we find ourselves having to write complaint letters to different companies and with just reason, but there are those times we find ourselves taking the time to write letters of praise, where it deserves just reason to do so. This is one of those times for a letter of praise. There are two women lawyers that I want to write to you about who I feel go above and beyond and excel with client services. Those two women are Attorney Lenora Randall, and Attorney Belinda Lison. Time and time again they both show compassion, insight, integrity, and honesty. Rare principles in today’s world. I do not feel so much along with I have Attorney Randall on the case, or Attorney Lison on the case. Both make handling a stressful matter less stressful, and both listen to me as I assist in providing the needed documentation for them to write a compelling and successful letter on my behalf. Please let them know that they are recognized for an excellent job of skill, and compassion and that I appreciate having the honor of knowing them and working with them on my matters. Very Truly, Member from Pittsburgh, PA #customersatisfaction #legalshield

Letters from our customers: June 13, 2012 Dear Welch, Gold, Siegel & Fiffik: Your attentive document review, and recommendations to me gave me the confidence to file my appeal, and represent myself. Marsha, thank you so much for all your help, I couldn’t have done it without you. Yours Very Truly, Member from Pittsburgh, PA #help #legalshield

WGSF Newswire :Marcellus Shale 6/6/2011 A recent advance in drilling technology has propelled Pennsylvania as a potential boom region for natural gas exploration and production. More than a mile beneath an area of Appalachia covering parts of four states lays a layer of rock called the Marcellus Shale containing a mostly untapped reservoir of natural gas that could swell U.S. reserves. The shale holding the best prospects covers an area of 54,000 square miles, from upstate New York, across Pennsylvania into eastern Ohio and across most of West Virginia. In Pennsylvania, most of the prime shale real estate extends from the north-central to the southwestern part of the state. Pennsylvania, where the Marcellus Shale appears to be thickest, is the heart of the action so far. Many gas-leasing companies have been knocking on landowners’ doors and offering the dream of great profit in exchange for the right to drill. They are rifling through stacks of dusty deeds in courthouse basements to see who has underground mineral rights to the deepest gas formations. The Pennsylvania Department of Environmental Protection says that drilling permits are up about 25% since 2005 and most of the activity increase can be attributed to wells in the Marcellus. Some estimate that 1,600 wells will be drilled in 2010 alone. Leasing land to a gas company and allowing a gas well to be drilled on your property can be a risky business, however. Even though tests in a particular geographic area might indicate the presence of gas reserves, allowing a company to drill on your property is speculative, potentially dangerous and could yield nothing. The drilling process also comes with certain risks to your property and the water supply. There are many questions to be answered: What does the drilling process entail? How close to my home or well can a well be placed? What percentage of the profit is a landowner entitled to? How can I ensure I am receiving the correct amount of royalties? How can I guard against potential damage due to drilling and gas extraction? There are many potential issues you can negotiate to modify a lease. Those include signing bonus and royalty payments, restrictions on the number or location of wells that may be drilled on the property, site restoration work, protection of the water supply, liability issues and issues regarding pipeline that must be installed on the property. The negotiation of these terms may be your first exposure to an oil and gas lease. Because of the legal nature of the leasing arrangement, an inexperienced landowner may be at a disadvantage when dealing with a more experienced lessee. No landowner should give up any rights associated with their land unless they are fully informed and completely comfortable with their decision. Talk to other landowners and learn more about their experiences with exploration and production and the royalties they received. Seek legal counsel from our experienced attorneys before signing an oil and gas lease. A standard form lease offered by a gas company may not offer all that can be negotiated by an attorney experienced in protecting your interests. Disclaimer: The information contained in this message is provided for general information purposes only and is not intended to be a legal opinion, legal advice or a complete discussion of the issues related to a personal injury case. Every individual’s factual situation is different and you should seek independent legal advice from an attorney familiar with the laws of your state.

WGSF Newswire : Our Newest Addition to WGSF, P.C. July 24, 2012 We welcome Deirdre B. Moser, who became an Associate with Welch, Gold, Siegel & Fiffik, PC. Her practices include Business Law, Civil Litigation, and Real Estate transactions. Disclaimer: The information contained in this message is provided for general information purposes only and is not intended to be a legal opinion, legal advice or a complete discussion of the issues related to a personal injury case. Every individual’s factual situation is different and you should seek independent legal advice from an attorney familiar with the laws of your state.