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Lewes, Delaware
Jim's Towing Service
February 28, 1997     Cape Gazette
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February 28, 1997

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CAPE GAZETTE, Friday, February 28- March 6, 1997 - 39 BUSINESS & REAL ESTATE Bad Hair Day relocates in Rehoboth, adds day spa c lien tBY oJ00BEad/J/00?w;h wi i i lCL00 a lmea0nPya rdc 00fin t o fr ,t he soon have the chance to escape into a peaceful, quiet and tranquil atmosphere. The Rehoboth Beach salon, which has been located at 419 Rehoboth Ave. for the past several years, has re-located to 45 Lake Ave. The move means much more than a new address, though. The Lake Ave. site, which is four times bigger than the previous location, will also be home to Rehoboth Beach's first day spa. The new, larger Bad Hair Day and Day Spa Etc. is set to open Tues- day, March 4. Drexel Davison, owner of Bad Hair Day, said be's very excited about the opening, and looks for- ward to offering the expanded ser- vices. He said he feels the addi- tion of relaxation treatments will fill a niche for Rehoboth Beach locals and visitors. The three-story Lake Ave. building, formerly home to Once Upon a Time and The Eagle gift shops, will house a vast assort- ment of relaxation treatments. The new location offers "a dif- ferent feeling," said Davison. He well as black leathe counters mixed with hardwood detailing. "We're keeping t[ and integrity of the said, "while throwing fun." Davison also nc chosen only natural decor. The existing servio includes hair, skin at will be expanded to in ation treatments such therapy, reflexology and relaxation classes expansion, Davison sa and day spa will alsq professionals to its sta ly, Bad Hair Day em] r sofas and the existing e character place," he in a spot of ted that be's bers for the ; list, which d nail care, flude relax- as massage and yoga With the d the salon p add more 'f. Current- )loys seven stylists, two nail technicians and an esthetician. The ew day spa location will employ ten stylists, three nail technicians, three masseuses, a refleXologist, a make-up artist, a yoga instructor and two estheticians, i While the groundl level will include hair, make-ul, and color stations, the upper level features a massage room and a client cafete- ria complete with a election of Jen Elllngsworth photo Drexel Davison, owner of Bad Hair Day and Day Spa Etc., stands outside the salon's new location at 45 Lake Ave. The new site is set to open Tuesday, March 4. organic foods and juices. Clients "Clients can go up and put on a will be beneficial in a variety of may also examine books or watch robe, and enjoy lunch and a mas- ways. He said the new centrally video tapes from the self-help sage by fireplace," said Davison. located Bad Hair Day will be library which is included. He said he thinks the new site Continued on page 40 More small companies, are offering retirement plans To attract and retain the best accomplish each: with 1 O0 or fewer employees, you can determine each year how permit key executives to defer an employees in today's tight employment market, smaller com- panies are looking to offer better benefits packages, including retirement plans. Among all plans being implemented, one of the most popular is the 401 (k) plan. In 1996, 11 percent of companies with five to 50 employees offered a 401(k) plan, while 25 percent of companies with 50 to 100 workers offered this retirement plan option, according to Access Research, Inc., a Windsor, Conn. benefit consulting firm. By the year 2000, Access Research expects that 16 percent of the smallest companies (five to 50 employees) and almost a third (32 percent) of companies with 50 to 100 workers will offer a 401(k) plan. If you're considering adding a retirement plan to your benefits package, you may already know that choosing among the numer- ous types of plans can be difficult. The type of plan you choose should relate closely to your com- pany's goals, whether that means low cost, ease and convenience, or the opportunity for you and your employees to invest the most you can towards your retirement. Retirement Plan Objectives. Let's take a look at some of the most common objectives small business owners have for offering retirement plans, and suggest a type of plan that might help to You want to provide attractive benefits for your em doyees, but need to minimize pal:erwork and costs. A Simplified Pension (SEP) pie employer and/or empl butions to Individual Accounts maintain employees, up to 15 Employee n permits )yee contri- Retirement :d by your percent of compensation, or $4,000 for 1997. SEPs offer the lax benefits of a qualified plan - en)ployer con- tributions are tax deductible and plan assets grow tax-deferred until withdrawn - without!the annual reporting requiremeOts of most retirement plans. | You want a convenient plan and would like to make company contributions to your mployees' accounts. SavingIncentive Match Plans for Emplgyees (SIM- PLE) are available fo, employers FINANCIAL They can be funded either through Individual Retirement Accounts for each employee or as a 401(k) plan. They are free of certain com- plex nondiscrimination rules and testing requirements, as long as you either match employee elec- tive contributions of 2 percent of each eligible employee's compen- sation, up to $160,000. (If you fund the SIMPLE plan through IRAs, a lower match may be elect- ed under certain circumstances.) SIMPLE plan participants can contribute an elective deferral of up to $6,000 for 1997. Combined with a matching employer contri- bution of $6,000, the maximum combined annual contributions allowable for each employee is $12,000 for 1997. Mandatory employer contributions are based on actuarial assumptions, com- pensation, age and years of ser- vice. Your company is young and has unpredictable cash flow, so you want to maximize company contributions. Defined contribu- tion plans such as a 401(k) plan offer more flexibility than defined benefit plans. Contributions are generally made as a percentage of compensation; participants' bene- fits are based on the amount con- tributed and the performance of investments. One type of defined contribution plan - a profit sharing plan - can provide you with maxi- mum funding flexibility, because much you want to contribute or whether you want to contribute at all. Profit sharing plans allow a maximum annual deductible con- tribution for each eligible employ- ee of 15 percent of eligible com- pensation. You can contribute a higher amount and receive greater tax deductions through a money purchase plan, in which the maxi- mum annual deductible contribu- tion is 25 percent of eligible com- pensation. Unlike profit sharing plans, however, employers are required to make fixed contribu- tions every year to a money pur- chase pension plan. You need contribution flexi- bility, but would like to maximize your company's tax-deductible contributions. You can maintain two plans - a money purchase plan with a 10 percent contribution rate and a profit sharing plan with a discretionary contribution rate of up to 15 percent. In this way, your business can contribute up to 25 percent of eligible compensation in profitable years (the maximum allowable percentage in a combi- nation of these two plans), but is only obligated to make the money purchase pension plan contribu- tion each year. You want to selectively reward key employees. A non- qualified deferred compensation plan augments the benefits of a qualified retirement plan. It can unlimited amount of compensa- tion until a specified date. Plan assets can grow tax-deferred until they are distributed. Combined Plan Limits Repealed After 1999. If you cur- rently offer a retirement plan, now is-a good time to determine whether switching to another type of plan might benefit you and your employees. Under current law, an overall limit on benefits and con- tributions is applied for employees who participate in both a defined benefit plan and a defined contri- bution plan. This overall limit has been repealed, effective for plan years beginning after Dec. 31, !999. The repeal of the overall limits on contributions to and ben- efits from defined benefit and defined contribution plans could allow participants, including your- self, to increase retirement plan contributions. Choosing is the First Step. Employers offer retirement plans for different reasons. Your first step in choosing a plan is to decide why you want a retirement plan and what you hope to accomplish by offering one. Your financial consultant can help you identify your goals and learn about retire- ment plans that may be available for your business. Dan Tidwell is a vice president with Merrill Lynch's Rehoboth Beach office.