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Learn about the most recent accounting and regulatory updates and their potential impact on clients, prospects and others:

  • SIMPLE Choices for Retirement Plans

    Retirement plans can be a great benefit to businesses. Beyond attraction and retention of employees, offering a retirement plan gives your business access to significant tax deductions. A SIMPLE IRA is often a good retirement plan option for small businesses. This year the deadline for setting up a SIMPLE IRA is October 1, 2018. It is important to weigh your options and decide soon if a SIMPLE IRA is the best retirement plan for your business.

  • Classification of Independent Contractors

    Using an independent contractor, rather than a traditional employee, can provide many tax advantages. For example, classifying a worker as an independent contractor removes the requirements of overtime pay, unemployment compensation, and other employee benefits. Independent contractors also free a business from payroll tax liability, as well as the task of withholding income taxes and the worker’s share of payroll taxes.

  • Mandated Reporting of Critical Audit Matters

    The Securities and Exchange Commission (SEC) has issued a revised model for public companies’ audit reports. Previously a simple pass-fail statement was sufficient to meet the SEC requirements; but in the interest of investors and stakeholders understanding of a public company’s financial reporting practice, the reporting of critical audit matters (CAMs) is becoming mandatory.

  • Is S Corp Structure Best for Your Business?

    With the new 21% flat income tax rate that applies to C corporations, it may not be as useful to use an S corp business structure as it once was. There are certainly advantages, including limited liability for owners, and no double taxation at the federal level; but, the S corp business structure may have lost advantage for your company.

  • Understanding Pay-Ratio Disclosures

    Disclosure of the ratio of CEO’s annual compensation to that of median employees is a requirement for certain public companies as of 2018. The requirement gives leeway in the calculation, allowing ratios to vary greatly even within the same industry. Because of the ambiguity of ratio disclosure, investors and public companies should use caution when evaluating companies based on ratio disclosures.

  • New Options for Accounting Method

    Recently, the eligibility rules for using the cash method of accounting have been loosened under the Tax Cuts and Jobs Act (TCJA). This change in qualifications offers many benefits, especially simplicity, to companies previously obligated to the accrual method.

  • Policy Changes for the Use of Estimates and Specialists

    Many high profile accounting scams and financial restatements have been attributed to complex accounting estimates such as impairments of long-lived assets, valuations of financial and nonfinancial assets, and allowances for doubtful accounts. This is partially because estimates almost always involve some level of measurement uncertainty; this uncertainty can even call for the use of outside specialists such as engineers or appraisers.

  • Preparation for Filing Status Changes

    Changing of filing status often occurs when there is growth within a public company, however recent changes in policy may also modify status. The Securities Exchange Commission (SEC) has recently voted in policy to edit thresholds that determine filing classification. Along with filing status, audits and financial reporting will likely be affected by the SEC changes.

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