Showing posts with label CPA. Show all posts
Showing posts with label CPA. Show all posts

Tuesday, December 8, 2015

Tax Extenders Still Have Not Passed So What Should I Still Be Doing?

 
 
 
Cathy Robinson, CPA
Senior Manager
 
 
Okay, it is December and Congress has not yet taken any action on provisions which have expired at the end of 2014.  There are still some things you should consider doing before year end:
 
1.       Review your withholding and estimated tax payments for 2015. 
2.       Consider if you are liable for the alternative minimum tax in 2015. 
3.        Consider realizing losses on stock to offset gains.
4.       Postpone any additional income until 2016.
5.       Accelerate any deductions in 2015.  Consider using your credit card to pay for the deductible expenses.
6.       Bunching of any expenses.  For example, pay three real estate bills in a year.
7.       Ask your employer to defer your 2015 bonus until 2016. 
 
These are just some suggestions in order to help eliminate an unpleasant surprise in April next year.  As with any tax advice you read or hear, you need to ensure the advice provided agrees with your tax situation.

Thursday, October 22, 2015

Good News For Ohio Nonprofits



Tony LaNasa
Managing Principal-Columbus Office
lanasa@hwco.com
 

As an HW Nonprofit Advisor I recognize the importance of our clients being informed of the latest changes occurring in the industry.

Ohio nonprofit organizations received great news on September 29th when the Ohio Revised Code Sec. 4123.01 was amended in HB 52 to not consider unpaid corporate officers or volunteers as employees for the purpose of workers’ compensation.  This great news is less costs to nonprofits in premiums, and more dollars for the nonprofits mission and purpose.

To read more on this subject visit the OSCPA's website or click here.

Thursday, September 3, 2015

What is a W-4?


Cathy A. Robinson, CPA
Senior Manager
robinson@hwco.com
 


So you are starting a new job.  You will have many forms to fill out the first day including a W-4.  Do you know why you complete a W-4? Not to worry, we are here to help.


What exactly is a W-4?

Simply, it is used by your employer to withhold the proper amount of Federal income tax from your pay.


Why fill out a W-4?

Completing a W-4 accurately can help save you money in two ways. The first way is it helps to prevent you from overpaying your taxes.  Doing this can mean putting more money in your pocket throughout the year. The second way is to ensure you do not owe anything at tax time.

 How do you fill one out?

If you are single, the W-4 is straight forward and easy to complete. For those who are married or have more than one job, the process becomes more complex.  The W-4 includes a series of worksheets to help guide you through this process.  There are also worksheets included for those who have a spouse working as well or for those who have additional employment. 


It is important to keep in mind as well the higher the exemption number claimed, the higher the amount of your net pay. The tradeoff, however,  there will be less withholding deducted from your pay, and you could owe on April 15th.

 

Remember, ask your tax professional should you have any questions in regards to filling out the W-4 or the tax worksheets attached to it.

 

 

 

 

 

Tuesday, August 25, 2015

September Intern Recruiting...Coming to a School Near You!



Kirsten Thompson, CPA
Director of HR
Katie Primeau
HR Assistant

 
HW&Co. | CPAs & Advisors will be meeting with students and recent grads from Ohio colleges during the month of September at Accounting Career Fairs!  Check the career services calendar at your university and stop by the HW&Co. booth to introduce yourself.
 

HW&Co. already looking for Accounting Interns to work through busy season January through April 15, 2016. 

September Recruiting at Ohio Colleges for Interns:
College
Date
The Ohio State University
9/08/15
Bowling Green State University
9/09/15
Ashland University
9/10/15
Case Western Reserve University
9/10/15
University of Akron
9/15/15
Cleveland State University
9/16/15
Baldwin Wallace University
9/17/15
University of Dayton
9/17/15
Kent State University
9/17/15
John Carroll University
9/21/15

Thursday, July 16, 2015

Working Parents: Are you affected by the Nanny Tax?



Cathy A. Robinson, CPA
Senior Manager
robinson@hwco.com
 
If you are a working parent you understand just how hard it can be to find someone who can help take care of your children. While many working parents may place their kids in a daycare facility, others hire people to come into their homes to take care of their children. What some people may not understand is that hiring a nanny means you may have to pay the Nanny Tax, and you have a household employee.

 

 If the annual wages are over $1,900, you are required by the IRS to withhold and pay social security and Medicare taxes.   However, there are some exceptions to those whose wages are subjected to these taxes.  You should check with your tax advisor on the exceptions.

 

Another tax that will be paid is Federal Unemployment Tax (FUTA).  This tax is .06 percent on cash wages and only the first $7,000 in wages is subject to this tax.  FUTA is not a tax that you withhold from the nanny’s pay.  It is a tax that is paid by you.

 

Depending on the state where you live, you will also need to look into filing and paying state unemployment tax and workers’ compensation.  You will need to complete applications for both of these items.

 

It is important to also note that paying the nanny tax is required if you are the employer. This means even if you used an agency to find your nanny, you are still required to pay the tax. If you are the employer,  you will also need to ensure that your nanny or in-house sitter fills out an I-9 form, a W-4 and a state income tax withholding form (if you live in a state with income taxes.)

 

The nanny tax is reported on Schedule H of your Form 1040.

Thursday, June 25, 2015

5 Reasons Why Hiring Your Child Is A Good Idea


Cathy A. Robinson, CPA
Senior Manager
 
 
 
School is out for the summer. College and high school students alike will be in search of jobs. So how does it work if you own your own business and have a child looking for a summer job? Is it wise to hire them on? If you hire them, how does that work for deductions? There are five tips that can help to answer these questions.

 

1.)    Hiring your child can be an effective income-shifting strategy for a taxpayer that owns his or her own business.  In fact, there may be favorable payroll taxes that apply to you and your business. Many business owners who are parents do not understand is that should you hire your child, if they are under the age of 18, you are not required to withhold any payroll taxes.  This stipulation, however, only applies to Limited Liability Companies (LLC) and Sole Proprietorships.

 

 It should also be noted that if you own an S-corporation or a C- corporation, you also do not receive the benefit of avoiding payroll taxes when employing your child.  Instead, you will have to pay your child out of a corporation and have to withhold payroll taxes.

 

2.)    If preparing your child for the future is also of concern, hiring your child can also help to ease your mind.   With earned income they can contribute to a ROTH IRA. This is a great opportunity that would allow the earned income to be put into an account and later be pulled out for college.  You may be able to pull the money for college expenses penalty and tax free. 

 

3.)    You may have also heard of something called Kiddie Tax. For many parents who are business owners, this tax may be something you find yourself concerned with. However, earned income is not actually subject to Kiddie Tax, regardless of age.  This tax, in fact, only applies to unearned money or the child’s investment income.

 

4.)    So what does this mean for you the parent?  The first $6,300 of income made isn’t taxed by the federal government. By hiring your child, you keep that money in the family. Other deductions include claiming your child on your return as a dependent and taking that exemption, as well as the Child Tax Credit.

 

5.)    The most important thing to remember is that you need to keep your business legitimate even when hiring your child. Your child should only be paid for the services that they render to your business or property. Payments must also be made to your child and should be in accordance with the services they are providing.  It should go without saying that by hiring your child they should be performing a necessary task to the business so that they may be legitimately involved with it. Hiring them to do chores around the house will not qualify you for deductions, and could also involve setting yourself up to be audited.

 

In conclusion, hiring your child could be a good idea for a parent who is a business owner. It can help you pay for college later on down the road, give you a tax break and also teach your children the importance of having a work ethic. 

 

Consulting your accountant before making any financial move is always important, as they can help to guide you as you take the steps towards a better financial plan for you and your child. Be sure that you bring up the above points as your business takes the steps towards hiring your child.

 
 
 
This update is published periodically by HW&Co. as an information service to our clients, business associates and friends. It is general information and professional advice should be obtained before acting on any comments contained in this document.

Thursday, May 7, 2015

IRS Issues Reminder for Tax-Exempts About May Deadline


Accounting Today announced on May 7th that the IRS had sent out a reminder on May 6th to tax exempt organizations. This reminder informs tax-exempt organizations that filing 990-series information returns must be done by May 15th.  By sending out the reminder they also had hoped to also caution organizations about unneeded personal information and against using Social Security numbers. Instead they’re asking organizations to e-file.

 

The IRS is urging organizations to e-file to help with the reduction of inadvertently including Social Security Numbers and other unneeded personal information.

 

If tax-exempt organizations fail to file annual reports for three consecutive years their federal exemptions are then revoked on the due date of the third filing.

 

Have questions? Contact Nonprofit Director Brandon Miller at (216) 831-1200.




This update is published periodically by HW&Co;. as an information service to our clients, business associates and friends. It is general information and professional advice should be obtained before acting on any comments contained in this document.

Thursday, April 30, 2015

Ohio Health Care Association's Long Term Care Recap

Recently, our HW Healthcare Advisors attended the Ohio Health Care Association's Long Term Care spring convention.

Director of Healthcare and principal, Rosemary Orlando, and Senior Manager, Ryan Kramer, had the privlege of speaking at the convention.

Their presentation was entitled ICF-IID Strategies for Changing Times....What is Your Game Plan?
Tips include:
-Ohio Overview
-National & State Trends
-HB 64 Provisions (ICF/Waiver
-And more!

If you would like to see the full presentation here! 

Visit www.hwco.com for more details!





This update is published periodically by HW&Co;. as an information service to our clients, business associates and friends. It is general information and professional advice should be obtained before acting on any comments contained in this document.

Friday, April 10, 2015

The perks of busy season

Every year our firm provides an array of busy season perks for our staff.

From catered dinners to jeans days on Fridays. Keeping our team happy and motivated is our biggest priority.

Our Principals sincerely thank all of our staff for all of their hard work and dedication this season!



(Indian's Home Opener)

(Sundae Monday_that's our CEO scooping ice cream!)

(National Cereal Day!)

(Raising Awareness for Epilepsy)

Thursday, April 9, 2015

FASB Issues Update-April 7th, 2015


Anthony S. LaNasa, CPA, CFE
Principal
 
 
 
On April 7th, 2015 the FASB (Board) issued Accounting Standards Update (ASU) No. 2015-03, Interest: Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.  It was part of the accounting board initiative to simplify U.S. GAAP.

 

So what will this new accounting update mean?

 

It means that the costs for issuing debt should appear on a balance sheet as a direct deduction from the debt’s value. The Board stated that these amendments won’t affect the recognition and measurement of the costs for issuing debt.

 

This update is effective for all companies for reporting periods beginning after December 15, 2015.  Adopting these amendments early is also being allowed by the Board, including any financial statements that have not been previously issued.

 

As companies adopt the amendments, they should revise balance sheets for periods being presented prior to the effective date. Once a company adopts the changes, it is required to disclose the applicable information for a change in an accounting principle.

 

The FASB Board is really focusing on simplifying and making U.S. GAAP more readable and understandable.  Lastly, does this change make sense because are debt issuance costs really assets that provide a future economic benefit?  My opinion to that answer is no.







This update is published periodically by HW&Co. as an information service to our clients, business associates and friends. It is general information and professional advice should be obtained before acting on any comments contained in this document.

Tuesday, March 10, 2015

First Major Changes to Not-For-Profit Accounting


 
 
Anthony S. LaNasa, CPA, CFE
Principal at HW&Co.
 
On March 4th, 2015 the Financial Accounting Standards Board voted to release a proposal that will overhaul how universities, charities, foundations, and other not-for-profit organizations convey how they spend their time and how they invest their money.  With this decision came some dissatisfaction with this standard. The uneasiness that came from the decision is even stronger than anyone had initially thought.  This was especially conveyed by the dissenting votes of FASB Chairman Russell Golden and Vice Chairman James Kroeker. It should also be mentioned that two of the five board members who voted in favor of the proposal did so with reservations.
 

The chief concern that Golden has concerning this decision was his belief that the proposal would create too many reporting differences between not-for-profit organizations and for-profit business.  He also believes that the projected changes would go too far.  Kroeker, who was unable to attend the meeting and voted by proxy, said in a prepared statement that he didn’t agree with the changes that would be made to the not-for-profit groups cash flow statements.
 

Although there was concern about the changes to the cash flow statements for members like, Lawrence Smith, the benefits of changing to the proposal weren’t enough to make him vote against it.
 

“I didn’t object to it and I voted for the changes made because I think when you look at the two cash flow statements side by side, one under direct and one under indirect, it’s pretty obvious the direct method conveys more easily understood information than indirect,” he stated.  He further commented on his decision to vote in favor of the proposal by praising the changes made to the basic performance statement.
 

"Is there flexibility? Yes. There's flexibility up the wazoo in terms of how management designates things, but it's clearly laid out and that's the important thing," he said. "It clearly lays out what funds are available to an entity in terms of furthering its mission."
 

The FASB also would like to improve the statement of activities by including the presentation of an operating measure with the information about expenditures related to the organization’s mission and donated funds available to be spent.
 

The changes in the proposal will be the first major changes to not-for-profit accounting and reporting in over 20 years.  My opinion is that the proposal is long overdue and the changes will enhance not-for-profit financial statements and provide the users of the financial statements, like donors, an increased understanding of the financial performance of Organizations.
 
 



This blog is published periodically by HW&Co. as an information service to our clients, business associates and friends. It is general information and professional advice should be obtained before acting on any comments contained in this document.
 

Monday, December 22, 2014

HW&Co. Volunteering

With the holidays upon us, more and more people choose to spend their time volunteering.

At HW&Co. our staff has spent most of the year donating their time and their efforts to donating to good causes.

Our most recent three include:

1) Toys for Tots
 
 
 
2) FETCH
 





3)Walk for Alzheimers
 
 
 
 
Honorable Mention:
 
The financial advisors from our affiliate, HWFA, also donated their time to volunteering at the Cleveland Foodbank.
 
 
(Picture of our group volunteering in 2014)
 
 
 
When you work for a company that is so adamant about donating their time and their efforts towards it makes you feel good about the people you work for and what you're doing.
You can also check out just a few organizations we have recently donated to:


Monday, November 24, 2014

Caution: Accountants At Play

Not once while I was searching for a job after college did I ever expect myself to begin even looking for a position at an accoutning firm. When I think of an accountant I think of an old man at a desk with a visor and the green lamp my granfather has on his desk in his office.

As it turns out, however, that's a pretty dated view.

(Who knew?)

In fact, I would wager that I work with some of the most eclectic accountants out there. They are fun, they're creative and best of all they like to donate their time.

Recently, a group of our professionals participated in FETCH.

FETCH, for those of you who do not know, is a program that The Ohio Society of CPAs created to educate kids about the value of a dollar. Groups of CPAs volunteer their time to local schools by helping fifth and sixth grade students complete a game about finances.

It's a unique way to teach kids how to properly manage money, and every year it gets a good response. Not only from the children, but the CPAs as well.

It's important for kids to get the access to educational programs that allow for them to learn about money and how to properly utilize it. A child who understands the value of a dollar early on is more likely to understand how to manage money as an adult.

 Financial Education for kids is extremely important and I am fortunate to know a group of CPAs who are dedicated to helping the youth of tomorrow.

With that said I look forward to many years and sharing their different events as they continue to donate their time, their education and their knowledge to the local community.

 
 
For an additional read on the importance of children learning money management skills click the link below!
http://money.cnn.com/magazines/moneymag/money101/lesson12/index.htm