2018 News Archive

February 2018 Newsletter

In this issue:

  • New Tax Withholding Tables are Issued
  • Fall in PPI Hits Hopes for Inflation Growth
  • 20 Cities in the Running for Amazon HQ
  • How the Tax Law Changes Education Financing
  • and more!

March 2018 Newsletter

In this issue:

  • What Tax Reform Means for Audit Committees
  • How to Address Problems that Lead to Turnover
  • 5 Types of Back Office Occupational Fraud, and How AI can Stop Them
  • Health Care Spending Projected at Nearly $5.7 Trillion in 2026
  • and more!

April 2018 Newsletter

In this issue:

  • What Tax Reform Means for Healthcare Entities: For-profit and Non-profit
  • Tips to Streamline Money Management in Retirement
  • Daily Habits of Successful Executives
  • Accountants Urge IRS for Clarity on Business Meals Deduction
  • and more!

May 2018 Newsletter

In this issue:

  • Integrity and Objective Matter
  • Expanded Missing Participants Program: What Plan Sponsors Need to Know About Terminating Plans
  • Roth 401 (K), Worth a Fresh Look?
  • and more!

June 2018 Newsletter

In This Issue: 

  • Should you check email at the start of the day? 
  • Loans and Hardship Withdrawals: New Rules for Employees Dealing With Natural Disasters and Other Financial Emergencies 
  • How Student Debt Affects Retirement Savings 
  • Lawmakers Hear From Small Businesses About Tax Reform Impact 

July 2018 Newsletter

In This Issue: 

  • Online payment options now available 
  • We can help with Internal Controls and Accounting Procedures
  • Interest rates remain the same for third quarter 2018
  • and more! 

August 2018 Newsletter

In this issue:

  • 401(k) Compliance: What Plan Sponsors Need to Know
  • Back to School Myths: Student Loan Interest
  • October 15 Tax Extension Deadline Reminder
  • The (Real) Questions Committees Should Ask about Executive Compensation

Non-Profit News: Summer 2018

In this issue:

  • Robotic Process Automation for Non-Profits
  • Pay Data for “Similarly Qualified Persons in Comparable Positions at Similarly Situated Organizations”
  • Guide to Implementing a Holistic Privacy Program
  • Transportation Fringe Benefits Are Now UBI

Non-Profit News: Fall 2018

In this issue:

  • Are Grants Subject to Revenue Recognition
  • IRS Provides Guidance on New UBTI Rules
  • Compensation Committee Wake-Up Call- The ‘Other Obstacle’ to Leadership Transition
  • How Predictive Analytics is Transforming NPO Fundraising

Top 10 Things Companies Need to Know About Tax Reform

The $1.5 trillion new tax law represents the most sweeping change to tax code in a generation. Tax reform of thismagnitude will have broad implications for businesses of all sizes and in all industries. While accountants and taxdepartments wade through the 185-page legislation, here are the top 10 things companies need to know:

Non-Profit News: October 2016

In this issue:

  • FASB Issues ASU 2016-14
  • Telemedicine and Potential Tax Implications
  • Lawsuits Target Higher Education
  • International Grantmaking Issues for Nonprofits
  • and more!

Using Forensic Accountants in Court

By Deborah Jackson, ADA, 27A; Michael H. Womble, Willams Overman Pierce, LLP

Embezzlement cases are becoming more prevalent in today’s society because of advancements in technology and the absence of oversight over employees with access to financial assets. Despite all of the electronic conveniences available to business owners today, many businesses become unsuspecting prey to employees who lose their fear of being discovered due to the lack of proper oversight and supervision.

What Tax Reform Means for Healthcare Entities: For-profit & Non-profit

What Changes are Coming for Healthcare Companies? To help organizations navigate the issues most impactful and urgent to the healthcare industry, we’ve prepared a summary of the major implications based on the signed legislation.

Mitigating Healthcare Costs With HDHPS and HSAS: What Plan Sponsors Need to Know

It’s no secret that healthcare is expensive—and costs are likely to continue going up. While preferred provider organizations (PPOs) are still the most popular plan type, many companies are turning to consumer-directed, high-deductible health plans (HDHP) to help manage costs and are adding reimbursement accounts like health savings accounts (HSA) to help employees pay for expenses.

Loans and Hardship Withdrawals: New Rules for Employees Dealing with Natural Disasters and Other Financial Emergencies

Natural disasters including Hurricanes Harvey, Irma and Maria, as well as the California wildfires, caused a record-breaking $283 billion in damage to homes and other property in 2017, according to the National Oceanic and Atmospheric Administration.

Uncashed Distribution Checks: Best Practices for Plan Sponsors

Defined contribution plan sponsors face numerous challenges when workers change jobs, and the Department of Labor (DOL) is paying close attention to how employers are dealing with these situations.

North Carolina FY ’19 Budget Bill Enacts Major Corporate Income Tax Legislation

The budget bill updates North Carolina’s Internal Revenue Code (IRC) conformity date, reacts to a number of the federal tax reform provisions enacted as part of the Tax Cuts and Jobs Act, modifies the sourcing of receipts from services and intangibles for purposes of the sales factor, and makes a number of procedural changes for North Carolina income tax purposes.

Exempt Organizations Should be Mindful of Changes Effective January 1, 2018 from the Tax Cuts & Jobs Act

Some areas of consideration are:

  • Employee Compensation in Excess of $1 million
  • Transportation Fringe Benefits
  • Gifts
  • Tickets for college athletic events

Some of Your Deductions May Be Smaller (Or Nonexistent) When You File Your 2018 Tax Return

While the Tax Cuts and Jobs Act (TCJA) reduces most income tax rates and expands some tax breaks, it limits or eliminates several itemized deductions that have been valuable to many individual taxpayers. This article discusses five deductions you may see shrink or disappear when you file your 2018 income tax return.

IRS Provides Insight for Long Term Capital Gain Treatment Under Section 1061

On Thursday, March 1, 2018, the Internal Revenue Service (IRS) issued Notice 2018-18 (the “Notice”) announcing the intention on the part of Treasury and the IRS to publish regulations on the application of Section 1061 of the Internal Revenue Code as enacted by the Tax Cuts and Jobs Act. The Notice announces that Treasury and the IRS intend that the forthcoming regulations will provide that the term “corporation” as used in Section 1061 does not include an S corporation.

What to Expect from the IRS as the Government Shutdown Continues

Due to the lapse in appropriations that began midnight December 22, 2018, the federal government is in its fourth week of a partial shutdown, which includes much of the Internal Revenue Service (IRS). Although tens of thousands of IRS employees have been recalled, the IRS is working with a skeleton staff at about 60% capacity. While we expect the IRS to be handling some matters and investigations, there are many more visible functions that are generally suspended during the closure.

Impact of the Tax Cuts and Jobs Act and the Bipartisan Budget Act of 2018 on North Carolina’s Corporate and Individual Income Tax Returns

North Carolina’s corporate income tax law uses federal taxable income as the starting point in determining North Carolina taxable income. North Carolina’s individual income tax law uses federal adjusted gross income as the starting point in determining North Carolina taxable income.

Year End Reminder Regarding Common Fringe Benefits, Special Treatment for Two-Percent Shareholders and Changes Under TCJA

As 2018 draws to a close, we remind you about the proper inclusion of common fringe benefits in an employee’s and/or two-percent shareholder’s taxable wages, as well as changes made under the 2017 tax reform, referred to herein as the Tax Cuts and Jobs Act (TCJA). 

Tax Reform is Here, So What’s Next for Nonprofits?

The Tax Cuts and Jobs Act, signed into law on December 22, marks the largest overhaul of U.S. tax policy in decades. What are the Changes for Nonprofit Organizations? Reviewing the 1,000-plus pages of the Act is a daunting task for nonprofits. To help organizations navigate the key provisions affecting nonprofits, we’ve summarized top considerations and implications below.

Tax Reform’s Impact on Individual Taxpayers

On December 22, 2017, President Donald J. Trump signed into law “An act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018.” The bill is more commonly known as the, “Tax Cuts and Jobs Act,” and provides the most sweeping changes to the tax code since 1986. This alert will highlight the changes that are relevant for individual taxpayers.

Financial Wellbeing Programs: Today’s Tools for a Healthy, Productive Workforce

The American workforce is stressed out—and finances play a major role. Many workers say they’re living paycheck-to-paycheck, and the routine is stressing them out so much that it’s taking a toll on their health. Often, people bring their personal  financial problems to work, resulting in absences, distractions, or other unproductive behaviors.

Roth 401(K), Worth a Fresh Look?

This year marks the 20th anniversary of the Roth Individual Retirement Account (IRA). While the Roth IRA has been widely hailed as a powerful retirement saving vehicle because of its tax-free-growth and has seen widespread adoption by individuals who meet the income requirements, the Roth 401(k) isn’t nearly as popular.

Top Questions About the New Tax Law

The $1.5 trillion tax reform legislation known as the“Tax Cuts and Jobs Act” represents the biggest change to the tax code since 1986. While the implications for both businesses and individuals are broad and complex, we’ve summarized some of the most commonly asked tax reform questions.

Auto-Enrollment and Auto-Escalation: Right for Your Retirement Plan?

When it comes to saving for retirement, getting started can be the hardest part for many employees. This challenge, however, is being solved for many American workers by the dramatic increase over the past decade in the percentage of 401(k) plans that use automatic enrollment and automatic escalation features to encourage participation.

Carpe Diem! Accelerating Defined Benefit Funding to the 2017 Tax Year Can Generate Tax Savings

Last year’s tax reform law has created a rare opportunity for defined benefit plan sponsors to take advantage of the tax rate difference by accelerating deductions to the year with the higher tax rate. The lowering of the corporate tax rate makes pension plan contributions for the 2017 plan year significantly cheaper on an after-tax basis than contributions for the 2018 plan year.

Tax Reform FAQ for Manufacturers

The $1.5 trillion tax reform legislation known as the “Tax Cuts and Jobs Act” (TCJA) represents the biggest change to the tax code since 1986. While the implications for businesses are broad and complex, we’ve summarized some of the most common tax reform questions for manufacturers.

Tariffs Spark Fears of Rising Construction Costs: Could Investment in Technology be the Answer?

As U.S. trade policy decisions continue to dominate headlines, the uncertain future of high-demand import prices has business leaders and lawmakers anxious. With building material costs on the rise and tariffs sparking fears of further increases, contractors that harness new technology will be better positioned to take advantage of the high demand for new construction projects.

Is Your Not-for-Profit Financially Fit?

Being financially fit and stable is critical to any business, including a not-for-profit (NFP). If a NFP has a weak financial position, it may not be able to sustain its operations. While the perception by many in today’s society is that most NFPs are generally financially healthy, this is not always the case. For example, a recently published report noted that 41 percent of charities do not expect to make a profit over the next three years. An NFP’s liquidity is an important story to convey to the users of its financial statements. 

Expanded Missing Participants Program: What Plan Sponsors Need to Know About Terminating Plans

The Pension Benefit Guaranty Corporation (PBGC) is helping defined contribution (DC) and other plan sponsors looking to terminate their plans by expanding its Missing Participants Program.

Employee Stock Ownership Plans Gain Attention in Congress

Congress is paying more attention to Employee Stock Ownership Plans (ESOPs) this session, with two New York legislators shepherding through bills aimed at promoting this type of defined contribution plan.

Transportation Fringe Benefits Are Now UBI

The Tax Cut and Jobs Act of 2017 added the following provision to the Internal Revenue Code that will cause many tax-exempt organizations to pay the unrelated business income tax (UBIT).

Labor Department Proposes Auto-Transfer Plan for Small 401(K) Accounts

Each year, nearly 15 million American workers change jobs, with many leaving their 401(k) accounts behind. The Department of Labor (DOL) is trying to relieve this headache for plan sponsors and keep employee accounts more complete by proposing a rule that would transfer retirement balances left behind to participants’ 401(k) plans at their new employers.

How Employers Can Calculate Nondeductible Employee Parking Expenses, and Possibly Reduce them by March 31, 2019

Employer business deductions for qualified transportation fringes ended in 2018. The 2017 tax reform known as the Tax Cuts and Jobs Act (TCJA), P.L. 115-97, amended Sec. 274(a)(4) by eliminating employer business deductions for employee1 qualified transportation fringe (QTF) benefit expenses, including qualified parking2, mass transit and van pool benefits (although such benefits continue to be excluded from employee income).