When it comes to fraud detection, the amount of available data in the company’s paper and electronic records can seem staggering. Fortunately, the field of data analytics continues to advance, arming qualified financial experts with the tools to mine massive mounds of data effectively and efficiently. Association analysis, outlier analysis, and cluster analysis are among the detection techniques that have rapidly gained footholds in today’s data-driven world.Read More
The U.S. Department of Labor (DOL) has released the finalized rule on overtime exemptions for white-collar workers under the Fair Labor Standards Act. The rule updates the standard salary levels for the first time since 2004. While it is expected to expand the pool of nonexempt workers by more than 1 million, it’s also more favorable to employers than a rule proposed by the Obama administration in 2016. That rule would have expanded the pool by more than 4 million but was blocked by a federal district court judge.
The new rule is scheduled to take effect on January 1, 2020. Affected employers need to take prompt action to reduce the impact to their bottom lines.Read More
Earlier this year, the IRS published a proposed safe harbor giving owners of certain rental real estate interests the opportunity to take advantage of the qualified business income (QBI) deduction. The QBI write-off was created by the Tax Cuts and Jobs Act (TCJA) for pass-through entities. The IRS has now released final guidance (Revenue Procedure 2019-38) on the safe harbor that clearly lays out the requirements that taxpayers must satisfy to benefit.Read More
Retirement plan fiduciaries should meet on an annual basis (if not more frequently) to discuss the plan with outside service providers, including the investment advisor, custodian/trustee, and third-party administrator. In this blog, we’ll discuss the three best practices for your annual retirement plan review and what the focus of these meetings should include.
1. Investment Performance of the Funds in the PlanThe fiduciaries should determine if the funds in the plan are meeting the criteria outlined in the investment policy statement (IPS). Funds that are not meeting your stated criteria should be put on a watch list as outlined in the IPS or possibly removed from the plan, again depending on the IPS. In addition to reviewing fund performance, you’ll want to ensure that the group of funds that are offered in your plan are still meeting the requirements of the IPS. Read More
Topics: Tax Planning & Strategies
The IRS has released final regulations and another round of proposed regs for the first-year 100% bonus depreciation deduction. The Tax Cuts and Jobs Act (TCJA) expanded the deduction to 100% if the qualified property is placed in service through 2022, with the amount dropping each subsequent year by 20%, until it sunsets in 2027. (The phaseout reductions are delayed a year for certain property with longer production periods.) Of course, Congress could act before that to extend or revise the deduction.Read More
I believe that one of the most important responsibilities that come with owning a business is planning for its evolution. In many cases, this also means planning for the transition of its ownership and management.
Understanding the owner’s perspective on owning his business is critical to creating a successful transition plan. In all cases, this effort should “begin with the end in mind”.
Many plan sponsors create oversight committees for their qualified retirement plans. These committees are frequently called “investment committees,” “administrative committees,” or, simply, “retirement plan committees.” The duties of these committees are significant, and will typically include:Read More
I met a retired business owner at a party recently and he found out I was a CPA. Not that I normally use this as a conversation starter, but my brother mentioned it as he introduced me.
As the night continued, we got to talking about his business and how he started it. What became clear was that he's very proud of what he had built. He sold his business 12 years earlier, but it was still an important part of who he was. As we got to that point, I asked him why he had decided to sell. He said there were consolidations going on in the industry at that time, and felt the industry was changing, and getting harder to compete in. He was then approached with an offer and it seemed like the right time to sell.