2016 - Page 3 of 3

May
11
2016

What if a Nonexempt Employee Works Overtime Performing Multiple Jobs with Different Pay rates?

If you have nonexempt employees who work more than 40 hours in a single workweek performing two or more different jobs with different pay rates, you need to make sure that you are paying them properly. The Fair Labor Standards Act (FLSA) allows two different approaches to computing the rate for which overtime is paid:

1) The weighted average, which is the default approach outlined in 29 C.F.R. 778.115; or

2) The established rate associated with the job that caused the overtime to occur,

Apr
14
2016

Proposed Changes to the Minimum Salary for Exempt Employees

Between 1940 and 1975, the minimum wage for exempt employees was raised every five to ten years. In 1975, the minimum salary for exempt employees was set at $8,060 and $8,840 per year, depending on job duties. Roughly 30 years later, in 2004, the Department of Labor (DOL) updated the minimum salary for exempt employees to $23,660 per year. Now, the DOL is proposing an increase to $50,440 per year.

In general, an employee is considered exempt if all of the following apply.

Apr
08
2016

Preventing and Detecting Fraud

The task of preventing and detecting fraud has grown from exposure within the organization to dozens of emerging fraud threats that pop up every day due to cybercrimes. Fraud can be defined as an intentional act or omission designed to deceive others, resulting in the victim suffering a loss and/or the perpetrator achieving a gain. Based on recent surveys, there has been an increase in the number of organizations that are uncovering and reporting occurrences of fraud.

Mar
07
2016

Revenue: Deferred v. Temporarily Restricted

An accounting issue that commonly plagues not-for-profit organizations is the proper recording of revenue that is received for a specific purpose. There are two ways to record this type of revenue, either as deferred or temporarily restricted, but the decision can cause much confusion.

While there are many factors that go into determining which is the appropriate method, the most important factor is to determine the type of revenue source. Is the revenue received in an exchange transaction,

Feb
17
2016

U.S. GAAP Changes to the Recording of Lease Expense

According to the AICPA, there has been widespread concern that the current nature of lease expense is not being accounted for in a way that truly represents the economics behind lease transactions.

On November 11, 2015, the Financial Accounting Standards Board (FASB) finalized a standard for the accounting of lease expenses. On January 12, 2016, the international accounting standards board issued its version for the change to accounting for leases requiring leases to be reported on the balance sheet either as an asset or a liability.

Feb
05
2016

Tax Fraud Safeguards

Despite efforts put in place by the Internal Revenue Service and by the individual states, tax fraud continues to exist and to evolve. In 2013 alone, the IRS paid out $5.8 billion in fraudulent refunds to identity thieves. In response to the changing threats of tax fraud the IRS, in cooperation with the individual states and the tax industry as a whole, has taken new steps in 2016 to create a more secure filing season.

Jan
26
2016

Contributions v. Exchange Transactions

When a non-profit receives grants, awards, membership dues or sponsorships, the organization needs to make a determination to the treat the transaction as an exchange transaction (earned revenue) or a contribution. In an exchange transaction, each party receives and sacrifices something of approximately equal value; whereas in a contribution transaction, transfers of assets are nonreciprocal and the value, if any, returned to the resource providers are incidental to potential public benefits.

Below are some tips to help determine whether a transaction should be treated as a contribution or as an exchange transaction.

Jan
22
2016

8 Tips to Minimize Your Tax Preparation Fees

Our fee to complete your tax return is based on the time we expend and the level of experience necessary for preparation. Here are some steps you can take to minimize this fee:

Complete the Tax Organizer

Filling out the organizer before dropping off your tax information or coming in for a tax interview reduces the amount of time required to prepare your return. In particular, be sure to address the client information and questionnaire sections of the organizer as thoroughly and completely as you can.