Business and Corporate Archives - Page 8 of 10

May
31
2016

Overtime Pay: Are your employees Exempt or Non-Exempt?

Under the Fair Labor Standards Act (FLSA) employers are expected to classify their employees as either exempt or nonexempt.

What’s the difference between the two?

Exempt Employees

The FLSA has multiple exemptions under specific categories of employers and employees exempted from overtime requirements. The most general exemptions include:

Employee must be paid on a salary basis
Employee must receive a minimum salary of at least $913/week (As of December 1,

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.

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.

Oct
24
2015

Using the Right Employee for the Job

What can a business owner do to make sure their employees are up to the task at hand? right employee

Effective management of employees is a balancing act between overseeing every aspect of a job and relinquishing some of the control based on the employees’ capabilities. So, what can you do?

Make sure the employee has the skills to take on the task. Success can only come when your employee has the ability to do the job.

Sep
24
2015

New Arizona Tax Credits for Corporations

Starting in 2015 there are two new credits that both C and S Corporations can take advantage of for School Tuition Organizations (STO). Both credits require preapproval by the Arizona Department of Revenue (ADOR) and total contributions statewide for each of these credits are capped at a maximum amount by the state. Overall both of these credits are used to provide scholarships that assist students from preschool to 12th grade with disabilities.

Both of these credits have already reached their maximums for the year ended in June 2016.

Sep
02
2015

Form 1099: It’s never too early to gear up for year-end

The end of every year brings the beginning of a new one. From an accounting perspective, the beginning of the new year brings many reporting deadlines…specifically, Form 1099. In order to properly prepare a 1099, two things must be provided: a completed Form W-9 from the vendor and the amount paid to them.

The W-9 provides the most crucial piece of information, which is whether or not a 1099 will need to be prepared for any given vendor.

May
26
2015

An Auditor’s Perspective: Basics of Inventory Controls

For many organizations, inventory is one of the largest assets carried on a company’s books, and as a result, it is important to maintain appropriate controls over these assets. Inventory controls help your organization to maintain accurate records and to fulfill promises to customers. Risks specific to a lack of inventory controls includes the potential for lost, stolen, misappropriated, or miscounted items during routine physical counts. Below are some quick tips on maintaining appropriate oversight and prevention of unexpected inventory shrinkage:

Physical controls: Keep your inventories in a secure location.

Apr
28
2015

The Importance of Separating Your Business and Personal Expenditures

As a business owner, it seems as though there aren’t enough hours in the day. As a result, it makes perfect sense to take shortcuts when you can find them. For example, you are paying business bills…it’s late, you’re tired, and you realize that your home mortgage is due. So you pay it using the business checking account. Another example is using the business credit card to pay for personal expenses, like trips to the grocery store or filling up your vehicle with fuel.