July, 2015 | RKL LLP
Posted on: July 30th, 2015

RKL Tax Manager Recognized Among “Forty Under 40”

Scott Myers, RKL Tax ManagerPRESS RELEASE

YORK, PA (July 30, 2015) – Reinsel Kuntz Lesher LLP (RKL), Certified Public Accountants and Consultants, today announced that G. Scott Myers, CPA, CSEP, is among the Central Penn Business Journal’s 2015 “Forty Under 40” honorees, selected for his professional excellence, leadership skills and community service.

“Scott is a leader in our firm who consistently lives RKL’s mission of enriching the lives of his clients, his team and his community,” said RKL CEO Edward W. Monborne. “This recognition from the Central Penn Business Journal affirms what we’ve long know about Scott: he is a top-notch professional with a bright future.”

Throughout his 15-year career, Myers has earned the respect and trust of clients with his proactive, strategic approach to helping them meet their tax and business objectives. He joined RKL in 2012 as a manager in the firm’s Tax Services Group, where he serves the tax planning and compliance needs of individuals and closely-held businesses across a wide variety of industries. Myers is a member of the firm’s Real Estate Development & Construction Services Group, helping to develop strategies to better meet the needs of this industry, and is actively involved in RKL’s Estate and Trust Planning Group aimed at staying on the cutting edge of issues affecting clients.

Myers prioritizes leadership development as part of his career growth, graduating from the Leadership York program in 2011 and participating in the inaugural class of the Pennsylvania Institute of CPAs Next Generation Leadership program in 2014.

Myers is an active participant in several community benefit organizations, including Big Brothers Big Sisters of York & Adams Counties and Leg Up Farm. He is a graduate of Lebanon Valley College and resides in York with his wife and three daughters.

2015 is the 21st installment of the “Forty Under 40” award program, which recognizes the region’s most accomplished young business leaders committed to business growth, professional excellence and community service. Myers will be celebrated, along with his fellow 2015 honorees, at a ceremony scheduled for October 12 at the Hilton Harrisburg.

Click here for more information on CPBJ’s “Forty Under 40” Award.

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Posted on: July 29th, 2015

ACA Impact: Self-Insured Employers Must File Health Insurance Info with IRS

New IRS filing requirement Does your company provide self-insured health coverage to its employees? If so, you will now be required to file an annual informational return with the IRS.

This requirement stems from the Affordable Care Act, and is meant to help the IRS determine compliance with the law’s individual shared responsibility provision. In other words, this filing establishes that an employee receives health care from their employer, and thus meets the requirement for having health insurance coverage.

But what does this mean for businesses? 2015 is the first effective year for this filing, meaning that coverage provided this calendar year must be reported in 2016. No matter the size of your company, if you provide self-insured health coverage to your employees, you are considered a “coverage provider” and are responsible for filing a return to report coverage information.

Here is what coverage providers must provide to the IRS:

  • A Form 1095-B, Health Coverage, accompanied by a Form 1094-B transmittal, for each covered employee, no later than February 28 (March 31 if filed electronically) of the year immediately following the calendar year to which the return relates. Filers of more than 250 Forms 1095-B must e-file. The IRS allows and encourages entities with fewer than 250 forms to e-file.

Here is what coverage providers must furnish to employees:

  • A copy of the 1095-B to the responsible individual – generally the primary insured, employee, parent or uniformed services sponsor. You may electronically furnish the Form 1095-B.

The IRS allows providers that meet the definition of a large employer (at least 50 full-time equivalent employees on average during the prior year) to report covered individuals on Form 1095-C instead of Form 1095-B. Form 1095-C combines reporting for two provisions of the Affordable Care Act for these employers.

For each covered employee, the employer must provide the following information to the IRS:

  • The name, address, and employer identification number of the provider.
  • The responsible individual’s name, address, and taxpayer identification number (TIN), or date of birth if a TIN is not available. If the responsible individual is not enrolled in the coverage, providers may, but are not required to, report the TIN of the responsible individual.
  • The name and TIN, or date of birth if a TIN is not available, of each individual covered under the policy or program and the months for which the individual was enrolled in coverage and entitled to receive benefits.

Have questions about the applicability of this filing or what is required? Contact your RKL tax advisor for guidance on these new requirements.

Ethel Nawrocki, CPAContributed by Ethel A.M. Nawrocki, CPA, a principal in RKL’s Tax Services Group. Ethel specializes in tax, accounting and consulting services for the manufacturing, wholesale, distribution, construction and real estate rental industries.

 

 

 

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Posted on: July 28th, 2015

Lancaster-based IT Consulting Firm Named to Top 100 VAR List

RKL_esolutions_logos01PRESS RELEASE

LANCASTER, PA (July 28, 2015) – Reinsel Kuntz Lesher LLP (RKL), Certified Public Accountants and Consultants, today announced that its IT consulting subsidiary, RKL eSolutions, was ranked 46th on the 2015 installment of Accounting Today’s annual assessment of value-added resellers.

“It’s a great honor to see RKL eSolutions included among this select group of leading VARs,” RKL CEO Edward W. Monborne said. “We’re proud to have RKL eSolutions’ top-rated IT support and expertise as part of RKL’s wide range of capabilities to deliver value beyond compliance for our clients.”

Accounting Today’s annual VAR 100 list is an exclusive ranking of the top value-added resellers of accounting and accounting-related software by revenue generated during the previous year. This year’s survey took special note of the strategies firms use to move the industry forward and succeed in a more competitive arena.

“This recognition from Accounting Today is a testament to the hard work and dedication of our team,” RKL eSolutions President Joe Noll said. “I’m proud of our consistent effort to balance growth and service excellence, with the goal of being the complete ERP answer for customers from the time of their first contact with us to the completion of the project.”

A top Sage ERP partner headquartered in Lancaster, Pennsylvania, RKL eSolutions offers customized IT service to businesses in a wide variety of industries. The company continues to grow, adding staff to office locations throughout the country, to better serve clients throughout the U.S. in need of ERP implementation, training, and support.

Click here for more information on the ranking and to view the complete list.

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Posted on: July 16th, 2015

FASB Approves Deferral of Effective Date of New Revenue Recognition Standard

fasb accounting proposals for private companies

In May 2014, the FASB issued guidance which clarifies the principles for recognizing revenue when an entity enters into contracts with customers.

In the July 2015 FASB Board Meeting, the Board approved the deferral of the effective date of the new revenue standard by one year.  As a result, nonpublic entities should apply the new revenue standard to annual reporting periods beginning after December 15, 2018.

Background of the ASU

Previous revenue recognition guidance in U.S. GAAP comprised broad revenue recognition concepts together with numerous revenue recognition requirements for particular industries or transactions, which sometimes resulted in different accounting for economically similar transactions.  Under International Accounting Standards Board (IASB), the previous guidance was limited in its scope and was difficult to apply to complex transactions.  As such, the FASB and the IASB initiated a joint project to clarify the principles of revenue recognition and to develop a common standard for U.S. GAAP and International Financial Reporting Standards (IFRS).

This guidance amends the existing FASB Accounting Standards Codification, creating a new Topic 606, Revenue from Contracts with Customers, while the IASB is issuing IFRS 15, Revenue from Contracts with Customers.

Considerations for Private Companies

This guidance has the potential to affect every entity’s day-to-day accounting and, possibly, the way business is executed through contracts with customers.   The FASB felt the need to centralize the guidance on revenue recognition, particularly in the case of complex arrangements involving contracts with customers and multiple deliverables.  Previously, an entity would have potentially considered a combination of general revenue recognition guidance as well as industry-specific revenue guidance for some transactions.  This new standard provides a “one stop shop” for entities to consider when recognizing revenue.   Additionally, it will help users of financial statements better understand how entities are recognizing revenue.

Although the FASB believes that over time this will simplify the guidance on revenue recognition, the details for specific transactions can still be very complex.  Entities should become familiar with the nuances of the revenue recognition process in this guidance when applying to their own unique transactions.

revenue recognition audit standardsContributed by Michael P. Jones, CPA, a manager in RKL’s Audit Services Group. Mike specializes in serving the audit and accounting needs of commercial and not-for-profit organizations.

 

 

 

 

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Posted on: July 14th, 2015

Pennsylvania Families Will Soon Be “ABLE” to Save for Costs, Care for Children with Disabilities

Achieving a Better Life Experience (ABLE) Act in Pennsylvania

A new tax-advantaged savings program could soon help PA families cover expenses for loved ones with disabilities.

Legislation creating tax-advantaged savings plans for individuals with disabilities is making its way through Pennsylvania’s General Assembly. The Achieving a Better Life Experience (ABLE) Act, recently approved by the House Finance Committee, is Pennsylvania’s application of the federal ABLE Act, which passed in late 2014. Under the federal ABLE Act, each state is authorized to set up a program of specially designed tax-advantaged savings accounts that can be used to meet a child’s qualified disability expenses over the course of a lifetime.

As Pennsylvania moves through the process of setting up its ABLE program, let’s take a closer look at what these accounts are and how they can benefit families with children who have disabilities or special needs.

What is an ABLE Account?

ABLE accounts are similar to 529 college savings plans. Named after the enabling section of the IRS code, 529 plans have been successful at helping families save for higher education expenses while enjoying considerable tax benefits. Following this model, the ABLE program would provide for similar tax-advantaged savings accounts dedicated to covering costs for children with disabilities as they move through life.

Highlights of the ABLE Program

  • Can be established if diagnosed with a disability before age 26 and the eligible persons are entitled to Social Security benefits based on blindness or disability
    • An individual, parent or guardian may file a disability certification from a physician stating that an individual has had a medically determinable physical or mental impairment such as blindness or severe functional limitations that can be expected to last for a continuous period of more than 12+ months or result in death.
  • Creates a Medicaid lien for Medicaid benefits
  • Maintained by the state
  • Must operate under federal guidelines
    • $14,000 annual limit on nondeductible cash contributions on all contributors
    • Can change investments two times per year
  • Earnings grow tax free and withdraws exempt from taxes
  • Can accumulate $100,000 of assets without loss of Supplemental Security Income (SSI) benefits

Individuals Remain Eligible for Other Benefits

One of the most important provisions of ABLE accounts is that they generally will not count against an individual’s eligibility for other federal or state need-based benefits or programs (including Medicaid and SSI benefits) – a previous roadblock for families looking to financially support a child with disabilities. Under the ABLE program, these children would now be able to benefit from the generosity of friends and family members who would like to contribute to their savings effort.

Qualified Disability Expenses

Money contributed to ABLE accounts will grow tax-free and can be withdrawn without tax consequence to pay for qualified disability expenses such as:

  • Education
  • Housing
  • Transportation
  • Employment training and support
  • Assistive technology and personal support services
  • Health care (including prevention and wellness)
  • Financial management and administrative services
  • Legal fees
  • Expenses for oversight and monitoring
  • Funeral and burial expenses

While the Pennsylvania ABLE program is not yet finalized, families concerned about the financial future of a child with disabilities should take heart that they will soon have a savings vehicle to provide a measure of long-term financial security.

Our investment advisory team is monitoring the progression of this legislation and the efforts by state officials to set up the program. Contact your RKL Wealth Management advisor with any questions about ABLE accounts and how they could benefit your family.

Contributed by Lauren R. McNeely, CRPC, of RKL Wealth Management LLC. Lauren is responsible for client portfolios, client service excellence, relationship management and business growth.

 

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Posted on: July 7th, 2015

Four Factors to Consider When Determining Multi-State Tax Responsibilities [Video]

View the video

Run-time: 04:48 If your company does business in multiple states, it’s critical to understand your obligations under each state’s tax code. Get a breakdown of how you can achieve compliance while minimizing your tax burden.

Doing business in multiple states? Companies with a multi-state tax presence have the unique challenge of ensuring compliance with tax laws and regulations that vary widely from state to state. Taxation is an area constantly in flux, so it is critically important for businesses to stay current with changes that can affect the bottom line.

Keeping up with this information can be difficult so business owners should rely on their CPA or tax advisor for guidance on how to navigate the multi-state taxation landscape. Businesses can avoid overpayment and ensure compliance across various states by considering the following issues with a tax professional.

  1. Review nexus to determine tax obligation. Tax advisors can help business owners review their nexus, which is key to establishing if a business has a tax presence in a certain state. Three factors can affect nexus: sales/revenue, property (fixed or leased assets as well as inventory), and payroll. A nexus review will determine tax obligations with the end goal of ensuring proper payment of state taxes and avoiding instances where unnecessary taxes are paid to states.
  1. Ensure company location and structure minimizes tax liability. Your CPA can also help you avoid high tax jurisdictions by ensuring no nexus is established in such zones. It is also important to review company structure, because different states may have different treatment of a particular entity structure. Tax professionals can help their clients determine how to structure their companies in various states for maximum benefit across all tax types.
  1. Get in compliance through voluntary disclosure programs. If a business has not been filing taxes in various states, it can be a source of concern. There are ways to come into compliance, and your CPA can guide you through the process. Most states have a voluntary disclosure program that allows companies to catch up on taxes and move forward in compliance. Generally with these types of programs, three to five years of back taxes can be submitted without penalties. If compliance is then continued for three to five years, a business can be absolved of prior tax liabilities.
  1. Respond appropriately to inquiries from states. Often times, states will contact businesses for information to determine which entities need to be paying state taxes. Whether it’s a request to conduct an audit, or to collect information about a particular tax type, it is critically important to seek the counsel of your CPA before responding. Since this communication could have serious tax ramifications, a tax professional can help you determine how to craft your response and what information to provide.

The goal for all business owners should be to fully understand tax responsibilities to ensure compliance and make sure no unnecessary taxes are paid. Your RKL tax advisor can be a valuable partner in that process, or you can reach out to one of our local offices for assistance or more information.

Weidman_webContributed by J. Andrew Weidman, CPA, MST, a partner in RKL’s Tax Services Group and leader of the firm’s Real Estate Development & Construction Services Group. Andy has more than 30 years experience in tax planning, specializing in closely-held entities, the real estate industry and tax planning for mergers, acquisitions and sales of businesses.

 

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