August, 2017 | RKL LLP
Posted on: August 24th, 2017

More Changes in Store for Federal Employment Form I-9

More Changes in Store for Federal Employment Form I-9Less than one year after a new version was introduced, Form I-9 is undergoing more changes. Employers based in the United States must ensure that all new hires properly complete a Form I-9 in order to verify an individual’s employment eligibility status.

In January 2017, a new version of Form I-9 was introduced that could be completed electronically. Last month, the U.S. Citizen and Immigration Services (USCIS) issued yet another revised version of Form I-9 that will take effect on September 18, 2017. Employers can confirm they are using the correct form by looking at the version and expiration dates. This new version is dated July 17, 2017, which can be found in the lower left corner, with an expiration date of August 31, 2019, which is printed in the upper right corner.

Here employers can find a guide to completing Form I-9, but below we take a look at the changes contained in this latest version.

Complete I-9 on, not during, first day of work

One of the distinctions in the new version of Form I-9 is a minor tweak in language related to when it needs to be completed. USCIS removed the language that employees complete the Form I-9 before the end of their first day, instead requiring it to be complete before employees begin working.

This language change may be intended to prevent employees from conducting any work for the employer before the Form I-9 is reviewed and supporting documentation is verified to establish employment eligibility.

Additions and reorganizations to acceptable documents

As in previous versions, the fourth page of Form I-9 provides a list of acceptable documents to use for proof of identity. While Form I-9 can be filled out electronically, hard copies of unexpired documents must be presented in person to the employer. An employee may present any document from List A or one document each from List B and List C.

The new version of Form I-9 effective September 18, 2017, adds Birth Certificate to List C as an option for documentation. Employers or hiring managers familiar with previous versions of Form I-9 may also notice that document types were aggregated or renumbered within List C.

What employers should do now

While the latest revisions are not significant, it is important that employers are aware that this new version exists and that they begin using it as soon as possible. Employers should discard any older, printed versions of Form I-9 they have on hand, and start using the most recent electronic version for convenience and compliance.

A best practice for employers is to craft the onboarding process so that employees report to orientation with Form I-9 already completed. The electronic form is designed to not allow an employee to finalize the document until all appropriate areas within Section 1 are completed properly, helping to ensure compliance. Ask employees to sign their Form I-9s right away and have the document review and form verification process take place immediately on their first day of employment. This allows time for any issues to be addressed and prevents potentially ineligible workers from completing any job duties, which could expose employers to federal fines.

Companies with questions about Form I-9 or any aspect of new employee onboarding can contact me at dhoffer@rklcpa.com or 717.394.5666.

Danielle J. Hoffer, SPHR, leader of RKL's Human Resources Consulting PracticeContributed by Danielle J. Hoffer, leader of RKL’s Human Resources Consulting Practice. Danielle advises clients across a wide range of industries on HR projects and issues, including recruitment, employee development and relations, compensation and benefits administration, employment compliance and more. She also manages RKL’s internal human resources function.

 

 

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Posted on: August 17th, 2017

RKL Named One of Nation’s “Top 100” Accounting Firms

RKL Named Among Nation's Top 100 FirmsPRESS RELEASE


LANCASTER, PA (August 17, 2017)
– An expanded focus on delivering innovative solutions to businesses and organizations continues to fuel RKL LLP’s rise among the nation’s top accounting firms, according to a notable industry publication.

INSIDE Public Accounting (IPA) boosted RKL one spot higher than last year’s position to number 66 on its “2017 Top 100 Firms” list, based on the firm’s 7.3 percent growth. Since breaking into the IPA Top 100 list in 2012, RKL has seen a steady increase in its position on this annual ranking.

“At RKL, we’re never content with delivering the status quo, so we’re proud that our continual quest for new and innovative ways to help our clients succeed continues to place us among the nation’s top firms,” said RKL CEO Edward W. Monborne.

Fueled by its deep bench of talented professionals across a growing range of financially oriented disciplines, RKL continues to expand its focus beyond the traditional scope of CPA firms. As clients look to RKL for assistance with an evolving range of business challenges and objectives, the firm is able to play a central role in business strategy and advise them on complex topics like cyber security, risk mitigation, performance improvement and human capital management.

RKL’s national ranking by IPA follows an earlier accolade this year from another industry publication Accounting Today, which placed the firm 65th on its listing of the nation’s top 100 firms. To view the 2017 IPA Top 100 Firms report, click here.

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Posted on: August 15th, 2017

Key Considerations for Investors and Businesses Using Crowdfunding

Key Considerations for Investors and Businesses Using CrowdfundingKickstarter. GoFundMe. FunderHut. These are just a few of the many crowdfunding websites that have sprung up in recent years as businesses, organizations and individuals seek new ways to raise funds and find investors for personal or professional endeavors.

As online fundraising has evolved, so too have federal rules and processes aimed at regulating crowdfunding investments and protecting the investors and businesses that use them. Here are some important tax and financial considerations to keep in mind when using crowdfunding sites.

Personal online fundraising tax deductions

GoFundMe and similar small-scale fundraising pages are a variation of crowdfunding often used to solicit financial support for individuals experiencing tough times, like a medical emergency or recovering from a natural disaster.

While most personal GoFundMe pages are well-intentioned and used for a good cause, donors should be aware that these contributions are categorized as personal gifts and are not tax deductible. Donations made to GoFundMe pages linked to a nonprofit with a 501(c)(3) designation, however, are considered allowable tax deductions.

Sales of securities now permitted via crowdfunding

The federal Jumpstart Our Business Startups (JOBS) Act contained several provisions related to crowdfunding, many of which took effect in early 2016. In particular, Title III of the JOBS Act expanded access to crowdfunding to individuals and small businesses beyond the previous circle of accredited investors that met certain income or net worth thresholds.

Title III also permits small or early-stage businesses to issue or sell securities as part of its crowdfunding efforts to raise capital, as long as the business enlists the services of newly recognized type of intermediary known as a crowdfunding portal. The Financial Industry Regulatory Authority, or FINRA, maintains a list of crowdfunding portals registered with the SEC.

By creating these portals, Title III eases the filing burden on companies raising capital through crowdfunding. Now, companies are permitted to use a “Q and A” format for the required disclosures on their Form C fillings. Title III also shifts the responsibilities for fraud detection and investor education to the portals.

In addition to traditional compensation direct from the company, Title III now allows companies to offer portal funding intermediaries payment in the form of a small ownership percentage (provided the ownership rights are equivalent to those being offered).

Annual limits on company crowdfunding and individual investment

Title III permits companies to raise an aggregate $1 million over a 12-month period through the use of a registered broker-dealer or crowdfunding portal. Depending on the amount to be raised, companies seeking crowdfunding, also known as issuers, may be required to have GAAP basis financials statements either reviewed or audited by an independent CPA firm.

  • Amounts under $100,000 require presentation of internal financial statements.
  • Amounts between $100,000 and $500,000 require financial statements to be reviewed by an independent CPA firm.
  • Amounts between $500,001 and $1,000,000 require financial statements to be audited by an independent CPA firm.
    • Issuers offering more than $500,000 for the first time are given a one-time exemption from the audit requirement. Instead, these companies are permitted to have an independent CPA firm simply review their financial statements, as opposed to auditing them.

Since crowdfunding involves a unique risk, Title III also limits the amount individuals can invest in this type of offering over a 12-month period based on their annual income and net worth. According to the SEC, if an investor’s annual income or net worth is under $107,000, his investment is limited to $2,200 or five percent of the lesser of annual income or net worth, whichever is greater. Alternately, if both annual income or net worth is equal to or greater than $107,000, the investor’s limit is 10 percent of the lesser of annual income or net worth.

Companies interested in crowdfunding should reference the Title III section of the SEC’s JOBS Act resource center for full details on compliance and disclosure. RKL’s team of business advisors are available to help businesses assess the benefits of crowdfunding and adhere to all regulations. Contact one of our local offices today to get started.

D. Hunter Mink, CPA, CCIFP, manager in RKL's Audit Services GroupContributed by D. Hunter Mink, a manager in RKL’s Audit Services Group. Hunter is responsible for the planning and supervision of audit engagements for clients in various industries, including engineering, construction, manufacturing and distribution and higher education.

 

 

 

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Posted on: August 8th, 2017

Why Board Reporting Must Align with Strategic Planning

Why Board Reporting Must Align with Strategic PlanningAn engaged, effective board is critical to the successful execution of an organization’s mission and achievement of its vision. Far too often, however, the information and data the board rely upon to make significant decisions and set policy for the organization are presented without the context of the overarching strategic plan. Below, we’ll take a look at how connecting your organization’s reporting to the strategic plan helps the board manage accountability and measure progress toward its goals.

Board and management responsibilities

Before discussing improved board reporting, here’s a quick overview of the basic responsibilities of an organization’s board and management team. A good board is focused on setting policy, making key decisions and directing management to move the organization forward. A good board chair facilitates that focus by setting a clear agenda and keeping the members on track. Overall, the board is responsible for:

  • Approving and adopting the organization’s strategic plan;
  • Reviewing performance results compared to the organization’s mission, strategic goals and peer organizations;
  • Establishing performance metrics and goals for key management functions and roles; and
  • Developing a consistent schedule of review and carry out accordingly.

An organization’s management team is responsible for:

  • Maintaining a good relationship with the board;
  • Providing the board with regular performance reports and updates;
  • Executing board-approved policies to achieve strategic goals and objectives; and
  • Developing, applying and monitoring written performance standards for all organization functions.

Connect to strategic plan and measure performance

The common thread running throughout the roles and responsibilities outlined above is strategy. Without a clearly defined strategic foundation, the board cannot live its values and carry out the organization’s mission.

Once the strategic plan has been adopted, the board should identify the performance metrics that will be used to gauge progress and how regularly these metrics must be measured and reported. Ideally, performance metrics include results from the current period and a “trend period,” generally a previous five-year period, to provide helpful context and comparison.

Benchmarking data that compare the organization to its peers can also be a valuable assessment tool. Management should always include a narrative that explains negative trends, significant variances between time periods or differences between the organization and its industry or peer group. The frequency of performance metric reporting depends on the organization; however, a general best practice calls for the analysis to be completed quarterly at a minimum.

An organization’s performance metrics form the basis for evaluating and tracking progress toward strategic goal achievement. They also provide the board with information related to the organization’s goals. Goals that are not met should be assessed to determine if further action is warranted and goals that are consistently met should be evaluated to see if they should be increased or raised.

Other best practices for board reporting

An organization can also adopt the following to improve overall board reporting:

  • Adhere to established timeline for information availability and ensure that information is available well in advance of board meetings
  • Use technology and intranet (iPads, web portals, GoToMeeting) to expand access and participation
  • Develop a consistent, visual reporting format, like dashboards, charts or graphs

Interested in aligning board reporting with your strategic plan? RKL’s team of consultants can assist organizations, government agencies and other entities with this and many other financial management and operational improvement efforts. Contact one of our local offices today for more information.


Mark S. Zettlemoyer, CPA, CFEContributed by
 Mark S. Zettlemoyer, CPA, CFE, Partner in RKL’s Audit Services Group, and Gretchen G. Naso, CVA, MBA, Principal in RKL’s Business Consulting Services Group.

Mark has nearly three decades of public accounting experience serving local governments, not-for-profit organizations and a broad range of corporate clients.

Gretchen has significant experience is providing operational consulting services to both not-for-profit and commercial entities.

Gretchen G. Naso, CVA, MBA, Principal in RKL’s Business Consulting Services Group

 

 

 

 

 

 

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