Healthcare Reform

cfo-roundtableThe December CFO/Controller Roundtable outlined health care reform from the perspective of employers as a result of “Obamacare.” Kristopher F. Powell, CLU, LIC, CEO of HR PRO and BENEPRO based out of Royal Oak, Michigan, discussed strategy and planning as it relates to current reform and what awaits on the horizon for the American healthcare system.

Health Care Coverage Mandates

Individual Mandate

  • Currently in effect and requires all eligible Americans to have at least basic health coverage
  • Penalties will be assessed for each month without coverage based on household income
    • 2014 – Greater of $95 or 1% of taxable income

Starting a US subsidiary?
Seven Reasons Why Cloud Accounting May Be for You

Teresa Gordon, CPA | Shareholder - International Accounting ServicesFor over thirty years, Clayton & McKervey, P.C. has helped foreign owned companies start up subsidiaries in the US by providing a range of accounting, tax, and business services we like to call “hand holding” services. To best serve these companies, our dedicated team of tax and accounting professionals sought out and invested in several new cloud accounting applications and are adapting them to fit the particular needs of the US subsidiary and its foreign parent company.

China Unveils List of 15 ‘Unacceptable’ Tax Practices in Crackdown on Multinational Companies

Alex Martin | Principal - Transfer Pricing ServicesSubstantial increases in tax disclosures will provide a road map for China’s SAT

China’s State Administration of Taxation (“SAT”) recently announced a major initiative to collect global tax information from multinationals to challenge 15 “unacceptable tax practices”.  The new General Anti-Avoidance Rule (GAAR) Circular No. 32 published on December 12, 2014 signals an accelerated timetable to crackdown on profit shifting through transfer pricing.

Multinational companies of all sizes need to be aware of the SAT’s plans for increased scrutiny, as the SAT has a particular focus on capturing more corporate income tax in China.  To facilitate this initiative, China plans to institute requirements for country-by-country reporting where Chinese and foreign multinationals will need to disclose income taxes paid in every country where they operate to the SAT.

What do I need to know about the Affordable Care Act to file my 2014 taxes?

Margaret Amsden, CPA, MST | Shareholder - Tax ServicesThe Affordable Care Act (“ACA”) creates the Health Insurance Marketplace, also known as the Marketplace or the Exchange. The Marketplace is where taxpayers go to:

  • find information about health insurance options,
  • purchase qualified health plans, and
  • if eligible, obtain help paying premiums and out-of-pocket costs.

If a taxpayer purchased a qualified health plan through the Marketplace, they may qualify for the premium tax credit.

The ACA also includes the individual shared responsibility provision which requires individuals:

  • to have qualifying health care coverage (i.e., minimum essential coverage) for each month of the year,

How to Protect Yourself from Tax Refund Theft

Tood Goodman | Technology Operations AdministratorThis past fall I wrote to alert readers of the serious and growing threat of tax refund theft and recommended some preventive steps we should all take. I gave you statistics on the tens of millions of suspicious returns stopped, and tens of billions of dollars in fraudulent refunds protected by the IRS in recent years.

FASB Update: Simplifying Income Statement Presentation

Wendy Reedy, CPA | Principal - Assurance ServicesOn January 9, 2015, the FASB issued ASU [Accounting Standards Update] 2015-01, Income Statement—Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. The ASU eliminates the concept of extraordinary items and the uncertainty in determining when an item is both unusual in nature and infrequent in occurrence.

Presently, an event or transaction is presumed to be ordinary activity unless evidence supports the transaction as unusual in nature and infrequent in occurrence. If an event or transaction is determined to be unusual and infrequent, it is deemed to be extraordinary, and is required to be segregated from the results of ordinary operations on the face of the income statement, net of tax, after income from continuing operations, along with other financial statement disclosures.

FASB Issues Pushdown Accounting Option

Wendy Reedy, CPA | Principal - Assurance ServicesPushdown accounting is the reflection of the fair value of assets acquired and liabilities assumed in a business acquisition to the acquired entity’s financial statements. The FASB recently issued literature (ASU 2014-17, Business Combinations (Topic 805): Pushdown Accounting (a consensus of the FASB Emerging Issues Task Force) that is effective immediately and allows the option of pushdown accounting when a private or public company has had a change-in-control. Previously, pushdown accounting was addressed only in SEC staff guidance and required restrictive percentages of control change for its application to the financial statements of acquired entities.

Our Playing Field has Expanded

Kevin McKervey, CPA | PresidentWhether you are a long-standing or new client of the firm, or one of our many friends in the business community, we would like to thank you for your patronage and, most importantly, your friendship. We hope you had a successful and healthy 2014 and wish you our best for 2015.

As we begin 2015, I thought it would be a good time to share some of the changes happening at Clayton & McKervey.

Federal Extenders Passed by Congress Cause Late Tax Planning Changes

Margaret Amsden, CPA, MST | Shareholder - Tax ServicesAs the legislative sessions drew to a close last week the Senate passed H.R. 5771 and President Barack Obama signed the legislation on December 19, 2014, to retroactively renew a package of tax extenders this year.

The bill, passed by the House of Representatives on December 3, continues more than 50 currently expired tax breaks and other benefits for individual and business taxpayers through December 31, 2014. All of these provisions then expire again beginning January 1, 2015. As a result, legislators will start the new Congress on January 6, 2015, and begin debate anew on whether to carry forward the temporary extenders yet again.

“SALT” – It’s more than a Grain: State and Local Tax

cfoNavigating the patchwork of laws and regulations that govern state and local taxes is never an easy task. Timothy J. Hilligoss, Shareholder – International Accounting, Practice Leader for Asia, and Bryan D. Powrozek, Senior Accountant – SME, both of Clayton & McKervey, P.C., analyzed and discussed important state and local tax (“SALT”) issues affecting all business at the last quarterly CFO/Controller Roundtable. The presentation and discussion touched on a variety of different SALT topics including:

  • Nexus
    • What is Nexus?
    • Tracking Nexus
    • PL 86-272
    • Franchise Taxes
    • Click Through Nexus
  • Audits
    • Sales & Use