In April 2015, the Financial Accounting Standards Board (“FASB”) issued new guidance* on accounting for fees paid for cloud computing arrangements. How you structure your cloud computing arrangement will determine if the related fees are treated as an operating expense or as a fixed or intangible asset subject to depreciation or amortization. The determination of how these fees are structured may significantly impact earnings before interest, taxes, depreciation, and amortization (“EBITDA”), and other key financial indicators, which could impact financing covenant compliance or other third party operating performance analysis.
Businesses often make payments to individuals and un-incorporated businesses (i.e., partnerships, LLCs, and sole-proprietorships) that are not considered wages and are not subject to income, Social Security, or Medicare tax withholding. These payments are required to be reported on various forms, depending on the character of the payment. Following is a summary of the most common forms:
Form 1099-MISC (Miscellaneous Income)
This form relates to services rendered that do not constitute wages reportable on Form W-2 and is currently required for each payee that received:
On Monday, October 5, the Organization for Economic Cooperation and Development (“OECD”) released their final package of measures to clamp down on multinational corporate tax avoidance. Most developed and many developing countries will be adopting many, if not all, of the OECD’s new international tax reforms.
The OECD Base Erosion and Profit Shifting (“BEPS”) project deliverables incorporate 15 programs to assist tax authorities in combating many tax planning strategies. Most notably, this agreement includes more thorough transfer pricing requirements, new restrictions to prevent tax treaty abuse, a change in permanent establishment rules, and additional tools to prevent “other harmful tax practices.”
The passage of the Affordable Care Act (“ACA”) brought with it additional compliance reporting for employers, insurers, and individuals. Prior to 2015, much of this reporting was optional; but has become mandatory for the 2015 year (to be reported in early 2016). Following are some changes that you will need to consider with regard to year-end reporting for your business.
The primary purpose for all of the various reporting forms is to allow:
- The government to determine if taxpayers are subject to the new shared responsibility penalty for not having health coverage, or
In our first article, we discussed the basics of FATCA, considerations for non-financial domestic entities, and foreign entities. We subsequently published another article that discussed the key elements of FATCA, including the types of payments subject to FATCA, compliance requirements, steps, the cost of noncompliance, and the reporting of the 1042 series. It has been about a year since the implementation of FATCA withholding, and we wanted to share the top five practical questions most commonly asked by our clients.
Even for non-public US companies, having a basic understanding of International Financial Reporting Standards (“IFRS”) is beneficial. The continued global adoption of IFRS impacts US companies due to the convergence of generally accepted accounting principles in the US (“US GAAP”) and IFRS, as well as increased cross-border merger and acquisition activity, and the growing number of companies doing business globally. Included is a summary of 5 areas of existing differences between the frameworks and any corresponding guidance updates.
Supporting the Clayton McKervey, P.C. goal of being a global resource for our clients, Ms. Wang will continue to support the firm’s mission of providing specialized accounting, auditing, and tax services to growth driven, middle market companies who compete in the global marketplace.
“We are excited to see our young professionals continue to grow in their careers. Nina has been with Clayton & McKervey for more than seven years and is a tremendous asset to the firm. She will no doubt be a valuable future leader of the firm,” said Kevin McKervey, President of Clayton & McKervey, P.C.
“We are honored to be recognized for the eleventh consecutive year as one of Metro Detroit’s 101 Best and Brightest Companies to Work For,” said Kevin McKervey, President of Clayton & McKervey. “This acknowledgement is especially important to us since it is based on the feedback of our staff. The 60-plus individuals that comprise our firm have a willingness and passion for helping our clients and each other succeed. We appreciate this positive feedback.”
One of the joys of my role as President of Clayton & McKervey is being able to share some of the exciting happenings taking place in our firm.
This morning we held a firm town hall meeting and rolled out the new recruiting materials we will be using this fall on the college campuses. You may not know the amount of effort we expend to continue to recruit the talented “can do” folks that work at C&M, but suffice it to say the effort is significant and it is ongoing as we continue to grow.
In a recent survey, 86% of CEOs identified their use of technology as one of the primary differentiators for them in the marketplace. Due to the important role technology plays in business, Clayton & McKervey, P.C., used the June 2015 CFO/Controller roundtable as a forum to discuss how local businesses are using technology to make their operations more efficient. Timothy J. Hilligoss, CPA, MST, Shareholder – International Accounting, Practice Leader for Asia, and Bryan Powrozek, CPA, CGMA, Senior Accountant – SME, led the discussion which touched on various topics, including:
- Determining the needs of users.