“We are honored to be recognized for the tenth consecutive year as one of Metro Detroit’s 101 Best and Brightest Companies to Work For,” said Kevin McKervey, President of Clayton & McKervey, P.C. “It is our people that have set Clayton & McKervey apart in the marketplace for more than 60 years. This recognition validates our focus to recruit, develop, and retain the best talent to serve our globally minded clients.”
Individuals or businesses that sell tangible personal property to end consumers, and in some cases, provide services, are required to collect and remit sales tax. A seller must obtain a sales tax license prior to completing any taxable transactions. All sales are considered taxable unless the specific goods and services are defined as exempt from tax in the jurisdiction of the sale.
How do companies measure business performance? Timothy J. Hilligoss, CPA, MST, Shareholder of International Accounting, Practice Leader for Asia at Clayton & McKervey, P.C., hosted the quarterly CFO/Controller Roundtable where participants discussed how their companies use Key Performance Indicators (“KPIs”) to strengthen the performance of their businesses.
Many businesses understand the benefits of tracking KPIs but run into difficulties in identifying and measuring them. The conversation at the roundtable focused on three specific areas:
- How do you determine what to measure?
- How do you measure it?
- What do you do with the information?
Many companies may encounter a situation where the premium to cover an insurable risk in their business comes with a very high price tag. The Section 831(b) captive insurance company (“CIC”) has become an attractive option for small to midsize companies looking for a way to manage their risks in a cost-effective way.
As companies expand and begin to sell, deliver, and/or maintain products in multiple states, there are tax impacts that need to be researched and understood. Recognizing the different variables that trigger the requirement to file a state income tax return is vital in developing a growth strategy. The following are five of the most commonly asked questions regarding Income Tax Nexus.
1. What is nexus?
The term nexus is used to describe when a company has a “presence” in a state and is required to file a state income tax return. Nexus describes a state’s ability to tax a company’s income given the company has a sufficient connection with that state.
The accounting firm Clayton & McKervey, P.C. is pleased to announce that Margaret Amsden, CPA, MST, Shareholder – Tax, has been named one of the Michigan Association for Certified Public Accountants’ Women to Watch in the Experienced Leader category.
“Margaret truly is a Woman to Watch in the accounting profession. She is a mentor, teacher, role model, and a master at interpreting and advising her clients on complex tax legislation. She is deeply committed in the community, as we have seen most recently in her work the Boys & Girls Club of Oakland and Macomb Counties,” said Kevin McKervey, President of Clayton & McKervey, P.C. “We are extremely proud of her accomplishments and suspect they are only the beginning of what Margaret will achieve as a Woman to Watch.”
Clayton & McKervey, P.C. is pleased to announce that Don Clayton, CPA, Chairman, was awarded the first Association for Corporate Growth Detroit Chapter Lifetime Achievement award. Mr. Clayton was presented the award for his extraordinary leadership, his role in growing and shaping the chapter through sustained active and meaningful participation, and for being an outstanding example in the professional community.
“Our firm has been active with the Association for Corporate Growth for many years and we are proud to have Don recognized for the contributions he has made to the organization,” said Kevin McKervey, President of Clayton & McKervey, P.C. “Don joined ACG in 1996 and has served the organization in many forms, including as president from 2001 – 2003, vice president of membership, and as a member of the program committee.”
Will your company be surprised by an unexpected sales tax obligation?
Almost all 50 states have a type of sales tax. This tax often helps fund vital projects such as roads, police, fire, and other public safety and works. States expect employers doing business and having nexus in their respective states to register and remit sales tax in a timely manner. Traditionally, brick and mortar stores were only subject to sales tax if they had a tangible, physical presence in the state. However, as cash strap states are trying to find ways to fill holes in their budgets, they are becoming more aggressive with on-line and out-of-state retailers with no physical presence in their state. Unsuspecting retailers are receiving notices and tax bills from states for sales tax remittance they were not aware they were obligated to make.
There are numerous instances when an employer may choose to reimburse employees for business related expenses. As a result, it is important to understand the different ways expenses may be reimbursed and the tax impact and information reporting for both the employer and the employee. Following are 5 of the most common questions our clients have regarding business expenses and related reimbursement plans.
1. What types of expenses are commonly reimbursed?
Expenses that may qualify for reimbursement include: business travel (airfare, hotel, business mileage other than commuting, parking), business meals and entertainment, business meeting costs, cell phone and internet expenses, home office expenses, business supplies and equipment, required uniforms, training and certifications, and automobile expenses.
Many companies easily recognize the benefits of offering their employees a 401(k) plan. Too often, what companies do not recognize are the myriad of regulatory and compliance issues connected to maintaining a 401(k) plan – and it is not enough to have a reliable third-party administrator (“TPA”). Although a number of common deficiencies may be addressed by a competent TPA, it is ultimately the responsibility of the company sponsoring the 401(k) plan and the plan’s trustees to ensure compliance – and failure to comply may have legal and financial impacts. In short, a TPA is not enough and does not absolve the plan sponsor of its fiduciary and oversight responsibilities.