Today’s staffing organization is growing at a rapid pace and needs to have a team of financial services professionals that responds quickly to change. The average staffing company has outgrown the typical accountant and developed the need for a CPA firm with a deep industry focus. With change, managing risk and realizing tax savings opportunities become a more important focus as staffing organizations decide how they will adapt and evolve their business models for long-term survival. Regulatory issues require skill set that integrates financial and business expertise to keep your business risk at a minimum.
Having a knowledgeable team who understands the competitive forces shaping your industry is critical to managing a successful business. As leaders in the industry, we are quick to identify and address new trends, accounting requirements and regulations to ensure our clients’ future success. Our firm’s National Staffing Practice has the skill set to anticipate and respond to the needs of your business by providing solutions that give you a competitive advantage.
We often hear from companies that they are not being properly or effectively served by their current accounting firm. This is why we have made a strong commitment to ensure that quality is built into every engagement. We have been successful in meeting and exceeding client expectations, including the transition from their previous advisors.
The Tax Cuts and Jobs Act greatly simplified the Kiddie Tax. The original Kiddie Tax required children under the age of 18, or under age 24 if they are a full time student, to pay taxes on their unearned income (interest, dividends, capital gains, rents, etc.) over $2,100 at their parents’ highest tax rate. It also required a separate form and some complicated computations, as well as requiring parents to share their tax information with their children.
Do you have current or new employees that you plan to reimburse for moving expenses? In the past, these payments were excluded from income and treated as a non-taxable for the employees provided they were reimbursed under an accountable plan and the relocation met the distance requirements.
The Tax Cuts and Jobs Act brought about many changes related to the deductibility of meals and entertainment expenses. Generally, business entertainment expenses (not including food and beverage expenses) are no longer deductible for amounts paid or incurred after Dec. 31, 2017. The term entertainment includes activities that are generally considered to constitute entertainment, amusement, or recreation, such as entertaining at a country club or athletic event.
Using the per diem allowance rule can help alleviate the recordkeeping for lodging, meals, and incidental expenses incurred by an employee while away from home overnight on business. It can be a useful tool when you have many employees traveling on business at once. However, are you aware of the Internal Revenue Service requirements for reporting billable per diems on customer invoices?
The Protecting Americans from Tax Hikes Act of 2015 (PATH) was signed by President Obama on Dec. 18, 2015. Included in the many tax breaks and incentives that were "extended" by this bill was the reinstatement of the Work Opportunity Tax Credit (WOTC). The WOTC is a credit to employers who hire certain targeted groups of employees and is based on a percentage of the wages paid to those employees. The PATH Act even added a new category that will be available in 2016.