After 2012, taxpayers with wages in excess of $200,000 ($250,000 if married filing jointly and $125,000 if married filing separately) are required to pay an additional 0.9% Medicare tax. This tax is in addition to the regular Medicare tax rate of 1.45% on wages received by employees.
The USA attracts FDI equivalent to 6.6% of GDP, compared to a 17% global average. The USA is lagging behind most major economies in terms of its ability to attract foreign direct investment, according to a new study by UHY, the international accountancy network.
Over the past year, we have been inundated with the ACA (Affordable Care Act) and the various components of the law; whether it be the individual mandate, insurance exchange marketplaces, or employee notices. At this point, employers are gearing themselves for 2015 when the mandate will apply to employers that have 50 or more full-time employees. It is anticipated that as we get closer to January 2015, the activity level will reach a fever pitch as it did last year.
After the December holiday season (during which Congress was not in session), there are few tax legislative developments to report. At this time, Congress appears to be more concerned with political posturing than with taking action in the tax arena. The following are some recent developments:
Due diligence is the process of investigations and analysis into the details of a company prior to an acquisition of its shares or assets or in preparation of an IPO. While financial, legal, operational, and income taxes of the company are generally considered, state and local non-income based taxes should not be left out of the analysis. These taxes are sometimes the reason a buyer decides not to proceed further, yet this is an area that is often overlooked.
The USA is falling behind Europe and China in the race to capitalize on globalization and could potentially miss out on future economic growth as a result, according to a new survey by UHY, the international accounting and consultancy network.
The Financial Accounting Standards Board (FASB) recently endorsed a GAAP exception for private companies and their treatment of goodwill, marking a milestone in the work to provide simpler, less costly rules for private companies while producing financial statements that reflect economic reality.
On December 20, 2013, the Securities and Exchange Commission ("SEC") issued a staff report to Congress regarding its disclosure rules for US public companies (Regulation S-K), which was mandated by Congress in the Jumpstart Our Business Startups ("JOBS") Act of 2012 and provides a framework for disclosure reform.
The Financial Accounting Standards Board and the International Accounting Standards Board are developing a converged standard regarding revenue recognition that is expected to have an effect on all entities that adhere to US GAAP or IFRS. The standard is expected to be released in the first quarter of 2014.
Michigan consumers will no longer be taxed on the full purchase price of new or used motor vehicles, recreational vehicles, or titled watercraft when a consumer provides a trade-in towards a purchase.