Archive for July, 2010
by Tim Ayler, CPA | Partner, Director Construction Services Group
Change orders are a common occurrence for most contractors. Although it is common, the treatment of change orders in the accounting system is something that is not always done correctly. Sometimes change orders go without pricing even though the work is defined and costs are incurred. Once the price is negotiated it could result in the change order being treated differently for accounting purposes, so it is best to record it conservatively and correctly the first time.
by Marie Jett, CPA | Manager, Tax Services Group and Member of the Manufacturing & Distribution Services Group
In the last e-newsletter issue, we looked at the Health Care Bill and its affect on businesses. This time we are discussing the affect this legislation has on individuals and the many tax law changes this bill has brought about. Specifically we discuss the requirement that individuals have health insurance or face a penalty, tax credits to individuals, the increase in Medicare tax to wages, and the additional Medicare tax on investment income.
by Marie Jett, CPA | Manager, Tax Services Group and Member of the Manufacturing & Distribution Services Group
The recently enacted health care legislation bill requires applicable large employers (50 or more employees) to offer and contribute to their workers’ health insurance or pay a penalty. Small employers who offer health coverage may be able to receive a tax credit. Under the new law, effective for months beginning after Dec. 31, 2013, a large employer that 1) does not offer coverage for all its full-time employees, 2) offers minimum essential coverage that is unaffordable, or 3) offers minimum essential coverage that consists of a plan under which the plan’s share of the total allowed cost of benefits is less than 60%, is required to pay a penalty if any full-time employee is certified to the employer as having purchased health insurance through a state exchange with respect to which a tax credit or cost-sharing reduction is allowed or paid to the employee.