Archive for March, 2012
by Marie Jett, CPA | Manager, Tax Services Group
On March 20, 2012, the Governor signed into law Senate Enrolled Act 293 that changes the exemption amounts and eventually calls for the phase-out of the Indiana Inheritance Tax. Prior to January 2012, the Indiana Inheritance Tax was calculated based on different classes of exemptions and tax rates associated with those classes. Beginning in January 2012, the amount of the exemption increases from $100,000 to $250,000 for the class that includes children, grandchildren, parents and grandparents.
by Anita Sherman, CPA | Managing Partner
“Developing” successors is an important matter that often does not get addressed until it is over ripe, because, while it is important, it is not urgent. Very few businesses have successfully transitioned in the past from one leader to another, so many CEOs don’t have a road map to follow. This process often isn’t well thought out, if it is viewed as a process at all. “Hey, nobody taught me how to be the President. I learned it all by myself”, we frequently hear. There are a number of reasons why approaching your transition early and on a proactive and deliberate basis might be a better idea than leaving the process to chance: a) the complexity of business today requires strong skill sets, b) you want to leverage your knowledge and talent, c) you want to ensure that your financial future is more secure (assuming that the value of your business, or a future income stream from it, is important to you), d) to identify the skills needed and work on development of those in your identified next leader. Even if your exit strategy is to sell to an outside buyer rather than internal one (i.e. children, other family members or existing key personnel), having a strong management team in place is a real plus. Continual assessment, promotion, and development and retention of your key performer’s are critical to a successful plan.
by Tim Ayler, CPA, Partner, Director of the Construction Services Group | Shaun King, Member of the Construction Services Group
Every day people make plans that don’t go exactly as planned. For those in the construction business, adjustments to plans aren’t always as simple as making a phone call or switching a schedule. Many times, for a contractor to get paid there needs to be a change order issued. As with any adjustment in plans, there are many items to consider.
I recently received a communication from Jo Young-Switzer, President of Manchester College (and my alma mater), that is worth sharing. It is entitled
Notes from the President.
“Reflections. My reflections are usually fairly upbeat about higher education, but my January time away led me to think about young adults. I worry about them. I worry that some of them rely too much on their parents to solve their problems, from roommate issues to financial predicaments. I worry that too many of them have not developed the ability to delay gratification. I worry that some of them have no clue that loans will need to be repaid because loan dollars that seem so easily available now will soon become painful monthly repayments after graduation.
by Stacey Spencer, QKA | Manager, Employee Benefit Services Group
Vesting is the non-forfeitable interest in the employer portion of your account. Your vested percent determines how much of the employer contributions you get to keep when you leave the company. It does not matter whether you terminated employment voluntarily, if you are fired or laid off.
Implementing a vesting schedule is a way for employers to reward loyalty. It provides an incentive for you to continue working there. In many instances, the more years you work, the more employer money you get to keep.
Remember that you are always 100% vested in any money you contribute directly to your own retirement plan. Your deferrals, adjusted for any investment gains or losses, are always 100% vested.
by Amanda Meko, CPA | Partner, Director of Audit & Other Assurance Services and Team Leader of the Not-for-Profit Services Group
What type of research do you perform before making a significant purchase? You may compare the product you’re considering with similar products online to evaluate price and features. You likely will read reviews of other individuals who purchased the products. You may even seek out the opinion of a friend or family member. Your donors may also be performing similar research on your organization before choosing to give. Most organizations have invested in a website, but may not have considered other web resources that donors are using to research prospective charities. The following highlights some of those resources and how you can maximize them.