Small Business Jobs Act Offers Tax Incentives for Businesses of All Sizes
On September 27, 2010, President Obama signed into law the Small Business Jobs Act of 2010, or H.R. 5297 (hereafter, “the Act”). Though many of the Act’s provisions focus on small businesses, the new law also contains tax incentives that apply to all businesses as well as new retirement savings incentives for individuals. It is important to note that some of these provisions offer taxpayers a very small window of opportunity, requiring action before the end of the year to take advantage of the savings. The Act enhances and extends a number of tax incentives that were originally included in. Read More.
Can Your Company Benefit from Captive Insurance?
Captive insurance companies have been a popular business and tax-planning tool for many years. While captives were initially used only by large multinationals, the concept has caught on, and today captives are found in a wide variety of business endeavors. Currently, casualty coverages dominate the premium writings of captives. However, since September 11, 2001, more property exposures have been or are being placed in captive insurance companies. A fundamental technique of international tax planning, including the use of captive tax planning instruments, is the shifting of profits from a high-tax to a low-tax jurisdiction. However, even if profits are shifted. Read More.
“Big GAAP” Vs. “Little GAAP” – A Possible Solution?
For decades small business owners, accountants, and others have argued the need for different accounting standards to be used by smaller privately held companies as a replacement for the complex and burdensome standards issued by the Financial Accounting Standards Board (FASB). Opponents have argued for only one set of accounting standards, pleading that multiple accounting standards could only lead to confusion and a lack of credibility for issuers of financial statements prepared under “lesser” standards. Compelling arguments can be made by both camps, but the practical portion of the argument has, in recent years, tilted in favor of some version. Read More.
Proposed Lease Accounting Rule Changes Could Impact Your Balance Sheet
On August, 17, 2010, as part of the continuing convergence process, the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) (collectively the “Boards”) released joint exposure drafts that would significantly change the accounting treatment of leasing arrangements of both lessees and lessors. These proposed changes would require companies to record nearly all leases on their balance sheets as a right to use asset with a corresponding lease liability. While the proposed guidance is still in exposure draft form, the Boards expect to issue the final standards in 2011. An effective date is yet to be determined but. Read More.
The Impact of Health Care Reform on Government Procurement
While the impact the recently enacted health care reform (officially H.R. 3590, the Patient Protection and Affordable Care Act or PPACA) will have on businesses, individuals and the economy in general cannot be determined at this time, there are at least two provisions that could affect government procurement. The first is Section 1511, which adds a new Section 18A to the Fair Labor Standards Act. Under the new Section 18A, large businesses (i.e., those with more than 200 full-time employees) that offer one or more health insurance plans to their employees are required to enroll new full-time employees, with certain. Read More.
The Unique Aspects of Accounting for Government Contractors
The recent economic downturn combined with the expansion of government stimulus spending has encouraged many small businesses to seek revenue streams from the federal government. Although government work typically yields lower profit margins and increased oversight, the reliability of a stable customer found in the federal government is often a safe haven for small businesses during tough economic times. The federal government enlists the private sector to provide a variety of goods and services ranging from off-the-shelf products and routine maintenance/support functions to specialized military equipment, highly technical research and development, and information technology. Companies that choose to do business. Read More.