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Small business owners looking to convert their organization to an employee-owned company may have an easier path thanks to a new law signed by President Donald Trump last year. This article reviews the new law.
Last month’s article was mainly about remittance schedules and things plan sponsors can do to help meet the deadlines for depositing employee contributions in a timely manner. But even plan sponsors with the best intentions and safeguards in place occasionally miss their remittance deadlines.
So, when this happens, the question becomes: What steps do you need to take to correct the late remittance?
The Department of Labor (DOL) takes this issue very seriously; late remittances are a breach of a plan sponsor’s fiduciary responsibilities and are treated as prohibited transactions. Thus, it’s important to get started on a remedy as soon as possible. There are two options for fixing the problem: self-correction and the DOL’s Voluntary Fiduciary Correction Program (VFCP). Before analyzing the pros and cons of each approach, it’s important to understand some of the preliminary steps involved in correcting a late deposit.
This article reviews what to do if you miss a remittance deadline.
It has been over six years since Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, more commonly known as the Uniform Guidance (UG) was released. The date of Dec. 26, 2013, will forever be seen as the day compliance took on a new meaning for recipients of federal funding.
During this time, entities have worked to establish, update and critically review internal policies and procedures to ensure compliance with the Uniform Guidance. From our clients’ perspective, the amount of resources, both time and money, spent on meeting the new requirements has been staggering. Much progress has been made, but there continue to be key areas where we find that entities encounter issues. A few areas in which we continue to see issues are discussed in this article.
Nonprofit organizations with calendar year ends are working to implement the provisions of Accounting Standards Update (ASU) 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities.
The ASU is effective for annual financial statements issued for fiscal years beginning after Dec. 15, 2017.
As implementation efforts have been undertaken, we have seen one area that is causing more issues than anticipated. This is the presentation of the statement of functional expenses that shows the analysis of expenses by function and natural classifications. As part of developing this information, entities are looking at their current cost allocation methodology as well as what components, both program and natural expense classifications, that they want to include.
The data in your QuickBooks company file contains some of the most sensitive information on your computer. Make sure it’s secure.
Your customer list is gold. And those Social Security and bank card numbers in your payroll, client, and vendor records need to be protected from intruders and only viewed by authorized employees.
It’s not just large corporations and financial institutions that get hacked. That’s what the bad guys want you to think. In reality, small businesses are often the victims of data breaches because their owners think they’re immune from data theft and destruction.
Even if you’re password-protecting your PCs and running antivirus and anti-malware software, there’s more you need to do when it comes to your accounting records.
This article provides suggestions.
Does your business do work for clients over weeks or months? Consider using QuickBooks Online’s progress invoicing.
Let’s say you’re doing a job or project for a customer that is going to take a long time, but you don’t want to wait until you’re finished to get paid. Or you’ve agreed to let a customer pay for something in multiple payments. QuickBooks can help. You can create an estimate upfront for the work or products and send a series of invoices at different intervals until the bill is paid off. This is called progress invoicing.
Before you can use this tool, you’ll need to make sure it’s turned on. Click the gear icon in the upper right and select Account and Settings. Click the Sales tab. Look for Progress Invoicing in the left column. If that option isn’t On, click the pencil icon in the far-right column and click in the box to create a checkmark and Save it. Then click Done in the lower right corner.
This article explains how it works.
Getting employees to sit for and pass the Uniform CPA Examination can be a challenge at some firms. Marvin and Company, P.C. has instituted an incentive program to encourage test-taking.
Part of offering a defined contribution plan, whether a 401(k) or a 403(b) plan, is making sure that the money participants contribute from their paycheck is deposited in their retirement account in a timely manner. While this might seem like a relatively minor and simple task in the scope of a plan sponsor’s fiduciary duties, the Department of Labor (DOL) views non-compliance with remittance rules as a major issue, and missing deadlines for deposits—even by a couple of days—can carry significant penalties.
Unfortunately, there is much confusion about how quickly plan sponsors are required to make these deposits. The DOL expects plan sponsors to separate employee elective deferrals and loan repayments from the employer’s general assets as soon as reasonably possible, but no later than the 15th business day of the following month. Small plans, which have fewer than 100 participants, have a safe harbor of seven business days to make this transaction happen, but larger plans are expected to do this as soon as reasonably possible.
Many plan sponsors mistakenly—and understandably—think this means that they have until the 15th of the next month, which is just what the DOL says. They see this as a safe harbor—which it is not. The DOL requires participant contributions and loan repayments to be transferred as soon as reasonably possible. The 15th deadline is the last possible day that can be considered timely.
Marvin and Company, P.C. will host the next webinar in its complimentary series titled: “Consolidated Fiscal Report” on Wednesday, April 17.
Your guide for this webinar will be Rachel A. Reynolds - Assurance Manager.
The last thing taxpayers expected following sweeping tax reform was to receive lower refunds than they had in the past. In fact, some are discovering that instead of a refund they owe the federal government. So what went wrong?
Marvin and Company, P.C. explains why a number of taxpayers will be getting lower-than-expected refunds, or even owe money to the IRS.