WILLIAMS OVERMAN PIERCE ACCOUNTING NEWS


Year End Reminder Regarding Common Fringe Benefits, Special Treatment for Two-Percent Shareholders and Changes Under TCJA

As 2018 draws to a close, we remind you about the proper inclusion of common fringe benefits in an employee’s and/or two-percent shareholder’s taxable wages, as well as changes made under the 2017 tax reform, referred to herein as the Tax Cuts and Jobs Act (TCJA). 

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Contractors, Don't Wait to Act on Revenue Recognition

Jan. 1, 2019, is quickly approaching. For most privately held construction companies, this is the implementation deadline for the new revenue recognition standard, Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers. The time to act is now, especially for contractors with projects lasting over 12 months. A contract that starts now, but extends into 2019, will be subject to the new standard. 

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August 2018 Newsletter

In this issue:

  • 401(k) Compliance: What Plan Sponsors Need to Know
  • Back to School Myths: Student Loan Interest
  • October 15 Tax Extension Deadline Reminder
  • The (Real) Questions Committees Should Ask about Executive Compensation

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Non-Profit News: Summer 2018

In this issue:

  • Robotic Process Automation for Non-Profits
  • Pay Data for "Similarly Qualified Persons in Comparable Positions at Similarly Situated Organizations"
  • Guide to Implementing a Holistic Privacy Program
  • Transportation Fringe Benefits Are Now UBI

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North Carolina FY ’19 Budget Bill Enacts Major Corporate Income Tax Legislation

The budget bill updates North Carolina’s Internal Revenue Code (IRC) conformity date, reacts to a number of the federal tax reform provisions enacted as part of the Tax Cuts and Jobs Act, modifies the sourcing of receipts from services and intangibles for purposes of the sales factor, and makes a number of procedural changes for North Carolina income tax purposes.

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Tariffs Spark Fears of Rising Construction Costs: Could Investment in Technology be the Answer?

As U.S. trade policy decisions continue to dominate headlines, the uncertain future of high-demand import prices has business leaders and lawmakers anxious. With building material costs on the rise and tariffs sparking fears of further increases, contractors that harness new technology will be better positioned to take advantage of the high demand for new construction projects.

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Tax Reform FAQ for Manufacturers

The $1.5 trillion tax reform legislation known as the “Tax Cuts and Jobs Act” (TCJA) represents the biggest change to the tax code since 1986. While the implications for businesses are broad and complex, we’ve summarized some of the most common tax reform questions for manufacturers.

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July 2018 Newsletter

In This Issue: 

  • Online payment options now available 
  • We can help with Internal Controls and Accounting Procedures
  • Interest rates remain the same for third quarter 2018
  • and more! 

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Transportation Fringe Benefits Are Now UBI

The Tax Cut and Jobs Act of 2017 added the following provision to the Internal Revenue Code that will cause many tax-exempt organizations to pay the unrelated business income tax (UBIT).

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Uncashed Distribution Checks: Best Practices for Plan Sponsors

Defined contribution plan sponsors face numerous challenges when workers change jobs, and the Department of Labor (DOL) is paying close attention to how employers are dealing with these situations.

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Employee Stock Ownership Plans Gain Attention in Congress

Congress is paying more attention to Employee Stock Ownership Plans (ESOPs) this session, with two New York legislators shepherding through bills aimed at promoting this type of defined contribution plan.

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Auto-Enrollment and Auto-Escalation: Right for Your Retirement Plan?

When it comes to saving for retirement, getting started can be the hardest part for many employees. This challenge, however, is being solved for many American workers by the dramatic increase over the past decade in the percentage of 401(k) plans that use automatic enrollment and automatic escalation features to encourage participation.

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Carpe Diem! Accelerating Defined Benefit Funding to the 2017 Tax Year Can Generate Tax Savings

Last year’s tax reform law has created a rare opportunity for defined benefit plan sponsors to take advantage of the tax rate difference by accelerating deductions to the year with the higher tax rate. The lowering of the corporate tax rate makes pension plan contributions for the 2017 plan year significantly cheaper on an after-tax basis than contributions for the 2018 plan year.

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June 2018 Newsletter

In This Issue: 

  • Should you check email at the start of the day? 
  • Loans and Hardship Withdrawals: New Rules for Employees Dealing With Natural Disasters and Other Financial Emergencies 
  • How Student Debt Affects Retirement Savings 
  • Lawmakers Hear From Small Businesses About Tax Reform Impact 

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Loans and Hardship Withdrawals: New Rules for Employees Dealing with Natural Disasters and Other Financial Emergencies

Natural disasters including Hurricanes Harvey, Irma and Maria, as well as the California wildfires, caused a record-breaking $283 billion in damage to homes and other property in 2017, according to the National Oceanic and Atmospheric Administration.

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May 2018 Newsletter

In this issue:

  • Integrity and Objective Matter
  • Expanded Missing Participants Program: What Plan Sponsors Need to Know About Terminating Plans
  • Roth 401 (K), Worth a Fresh Look?
  • and more!

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Expanded Missing Participants Program: What Plan Sponsors Need to Know About Terminating Plans

The Pension Benefit Guaranty Corporation (PBGC) is helping defined contribution (DC) and other plan sponsors looking to terminate their plans by expanding its Missing Participants Program.

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Top Questions About the New Tax Law

The $1.5 trillion tax reform legislation known as the“Tax Cuts and Jobs Act” represents the biggest change to the tax code since 1986. While the implications for both businesses and individuals are broad and complex, we’ve summarized some of the most commonly asked tax reform questions.

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Roth 401(K), Worth a Fresh Look?

This year marks the 20th anniversary of the Roth Individual Retirement Account (IRA). While the Roth IRA has been widely hailed as a powerful retirement saving vehicle because of its tax-free-growth and has seen widespread adoption by individuals who meet the income requirements, the Roth 401(k) isn’t nearly as popular.

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Mitigating Healthcare Costs With HDHPS and HSAS: What Plan Sponsors Need to Know

It’s no secret that healthcare is expensive—and costs are likely to continue going up. While preferred provider organizations (PPOs) are still the most popular plan type, many companies are turning to consumer-directed, high-deductible health plans (HDHP) to help manage costs and are adding reimbursement accounts like health savings accounts (HSA) to help employees pay for expenses.

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Financial Wellbeing Programs: Today’s Tools for a Healthy, Productive Workforce

The American workforce is stressed out—and finances play a major role. Many workers say they’re living paycheck-to-paycheck, and the routine is stressing them out so much that it’s taking a toll on their health. Often, people bring their personal  financial problems to work, resulting in absences, distractions, or other unproductive behaviors.

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April 2018 Newsletter

In this issue:

  • What Tax Reform Means for Healthcare Entities: For-profit and Non-profit
  • Tips to Streamline Money Management in Retirement
  • Daily Habits of Successful Executives
  • Accountants Urge IRS for Clarity on Business Meals Deduction
  • and more!

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Important Notice from The NC Department of Revenue Sales and Use Tax Division

The NC Department of Revenue Sales and Use Tax Division has issued “Important Notice: Additional Information Regarding Real Property Contracts and Retail Sales of Repair, Maintenance, and Installation Services to Real Property”.

This notice includes a list which provides general guidance to assist with making a determination as to whether a transaction is a real property contract with respect to a capital improvement; subject to tax as a retail sale of repair, maintenance, and installation services; or exempt from sales and use tax.

Please contact your trusted advisor at Williams Overman Pierce if you have questions about the notice or about your specific situation.

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Tax Reform’s Impact on Individual Taxpayers

On December 22, 2017, President Donald J. Trump signed into law “An act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018.” The bill is more commonly known as the, “Tax Cuts and Jobs Act,” and provides the most sweeping changes to the tax code since 1986. This alert will highlight the changes that are relevant for individual taxpayers.

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IRS Provides Insight for Long Term Capital Gain Treatment Under Section 1061

On Thursday, March 1, 2018, the Internal Revenue Service (IRS) issued Notice 2018-18 (the “Notice”) announcing the intention on the part of Treasury and the IRS to publish regulations on the application of Section 1061 of the Internal Revenue Code as enacted by the Tax Cuts and Jobs Act. The Notice announces that Treasury and the IRS intend that the forthcoming regulations will provide that the term “corporation” as used in Section 1061 does not include an S corporation.

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What Tax Reform Means for Healthcare Entities: For-profit & Non-profit

What Changes are Coming for Healthcare Companies? To help organizations navigate the issues most impactful and urgent to the healthcare industry, we’ve prepared a summary of the major implications based on the signed legislation.

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March 2018 Newsletter

In this issue:

  • What Tax Reform Means for Audit Committees
  • How to Address Problems that Lead to Turnover
  • 5 Types of Back Office Occupational Fraud, and How AI can Stop Them
  • Health Care Spending Projected at Nearly $5.7 Trillion in 2026
  • and more!

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Tax Reform is Here, So What’s Next for Nonprofits?

The Tax Cuts and Jobs Act, signed into law on December 22, marks the largest overhaul of U.S. tax policy in decades. What are the Changes for Nonprofit Organizations? Reviewing the 1,000-plus pages of the Act is a daunting task for nonprofits. To help organizations navigate the key provisions affecting nonprofits, we’ve summarized top considerations and implications below.

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Is Your Not-for-Profit Financially Fit?

Being financially fit and stable is critical to any business, including a not-for-profit (NFP). If a NFP has a weak financial position, it may not be able to sustain its operations. While the perception by many in today’s society is that most NFPs are generally financially healthy, this is not always the case. For example, a recently published report noted that 41 percent of charities do not expect to make a profit over the next three years. An NFP’s liquidity is an important story to convey to the users of its financial statements. 

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Non-Profit News: Fall 2018

In this issue:

  • Are Grants Subject to Revenue Recognition
  • IRS Provides Guidance on New UBTI Rules
  • Compensation Committee Wake-Up Call- The 'Other Obstacle' to Leadership Transition
  • How Predictive Analytics is Transforming NPO Fundraising

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Top 10 Things Companies Need to Know About Tax Reform

The $1.5 trillion new tax law represents the most sweeping change to tax code in a generation. Tax reform of thismagnitude will have broad implications for businesses of all sizes and in all industries. While accountants and taxdepartments wade through the 185-page legislation, here are the top 10 things companies need to know:

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February 2018 Newsletter

In this issue:

  • New Tax Withholding Tables are Issued
  • Fall in PPI Hits Hopes for Inflation Growth
  • 20 Cities in the Running for Amazon HQ
  • How the Tax Law Changes Education Financing
  • and more!

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Non-Profit News: Winter 2018

In this issue:

  • Nonprofits: The New Kids on the Blockchain
  • IRS Issues 2018 Work Plan for Tax-Exempt Organizations
  • Year End Accounting Update Summary – What is On the Horizon?
  • What Organizations Should Do To Maintain Exemption and Public Charity Status
  • and more!

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Tax Cuts and Jobs Act of 2017

After months of intense negotiations, the President signed the “Tax Cuts And Jobs Act Of 2017” (the “New Law”) on December 22, 2017 - the most significant tax reform since 1986! It is no overstatement to say that this mammoth tax bill will have a significant impact on virtually every business and individual.

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Senate Passes its Version of Tax Reform Setting Stage for Conference Committee Action and Possible Enactment Before the New Year

In the very early hours of Saturday morning December 2, 2017, the Senate passed its version of proposed tax reform legislation, the “Tax Cuts and Jobs Act” 51-49, with Senator Bob Corker (Tenn.) as the only Republican voting against the bill. The House previously passed its own tax bill on November 16, 2017.

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House Passes Tax Reform Bill; Senate Finance Committee Considers Bill of its Own

On November 9, 2017, the Senate Finance Committee released its version of proposed tax reform legislation, the “Tax Cuts and Jobs Act,” which the Committee is marking up this week. The House of Representatives passed its tax bill on November 16; however, the bill under consideration by the Senate Finance Committee differs in several respects, including individual tax rates, itemized deductions, retaining the estate and GST taxes, the timing of changes to the corporate tax rate, and pass-through tax rates.

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House Tax Bill Released

On November 2, 2017, the House of Representatives released a draft tax reform bill titled the “Tax Cuts and Jobs Act.” The bill would reduce individual and business tax rates, would modify or eliminate a variety of itemized deductions as well as repeal the estate and alternative minimum taxes, and would change the taxation of foreign income.

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December 2017 Newsletter

In this issue:

  • Senate Tax-Reform Bill Contains More Changes
  • How to Find the Best Talent in the Current Economic Climate
  • Goldman Economists Expect 4 Rate Hikes in 2018
  • Key Parts of Every Mentoring Relationship
  • and more!

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How Employers Can Assist Employees Who Are Victims of Hurricanes

In the case of a presidentially declared disaster, such as a hurricane, an employer has several opportunities to provide assistance to affected employees that have favorable tax treatment.

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Breaking Down the Equifax Data Breach

Equifax, one of the “Big Three” credit reporting agencies, disclosed a massive data breach in a press release on Sept. 7—six weeks after the breach was discovered. Over the course of three months, hackers exploited a website application vulnerability to access the personal data of as many as 143 million Americans—nearly half the U.S. population.

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NHL Team Prevails in Tax Case: Away from Home Meals are 100 Percent Deductible

The Boston Bruins case represents a potential (but not guaranteed) opportunity for employers outside of the sports industry to deduct 100 percent for meals provided to their employees far away from the business premises.

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IRS Confirms ACA Penalties Still Apply, So ACA Reporting on Forms 1094 and 1095 Continues Too

Amidst the White House and legislative activities aimed at repealing the Affordable Care Act (“ACA” or colloquially referred to as “Obamacare”), many employers are questioning whether the ACA penalties will be enforced for prior year violations and if its reporting requirements still apply to the current year. The IRS has recently confirmed that Obamacare continues to be the law of the land, taxpayers are required to follow the law, and the IRS will continue to enforce its provisions.

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November 2017 Newsletter

In this issue:

  • Study: RIAs on Track to Set M&A Record
  • How to Survive a Stock Market Downturn
  • Interest Rate Hike could be Coming, Minutes Show
  • Americans’ Financial Well-Being Reaches Record High
  • and more!

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Non-Profit News: Fall 2017

In this issue:

  • FASB Issues Exposure Draft on Accounting for Contributions Received and Contributions Made
  • IRS Revokes Hospital’s Tax-Exempt Status, Shedding Light on Section 501(r) Compliance Concerns
  • Obstacles Turned Opportunities in the Nonprofit Infrastructure
  • Critical Conversations Between Managers And Employees – Do We Have To?
  • and more!

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August Recess and the State of Play on Tax Reform

On July 27, 2017, in the wake of the failure of any legislative changes to health care policy, Speaker Paul Ryan, Majority Leader Mitch McConnell, Treasury Secretary Steven Mnuchin, National Economic Council Director Gary Cohn, Senate Finance Chair Orrin Hatch, and House Ways and Means Chair Kevin Brady issued a joint statement on tax reform.

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October 2017 Newsletter

In this issue:

  • Program Helps Employers Offer Student Loan Repayment
  • State Tax Considerations for Foreign Companies with Inbound US Investments
  • CFOs Growing Role: Culture Champions
  • Hurricane Irma Victims get IRS Reprieve
  • and more!

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New Proposed Regulations Address Signature Requirement for Section 754 Election

On October 11, 2017, Treasury issued proposed regulations (REG-116256-17) (Proposed Regulations) that would remove the signature requirement associated with making a section 754 election to adjust the basis of partnership property. The Proposed Regulations would reduce regulatory burdens by eliminating partnership relief requests for unsigned section 754 elections.

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September 2017 Newsletter

In this issue:

  • A Dream Board Can Help Boost Your Career
  • Do You Have any Privacy Online at Work?
  • How Outstanding Leaders Differentiate Themselves
  • The Case Against DIY Human Resources
  • and more!

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Non-Profit News: Summer 2017

In this issue:

  • Three Critical Privacy Issues Every Nonprofit Entity Should Consider
  • So, You Want to Terminate Private Foundation Status and Become a Public Charity!
  • Board Governance: A Board Member’s Perspective
  • IRS Focused on Charitable Donation Substantiation Compliance
  • and more!

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North Carolina Legislature Overrides Governor’s Veto and Enacts Budget Bill – Corporate Rate Reduction and other Tax Changes

North Carolina has enacted a budget bill, S.B. 257, which, among other things, reduces the state’s corporate income tax rate from 3 percent to 2.5 percent, effective for taxable years beginning on or after January 1, 2019. The governor had vetoed the bill, but on June 28, 2017, the legislature overrode that veto. The budget bill also includes a franchise tax rate reduction for S corporations, a rate reduction and other changes for personal income tax, and other sales and use tax changes.

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Using Forensic Accountants in Court

By Deborah Jackson, ADA, 27A; Michael H. Womble, Willams Overman Pierce, LLP

Embezzlement cases are becoming more prevalent in today’s society because of advancements in technology and the absence of oversight over employees with access to financial assets. Despite all of the electronic conveniences available to business owners today, many businesses become unsuspecting prey to employees who lose their fear of being discovered due to the lack of proper oversight and supervision.

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August 2017 Newsletter

In this issue:

  • 6 Traits of Leading Finance Functions
  • What Proposed Regulations on the Fractions Rule Mean for Tax-Exempt Organizations
  • Microsoft Could Provide Early Test of New Lease Accounting Rules
  • Lawmakers Consider TIFIA Loan Program Expansion
  • and more!

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Impact of the Tax Cuts and Jobs Act and the Bipartisan Budget Act of 2018 on North Carolina's Corporate and Individual Income Tax Returns

North Carolina’s corporate income tax law uses federal taxable income as the starting point in determining North Carolina taxable income. North Carolina’s individual income tax law uses federal adjusted gross income as the starting point in determining North Carolina taxable income.

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