Metrics within a Bonus Plan for a Closely Held Medical Practice

Metrics within a Bonus Plan for a Closely Held Medical Practice

I’d like to start off this article by addressing a few of the conditions we as employees, owners, and citizens are experiencing in our daily lives and our employment situations, and how that relates to this article and the article published in our last newsletter. As I review my last article which was published on February 14, 2020, I note that within the conclusion I was to have delivered this article the following month. Moreover, as we now know, worlds can change in such a short period, and one month has now turned into three months as a result of the Covid-19 Pandemic. What traditionally would have been the conclusion of our busy tax season and our well-earned vacation time or time to recharge our batteries has morphed into the undertaking of unusual assignments from our clients, and not just any clients but many of our more financially secure clients and those within the medical industry.
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Employee Retention Credit and Payroll Tax Deferral

Employee Retention Credit and Payroll Tax Deferral

As many businesses have been affected negatively across the nation due to the effects of the Coronavirus, there are a number of payroll tax benefits resulting from the CARES Act that have become available to help employers during this difficult time.

One option for employers, found in Section 2301 of the CARES Act, is the Employee Retention Credit. The purpose of this credit is to encourage employers to keep employees on the payroll, even if they are not working during the applicable period due to the effects of the coronavirus outbreak. This credit is a fully refundable tax credit against certain employment taxes equal to 50 % of the qualified wages an eligible employer pays to its employees after March 12, 2020, and before January 1, 2021.

Who qualifies for the credit?

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Covid-19 could change your financial statements and audit

Covid-19 could change your financial statements and audit

Among the many far-reaching effects of the pandemic is the immediate effect it is having on financial statements and the way accountants need to audit them.

The AICPA recently issued two Special Reports about these matters to help management and their accountants react to some of the special challenges presented by today’s challenging business environment. Here is a summary of the comments.

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The Age Old Question – To Share or Not To Share

The Age Old Question – To Share or Not To Share

As professionals, when our clients ask us this question as it relates to helping them design a “Compensation Plan” for their businesses, we recognize the sensitivity of the topic and before we can answer them, we understand there is a fact-finding mission that must be undertaken.  During this assignment, we know that the measurement of quantitative metrics will come into play, but we are also keenly aware of the fact that qualitative inputs fit into the equation and those inputs can’t be measured in a traditional manner, similar to the quantitative efforts of employees. Thus, as we go through our consulting engagement, we always have to keep in mind and be cognizant of the human emotions that may ultimately be encountered when helping to formulate this Plan.  In the following sections, I would like to outline how we would go about discussing this topic with our clients, and how it can be boiled into a bonus payment plan within a professional business environment.
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Finally, a New W-4

Finally, a New W-4

The Tax Cuts and Jobs Act (TCJA) made significant changes in the way an individual’s tax liability would be computed, from changing the tax rates to eliminating the deduction for dependents. Many taxpayers were surprised at the disconnect between their withholding for 2018 and their tax liabilities since Form W-4, the instructions to employers on how much to withhold from an employee’s pay for federal income taxes, hadn’t been revised to reflect those changes.
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Can an SOC Report Help your Service Organization?

Can an SOC Report Help your Service Organization?

System and Organization Controls (SOC) are actually a suite of different service offerings CPAs provide in connection with either system-level controls of a service organization or entity-level controls of other organizations. SOC reports are designed to help Service Organizations build trust and confidence in their capabilities with a report by an independent CPA. 
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Private Equity Investors in Medical/Dental Practices

Private Equity Investors in Medical/Dental Practices

For over a decade, private equity groups have been investing capital in dental practices. Many national dentistry groups have expanded or evolved from some of the largest investments of private equity funds. Often there are a series of such investments and, because there does not yet appear to be market saturation, these types of transactions with dental practices are expected to continue for some time.
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New Jersey Adopts Market-Based Sourcing For Corporate Taxpayers

New Jersey sealOne of the latest trends in state and local corporate income tax has been the adoption of market-based sourcing for the sales of services.  In 2018, new state legislation made significant changes to the New Jersey Corporation Business Tax Act, including the implementation of market-based sourcing for services beginning in 2019.

The New Jersey Corporation Business Tax Act imposes tax on domestic and foreign corporations having a taxable status in New Jersey based on the portion of net income allocable to New Jersey.  In order to properly determine the net income allocable to New Jersey, corporate taxpayers doing business both within and outside New Jersey must source their revenue to the appropriate state.
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Doctors’ and Dentists’ Corner- Employee Dishonesty

Employee counting moneyWho owns that nice new car in your parking lot? Do you have an employee who seems to be living at a standard higher than his salary would permit? Hmmm, he (or she) tells you his Uncle Joe died and left him a huge inheritance, or maybe he won the lottery. You’re happy for him; such a hard worker who never takes a vacation!

This could all be as innocent as it sounds BUT it could also be a flashing warning sign of employee dishonesty.
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Nondeductible Employee Parking Expenses

Employee Parking SignEmployee parking expenses – how much can your business deduct?  

The Tax Cuts and Jobs Act (TCJA) resulted in many tax law changes. One of them was the new rule for determining the deductible portion of employee parking expenses.

Under the new Section 274(a)(4), expenses paid by employers after Dec. 31, 2017, to provide employee parking are generally no longer deductible. Also, new Section 512(a)(7), requires tax-exempt organizations to increase their unrelated business taxable income (UBTI) by the amount of employee parking expenses that are nondeductible.
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