The Time is Here: Reporting Requirements for Applicable Large Employers

Under the health care law, applicable large employers (ALE) – those with 50 or more full-time employees, including full-time equivalent employees, in the preceding year – are required to report some information regarding health coverage by filing information returns with the IRS and furnishing statements to full-time employees.

If you’re an ALE, you report information about health coverage you offered to each full-time employee, or to show that you didn’t offer coverage to the full-time employee. This information will help the IRS determine whether an employer shared responsibility payment applies to your organization and is also used in determining the eligibility of employees for the premium tax credit. Here are some key points about the information reporting requirements for ALE’s under the health care law:

• You are required to report certain information to the IRS, as well as to all of your full-time employees, regardless of whether you offer health insurance coverage.
• Your first information reporting returns are due in 2016 for the year 2015.
• There are new IRS forms that ALEs will use to complete this reporting.
• You are required to furnish each full-time employee with a statement, Form 1095-C, by January 31.
• You must file the information returns Forms 1094-C and 1095-C with the IRS no later than Feb. 28 – or March 31 if filed electronically.
• If you’re an ALE that sponsors a self-insured group health plan for your employees, you also must report information about employees and their dependents who enroll in the coverage, whether or not the employee is a full-time employee.

New IRS Resource helps Employers Understand the Health Care Law

The new ACA Information Center for Applicable Large Employers page on IRS.gov features information and resources for employers of all sizes on how the health care law may affect them if they fit the definition of an applicable large employer.

Final 2015 Health Care Reporting Forms are Now Available

The Internal Revenue Service has released the final versions of two key 2015 forms and the related instructions that employers and insurers will send to the IRS and individuals this winter to report health care coverage they offered or provided.  The IRS released draft forms and instructions for 2015 this summer and the final forms and instructions for 2015 are largely unchanged from the previously released drafts.

The 2015 version of Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, used by employers with 50 or more full-time employees are now available on IRS.gov. Form 1095-B, Health Coverage, primarily used by insurers and health coverage providers, including employers that sponsor self-insured plans, is also available on IRS.gov.

What to do next

While Congress has put the oversight with the IRS and the reporting obligations on the employer, it is important you consult your health insurance provider and begin gathering the necessary information at your earliest convenience.  If we can be of assistance to you in assessing your reporting obligations, please do not hesitate to contact us at (231) 726-5800 or (616) 608-8500.

Michael Cohn, in a recent article from Accounting Today, reports that the Treasury Inspector General for Tax Administration (TIGTA) issued a notice recently about the continuation of fraudulent IRS phone calls.

The inspector stated that while progress is happening and scammers have been prosecuted, the investigations are still a priority until all individuals associated with the fraud have been brought to justice.

While the October 15^th tax deadline has past, it is important for taxpayers to continue to be suspicious of unsolicited calls from people claiming to be the IRS. The IRS will contact individuals first by mail about unpaid taxes, not phone, and will not ask you to use a prepaid debit card or a wire transfer. The TIGTA notes that the callers who commit this fraud often:

1. Employ an automated robocall machine.
2. Use common names and fake IRS badge numbers.
3. May know the last four digits of the victim’s Social Security Number.
4. Make caller ID information appear as if the IRS is calling.
5. Send bogus IRS e-mails to support their scam.
6. Call a second or third time claiming to be the police or department of motor vehicles, and the caller ID again supports the claim.

Since October 2013, TIGTA has received approximately 736,000 contacts, become aware of 4,550 victims who have jointly paid over 23 million dollars because of scams.

It is important to recognize these callers and hang up when they call. In addition, they can be reported on the TIGTA’s website or with the Federal Trade Commission.

For more information on IRS phone scams, please read the full article or contact Brian McFarren at (231) 726-5815 or bmcfarren@brickleydelong.com.

Learn more about our individual tax services.

The Social Security Administration recently confirmed that there will be no cost of living increase for 2016.

Michael Cohn, in an article in Accounting Today, states that there are nearly 65 million recipients of monthly Social Security and Supplementary Social Security Income. A decline in oil prices has driven down inflation for many consumer goods that the federal government includes in its cost of living computation. This is the reasoning for there being no increase.

The Social Security Act offers an increase in Social Security and SSI benefits if there is an increase measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W. By comparing the third quarter CPI-W for 2014 to the third quarter CPI-W for 2015, it was determined that there was no increase.

The Department of Health and Human Services has not yet announced Medicare premium changes for 2016. However, if such likely increase happens, 30% of Medicare recipients could experience a hike in premiums. While 70% of Medicare recipients are protected under a “hold harness” provision that protects them from an increase in Medicare Part B premiums subject to Social Security increase, the other 30% are unprotected.

Information about Medicare changes for 2016 will be available at www.medicare.gov when available.

For more information on cost of living and social security, please read the referenced article or contact Sherri VanArendonk at (231) 726-5898 or svanarendonk@brickleydelong.com.

Author: Sherri VanArendonk

Individual Taxation

Welcome to the last of our “Five Tips of Employment” blog series. This blog series has been aimed at offering different tips on selling yourself to an employer and landing that dream job.

Tip #5: Be Prepared

The statement “Be prepared” is a well-known motto of the Boy Scouts and an important motto for your career. Every time you begin the interview process, you need to approach a potential employer and make sure it counts.

You have no idea how may resumes or applications that employer has received.  So, when you get the opportunity to present yourself, especially in person, you need to be prepared to talk about the person you know the best – YOU!

Review your personal inventory; remember that you have a great deal to talk about.  Also, do not forget to include why you are such a good fit for their business (reciting some of the information you have gleaned from their website).

Think about your strong points.  Why should this employer should hire you?  Be prepared to offer details and examples that demonstrate your strengths.

Be ready to handle tough questions.  There are a plethora of sample interview questions readily available on the Internet. Review these questions and make sure you have answers – this helps so you do not have to “think on your feet”, but rather have quick responses with examples.

Depending on what has happened in your life, the interviewer might observe:

1. Your many job changes in a short period of time,
2. Your large gaps between jobs,
3. That you are currently unemployed, or
4. An education change.

You do not want to sound rehearsed; but, present your answers in a way that the interviewer will consider you for the position.  Take the time to get your thoughts together and Be Prepared.

For more information about our careers, or to learn more about preparing for interviews, please visit our career pages, or contact Christine Dill, (231) 726-5835 or cdill@brickleydelong.com.

Author: Christine Dill

Michael Cohn, in a recent article published in Accounting Today, states that the IRS has made progress on implementing the Foreign Account Tax Compliance Act (FATCA).

The FATCA was enacted in 2010, and states that, beginning with tax year 2011, individual taxpayers with foreign assets that meet a certain dollar amount must report the information to the IRS. This information must be attached on Form 8938, Statement of Specified Foreign Financial Assets, to the taxpayer’s annual individual 1040 tax return, or 1040 Non-resident tax return.

In a report from the Treasury Inspector General for Tax Administration (TIGTA), they found three noted limitations with the FATCA:

1. Transcribed data are not validated to ensure accuracy.
2. Data on Form 8938 continuation statements are not transcribed.
3. Losses reported by taxpayers cannot be input as negative amounts.

The TIGTA then offered three recommendations to the IRS:

1. Update the compliance activities in the FATCA Compliance Roadmap for identifying noncompliance by foreign financial institutions.
2. Initiate a periodic quality review process for the processing of paper Forms 8938 to ensure the accuracy of the data being transcribed.
3. Ensure that the transcription issues identified in this report are addressed.

For more information on the FATCA and its implementation, please read the referenced articles or contact Patrick Mutchler at (231) 726-5870 or pmutchler@brickleydelong.com.

Author: Christine Dill

Welcome to the fourth of our “Five Tips of Employment” blog series. This blog series is aimed at offering different tips on selling yourself to an employer and landing that dream job.

Tip #5: Dress the Part

Wondering how to present yourself at a professional business interview? When you have the opportunity to meet with a company, it is important to understand that prospective employers are watching every move you make. Whether it is at a career fair, on-campus interview or office visit, employers are trying to determine if you are a viable candidate for their business.

More dressed up is better than less (unless you are told otherwise). Professional dress means a proper business suit. This shows that you are interested and ready to start work. We employers recognize that a proper suit can be expensive. So, try to have at least one “interview” suit. With accessories you can change the suit look, even if you have to meet with the same person twice. This is an investment in your future and should be a staple in your closet. If needed, try searching second hand stores. Many times, you are able to find gently used, yet still fashionable suits for a lower price.

Also, pay attention to your personal hygiene. Use minimum makeup, light cologne, and avoid perfumes. These items can distract the interviewer and turn away their focus from you, “the candidate”; and, it could cause them to start thinking about you and your personal habits.

You always want to Dress the Part to show that you are ready and eager to start your career.

Stay tuned for one more employment tips. For information about our careers or to learn more about professional wear, please visit our career pages, or contact Christine Dill at (231) 726-5835 or cdill@brickleydelong.com.

Michael Cohn, in a recent article published in Accounting Today, discusses how many taxpayers are unaware that they could be overpaying sales and use taxes. This is because many states and localities are collecting taxes from goods and services purchased online.

The decision from a 1992 Supreme Court case, Quill v. North Dakota, states that a physical presence in a state is required to be taxed, even when the actual presence is unclear.  Many states are testing the boundaries of this decision, as a way to bring in tax dollars.

The article references a study from McGadrey LLP, which found that many businesses are filing in jurisdictions where they should not be filing and others are not filing where they should be, which subjects them to interest and penalties.

The study also identifies 10 industries that frequently overpay sales and use taxes:

1. Manufacturing
2. Engineering/Research and Development
3. Biotechnology
4. Printing/Publishing
5. Technology
6. Telecommunications
7. Financial Services
8. Insurance
9. Health Care
10. Pharmaceuticals

With the increase use of the Internet, and online sales, businesses must be aware of their physical presence so they do not find themselves in a court decision.

For more information on paying sales and use taxes, please read the referenced articles, or contact Terry Maycroft at (231) 736-5825 or tmaycroft@brickleydelong.com.

Learn more about our bookkeeping, business consulting, manufacturing, healthcare, or professional firm services.

Author: Christine Dill

Welcome to the third of our “Five Tips of Employment” blog series. This blog series is aimed at offering different tips on selling yourself to an employer and landing that dream job.

Tip #3: Perfection is Key

Your first impression to a company is likely going to be when you submit your resume and cover letter. There is nothing that is more damaging to your credibility than a typo or the use of incorrect grammar on these documents. Still, human resource professionals continue to receive resumes with errors, and many professionals will not consider a candidate that has errors on his or her resume/cover letter.

How to catch mistakes

• For starters, it is important to utilize spell check and/or a thesaurus when reviewing these documents. However, even the best spell check does not catch all mistakes. For example, they are unable to review homonyms correctly.  Words like “dear” and “deer” may be spelled correctly, but clearly have different meanings.  Also, mistypes, such as “of” instead of “on”, typically are not caught by a spelling and grammar checker. Read carefully to make sure you catch any of these types of issues.
• Many people find it beneficial to print hard copies and read them out loud. It is typically easier to catch mistakes on paper than on a screen. And, by reading slowly out loud, you force yourself to read each word.
• Have a person your trust review your work. A second set of eyes is always helpful when catching errors or establishing clarity.

Another important thing to note is that customizing your resume and cover letter to a job position is important. This leads to many different versions of these documents. So, as you make changes, continue the review process to ensure perfection. Make sure you get the right name for your salutation along with the correct business. It is a real turn-off to an employer when they receive a resume and it is not their name or company on the cover letter. Pay attention to detail.

It is crucial to your future employment to review your work before you place that resume in the mail, hit submit, or send that e-mail. One mistake could turn an opportunity for employment into a rejection. Keep a log of where you send resumes. You can use this to double check if you have already sent a business your resume (possibly for another position), or as an opportunity to follow-up with a business you have not heard back from.

No one is perfect. However, in the resume building business…Perfection is Key.

Stay tuned for two more employment tips. For information about our careers or to learn more about the review processes for resumes and cover letters, please visit our career pages, or contact Christine Dill at (231) 726-5835 or cdill@brickleydelong.com.