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| Issue: # 3 | February 10, 2012 |
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All of us at R.S. Abrams & Co., LLP would like to wish you a Happy New Year! It is that time of the year when we issue our updated "New Developments, Year End Update and 1040 Considerations" for the year 2012. This brochure discusses the current changes affecting school districts, local governments, and not-for-profit organizations in the areas of accounting, auditing, tax, and legislative issues.
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Open Meetings Legislation
by Dan Ruckdeschel, CPA
On January 3, 2012, Governor Cuomo signed into law Chapter 603 of the Laws of 2011 which requires local governments to make available to the public, any documents related to an open meeting that will be discussed at that meeting. Documents related to resolutions, laws, regulations, or policies must be made available to the public either prior to the meeting or at the meeting. |
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Property Tax Cap Legislation
by Kristen Feldman, CPA
Chapter 97 of the Laws of 2011 established a property tax levy limit that restricts the amount of property taxes local governments including, but not limited to, counties, cities, towns, villages, fire districts, school districts and special district can levy. Commencing with fiscal years that begin in 2012 (and currently lasting through June 15, 2016), local governments are not authorized to increase its property tax levy by more than 2% or the rate of inflation, whichever is less.
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Governor's Mandate Relief Legislation
Through a joint agreement between Governor Cuomo and the State Legislature a Mandate Relief Redesign Team was established through Executive Order No. 6. The objective of the Mandate Relief Redesign Team is to redesign and reform governments and to help cut spending while improving accountability and efficiency. |
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Metropolitan Commuter Transportation
Mobility Tax
by Katherine Klein, CPA
On December 12, 2011, Governor Cuomo signed the Middle Class Tax Cut and Job Creation legislation into law. Part of this legislation reduces or eliminates the MTA tax for a substantial number of employers and self-employed individuals currently paying the MTA tax. |
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W-2 Reporting for Employer-Provided Health Coverage
The Affordable Care Act instituted changes to the W-2 form reporting requirements with regards to employer sponsored health coverage. Employers are required to report the total value of an individual's employee health benefits on their W-2 form, in Box 12, code DD, Cost of employer-sponsored health coverage. This reporting is for informational purposes only and does not affect the employees' tax liability. Reporting is optional for tax year 2011, but required for tax year 2012. |
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IRS 1099 Miscellaneous Form Reporting
Provisions of the Healthcare Reform Act of 2010, which required companies, organizations and governmental entities to file Form 1099-MISC for payments made in 2012 for materials, merchandise and supplies, in addition to payments for services, was repealed in 2011.
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Retirement Contribution Plans Update
The 2011-2012 Teachers' Retirement Systems (TRS) rate is 11.11%. The 2012-2013 TRS rate is estimated to be between 11.5% - 12.5% of payroll. The 2011-2012 regular pension contribution rate for Employees' Retirement Systems (ERS) pertaining to school districts is 21.3% for Tier 1, 19.6% for Tier 2, 15.7% for Tier 3 and Tier 4 and 12.7% for Tier 5. The 2012-2013 ERS regular contribution rate is 25.2% for Tier 1, 23.1% for Tier 2, 18.5% for Tier 3 and Tier 4, and 15% for Tier 5.
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GASB Update
GASB issued Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, which is effective for financial statements for periods beginning after June 15, 2010. Statement No. 54 also distinguishes between fund balances that are considered nonspendable (such as fund balance that is specifically associated with inventory) and fund balances that are classified based on the level of restrictions placed on the fund balance. The restrictions on these fund balances dictates the specific purposes that authorizes the amount of fund balance that can be spent. |
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Employee of the Month
R.S. Abrams & Co., LLP formally congratulates Emily McDonald,CPA for being named Employee of the Month!
Emily is recognized for her excellent work on the firm's corporate tax clients as well as her positive attitude and leadership skills. She has been with the firm for three and a half years and continues to play a vital role in the firm's tax practice. |
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R.S. Abrams & Co. is an accounting firm with extensive experience auditing school districts, boards of cooperative educational services, not-for-profits, and state & local governments. We also provide tax and accounting services to individuals, partnerships and corporations across the country. Our firm has been in business for over 75 years and provides auditing services in Nassau, Suffolk, Westchester, and Rockland counties. | | |
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Disclaimer
The information contained in this newsletter is provided for informational purposes only, and should not be construed as accounting, audit, or tax advice on any subject matter. The Firm provides accounting, audit, and tax advice only to persons or entities with which it has established a client relationship. No recipients of information from this newsletter, clients or otherwise, should act or refrain from acting on the basis of any information included in this newsletter without seeking appropriate accounting, audit, tax or other professional advice on the particular facts and circumstances at issue from a public accounting firm licensed in the recipient's state. The content of this newsletter contains general information and may not reflect current accounting, audit, or tax developments. The Firm disclaims all liability in respect to actions taken or not taken based on any or all of the contents of this newsletter. |
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Our firm has two locations in Islandia and White Plains, New York and the single most important factor in our firm's success over the past 75 years has been our uncompromising commitment to the highest standards of quality and professionalism. Should you have any questions for us, please don't hesitate to contact us at (631)-234-4444.
Sincerely, R.S. Abrams & Co., LLP |
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