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AFFORDABLE CARE ACT REQUIREMENT FOR W-2s - WHAT EMPLOYERS SHOULD KNOW
As employers begin issuing W-2s to employees, it is important to note and understand certain developments that have taken place in recent years. Since 2012, the Affordable Care Act has required some employers to report the cost of coverage under employer-sponsored group health plans.
Currently, the inclusion of health insurance premiums on employee W-2s is not taxable, but rather serves to provide employees useful and comparable consumer information on the cost of their health care coverage.
Transition relief has been available to certain employers since the introduction of the reporting requirements. Employers filing fewer than 250 Forms W-2 for the previous calendar year have not been required to report the cost of coverage (though optional reporting is allowed). This transition relief has been rolled forward and applies to the 2015 tax year and will continue to apply to future calendar years until the IRS publishes additional guidance. Employers who are filing 250 or more Forms W-2 are subject to the reporting requirements per the healthcare legislation.
Employers that are subject to this requirement should report the value of the health care coverage in Box 12 of the Form W-2, with Code DD to identify the amount. In general, the amount reported should include both the portions paid by the both the employer and employee. Additionally, an employer is not required to issue a Form W-2 solely to report the value of the health care coverage for retirees or other employees or former employees to whom the employer would not otherwise provide a Form W-2.
For more information regarding the Affordable Care Act and general payroll taxation, please contact your professional at UHY LLP in Detroit 313 964 1040, Farmington Hills 248 355 1040 or Sterling Heights 586 254 1040, or visit us on the web at www.uhy-us.com.
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EVENTS CALENDAR
1/19 AUTOMOTIVE UPDATE: "HOW LONG CAN WE KEEP MOVING METAL?"
Save the date for 2016 Automotive Update on Tuesday, January 19 from 7:30-10:30AM at UHY's training center in Sterling Heights. Discussions include government affairs update, automotive outlook, and positioning for M&A. This complimentary seminar is brought to you by Michigan Manufacturers Association (MMA), Sterling Heights Regional Chamber of Commerce (SHRCC), UHY LLP and LMC Automotive. Click here to register or to view program lineup. 2/23 NINTH ANNUAL D.M.G.C. TEXAS HOLD 'EM TOURNAMENTWe hope you can once again join us for a fun night of cards and networking for a great cause! This year's charity poker tournament will be held on Tuesday, February 23 at Star Lanes Royal Oak. Registration is at 6. Game starts promptly at 7. $100 buy-in and $50 re-buy. VIP prizes for finalists. Chips have no cash value. Must be 18 to play and 21 to consume alcohol. Contact Jessica Dalessandro to save your spot! Cash, check or credit card contributions accepted in advance or at the door. Sponsorship opportunities available. UHY Cares in cooperation with UHY LLP, the D.M.G.C. and the McCarty family hope to see you there!
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RECENT PROFESSIONAL AND CIVIC BOARD AND COMMITTEE APPOINTMENTS
Sachin Mehta, associate at UHY Advisors Corporate Finance, welcomed as newest board member of the Indo-American Chamber of Commerce Scott Miller, partner of UHY LLP, appointed to the Ascension Michigan Market Finance Committee by the board of trustees UHY LLP PARTAKES IN NEARLY 90-YEAR-OLD DETROIT THANKSGIVING TRADITIONFor the second consecutive year, UHY LLP sponsored the Distinguished Clown Corps float in the 89th America's Thanksgiving Parade. Over 70 feet long and standing 17 feet tall, the DCC float is the centerpiece of the 180+ Distinguished Clowns greeting and entertaining hundreds of thousands of spectators. 70+ employees and their families filled the streets to cheer on UHY's very own Distinguished Clowns (Chad Kime, Matt Munn, Debi Ritter, Bill Kingsley, Todd Bensley and son Justin, and Tom Callan and son Joe) who walked alongside the float, representing UHY. The clowns distributed candy, smiles and UHY beads to spectators along the parade route. Click here to view a short video clip The Parade is Detroit's grandest and most anticipated civic event, the second largest Thanksgiving parade and the third largest parade in the country overall. First televised in 1948, The Parade is broadcast live locally on WDIV-TV Local 4 with a syndicated national potential reach of over 65 million households. "UHY is celebrating our one-year anniversary in our newest downtown office. We've always had strong ties to this community, supporting numerous local charities; and we are thrilled to be a part of this memorable tradition," said UHY Advisors' chairman and CEO, Tony Frabotta. "Our firm chose to sponsor this float because the Distinguished Clowns Corps is comprised of community leaders and supporters just like us." UHY ADVISORS' COO, RICK DAVID, ELECTED AS TREASURER OF UHYI BOARDDuring the 2015 UHY International Annual General Meeting in Rio de Janiero, Rick David, chief operating officer of UHY Advisors, was elected as treasurer of the UHY International network. David, a member of the UHYI board of directors, becomes responsible for developing, implementing and supervising UHY's strategic financial activities. "I am honored to be elected as treasurer of our international network. I hope to properly safeguard our assets while insuring that our network expenditures are in line with our agreed upon budgets and serve to add value to the network, and our many member firms," said David. He has been a member of the UHY International Board of Directors since 2012. AARON WITALEC, DIRECTOR OF UHY CORPORATE FINANCE, SHARES HIS THOUGHTS ON FOREIGN M&A ACTIVITYDykema's 2015 M&A Insights report found a smaller percentage of respondents expecting foreign dealmakers to become more active on US soil. Given recent world events, that's not surprising, says Aaron Witalec, director at UHY Advisors Corporate Finance, LLC. With valuations high, economic turmoil in China and the US dollar performing well against foreign currencies-particularly the euro-we're more likely to see a rise in American companies pursuing deals overseas than the other way around, says Witalec, whose firm has a physical presence in 89 countries. Last year, 78 percent of respondents said they expected an increase in activity from China to the US, compared with 69 percent this year. In 2014, 74 percent of respondents said they expected an increase in activity from Europe to the US, compared with 47 percent this year. Whereas US M&A activity to China was not viewed as positively this year, a greater percentage of respondents expect M&A from the US to Europe to increase. That makes sense, Witalec says, noting that, as places like China cool off, Eastern Europe in particular looks ripe for increased M&A activity. "Western European companies had an interest in pursuing low-cost solutions in Eastern Europe. Then, 10 to 15 years ago, China became the focus for multinationals as it was viewed as 'the place to be,'" Witalec explained. "Now, given the challenges in Asia, Eastern Europe is becoming an attractive destination once again with more American and Western European companies searching for the right acquisitions in the region, especially those that provide a meaningful technological edge in manufacturing." Click here to view the complete summary. CAREERS AT UHY Are you ready to take charge of your career path? Be sure to visit our careers page for the most up-to-date listings or contact Yolanda Rountree. Current opportunities in our Michigan offices include:
- Audit Manager, 7+ years of experience, manufacturing experience is highly preferred
- Audit Manager, 7+ years of experience, SEC experience is highly preferred
- Audit Senior Accountant, 5-7 years of experience, CPA required
- Internal Audit Risk & Compliance Manager, 7+ years of experience
- R&D Tax Specialist, 7+ years of experience
- Tax Manager, 7-10 years of experience
- Director of Litigation, testifying experience required municipalities
- Senior Associate (Corporate Finance), 2-4 years of Big 4 experience highly preferred
- Marketing Associate, bachelor's degree required, 1-3 years of experience preferred
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Published by UHY LLP News.
Copyright � 2013 UHY LLP. All rights reserved.
Our firm provides the information in this newsletter as tax information and general business or economic information or analysis for educational purposes, and none of the information contained herein is intended to serve as a solicitation of any service or product. This information does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisors. Before making any decision or taking any action, you should consult a professional advisor who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
UHY Advisors, Inc. provides tax and business consulting services through wholly owned subsidiary entities that operate under the name of "UHY Advisors." UHY Advisors, Inc. and its subsidiary entities are not licensed CPA firms. UHY LLP is a licensed independent CPA firm that performs attest services in an alternative practice structure with UHY Advisors, Inc. and its subsidiary entities. UHY Advisors, Inc. and UHY LLP are U.S. members of Urbach Hacker Young International Limited, a UK company, and form part of the international UHY network of legally independent accounting and consulting firms. "UHY" is the brand name for the UHY international network. Any services described herein are provided by UHY Advisors and/or UHY LLP (as the case may be) and not by UHY or any other member firm of UHY. Neither UHY nor any member of UHY has any liability for services provided by other members.
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