Winston-Salem Office Open House Tuesday!
Help us celebrate the opening of our second Triad location! Join us for cocktails, hors d'oeuvres, music while connecting with friends - new and old! Click here
for details and registration!
First Annual BRC Financial Symposiums
Exceptional turnout! Thought-provoking, well-informed presenters!
We are looking forward to next year already! Thanks to all!
Triad - 12/3/13
- 97 attendees
- Overall Program Rating (from attendee evaluations): 4.8/5.0
Triangle - 12/5/13
- 40 attendees
- Overall Program Rating (from attendee evaluations): 4.9/5.0
In business since 1947, we are honored to still work with the descendants of clients who were with us since our doors opened. Thank you allowing us to serve and advise you for over 65 years!
|Super Foods for Super Performance: Beets|
Like advisors, not all foods were created equally, some just deliver more...
Why They're Super
Beets are loaded with antioxidants and have been found to protect against cancer, heart disease, and inflammation. Naturally sweet and full of fiber and vitamin C, beets make a delicious and nutrient-packed addition to any meal.
How to Enjoy Them
Try finely grated raw beets in your salads or roast them along with sweet potatoes and parsnips for a colorful and flavorful side-dish-just keep in mind that certain cooking methods (like boiling) may decrease their nutritional value. And don't forget about the leafy green tops, which are rich in iron and folate, and can be prepared much like their cousins, Swiss chard and spinach.
|Direction and Pace of Federal Tax Reform|
|As 2013 comes to a close, we look at the status and pace of tax reform efforts. Unfortunately, recent events seem to ensure those efforts will continue to move at a sluggish pace.
In the House, political bantering has focused on the flawed roll out of the health care law, as opposed to pressing forward with tax reform measures. Any plan to make significant strides toward a tax overhaul would create winners who would pay less and losers who would pay more. With the voices of the losers potentially threatening re-election efforts, they have squelched efforts by House taxwriters to approve a bill this year.The Senate is also proceeding with trepidation on issues related to tax reform with some discussion drafts on various issues recently released.
Of particular note is a draft proposal on international taxation that is receiving a lot of attention. Multinational firms are upset about a provision that would levy a minimum tax on income earned abroad, even though they would be allowed to repatriate profits from foreign operations tax free. U.S. corporations are complaining about the lack of clarity around how much the top U.S. corporate rate would be lowered. While the authors have said that they want to get the maximum rate below 30%, they are unwilling to give an exact rate at this time. The House wants the top rate down to 25% and move to a territorial system that would exempt most foreign income. This will not be an easy gap to overcome.
- Freddy Robinson, CPA, Partner
|North Carolina Reform Efforts|
How Will the North Carolina Individual Income Tax Reform Effect You for 2014?
By Christian Cederholm, CPA, Supervisor
This past July North Carolina Governor Pat McCrory signed into law substantial reform that will change your tax rate and alter the way your 2014 individual tax is calculated.
Prior to 2014, tax rates were based on a graduated scale tied to income with a minimum tax rate of 6% and a maximum rate of 7.75%. Additionally, taxpayers could deduct the same amount on their state return as they did on their federal return for mortgage interest and real property taxes.
Beginning in 2014, the new tax reform brings in a flat income tax rate of 5.8% and state deductions are limited to $20,000 for mortgage interest and property taxes. In addition, NC has eliminated personal exemptions. Prior to this tax reform each taxpayer was eligible for either a $2,000 or $2,500 deduction for each dependent based on the income level of the taxpayer. In 2014 a taxpayer with one or more dependents may see a tax increase unless their income is high enough to offset the loss of the exemption with the lower rates. Generally, as income increases it is more likely for a taxpayer to see a decrease in tax as they have a greater amount subject to the lower rates.
With that in mind, how will the North Carolina individual income tax reform effect you for 2014? The answer largely depends on your income level, the number of dependents claimed on your tax return and whether the standard or itemized deduction is claimed. In general, an individual will fall into one of three categories:
- those that use the standard deduction,
- those that claim the itemized deduction, or
- those who will have their itemized deductions limited on their NC return due to the $20,000 limit on mortgage interest and property taxes.
If the standard deduction is used, the tax impact will depend on the number of dependents and your income level. For example, a married couple with a household income of $50,000 with two children will likely see a tax increase in 2014 from 2013. On the other hand, a married couple filing with a household income of $50,000 without dependents is likely to see a tax decrease. A married couple filing a joint tax return with itemized deductions whose deductions are not limited may see their North Carolina taxes increase or decrease depending on their income level and number of dependents. A married couple filing a joint return that claims itemized deductions and whose deductions are limited due to the real property taxes and mortgage interest exceeding $20,000 may also see a tax increase, but the outcome of this scenario will vary widely based on how much of their itemized deductions they lose and how high their income may be.
The North Carolina tax reform is going to impact each taxpayer's unique situation differently, and in order to determine exactly how this will impact you, we recommend that you contact your tax advisor.
| Recent Developments Related to Payroll Taxes|
By Jill Clark, CPA, Senior ManagerOf concern and interest to most companies, payroll taxes is an area that always receives attention. Below are a couple of important recent developments concerning payroll taxes that you may want to keep in mind:
Many employers will pay higher FUTA taxes for 2013
The 5.4% credit against FUTA tax is reduced for companies in states that have outstanding loan balances from the federal unemployment fund. Employers in eleven states will experience a 0.9% credit cut (up to $63 more tax per employee). These states include Ark., Calif., Conn., Ga., Ky., Mo., N.Y., N.C., Ohio, R.I. and Wis. Also noteworthy are FUTA credit cuts of 1.2% (up to $84 more tax per employee) for businesses in Ind. and the Virgin Islands and a 0.6% credit reduction (up to $42 extra tax per worker) for companies in Del. Therefore, if you are an employer in one of these states you can expect your FUTA tax to be higher when filing Federal Form 940 for 2013.
Having a Title or Formal Position With No Real Authority Does Not Relinquish Liability For Unpaid Payroll Taxes
In a recent court case, Johnson, 4th Cir., an Appeals Court found a woman serving as president and board chairman of a family business responsible for unpaid payroll taxes, even though she had let her spouse act in these roles. Her spouse took over so she could care for their children, while she continued to serve as vice president and wrote checks from time to time. Upon learning that the company had fallen behind on its payroll tax deposits, she continued to pay other creditors and took her salary. This made her responsible for the shortfall.
| During this holiday season and every day in our interactions with you, we wish to extend our sincere appreciation to you for entrusting Bernard Robinson & Company to help serve you and your accounting, tax and other needs. It is our pleasure, and our privilege, to be among your strategic partners to provide innovative ideas and expert solutions.
As another year-end season begins, we look forward to continuing to strengthen our relationship by focusing on and delivering value to help you achieve greater success.
- Bobbie Furr, CPA, Principal